Pros and cons of Bali holiday property: 8 arguments for and 5 risks
EZ
Evgeny Zhuikov
Investment analyst, columnist
Author - Evgeny Zhuikov, investment analyst. Author's column on Balinsky.
Evgeny Zhuikov looked at why investors choose Bali and what they risk. The assessment is as of October 2024.
Pros
- Low political risks. The authorities try not to take anyone's side. The chance that a property will be taken away for political reasons is low.
- The economy is growing. More than half of Bali's tourists are Indonesians themselves. As they get richer, demand grows.
- A stable rupiah. In the 5 years up to 2024, the rupiah lost no more than 3% a year against the dollar.
- The market is growing and getting better in quality.
- Tourist numbers have recovered since 2019 and keep growing.
- Tourists from many countries. More than 8 large countries, mostly developed ones - guests who can afford to pay.
- The authorities welcome expats and tourists - you can see it in the visa policy.
- Large international projects are coming to the island. This also brings more foreign guests.
Editor's note. In October 2026 the rupiah fell to a record 18,087 per dollar. Point 3 is worth rechecking at the time of purchase.
Risks
- Weak construction control. A building may not be accepted after completion if it was built with violations.
- The land may not be suitable for building. Sometimes people build hoping the land status will be changed later. But it may not be. A property on the "wrong" land means losing 100% of the investment.
- Build quality. Most often it leaves a lot to be desired. A poorly built house means empty periods and repairs.
- No permanent ownership. Foreigners usually buy leasehold - a long lease, as a rule up to 30 years. The landowner may dispute an extension. And the property itself loses about 3.3% of its value every year. The author does not count on any price growth for leasehold at all.
- Overheating in some areas and property types. You can buy a property that is hard to sell and earns little.
The author's conclusion
For now, Bali remains a good asset for spreading money across different baskets and getting high cash flow. The market lives by its own rules and depends little on global trends. The main thing is to choose wisely.
More on land and permit risks: PBG and SLF in Bali, leasehold extension.
About the author
Evgeny Zhuikov is an investment analyst and the author of the Telegram channel [Advisors](https://t.me/advisorsz).
- since 2012 he has analysed investment products, and since 2015 projects in the real economy;
- in 2021–2022 he was an investment adviser listed in the Bank of Russia register (No. 105);
- in 2022–2023 he was chief operating officer of the development company Golden Tree in Bali;
- he did market research for hotel projects in Bukit;
- guest lecturer at MKB Investments, holder of a Russian FFMS 1.0 qualification certificate.
The author's opinion may differ from the position of the Balinsky editorial team.