Sun, Surf and Solid Returns

Published: 7th November 2022

BALI: THE MOST FAMOUS ISLAND IN THE WORLD.

The name itself sparks images of palm trees swaying in a tropical breeze, long stretches of beautiful blacksand beaches, lush tropical jungles, waterfalls, and dramatic cliff edges, spiritual awakenings, and ultimately, bikinis, beers & beach clubs.

The dream of owning a slice of paradise has existed since the island’s popularity began to grow in the late 80s and for some, the dream has become a reality – a reality with big returns.

In the last two years, select developers have introduced a new wave of villas onto the shores of paradise; ultra-luxury homes with bold designs and European-standard construction never before seen on the island.

This has sparked a rush of savvy investors from around the world eager to capitalise on the gold rush of paradise and reap the benefits of a tropical island lifestyle.

WHY BALI?

The world is full of beautiful islands but none hold the same reverence. Why is that?

Bali has long existed within popular culture and in the minds of people worldwide as the ultimate escape island. It has been a surfing mecca, a hidden hippy getaway, a hedonic party island, a spiritual and artistic enclave, all of the above and more.

It is a global cultural icon and at the modern epicentre of it all, is the beachfront region of Canggu.

A stretch of the island’s east coast starting at Pantai Batu Belig and continuing north along 5km of unbroken stunning beaches – from Pantai Berawa, Pantai Batu Balong, and Pantai Ecco until the edge of Pantai Seseh.

Cut inland for 2.5km until the main through-way road and you have marked out a 15km2 region known colloquially as ‘Canggu’ – and within it is a neighbourhood called ‘Berawa’, Bali’s unofficial lifestyle capital.

This area has the island’s top beach clubs, including Café Del Mar Bali, Finns VIP Beach Club, and La Brisa. It has the best restaurants and has grown to become a foodie hotspot with frequent new openings – luring top international chefs eager to showcase their menus and get inspired by the area’s flourishing creativity.

The neighbourhood has an ever-growing number of ‘Padel’ courts – the racket sport that has exploded in popularity in recent years. High-tech gyms, yoga studios, dance studios, and more traditional sports centres with tennis courts and equestrian centres.

You will find forward-thinking wellness spas with ice baths and sensory deprivation tanks alongside high-end nightclubs with top 100 DJs pumping out bass until sunrise.

Bali, of course, has other amazing regions – the jungles and valleys of Ubud, the white sands of Nusa Dua, or the dramatic cliffs at Uluwatu. Not to mention nearby islands such as Gili Trawangan where there are no motorised vehicles and giant sea turtles swimming metres from the white sandy beaches. Or the neighbouring island of Lombok, which recently played host to the MotoGP World Championship and is touted to become South East Asia’s number one luxury destination.

However, nothing compares to Berawa and investors are taking note…

STRIKING GOLD IN PARADISE.

The property market within Bali is booming. Savvy investors looking for a high-yielding investment property that offers them the perks of a Bali residence (for however many weeks of the year they can) have capitalised on the earning potential of Berawa.

The year-on-year land price increases, high levels of occupancy rates, and resilient bounce-backs from global events (people will always need a holiday) have made this region of Bali a unicorn destination for luxury investment properties.

If the neighbouring region of Seminyak (with the famous Potato Head Beach Club and W Hotel) is any barometer, where land and property prices have increased by more than 30x in the last 15 years, Berawa’s future is positive.

Bali is a frequent chart-topper for TripAdvisor’s annual top global destination award having beat favourites such as London, Paris, and Dubai. Canggu itself was listed in Forbes as a top 5 destination to live and invest in in 2019 and in that same year, Bali received over 16 million visitors.

Long gone are the wild-west days of land and property dealings in Indonesia. While the gold rush has prompted a flurry of small-time developers – consistency, reliability and security have remained with the bigger developers, attracting international seasoned investors to the paradise island.

Established developers have created a corporate structure around buying and investing in paradise. Some of the bigger players, such as long-time established Mirah Investment & Development offer full legal and financial services for clients, including certifications, permits, taxation and foreign ownership through their in-house legal team.

In recent years, Mirah Investment & Development has expanded massively to develop and offer luxury investment properties across the most popular areas of Indonesia – whether it’s beachfront, cliff-front, residential or strictly investment. They keep bold and bespoke design and luxury comforts as key facets of their varied developments.

The company’s rapid growth and consistent delivery, have meant that its operations arm is launching three resorts and 12 restaurants by the end of 2023.

THE BOTTOM LINE.

Bali’s low cost of entry in comparison to European luxury destinations is a strong pull factor for investors, as well as its high earning potential through asset value appreciation and the passive revenue from rentals. The future, much like its sandy shores, looks bright in Bali.