The property investment market in Bali is relatively young, which is an advantage. Housing prices are increasing rapidly, but the destination remains affordable compared to other popular tourist destinations. Not only are property prices on the rise, but investor demands are also changing rapidly in Bali. Alex Shtefan, founder and owner of Alex Villas Group, explained how the requirements of property buyers in Bali have changed in recent years.

The situation in the Bali real estate market is really changing: periods of gentle growth in demand for properties, associated with a stable tourist flow, alternate with sharp surges caused by external circumstances.

The market is changing

The Covid pandemic, for example, has provided such a powerful impetus that it has pushed millions of people around the world to work remotely and accustomed them to the idea that the employer and the immediate workplace do not do not necessarily belong to the same place. As a result, despite the fact that the pandemic itself temporarily reduced the number of tourists in Bali by 80%, after the lifting of anti-Covid restrictions, many remote workers who did not want to return to the office began to seek the place offering the most comfortable living and working conditions. And we found such a refuge in Bali. The influx of computer scientists, editors, designers, and photographers has increased demand and, therefore, housing prices.

Another notable factor for the market has been global inflation and investors’ search for markets to invest their capital. Many have started to take an interest in the Asian market and in particular in Bali. Some investors had initially planned to use their property as a source of passive income, but then, for obvious reasons, decided to move to the island themselves.

What do buyers need?

As a result, requirements for new installations have changed. If earlier many were looking for housing close to the ocean and with a picturesque view from the window, since 2022, buyers of villas and apartments who choose housing for themselves (or rely on long-term rental to foreigners ) began to pay more attention to factors such as infrastructure and construction quality. Many people are interested, for example, in how far they are from kindergarten and school. Buyers study locations from a shopping point of view: where the nearest shopping centers are, what the roads and traffic are like, and whether there are cafes and restaurants nearby with a suitable menu.

Our company, for example, always integrates complexes into existing infrastructure. In addition, we will know in advance which important objects will be opened near our complex soon. Before construction began on one of our largest investment projects, Heart of Canggu, we learned that a large sports center would be built on the adjacent site. We did not choose by chance the policy of integrating complexes into ready-made infrastructures; we are building high-performance facilities, and this cannot be achieved if we devote resources to building medical and educational services in our territory. At the same time, various infrastructure facilities are planned on the territory of the complex: a huge swimming pool with waterfalls and depth transitions of 1300 m², jogging and cycling paths, a mini cinema, a coworking space and a podcast recording studio, a rooftop restaurant where you can admire sunsets and sunrises, a SPA area and other services. It is designed for 300 units (villas, apartments and townhouses) and can simultaneously accommodate 900 residents. The opening of the establishment is planned for 2026.

Over the past two years, another notable trend has emerged: the demand for proximity to medical centers. This is partly due to the interest of young foreigners in oriental medicine, and partly because recently people over 60 have started coming to Bali more often. These trips are often longer than standard vacations. Older people not only want to relax on the beach, but also want to improve their health. Hence the demand for medical care and wellness offered by hotels and medical centers.

Furthermore, all real estate consultants and agents unanimously affirm that investors have become more economical. People who plan to rent a home carefully study the potential rental income before the transaction, the difference of which is wide – from 8-9% to 15-20%. Moreover, the affair is not satisfied with unfounded promises. Clients increasingly began to request detailed calculations at the stage of investing in a construction site, not to mention the conclusion of a contract for the management of a villa or apartment.

There is also a demand among investors for a decent level of service. This applies to the response time to the first request, access to documentation on the object, work monitoring and after-sales service.

How do sellers react?

Buyers’ demands encourage private agents and real estate agencies to be more attentive to customer requests. In this, they of course give a head start to property managers, who often lack time and resources. The same trend motivates large developers to open a separate company within their holding company, which will be responsible for the purchase and sale of investment real estate. In a sense, this is a guarantee of high quality construction and delivery of the project with the best possible result, because this option benefits all parties. But the most important thing is that ultimately such trends have a beneficial effect on the market, because in the future they will undoubtedly lead to its cleansing from dishonest players and low-quality projects. And such dynamics are already visible.