Firstly, before we talk about a comprehensive overview of Bali’s property market and economic outlook for 2024, let see in bigger picture of Indonesia as a country. Demand in the Indonesian real estate market varies across different price segments. The current property market is center around searches in specific categories:

• The mid-range segment (IDR 300 million to IDR 750 million) constitutes a substantial 18% of demand.
• Premium properties, priced between IDR 1.5 billion and IDR 4 billion, experience strong demand, contributing 34% to searches.
• Luxury properties (priced above IDR 4 billion) represent 18% of searches, indicating significant interest.

Furthermore, analyzing rental yields provides crucial insights into property market dynamics. Daily rental rates, dependent on size, average around IDR 2,281,000 per day. Notably, two-bedroom units command a daily rate of approximately IDR 4,123,000. While villas with three and four bedrooms have rates of around IDR 7,000,000 on platforms like Airbnb. Understanding these daily rental prices is essential for evaluating the viability of property development projects for investment.

Moreover, looking ahead to Bali’s economic outlook for 2024, analysts anticipate the continuation of positive trends observed in 2022. Projections indicate that Bali’s economy will experience growth ranging between 5.50% and 6.30% in 2024. Contingent upon the absence of major global disruptions. This anticipated growth is underpinned by advancements in sectors like tourism, trade, construction, and agriculture.

Not only…but also inflation in Bali is well-managed and expected to remain within the national target of around 3%±1% in 2023. The 2024 projections indicate stable inflation, possibly approaching the lower end of the 3%±1% range. Thanks to balanced supply and demand dynamics.

The impact on the property sector is substantial:

1. Increased Demand: Economic improvement and growing tourism are expected to drive demand for properties, particularly in the tourism and hospitality sector, including hotels, resorts, villas, and short-term rental properties.
2. Rising Prices: With increased demand and potential investment inflows, property prices in Bali may appreciate, making it an attractive sector for investors.
3. Construction and Development: Ongoing strategic projects are anticipate to continue into 2024, indicating that the construction sector, directly influencing the property market, will remain robust. New projects catering to both local residents and tourists, such as housing complexes, commercial spaces, and infrastructure improvements, are likely to increase.
4. Sustainability: As the property sector expands, concerns about sustainable development may rise. Balancing development with preserving Bali’s natural beauty and cultural heritage will be crucial. Emphasizing environmentally friendly and sustainable property development may gain attention.
5. Property Credit and Financing: Positive signs in the banking sector and increased banking intermediation may make property financing and mortgages more accessible. This could further boost demand in the property market, facilitating investment for both local residents and foreigners.

In conclusion, the outlook for Bali’s economic in 2024 is promising, with the property sector poised to be a major beneficiary of this growth. However, strategic and sustainable development is vital to ensure long-term benefits for the island and its residents. The potential for growth in the tourism and infrastructure sectors also presents attractive investment opportunities in Bali.

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