The Bali property market has experienced significant fluctuations since the onset of the COVID-19 pandemic, leaving many potential foreign buyers wondering about the future trajectory of villa and home prices on the island. Let’s examine the recent trends and insights to better understand what to expect in the coming months.
Price Trends Since 2019
To illustrate the price trends of villas and homes in Bali, let’s consider a typical 3-bedroom villa in Canggu, one of the most popular areas for foreign buyers:
The data indicates a distinct V-shaped recovery in property prices, featuring a steep drop during the pandemic followed by a strong rebound. This trend is not limited to villas; a commercial property index from Statista shows a similar V-shape, with a significant increase starting from 2022.
Market Recovery and Current Situation
The Bali property market has rebounded remarkably since mid-2022, driven by several factors:
- Return of tourism: With the lifting of travel restrictions, tourist arrivals have increased significantly, boosting demand for short-term rentals and investment properties.
- Influx of digital nomads: Bali has become a hotspot for remote workers, creating a new demographic of long-term renters and potential buyers.
- Limited supply: The pause in construction during the pandemic has led to a shortage of new properties, putting upward pressure on prices.
- Increased foreign interest: The pandemic has prompted many to reassess their lifestyle choices, leading to increased interest in owning property in tropical destinations like Bali.
Are Prices Likely to Come Down?
Now on to the question, will villa prices in Bali likely to come down? it seems unlikely that villa and home prices in Bali will decrease significantly in the near future.
Let’s break it down:
It’s important to note that Indonesia, particularly in Bali, is actively encouraging foreign investment. This policy is part of the nation’s broader strategy for growth and development. As a result, Indonesia is increasingly open to foreign investment opportunities.
For instance, the introduction of the Golden Visa policy is a clear indicator of this shift. Currently, even tourists holding a visitor visa are permitted to purchase property in Bali.
Apart from that, the new airport in Buleleng, Bali LRT, and toll roads will significantly improve accessibility across Bali, particularly to areas that were previously less developed. This increased connectivity typically leads to higher property values as these areas become more desirable for both residents and investors
While these infrastructure projects may make some previously less accessible areas more affordable initially, the overall trend points towards increasing property values across Bali. The new developments are more likely to drive growth and investment rather than cause a downturn in prices.
Bottom Line
On a national scale, home / villa prices are not expected to decrease and are likely to continue growing at a moderate pace. However, prices can vary significantly depending on the local market. This is where a reliable real estate agent becomes invaluable. If you have questions about current price trends in your area, don’t hesitate to consult with an agent.
