Main Articles Analysis of real estate properties in Bali

Analysis of real estate properties in Bali

In this article.
What affects the value of an object? What affects the profitability of a facility? How to properly evaluate a location in Bali
Before investing in real estate on the island, it is important not only to look at the appearance of the villa or apartment, but also to deeply analyze the cost, yield and local market features. Here's what to look out for

What affects the value of an object?

1. Location : the closer to popular tourist areas (Changu, Ubud, Uluwatu, Seminyak), the higher the cost.
2. tourism potential: how attractive is the location for short-term rentals? Are there attractions, beaches, cultural sites nearby?
3. type of property: villa, apartment, hotel or commercial property - each property has its own level of demand and costs.
4. Legal status and licenses: Is the land owned (SHM) or leased? Are there PBG, SLF licenses?
5. Investment climate: projected price growth in the neighborhood, interest of large developers and government initiatives (infrastructure projects).
6. Infrastructure : availability of nearby roads, water supply, electricity, stable internet and other basic conditions.

What affects the profitability of a facility?

1- Rental Return on Investment (ROI): how much does the property bring in per year from rent, in % from the investment?
2. Potential increase in value: is flipping possible - resale at the completion stage at a profit?
3. operating costs: cleaning, security, maintenance - this affects net income.
4. Capital investments: do you need to make repairs, install furniture, appliances?
5. Payback: in how many years can the investment be recovered?
6. Seasonality: it is important to understand how this will affect utilization.
7. Additional services: income from transfers, excursions, food delivery, massage, bike rentals, etc.
8. Financial analysis: counting income and expenses for each scenario - daily rent, long-term rent, resale.

How to properly evaluate a location in Bali

Unlike major metropolitan areas, in Bali, location appreciation is not just about the city center or proximity to the subway. It is important to consider the day-to-day logic of life on the island:

1. Distance from the ocean (minutes by bike) Optimal: up to 5-10 minutes
2. Distance from the center of a particular neighborhood Changgu Center ≠ Bali Center. Analyze locally.
3. availability of infrastructure nearby (within walking distance or 2-5 minutes by bike):
* Grocery stores
* Cafes and restaurants
* Popular places (terraces, temples, beaches)
* Beach Clubs
* Laundries
* Coworking and fitness rooms
4. Quality of construction: materials, engineering solutions, heat and noise insulation, ventilation - affect durability and comfort.
5. Legal cleanliness: check documents: title deeds, permits, building licenses. Especially important in Bali, where laws are complicated for foreigners.
6. Communications and amenities: availability of water, electricity, internet, sewerage, security systems, parking, security, etc.
7. Window views and orientation: panoramic views, sunsets, ocean or jungle views increase the attractiveness and value of the property.
8. Having a management company: professional management of rent, maintenance and repairs increases income and eliminates headaches.

Analysis of real estate properties in Bali
Get a discount on buying a property under construction 15%
Rating of real estate agencies