Until 2020, the island of Bali actively flourished thanks to tourists. Then the pandemic began, the borders were closed, the flow of holidaymakers dried up. The stagnation of the tourism sector, which brings 80% of the total income in Bali, has dealt a blow to the local economy. Property rentals stood idle, and the construction of new projects was suspended because of quarantine.
The situation began to improve in 2022. After cancelling the quarantine restrictions, the tourist flow began to recover, although it has not yet reached pre-pandemic levels.
The Indonesian authorities managed to support the economy, which was stimulated by two factors:
- Year-round demand. Statistics show that even in the midst of the seasonal rains, holidaymakers still come to Bali. Director General of I Gusti Ngurah Rai International Airport spoke to reporters having said that they expect the results of 2023 to be much better than the previous year, given that the International Airport now handles almost 48,000 passengers a day;
- Active expansion of infrastructure. Island real estate in areas with developed infrastructure is attractive to investors. The limited development area means that you are buying a potentially profitable and liquid asset, since as the number of units available for sale decreases, the cost of housing will only increase.
Now the active development of territories has resumed on the island, especially in popular tourist locations such as Canggu, Uluwatu and Ubud. Free land on the first line by the ocean is almost over, which guarantees the demand for housing in this area, high occupancy rate and high prices for rental property in the future. The rate of rent growth in Bali is 15-20% annually. This allows you to receive a stable passive income and recoup the cost of the unit in the shortest possible time.