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The Outlook For The Property Market In 2025 Is Considered Promising, With OXO Accelerating Its Projects In Bali
Wednesday, 27 Nov 2024
The property market in Bali is anticipated to continue its rapid growth, driven by the tourism industry. Developers remain optimistic that the combination of an expanding tourism sector and increased foreign investment will further stimulate property price growth on the Island of the Gods. Johannes Weissenbaeck, Founder and CEO of OXO Group Indonesia, stated that Bali has become a popular property investment destination, not only within Indonesia but also across Asia. Despite challenges such as regulatory changes and environmental issues, Bali's allure as a tourist destination remains the primary factor fueling property demand.
Data from Ngurah Rai International Airport in Bali indicates that the number of foreign tourist arrivals in the first eight months of 2024 reached 4.47 million, marking a 22.6 percent increase compared to the previous year. The largest group of foreign visitors comes from Australia, followed by India, China, the United Kingdom, and South Korea. Meanwhile, property prices in Bali have risen by an average of 7 percent annually over the past five years, with certain areas experiencing even more significant growth. Bali also offers the highest rental yields in Indonesia, reflecting the lucrative potential of property investments. As of June 2024, total revenue from Bali's property sector was recorded at 142 million USD, a remarkable 33 percent increase from the previous month.
Johannes has observed a shift in tourist interest towards new areas in western Bali, such as Seseh, Kedungu, Cemagi, Nyanyi, and Pererenan, which presents new opportunities for the property sector in these regions. While areas like Sanur, Seminyak, and Ubud continue to be popular, younger generations are increasingly drawn to locations that offer greener surroundings and a stronger connection to Bali's natural environment. The Nyanyi area, home to the new OXO Residence project, provides a balance between proximity to Bali's lifestyle hubs and the tranquility of a natural setting. Furthermore, the acceleration of infrastructure development in Bali, including the Bali Urban Subway project, is anticipated to drive property price increases in areas served by public transportation routes. Experiences from cities with MRT or LRT systems indicate a significant rise in property values in regions connected to public transport. Johannes forecasts that 2025 will mark a year of growth for Bali's property sector.
