Published on : Tuesday, May 15, 2018
In Bali, tourism in a way nourishes the real estate sector. A report in February released by Global Property Guide comes to a conclusion that 80 percent of Bali’s finance depends on tourism, and that there are almost 30,000 expatriates currently residing in Bali. These, together with growing investments by Indonesians and foreigners resulted in “unprecedented property price increases in recent years”.
Terje Nilsen and Andy Gray, the principals at Seven Stones Indonesia, were present in Bali when things went a little crazy. To quote Nilsen, “Some strategic areas, especially those on the edges of where tourism development was in those days, areas like Seminyak for example, saw prices go through the roof. As much as 10 times in a very short space of time.”
Global Property Guide observes that a four-bedroom villa constructed on freehold land in Berawa and cost between US$600,000 and US$700,000 six years back is of current value of around US$1.7 million. In last year, Bali villas cost around US$1,100 to US$2,300 per square metre.
As per the 2017 market report on the other hand, the supply of villas on the island increased 7 percent year on yearly basis. Asking rate had an annual growth average of 36 percent even though there was a 69 percent drop in monthly absorption rate.