Bali is a paradise not only for tourists but also for investors. Here you can combine business with pleasure: earn passive income and relax in one of the most comfortable and safe places in the world. In this article, we’ll dispel the main myths about Bali and explain why the island is ideal for living and earning passive income.
The island attracts people from all over the world, significantly outpacing popular Southeast Asian resorts like Phuket, Thailand, and Goa in terms of tourist growth. Tourists fall in love with the resort’s unique atmosphere and return again and again.
Bali’s popularity is growing year after year, not only among vacationers. International companies are coming here with global projects, and more and more investors are investing in the island’s real estate, achieving the highest returns in the world. For example, a Formula 1 circuit is being built, and Paramount Pictures will build the largest amusement park in Southeast Asia in Bali. Apple and Microsoft are also considering establishing production facilities in the country.
However, some investors are still unsure about Bali’s reliability. Their doubts stem from a lack of factual information and vague perceptions of life on the island. Let’s start by clarifying some of the most common misconceptions. Many are associated with the country in general, not Bali specifically.
Myth 1: Indonesia has an unpredictable economy
The country’s economy has grown exponentially in recent decades and continues to grow: Indonesia currently ranks seventh in global economic size. According to PwC forecasts, the country will be among the top five global economies by 2030.
Rapid economic growth contributes to the stability of the country’s population and investors. Inflation is declining annually, and the national currency is strengthening against the dollar. For example:
In 2024, the inflation rate is around 3%, according to Trading Economics;
After 5 years of rapid economic development, the national currency exchange rate remains stable against the US dollar; Over 10 years, GDP grew by more than 250%, and over 20 years, by more than 1,100%.
Myth 2: Indonesia is a third world country
In recent decades, Indonesia has achieved new levels of development that are the envy of most countries on the planet. Indonesia is a member of the Group of Eleven; countries that will become leaders of the international economic system in the 21st century. There is also every reason to believe that the digital economy will triple in size by 2025.
Since 1997, Indonesia has been a member of the G20; a club of governments and central bank governors from countries with the most developed and emerging economies.
In 2022, the country assumed the presidency of the G20 Summit, a forum that brings together the leaders of twenty of the most advanced countries. It’s no coincidence that the meeting was held in one of Indonesia’s most promising and attractive destinations: Bali.
The island deserves special attention from investors. Firstly, it boasts a highly developed infrastructure: from cafes and restaurants serving cuisine from all over the world to world-renowned beach clubs and cultural heritage sites. Everything a modern person could possibly need can be found here.
Secondly, Bali already offers significant development prospects in the global market. The Indonesian government aims to double tourism, and five major global projects have been announced for the island:
- the largest theme park in all of Southeast Asia from Paramount Pictures;
- Formula 1 tracks in northwest Bali;
- new port for cruise ships;
- Diamond Sanur pier;
- Silicon Valley in partnership with China and America.
The summit and all these large-scale projects will attract even more investment and tourists to the country, and especially to the island of Bali.
Myth 3: There aren’t many tourists in Bali
In fact, Bali is one of the most popular tourist destinations. In the first quarter of 2024 alone, Bali welcomed 1,344,541 tourists. This is a 31.05% increase over the same period last year.
As rental inquiries in Bali increased, owners began raising prices, and this increase continues.
The island’s popularity is also fueled by its inclusion in popular international rankings. Bali was recently named the best travel destination for couples in 2024 by travel magazine Travel + Leisure. Furthermore, this year, Bali was named one of TripAdvisor’s top travel destinations for the 13th time, beating out London, Rome, and Paris.
Myth 4: Bali has poorly developed infrastructure
Today, people travel in very different ways: some are drawn to ecotourism, others prefer a premium vacation with top beaches and hotels, others seek a relaxing family getaway, and still others seek parties and fun.
In Bali, you’ll find it all, no matter what your vacation preference. Here you can rent magnificent villas, stroll through shops and shopping centers, visit spas, numerous restaurants, cinemas and water parks, and enjoy beach bars and nightclubs. The most touristy areas are Canggu and Seminyak, densely populated with hotels and villas, shops, bars, and restaurants.
Bali is a hub for premium hotels. The island boasts over 250 five-star hotels, including world-renowned Four Seasons, Marriott’s, Kempinski, Novotel, Grand Hyatt, Raffles Bali, Radisson, Mulia, and the Ritz-Carlton Reserve, among others. A total of 3,500 hotels.
In addition to its developed tourist infrastructure, the island has everything needed for permanent residence and development: international schools and kindergartens, medical centers, and large sports complexes. The business community is growing, and forums and conferences featuring top speakers are regularly held here.
Bali is also currently undergoing a digital transformation. The Ministry of Tourism and Creative Economy is proposing to introduce five-year visas for “digital nomads”; those who can work from anywhere in the world. The authorities thus aim to transform the island into a new Silicon Valley, home to the world’s most advanced startups and a place where specialists from all over the world will work.
Myth 5: Foreigners cannot buy property in Bali
Indonesia regularly simplifies property ownership for foreign investors. The primary form of ownership is leasehold (Hak Sewa). In Bali, over 90% of all transactions are concluded under this type of contract.
Its advantages include:
- gives the owner full rights to use the land and the property, and to resell it for the duration of the contract;
is inherited; - concluded for a specified period, during which the owner has a priority right to extend the lease.
IMPORTANT
You can complete your real estate purchase remotely. If you’re dealing with a reputable company, the process will take 1-3 days, and the risks won’t exceed those of purchasing property in your home country. It’s also convenient that you can purchase real estate with cryptocurrency if you’re considering converting your virtual money into real, tangible investments.
Myth 6: It’s not profitable to buy real estate in Bali right now
Today, Bali is one of the world’s most attractive investment destinations. The island generates an average income 2–2.5 times higher than the global average. Here’s why:
This is a developing resort that ranks among the top destinations in world rankings.
The season here lasts 365 days a year, more than 320 days of which are sunny.
High occupancy: on average 85% in tourist locations.
Low cost of real estate compared to resort real estate in other countries.
A small tourist area, 90% built up.
There are more tourists coming to the island than available accommodation options.
In addition to all of this, the island has a shortage of suitable land for construction. More precisely, only one-tenth of Bali is suitable for habitation. This is the main reason for the constant rise in land prices and, consequently, real estate prices.
The Reality of Bali
Bali is much more than just surfing, hipsters, and beautiful nature, as many people imagine. It has everything you need for a happy life and a vibrant, unforgettable vacation: year-round warm weather, a friendly population, natural attractions, schools and gardens, medical centers, tourist activities, all kinds of food; the list is endless.
The island is a leading tourist destination worldwide. It is a rapidly developing location with a strong economy.
In just a few years, land and real estate values will double or triple due to increasing tourist traffic, land shortages, and billion-dollar projects under construction, which will become tourist attractions from around the world.
We invite you to a free consultation at Magnum Estate, where we will explain every advantage of Bali in more detail and select the right investment for you, allowing you to earn at least 12% per annum.
Bali in world rankings
- Ranked #2 in the world by Tripadvisor as a “Best Travel Destination 2024”
- Top 10 destinations for Chinese tourists, according to Airbnb
Asia’s Best Island for Tourists, According to Condé Nast Traveller Magazine - Indonesia has been named one of the world’s top 5 investment destinations in 2024, according to SEOworld.
- Two Bali beaches have been included in Banana Boat’s 2024 list of the world’s 50 best beaches.
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