Why invest in property in Bali post-COVID 19?
15. 1. 2021
Investing in property in Bali has been a lucrative way of generating cash flow for the past ten years and improving your investment portfolio. Currently, the influx of tourists to the island may have ceased temporarily due to COVID19, but preparations for them to return in their multitudes continue in earnest. 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 in Bali are born. As said by Winston Churchill: "Never waste a good crisis."
Bali remains a top tourist destination, with pent-up demand and expected strong recovery. This island has historically been resilient against downturns and could recover within a year of the outbreak being over.
When travel plans resume after COVID-19, Bali is expected to retain its attraction to a variety of visitors; from beachlovers and surfing enthusiasts, to xenophiles and aspiring social media influencers pursuing its “Instagrammable” spots.
Bali is not only about international tourism anymore
Domestic visitors are expected to continue growing, encouraged by Indonesia’s rise in ultra-rich individuals and the flourishing start-up scene Indonesia’s population of more than 265 million presents a vast local tourism market with a steadily increasing middle-class demographic. The number of domestic visitors grew from 8.7 million in 2017 to almost 9.8 million in 2018. Hotel Investment Strategies LLC forecasts domestic visitor arrivals to reach 12.9 million by 2023.
The expected growth post COVID-19 will likely see the number of Indonesia's ultra-rich individuals to jump by 57% over the next four years, the second-highest increase in Southeast Asia, reflected by the Knight Frank Wealth Report 2020. The growth of Indonesia’s ultra-high-net-worth individuals (UHNWI; or those with a net worth of more than US$30 million), is projected to be the fifth highest in the world. This translates to sustained demand for real estate in Bali, given its international appeal.
Tourism in numbers pre-COVID 19
In 2019 Indonesia's GDP increased by 7.7% to pass the 1.1 trillion dollars mark, or 79 billion more than in 2018, according to the IMF.
There is huge domestic demand, with Indonesia having a population of 270.000.000+ and a growing and highly mobile middle class
WHY BALI?
Bali is universally recognised as a top travel destination in South East Asia.
Bali recorded more than 6.3 million tourists in 2019, an increase of more than 6.5% compared to 2018.
In 2017 Bali was named global winner of TripAdvisor’s Traveler’s Choice Awards, which identifies the best destinations in the world.
There are also 17.7 Million Indonesian tourists who transited through Bali in 2019. Bali is preparing to receive more than 37 million tourists by 2026.
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