Bali villa construction booming business

Bali villa construction booming business increased 20% to 30% compared to last year with the cost of buying or leasing land has fallen 10% to 15%. According Terje Nilsen, director of Seven Stones Indonesia, a property consultant that caters to foreign investors, reports an uptick in trade, stressing “This is our best business year in 15 years in Bali. The island has consistently ranked among the most desirable post-pandemic travel destinations in the world by users of Booking.com, Tripadvisor and other travel platforms. Bali has also topped the list of most-searched post-pandemic destinations by Indonesian travelers, according to travel platform Agoda, followed by Yogyakarta and Bandung in West Java.

The changing nature of office work during the pandemic is another factor projected to boost demand for luxury housing in Bali. A survey commissioned by The Straits Times in Singapore found eight of 10 workers prefer working from home, while a survey by BBC’s Future Forum found only 12% of respondents want to return to full-time office work. After the lockdowns, a lot of people have figured out it’s better living in Bali than in Melbourne or Hong Kong,” says investment consultant Nilsen. I think we are going to see a massive rise in the number of people coming here, and it will be different from the tourist market of the past [driven by people] who came here for a few days or weeks. They will be residents with long-term commitments.

Nilsen is also receiving a high number of inquiries for villas and office space from companies planning to relocate to Bali. “Previously the ‘digital nomads’ movement in Bali was dominated by professionals working in hospitality and IT, but now the proposition is attracting a much wider spectrum of businesses,” he explains. Our newest client is a radiology firm that interprets X-rays online for hospitals all over the world and they want to sit down and do it in Bali. We are also hearing rumours that some big tech companies are going to move their headquarters here because they can find access to a good pool of local and expat talent.

Numbeo, the world’s largest cost-of-living database, ranks Bali as the 370th least expensive place to live out of 589 ranked cities in the world. It places the cost of living for a single person, excluding rent, at $594 a month or $2,097 for a family of four. David Sutcliffe, a former fund manager from the U.K. who’s worked remotely in Bali since 2016, believes the quality of life on the island is without par. The lifestyle here is unparalleled. The private schools are good, there’s lots of expertise for start-ups, people are constantly building innovative and interesting businesses, there are great restaurants, leisure and travel opportunities, the weather is always nice,” said Sutcliffe, now a cryptocurrency investor.

He adds that the Indonesian government is making it easier for foreigners to establish themselves. “The recent slew of new laws and regulations, known as the Omnibus Bill, is a signal to investors of the business-friendly direction this country is going in the long-term. Having rented for years, Sutcliffe, who plans to make Bali his home for the foreseeable future, is now building a villa of his own. “If I was to compare it to what I could get back home, there is no comparison. For about $300,000 — less than the price of a small two-bedroom flat in Greater London — I can build a family home with a tropical garden and swimming pool 500 meters from the beach and 10 minutes scooter ride from the central business district,” he says. It will be my primary residence, not a rental business. But I also consider it a solid vehicle for my wealth because I believe people and investors are going to be drawn to Bali for many years to come.

Bali villa construction booming

Source : https://asia.nikkei.com/