Saddled with “an overload of properties” and competition with up-and-coming tourist and expats attractions, the villa rental market in Bali has become saturated, a villa booking and distribution platform.
Rising demand for long-term rentals or Leasehold villa and the ascendancy of nearby Lombok Island have conspired to slow down sentiment and lower occupancy rates in the Bali villa market.
In such a competitive environment, builders and investors must find ways to differentiate new villas from mainstream offerings. You cannot merely have a villa and expect bookings to come in. You need to find a unique competitive edge to stay in the real estate market.
New villas in Bali are engaged in a “price war” with online marketplaces. Which currently numbers around 35,000 around the Indonesian island. Built 3,000 villas are available full-time for long-term rental in Bali.
More than 1,000 luxury villas build as holiday rental properties in the last five years. Land seekers are not unheard of to take around three months to find a good plot at reasonable price points. It’s essential to have a concept, study the market and make sure to get minimum 25 years lease or more.
We are seeing demand from people who enjoyed Bali 15 years ago. People want a villa in a quieter, less crowded island for a fraction of the price they would pay on Bali or in their home country.
Last year, Bali nonetheless continued to be one of the most popular holiday spots or a home far away from home in the world that welcome around 5.7 million foreign tourists. The villa rental market or leasehold properties in Bali estimated to be worth around USD138 million. Bali is representing 35 percent of the Asia Pacific market.
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