Part 2: Investing in Bali Property During COVID-19
February 27, 2023 •
5 min read
Part 2: Investing in Bali Property During COVID-19

Investing in Bali property has been a lucrative way of generating cash flow for the past ten years and improving your investment portfolio for so many seeking secondary homes, holiday homes or just investments opportunities for development.

Currently, the influx of tourists to the island may have ceased during 2020 heading into 2022 due to the COVID19 outbreak, but preparations for them to return in their multitudes continue in earnest, as we believe Bali will be on top of the list for most looking to have a dream home somewhere warm and friendly.

Moreover, all the time, the flights are grounded, and the price of land and property decreases, golden opportunities to snap up some prime real estate, land opportunities and some amazing hotels and resorts are plentiful. We have seen prices decrease from 20-50% on some villas, hotels and alike.

With so many new changes happening in the economy globally, we believe that more and more people are and will be looking to invest in homes they are able to occupy for a few months a year. This trend seems to be more and more prominent amongst those individuals who are able to work remotely for a few months out of a year.

Investment strategies in Bali prior to the pandemic was commonly to invest in property for immediate profit on rental incomes or longer term leasing. For others this was both a holiday home and income generating. Some investors bought up land in order to build a villa or purchase existing villas they could refurbish and sell on at a better price.

Short term investment strategies in Bali use to be a fast moving investment approach, build and sell on, refurbish and sell on and has proven to be a huge success for most whom has taken on this strategy. With Covid-19 slowing down the influx of travelers into Bali, this has proven to be somewhat slowing down, but by no means stopping. Investors are getting great deals on either land or villas and are able to spend some cash flow in order to build or refurb and sell on at a great profit margins.

Some medium term investment strategies has proven to be very rewarding in the past, where most investors would reap the benefits of the rental market for 24-48 months before selling their investment. This has also slowed down due to the restrictions and less visitors coming through. However the shorter term investment units have taken on the longer term strategy, which varies from 3-12 months rentals instead of daily.

How can you prepare yourself to invest in real estate in Bali?

You have to equip yourself with as much knowledge as possible as to the market trend at the moment. With Bali being a developing country in terms of laws and building practices changing, knowing the right people and getting the right information to assist in the journey is golden.

Indonesia is the largest archipelago in the world and boasts the biggest economy in Southeast Asia, charting impressive economic growth since 1997. Even with the effects of the COVID 19, this country is still the front runner for people looking to invest abroad, and here are a few reasons why we believe investing in Bali is a great idea

Exciting predictions for the future in Indonesia

Jim O’Neil, a former Goldman Sachs economist, earmarked Indonesia alongside Mexico, Nigeria, and Turkey to become the economic powerhouses of the future. He even gave this quartet of countries the acronym MINT and enthused the world over how investment opportunities in Indonesia would show strong growth potential and provide high returns. One of the qualities these countries shared was a young population, which creates a healthy workforce and business-growth friendly legal systems.

Indonesia set to be in the top 5 leading economies by 2030

Mckinsey even went as far as to predict that Indonesia will become one of the largest economies globally by 2030, although post-COVID 19, this could be revised, it’s a strong indication that individuals would seek to live in a place with Warm weather, friendly cultures, unmatched scenery and where living is generally speaking a lot more affordable. Bali is a vibrant country with a government that is pro-economic growth, a speedy economic recovery is predicted. Bank Indonesia said the country’s economic growth could still soar to 5.4 percent despite the ongoing impact of COVID-19, which many fear will dampen economic and travel activity around the world. 

Some fun facts about Indonesia:

• Population 260 million

• Land Mass 1,811,000 km2

• Indonesia has the 4th largest population base globally with 50% of the population under 30 years old

• Mckinsey estimates that Indonesia will become the largest economy globally by 2030, we think it will still make the top 5.

The island of Bali forms the centre of Indonesia’s tourism economy and is one of the most lucrative places to invest in property abroad. Currently, there are some fantastic opportunities to develop land and property on the island.

Finding your dream home away from home shouldn’t be stressful but rather a fun and exciting journey.

Contact us today to find out how we are able to assist you with the knowledge and expertise of our agents.

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Type of property ownership dedicated for local investors or foreigners under legal cooperation in Indonesia. The freeholder of a property owns it outright, including the land it is built on. If you buy freehold, you’re responsible for maintaining your property and land, so you’ll need to budget for these costs and taxes.


Surat Hak Milik (SHM) / Surat Hak Guna Bangunan (SHGB)


Lifetime, or until it’s sold to a new owner

owner status

Indonesian individual only or foreigner who has a company in Indonesia (PMA) to buy the property under that company’s name



Type of property ownership for foreign investors who are willing to purchase the property as an individual. With leasehold, you own the property (subject to the terms of the leasehold) for the length of your lease agreement with the freeholder. When the lease ends, ownership returns to the freeholder, unless the contract states guaranteed lease extension at future market price.


Akta Sewa / Right to use – Right to rent


Average 20-30 years, with possible extension. Maximum 99 years

owner status

All people including Indonesian and foreigner with KITAS-Visa status