10 Reasons why Bali real estate is set to soar

27 September 2009, 22:04:07 - (277 hits)

One of Bali´s pioneers in real estate development and investments, PT. B.A.L.I. predict a second and more powerful bull market in Bali real estate and here are their reasons why:

Bali´s Record Tourism Drives Demand: First and foremost PT. B.A.L.I. have said in the past "Bali real estate demand is directly proportional to tourist arrivals on Bali". It´s a simple equation. The more tourists, the more buyers are interested and the more purchases are made. July 2009 tourist arrivals were 22.7% ahead of the same month last yr. January - July 2009 arrivals rose 11.87%.
Future Retirement Demand: PT. B.A.L.I. is seeing more ´Baby Boomers´, born between 1947 & 1955, who are now retiring and looking for a low cost sunny place to live without pollution or major crime.
Very Limited Supply: There is an finite amount of supply of quality Bali real estate on this small Island, especially within walking distance of a nice beach. Therefore supply cannot meet increasing demand.
Affordability: When you compare Bali to other tourist designations we are vastly underpriced. Bali land is as much as 70% less than similar land in Hawaii. Bali Homes and villas are 50% less than Phuket, Thailand. So long as you can continue to purchase a Bali luxury Villa with a swimming pool for as little as US$159,000 prices have nowhere to go but up.
Great Branding: Bali has been voted the "Best Island in the world" for 7 out of the last 8 years by the readers of the prestigious Travel & Leisure Magazine. Ask anyone who has been to Bali and they will tell you the same.
Low Cost of Labour: Bali expatriates live like movie stars with personal maids, cooks, drivers, gardeners, and pool men who only cost US$100 per month.
Very Low Cost of Living: Since there are no heating bills and auto fuel is subsidized, Bali has one of the lowest energy costs in the world. Most fruits and vegetables are grown locally therefore meals cost 50% to 70 % less than most western cities.
Low Cost of Quality Entertainment and Sports: Bali is a major resort island and features some of the best hotels in the world. The quality of dining and entertainment is superb and at a fraction of western costs.
Close proximity to the Asian Tigers. It´s quite obvious that Asia is becoming the economic hub of the world. Australia, because of its mineral wealth is also booming. These neighbours provide increasing demand for Bali real estate.
Indonesia Tiger: Finally the fact is that prices have already doubled in 10 years while Indonesia was struggling through chaos and bombings after removing a three decade long dictatorship. What can prices do in a favorable environment? Under the current president Susilo Bambang Yudhoyono the Indonesian stock market and currency has been one of the best performing in the world. Because of Indonesia´s below average labor cost and abundant natural resources PT. B.A.L.I. Believes it has the potential of being one of the most powerful economic powers in the world in the next few decades. Along with that new prosperity will come exponential increases in Indonesian real estate prices especially in Bali. News from property-report.com