The global economy came to a standstill during the early stages of the COVID-19 pandemic. As mobility was significantly reduced due to social distancing mandates, many businesses were forced to halt or slow down their activities.
Due to the global disaster, many businesses were forced to shut down or downsize. This situation led to a significant economic slump and a massive decrease in spending. Vaccine rollouts continue to occur, and herd immunity is slowly being achieved. Thus, the global economy begins to recover gradually.
With economic recovery on the horizon, 2022 would be the best time to invest in property. This is because of the steadying economic conditions, price corrections, and government aid that boost spending.
Things to Consider Before Investing in Property
Things to Know Before Buying Property
Foreigners are historically not allowed to own any property except buildings with a strata title in Indonesia. However, as time passed, foreigners were now permitted to enter into long-term lease agreements that could go up to 70 years.
Although the new policy does not mean that foreigners are permitted for buying a property, they are most definitely allowed to ‘own’ properties through long-term leases. After deciding on a particular property or piece of land, an individual must determine the type of right that is exercisable over said property.
Before buying a property in Indonesia it is essential to conduct a Property Title Background Check. This is beneficial to identify the original certificate of ownership and the legal status of the property or land. The measure is crucial as it will indicate disputes, outstanding payments, and other information.
Reasons for Buying a Property in Bali
Bali, in itself, is an excellent location for many things. Buying property in Bali would be a good decision as it is an international tourist hub that continues to attract local and international tourists. Aside from Bali’s popularity among tourists, the climate for conducting business is also very hospitable. It is primarily influenced by stable prices, high demand, and dynamic conditions. These factors led to the increasing property prices in Bali by approximately 25% every year. This number is expected to grow to twice the initial number within the next 3 to 5 years. Bali’s infrastructure also is continuously improving and is built based on culture.
The Provincial Government works hard to ensure the balance between the two to ensure that the Balinese culture remains intact during rapid development. The infrastructure is also made specifically to increase efficiency and ease for travelers and locals.
Locations to Invest in Balinese Property
Seminyak is a step up from Kuta and is filled with posh restaurants and bars. Aside from that, Seminyak also has several spas and shopping centers, making it a prime tourist spot.
Pererenan is a quiet region that is less developed than the others. It has ample opportunities and is projected to see tremendous growth. It is due to these reasons that property prices are on the rise.
Umalas is sandwiched between Seminyak and Canggu, making it a prime investment spot. It still has the availability of land and holds abundant choices for investment. It is quieter and secluded, thus making it a preferred option for a large number of tourists.
Canggu is an up-and-coming area in Bali that is mainly filled with digital nomads, hipsters, and yogis. The location is excellent as the establishments within this region are relatively new. Canggu property is selling fast as demand is at an all-time high.
This area is expected to develop rapidly and is the center for intensive infrastructure development. The prices of property in this area have remained relatively stable. Some development plans have already begun in this area and continue attracting premium property investors.
This area is much different from others on the list as it is more down-to-earth and connected to the locals. It is still very close to all the action and provides easy access to other areas such as Canggu, Seminyak, and Denpasar.
Seseh is mainly unoccupied, but there are plenty of investment opportunities for those looking. Unlike Canggu, Seseh is relatively untouched. Thus, it is a strong contender for early bird investors looking to have properties in less famous regions.
Uluwatu may be considered one of the safest options as it is home to some luxury spots and exclusive properties. It has several hidden beaches and is a Mecca for surfers worldwide.
The lush jungle surrounding Ubud has become a sanctuary for many digital nomads, home to Bali’s rich culture and rice fields. Ubud has several co-working spaces which attract those who are there to work. Ubud is one of the most popular tourist destinations, making it an excellent investment region.
Sanur is perfect for those who are already aged. It offers a slower ambiance and lifestyle compared to the bustling nature of other regions. The location is continent and is packed with all the relevant facilities. Rentals within this area have increased revenue in recent years.