Are you confused about property prices in Bali? You’re not alone! In this article, we will explain how to calculate property prices in Bali yourself and give you some tips on buying a villa for investment at the right price.
What you will learn:
How to Price a Property in Bali
Pricing a Property in Bali
There are two main factors to consider when pricing a property in Bali:
Consider the market value of similar properties in the area. Look for guidelines specific to the type of villa in your location to determine how the property price fits within the market. This will help you to determine the final listing or sales price.
But when you buy a property through a developer, there is also a profit that is calculated based on the construction cost only, not the land.
Tips: Don’t overprice your property. Properties that are priced to sell will sell faster.
Pricing Daily Rental Properties
For daily rental properties both off-plan or finished property, the price is calculated a little bit differently and often based on the expected ROI (Return on Investment) of the property. Investors typically aim for 15% ROI and want to recoup their entire investment within 5-6 years. And how investors can achieve that?
Achieving a 15% ROI on Bali Property
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Location, Location, Location
Location is key to getting the investment back within 5-6 years. For proven investment returns and high occupancy rates, consider established areas like central Canggu (Berawa, Batu Bolong, and surrounding) and especially Bingin, Uluwatu because the demand is so high but the supply is so low in this area.
The Right Style
Other than location, choosing the right villa style significantly impacts rental occupancy and maximizes your return on investment (ROI). High-demand villas often cater to aesthetics that resonate with potential guests and are highly "Instagrammable." This translates to increased bookings and ultimately, higher returns on your investment.
Balancing Investment and Personal Use
By strategically selecting a desirable location and opting for a sought-after villa style, you can target an occupancy rate of 80-85%. This strategy positions you to achieve your desired 15% ROI within 5-6 years. Furthermore, even as an investor, you can still enjoy the property for personal use. Allocate a few weeks each year to utilize the villa as your own vacation home, striking a balance between financial gain and personal enjoyment.
Tips: There is a tool that you can use to research rental property performance in Bali called Airdna.co.
Why Consider Off-Plan Property in Bali as Investment?
Due to the high demand for villas and limited existing inventory, off-plan properties have become an increasingly popular investment option in Bali. These properties are still under construction, allowing investors to secure a villa before it hits the open market. While this approach offers the potential for good deals, thorough research and choosing a reputable developer are crucial.
One advantage of off-plan properties is their newness. When completed (typically within 12 months), your villa will be highly attractive to renters seeking modern and well-maintained properties in a desirable location. So, If you are considering buying a villa for investment, it is best to buy an off-plan villa. It's more likely to rent out quickly and at a higher price.
Current Bali Property Market Price
When focusing on key tourist destinations, locations like Bingin-Uluwatu and Canggu, along with their surrounding areas, typically see 1-bedroom villas priced between USD 179,000 and USD 220,000. 2-bedroom villas in these areas can range from USD 229,000 to USD 279,000. These figures provide a starting point for your research, and it's important to remember that factors like land size, villa features, and specific locations within these areas can influence the final price.
Purchasing a villa in Bali can be a rewarding investment opportunity. However, thorough research is crucial before making any decisions. This guide has equipped you with the knowledge to estimate property value based on key factors. Understanding market value empowers you to negotiate a fair price when buying and potentially maximize profit during resale. For a smooth and secure buying process, consider partnering with a reputable real estate agency, such as PROPERTIA BALI. Contact us to get a personalized investment property talk with our expert agent.
Additional resources: We offer a free investment guide that provides further details on navigating the Bali property market.
