Bali Property Market trend 2023 – 2024
The Bali property market trends is undergoing notable shifts as we move through 2023 and into 2024. With occupancy rates stabilizing around 59% and slight increases in property values, the market reflects both opportunities and challenges. Factors such as rising entries into Bali and evolving investor strategies are shaping the landscape. However, questions remain about whether current and upcoming developments will meet future demand. Understanding market dynamics, regulatory changes, and regional alternatives like Lombok and Phuket is essential for navigating investment decisions effectively. How will the Bali property market trends go in 2024? The year has started, and we still hear a few different approaches to looking at the property market. Some real estate agents try to push other destinations, but we have also promoted other areas such as Sumba. But how is this market going now? After reviewing the number for 2023, the occupancy rate for 2023 and the beginning of 2024 is still under the occupancy rate of 2022. The value in USD is slightly higher. Two main factors: However, the revenue at the beginning of 2024 seems to be the same as in 2022. It seems that the number of entries did not follow the property investment done in the last few months. The average of the occupancy rate is stabilising at 59%. Bali seems to have reached a point in July or August 2023. The question is now to know if the person who has invested in 2023 and is currently building will be covered in 2024. Make navigating real estate in Indonesia easy Save time and money by letting ILA’s team of experts guide your real estate journey in Indonesia. We can help with due diligence, land title transfers, notary services, contract drafting and reviewing, building permits, various licences and more. Find more information about our broad range of real estate services, or reach out today for a free consultation. Lombok an alternative? While some are trying to place Lombok on the master plan, we can notice that the occupancy rate was similar to Bali, but with a very low occupancy on average of around 30%. Lombok seems not for now to be the expected market that some promoters try to promise. However for investors with a premium location and a good strategy the place can be interesting to look at. The election in a few months will determine the future of the next few years. While the country is taking a different direction, social factors have a strong influence on how and where people want to spend their money and vacation. Is Thailand better? By continuing our analysis we started to take a look at the numbers in Phuket, Thailand. Phuket seems to have a higher occupancy rate at its peak but is more affected by the variability of the seasons. Phuket has had a lot of construction in the last few months, and the occupancy rate seems also affected by the number of constructions increasing faster than the demand. Where to invest? Bali and Phuket or Lombok will see a lot of new construction finalized in the next few months following the purchase or lease of the last few months. The question is to now identify if the demand will follow or not. In a long time, there is no doubt that this demand will continue. Spain had this issue in the past and Asia has a strong domestic market to come. However, the incertitude is never good for an investor. Politics have to continue to improve infrastructure and send good signals to travelers willing to invest and occupy those properties. A few weeks back, I remember having a discussion about investing in Bali and France. An interesting fact is that Paris has a higher occupancy rate than Bali, despite what we could expect. With 75% compared to 59% in Bali, Paris seems a place where stability of the tourism industry is for example guaranteeing a certain level of revenue to the investor. Indonesia has a strong potential. The location of the investment is key. We do trust that it is the right moment to invest, but knowing how to do it is the key Also read: How to Buy a Property in Bali?
Organise an Event in Indonesia
Foreign companies or foreigners willing to organize events in Indonesia must comply with the regulations. Organizing a concert with a DJ or organizing a retreat in Bali and the rest of Indonesia requires meeting some requirements. As with other activities, organising events is considered a business activity generating revenue. It is important as a first step to understand if the foreigner is coming to Indonesia to participate in an event or is coming to Indonesia to organize the event. PARTICIPATING IN AN EVENT Here’s the text with the keyword “organize events in Indonesia” inserted: Joining a retreat or a concert as a member of the event is different from organizing events in Indonesia. If a DJ is coming to Indonesia, this person will need a proper visa from a sponsor authorizing the person to join the event. The person in charge of declaring the revenue will be the company, and this company is responsible for paying the proper insurance. For example, immigration defines the visa for music performers as performing music performances. DJs visiting Bali and the rest of Indonesia have to apply. The Indonesian government also requires other speakers or people joining an event to have a special visa for the following. “Carry out activities related to speakers, lecturers, presenters, or public figures but not in an employment relationship with parties in Indonesia.” Conducting activities on the Indonesian territory and generating revenue from this activity is considered work on the territory and requires, as a consequence, the proper associated visa. The website of the Indonesian government is molina. immigrate.go.id allows foreigners to apply for the rights visa. Yoga teachers and sports consultants must comply with the regulation even if the trip is below 1 week. Never worry about taxes and accounting again Dealing with finances, taxes, and accounting can feel overwhelming, especially as a foreigner in Indonesia. Let us guide you through processes like tax calculation, payroll, personal or corporate tax, short-term investments, balance sheet analysis and much more. With ILA by your side, nothing can go wrong. Schedule a free consultation today or learn more about our tax and accounting services. ORGANIZING EVENTS IN INDONESIA Foreigners willing to organize events in Indonesia are under the scope of a business activity done in Indonesian territory. As a consequence, the organizer needs to have a proper licence. Option 1: Having a partnership with an organizer in Indonesia If foreigners are willing to organize a single event or retreat in Bali and the rest of Indonesia, the fastest and cheapest solution might be to partner with an existing company here that will sponsor the event and the foreign workers during the event. The organizer will be responsible for the insurance, paying the expenses on your behalf, and legally having the licence to host or organize the event. Option 2: Setting your own event organizer company to organize If you plan to organize more than one event, then the best solution is probably to set up your own event company in Indonesia to organize your retreat, concert, or other form of event. Here’s the text with the keyword “Event planning Indonesia” inserted: The company can have as shareholders individuals or corporations willing to organize the event. The setup usually takes a few days to a few weeks. The company will apply for a business licence related to event planning in Indonesia. Once the company has been established, the Indonesian government will provide a tax number called NPWP. This tax number is necessary to perform commercial transactions as an entity in Indonesia. As a third step, the company can sponsor work permits for foreign workers or hire local workers for the events. Establishing a company also has consequences, such as reporting the monthly tax. Before establishing a company, it is essential to consider your business plan and study which solution is the most suitable for your project. Visa agents and other market entry companies might push for a solution or another. We recommend first to study your objectives before going to a solution. Having your company imply to maintain a company and tax, and having a simple visa doesn’t mean that your visa makes you legal to organize the event. Contact us if you want to know more and need advice on how to study your plan. Check our blog for useful knowledge for your business.