Tourism and real estate in Bali in 2024

Tourism in Bali: Still an attractive destination in 2023

In 2022, Bali recorded almost 2 million international tourists (see our April 2023 article on the subject). In 2023, the island will see a 150% increase in visitor numbers compared to 2022, with 5.25 million international tourists. Continuing on this path, it is likely that the figures for 2024 will be equal to or greater than those for 2019. This steady growth in tourism to Bali reflects the island’s resilience and continued appeal on the international stage, despite the difficulties posed by the international context, notably the Russian-Ukrainian conflict and rising travel costs.

The challenges for 2024: Sustainable tourism with strong purchasing power

For 2024, Bali’s main challenge is to promote sustainable tourism and avoid overtourism, which puts pressure on both its infrastructure and the quality of life of its inhabitants. To this end, the Indonesian government is looking to introduce measures in 2024 to attract responsible visitors with high purchasing power, who will contribute more to the development of the local economy. This starts with the introduction of a one-off $10 tax from February 2024 for international visitors, aimed at contributing to the conservation and maintenance of Balinese cultural heritage.

By December 2024, the Indonesian Ministry of Tourism aims to welcome 7 million tourists, slightly more than in 2019. Having already surpassed its 2023 targets, this is a promising prospect for investors, especially as Bali is increasingly focusing on high-end tourism. So there’s good rental potential for properties that can accommodate these high-paying visitors.

Bali real estate in 2024: an evolving market

In Bali and Indonesia in general, property values and yields are expected to remain attractive for 2024 and beyond. According to analysts at Mordor Intelligence, the Indonesian real estate market is expected to grow from USD 61.22 billion in 2023 to USD 81.24 billion in 2028, with an average annual growth rate of 5.82%.

In Bali, rental costs are set to rise by an average of 15% to 20% a year, and the average occupancy rate of properties is expected to be between 65% and 80%.

Investing in luxury: a sure bet

These figures are promising for investors wishing to acquire real estate in Bali, particularly in luxury properties, which remain rarer while meeting the growing demand from high-end visitors. They are therefore likely to achieve good occupancy rates at high rents.

What’s more, the Indonesian government’s efforts to make Bali a destination for visitors with high purchasing power promise good prospects for luxury real estate in the coming years. The development of road and rail infrastructure, amenities and services tailored to expatriates are also helping to “unlock” new areas of Bali for visitors and investors, such as West Canggu and Bukit Uluwatu by 2024.

Where to invest in Bali in 2024?

In the Seminyak and Ubud areas, you’ll find lovely European-style villas, complete with private pool and garden. However, the rarest properties with the best land can be found on the Bukit peninsula, as this is where you’ll find the most superb sea views from Bali’s steep cliffs.

In 2024, the ongoing development of infrastructure and roads will provide easier access to new land, particularly in Uluwatu, where rare pearls with high potential can be found. This is where investors are advised to turn: acquiring a villa on sea-view land in an up-and-coming area is a sustainable and profitable investment, allowing you to benefit not only from Bali’s tourist appeal, but also from the island’s natural assets.

Osiris Investissements has just opened its new real estate agency in Bali! Meet us just a few minutes from Jimbaran beach, to discuss your project and plan your future acquisition. Contact us for more information.

Sources :

https://thebalisun.com/bali-aims-to-welcome-7-million-tourists-in-2024/

https://www.mordorintelligence.com/industry-reports/real-estate-market-in-indonesia