Trends in the Bali Villa Market
Posted on November 2, 2007
Filed Under Villas
There are three trends emerging in the Bali property investment market. The building and branding of smaller boutique hotel villa resorts, expanding at an amazing rate, with new villa developments comes on the market almost every month. Most hotel villa developments are offering 20-30 days a year vacation time in your own villa, whilst the remainder of the year your villa is offered for tourists and gathers a return on investment from being in ‘the income pool’.
Typical prices range from US$250 a night to US$600 during high season. As a return on investment for foreign owners this represents quite a substantial income from a property investment compared to property owned in their own country.
The only downfall is that most property in Bali is fully financed and there are an unusual amount of pre-requisites to acquire finance on your property in Indonesia. Certain banks are now making these loans available, and investors are making use of this facility to purchase properties in Bali and Jakarta. Rates are not yet favourable. Developers are offering longer financing options on hotel villa developments and guaranteed RoI offers are quite common during the first two years of ownership. From experience a quality investment will make a higher return than offered by the developer.
Another trend is for customized private villas to be built to your specifications. There is a fantastic choice of architects in Bali creating some stunning villas. From award winning local architects with tropical projects all over the world to European and Australian architects bringing their ideas here to our tropical Bali paradise.
The key for a successful build here in Bali is to have a project manager to plan and execute the building specifications from the architect, and liaise with the purchaser on a daily and weekly basis. For best results it is often an international quality control specialist who can best create the standards expected in a project of this importance to your investment portfolio.
From private estates on several hectares of land and private homes with swimming pools on 3 levels and modern landscaping setting off large private spaces, incredible views of rice fields, rivers, beaches and enormous gardens. Many of these homes are now selling in the 2 million euro + range and offer investor confidence for Bali property.
Kaba-Kaba Villa Private Residences are offered on areas between 1,500 sqm–4,500 sqm. This is a growth area with views to a large river only minutes drive to popular Canggu beaches and golfing at Nirwana one of Bali’s most incredible courses. This is a private home with 4 master bedrooms and 2 private bungalows beside the river. The villa’s have a large customized swimming pool, private gym, cinema, spa baths in each bathroom and exquisite natural landscaping, making this an ecologically thoughtful investment. The method of building uses an outstanding clean build, and every part of the interior furnishings is customized to suit your needs. Prices start at US$750,000 with all built in interior furnishings included.
The third trend we are seeing is investors who have been aware that ‘one day’ they will be spending more time in Bali, often financial markets professionals or expats currently working in Asia and Baby boomers from England, Australia, France, Italy, Spain and many areas, are realizing that they have put off their initial Bali property purchase for long enough already. The market is moving and prices are rapidly appreciating on land in popular areas such as Seminyak, Oberoi, Kerobokan, Canggu and Jimbaran/ Bukit.
These buyers are looking to purchase now, as they have a plan to be in Bali permanently or semi-permanently in the next 5-15 years. These investors have been seeking customizable developments where they do not necessarily have to be responsible for the build, however because of their long term plans, quality and creating spaces suitable for their future use is essential. These soon to be Bali residents are seeking safe developments on larger land sizes, with landscaped gardens and large, livable areas.
The tendency here is for the time being, using their investment as a ‘private hotel villa’ during their time away from Bali, maximizing their returns by creating an income from tourism as well as the certain appreciation of land and villa from today’s prices. Several luxury villa brokers are taking care of the maintenance and marketing of these exclusive ‘homes’.
In Canggu a private villa estate in an enchanting Balinese village is available on land sizes between 650 sqm–730 sqm. These four luxury private homes are offered with 4 bedrooms and include all furniture and fittings. Priced between US$420,000-US$460,000, they represent great value for money with built areas up to 600 sqm, huge wooden decking onto the spacious garden areas and long rice field views make this a place you could call home. Strategically located 5 minutes to the Canggu International School and Private members sporting facilities this represents one of the best investments in Canggu. ***
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One Response to “Trends in the Bali Villa Market”
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Well-written article. As a property agent in Bali, I would agree that there’s been explosive growth in the market. Mostly from expats living in Singapore, who are well positioned and sufficiently wealthy to invest in higher-end properties in Bali. There’s been numerous interest in the Bukit end of Bali, which has been seeing the most growth in the past few years. Developers such as Banyan Tree and Outrigger have massive projects on the cliff-front. Outside of developments, buyers are finding interest in stand-alone villas paired with villa management companies to offer rental returns. A good healthy trend in Bali