According to the recent market
trend the investors are more inclined to invest in the small scale, nature
friendly tourist accommodations like homestays. The Bali investment market has
registered a sudden increase in the investment in such property this year.
The head of Buleleng Economic
& Development Affairs Office, Mr. Gede Gunawan has revealed this report on
Bali Daily few weeks ago. According to that report, a few years back investors were
more prone to build large hotels and beach houses, but now they have shifted
towards the development of small houses.
As we see the increase in land
price it has increased by 50% throughout the year 2012, few areas like Seminyak
the increase in rate was even higher up to 88%, and the trend seems to still
increasing. This could be the perfect time for anyone who wants to invest in
Bali real estate. Usually the increment in the rates were recorded around 8-10%
in the past.So what is the reason beahind rapid growt of real estate industry?
Mr. Dewa Putu Selawa, chairman Real
Estate Indonesia, Bali branch has recently reported that this rise in real
estate sector can go up to 100% per year in the next few years and the main
cause of this rapid increase is the growth of the Bali tourism industry. Bali
investment agencies have made fortunes through the real estate and tourism.
Most of the foreigner tourists
who visit Bali decides to buy a villa or small house there which can be a
permanent residence in case they visit the island regularly. Most importantly
they felt comfortable living in Bali and this condition has triggered the
growth of real estate industry. Another major reason is the unequal economic
development of the areas between south Bali and other regions. Southern part
has become more popular with the foreigners and they invest in that area
mostly, since other parts lack infrastructure.
The rates of the property are
still very reasonable for the purpose of investment in Bali, Generally the
price of land ranges from $50 to $2000 per square meter, but the price depends
upon the location mainly. For a popular location like Seminyak or Petitenget
price can go up to $500 to $1500 per square meter. More the place is near the
beach and popular higher will be price.
Bali investment market is the
most profitable in the Indonesia and everyone is trying to make their place in
that market. Although, according to the law, foreigners are not allowed for
buying land in the country, but most of the foreigners have purchased the land
in the name of their friends or relatives living there or build a Bali resort spa. This is the most common
practice for property purchase in Bali investment firms are there to help you
with all of this.
Since everyone want to live where he find similar peoples and culture and most of the expat who shifted here earlier in the island of Bali, so the new families coming to Bali buys property in Bali and it also one of the reasons for the rapid growth of the Bali real estate industry.Some people invest to buy the property for th pirpose of living and some buy it to rent out according to the Bali villa management organizations, in any case they have made a profit and a good investment.
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