Real estate investment in Bali is the top trend for 2024. This young, rapidly growing market is experiencing explosive popularity among foreign investors. Most choose Bali real estate as a way to diversify their asset portfolio and secure a stable income. However, before making an investment decision, it’s important to decide in advance what type of property to invest in: a villa or an apartment? With or without infrastructure?
For a novice, the differences between properties may seem insignificant, but not in Bali. Here, the type of property determines not only the costs of upkeep and maintenance but also the return on investment. Let’s find out!
Start by setting a goal
First, determine the purpose of your Bali property purchase—investment only, vacation and residential use, or resale. Each option is common in Bali and has its own specifics, including investment returns.
When choosing a home for yourself, be guided solely by your personal expectations and tastes. If you’re buying property for rental or resale, we recommend conducting research and paying attention to tourism trends.
After setting your goals, move on to choosing a neighborhood and property type. It’s important to pay attention to trends in a particular neighborhood. For example, villas are predominantly found in Bukit, while both villas and apartments are popular in Canggu, and hotels and complexes with amenities and services are preferred in Sanur. Following these trends will determine the profitability of your property and its occupancy rate. Let’s examine the pros and cons of different property types in more detail.
Are villas a promising asset or an expensive liability?
A villa nestled among rice paddies is the island’s mainstay, directly associated with luxury vacations. Probably every second person would love to own a villa surrounded by natural beauty. Typically, such properties in Bali are purchased more to demonstrate status than as a lucrative investment, but there are exceptions.
The main advantage of a villa is its privacy and comfort.
These properties on the island have private plots of land with a pool, garden, and even private beach access.
Another undeniable advantage is that villas are a highly sought-after and popular type of accommodation among wealthy tourists. They rent such properties for both short and long terms.
However, not all investors are willing to assume the risks of villa ownership. Due to the humid climate, villas here require constant care and maintenance, which incurs additional expenses.
To generate real income, investors will have to manage their own upkeep and maintenance, which adds another layer of expense.
Amid growing investment in Bali, the emergence of fully-fledged villa complexes has become a true must-have for investors. They combine all the benefits of a villa vacation while mitigating the downsides—they are maintained by a dedicated management company, providing guests with full hotel services.
Villas in Bali currently offer high potential for appreciation; demand for them is higher than current supply, so some investors are actively choosing such properties for resale.
While the situation with villas in Bali is more or less clear, what are the specifics of purchasing apartments in Bali?
Apartments – a profitable investment or a typical asset
The main advantage of apartments over villas is that they are less expensive. This makes them more accessible to a wider range of investors. Apartments are also a convenient investment, as they are typically located in residential complexes with amenities and services, such as a swimming pool, gym, or restaurants. Apartments in residential complexes typically enjoy more stable rental demand from tourists.
The disadvantages of this type of housing include the lack of private grounds and privacy. Furthermore, apartments are often built in busy areas and may be adjacent to noisy neighbors, such as beach nightclubs or karaoke bars. This will significantly impact the comfort of potential guests, the price, and the ultimate profitability.
Hotel-style real estate with its own premium infrastructure and management company is currently gaining popularity in Bali. Investors essentially become the owners of a suite in an exclusive hotel with a restaurant, spa, pool, and private beach access. Magnum Estate is the leading developer of this type of housing in Bali.
To implement our projects, we select the most popular locations with all the necessary infrastructure, while also creating our own. We place a primary emphasis on the uniqueness of our projects, five-star service, and our own on-site management company, which will handle all aspects of property maintenance, client acquisition, and accommodation.
Among the unique offerings are the apartments and penthouses at Magnum Resort Sanur. This is one of Bali’s most investment-attractive projects in the ultra-luxury segment. Situated on the beachfront, it covers 12,000 square meters. Among other complexes, it stands out for its private sandy beach and yacht, available to all residents and guests.
Another flagship project is Magnum Resort Berawa. The complex is already world-famous for its record-breaking rooftop pool. The complex will also feature a restaurant serving signature cuisine, a café, a spa, and even a beach club, all of which are very popular among tourists in Bali.
