01 December 2012

Land prices booming in Bali

The property business in Bali continues to flourish as investors are confident about the island’s business climate, thanks to the increasing number of tourists and ongoing infrastructure improvement.

Most of the investors are focusing on developing hotels, condotels (joint condominiums and hotels) and private villas. The land demand for hotels, villas and condotels is booming, but the supply of land is decreasing. Not only is less land available, but most of the land on offer is leasehold tenure. Property offered with freehold tenure is now difficult to find.

Unlike in the past, many Balinese people now prefer to lease their land long-term rather than selling it, especially in tourist areas, like Kuta, Legian and Seminyak. Even if they sell, the price could be very high. The problem is that not all local investors agree with leasing, they prefer to buy.

Despite the extremely high land prices, strong demand meant that the market is still able to absorb it. On this moment Jimbaran is a booming property area, with more and more investors looking to buy property with sea views on the area’s hills and cliffs.

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