How has vacationing and the real estate market in Bali changed after the pandemic?

How to get to Bali in 2021

There have been significant changes in how to get to Bali in 2021. Before the COVID-19 pandemic began, this amazing Indonesian island attracted over 6 million tourists annually. However, when one of the largest viral outbreaks in the region occurred, Indonesian authorities decided to close the borders.

Initially, it was expected that Bali would be able to reopen its doors to travelers in July 2021, but the rise in cases prevented this. After a long isolation lasting more than a year and a half, Indonesia finally announced the resumption of international flights, setting this moment for October 2021. Starting from October 14, Ngurah Rai International Airport was preparing to welcome foreign guests.

Entry requirements for foreigners

Nevertheless, the authorities decided not to open the borders for everyone at once. Initially, entry was granted only to citizens of the so-called "green" countries, such as:

• South Korea
• Japan
• Singapore
• New Zealand
• Potentially Australia in the future

In addition, foreigners with diplomatic and work visas can also come to the island without any restrictions.

Types of visas permitted for entry

According to the decree of the Minister of Justice dated September 15, holders of tourist visas have also been added to the list of individuals permitted to enter the country, including:

• Electronic business visas (211)
• Temporary visas (Vitas)

This means that currently travelers can visit Indonesia with certain types of visas, such as:

• Official visa (Visa Dinas)
• Diplomatic visa (Visa Diplomatik)
• Guest visa (Visa Kunjungan)
• Limited-term visa (Vitas)
• Residence permits of various categories

Entry requirements

All citizens from the specified categories must be vaccinated and ready to undergo an eight-day quarantine. They also need to provide:

• Negative results of the PCR test
• Health insurance that covers treatment for COVID-19
• A document confirming the willingness to pay for medical services if necessary.

Yuri Barzykin, the vice president of the Russian Union of the Tourism Industry, believes that Bali will not be able to reopen its doors to mass tourism, including for Russian citizens, at least until December 2021.

The situation in the real estate market in Bali

As for the real estate situation in Bali, the tourism sector faced serious challenges after the pandemic, which affected prices and rentals. Previously, the average rental cost for a typical three-bedroom villa with a pool was around $100 per night, whereas today it can be rented for just $400 a month.

However, owners still find it difficult to find tenants. Additionally, various estimates suggest that around 100,000 expats live in Bali. The rental market has been severely affected by the decline in tourist numbers, with many villas remaining empty while waiting for guests, which creates serious challenges for local entrepreneurs.

Changes in the rental market at the beginning of the pandemic

At the very beginning of the pandemic, many landlords who were previously major players in the rental market left the island. However, even significant discounts of up to 85% were not enough to support them. Some owners charge tenants a symbolic fee, just to cover utility costs. There are also owners willing to offer their properties under a free contract, but only to their acquaintances, to avoid the risk of seizure or theft.

New opportunities for tenants

In fact, the current situation, which poses serious challenges for villa owners, has opened doors for renters. Now, foreigners wishing to spend the winter in Indonesia have the opportunity to choose from a variety of offers and actively negotiate prices. The main problem faced by villa owners is finding tenants. The situation in the real estate buying and selling market is also far from simple.

• Real estate is not given away generously..
• The prices listed in the advertisement most often correspond to the levels of 2019..

Discounts in the real estate market

Nevertheless, according to realtors in Bali, actual deals are being made with discounts ranging from 30% to 50%. These discounts are directly dependent on the owner's willingness to sell their villa right now. Overall, the real estate market continues to function. The activity of luxury buyers is particularly noticeable.

Real estate transaction statistics

According to a study by Horwath HTL conducted in March 2021, 44% of all real estate transactions in Bali involve properties priced over $450,000, while those in the economy segment, priced up to $250,000, account for only 14% of the total volume.

• The main customers are local residents.
• Citizens of large cities such as Jakarta and Surabaya.
• Foreigners who are already on the Indonesian islands.

Forecasts for the future of the real estate market

Forecasting the future of the real estate market varies among experts. Some are confident that the market is currently experiencing temporary difficulties and that a recovery will begin soon, by the end of the year. Other specialists suggest that a return to pre-pandemic levels is unlikely in the next few years. Proponents of this view believe that market revival may only occur after widespread vaccination of the population, which is estimated to take up to three years.

• The alternative scenario predicts a wave of "panic selling.".

Positive aspects and opportunities for "digital nomads"

Nevertheless, there are positive aspects as well.

Investing in real estate in Bali

In recent years, there has been a growing interest in real estate investments in Southeast Asia, with Bali standing out in particular. This Indonesian island offers a variety of attractive investment opportunities, ranging from affordable to quite expensive housing options. In this article, we will explore five villas that are currently in high demand and attracting the attention of investors.

The first villa: style and ecology

Let's start with the first villa – it's a compact and stylish designer home, with an area of250 square metersHer market value is168.3 thousand eurosand a special advantage is the location, all within500 metersfrom the popular surfing beach in the Kedung area. Such proximity to the beach cannot be overlooked by active leisure and surfing enthusiasts. It's wonderful that recycled materials and containers were used in the construction of this villa, highlighting an eco-friendly approach. At the same time, the original appearance of the house has not been compromised at all.

Second villa: cultural center

Next, it is worth highlighting the villa located in Ubud, with an area of230 square metersand the price250 thousand eurosUbud is the heart of culture and spirituality in Bali, known for its remarkable temples and numerous retreats. It is important to note that although the villa is still under construction, its design and layout promise to be a worthy completion.

The third villa: traditions and comfort

The third villa, located in the picturesque and traditional village of Sesekh, offers all the necessary amenities for comfortable living and profitable investment. This residence is designed in a style characteristic of Indonesia, featuring teak wood finishes and bright interiors. Surrounded by a tropical garden, this house includes23-meter pooland a gazebo where you can enjoy the sounds of the ocean from just a short distance away50 metersThe cost of this property is500 thousand euros.

Fourth villa: a high-end project

The fourth villa is a project aimed at creating high-class housing, located just aa few minutes' walkfrom the Indian Ocean. According to preliminary information, it will be a stylish house with:

• three bedrooms;
• combined with the living room kitchen;
• with a pool and parking.

By the end of this year, the construction is expected to be completed, and the cost is stated to be at the level of900 thousand euros.

The Fifth Villa: Luxury and Comfort

The final item on our list is a luxurious villa, with an area reaching1200 square metersIt is located in a gated community near Padang-Padang Beach. This truly elite residence is a model of harmony between luxury and comfort, offering owners:

• four bedrooms with a magnificent ocean view;
• fitness center;
• spa salon
• various leisure areas — a pool and even a home theater.

The price of this villa is almost4 million eurosHowever, the impressive area in26 hectares of forestThe property adjacent to it makes this offer truly unique.

Conclusion

Thus, Bali offers a wide range of attractive and diverse options for those interested in real estate. From affordable villas in secluded spots to luxurious properties with top-notch amenities, everyone has the opportunity to find a suitable solution based on their financial capabilities and preferences.

Conclusion

Despite all the difficulties that the island of Bali faced due to the COVID-19 pandemic, the prospects for its recovery and return to normal life look promising. Indonesia, having opened its doors to foreign tourists, is once again attracting the attention of travelers. Although we may have to wait until December 2021 for mass tourism, we can already observe positive changes related to the return of guests to the resort.

The changes happening in the real estate market also confirm this optimism. Rental prices, although still below pre-COVID levels, are giving a wide audience the chance to experience the atmosphere of true Bali. This time presents a unique opportunity for those willing to take a risk and take advantage of falling prices to enjoy the magic of this tropical bridge between East and West.

Prospects for development

I am confident that in the future, the real estate market and the tourism sector will thrive again. By the time mass tourism becomes available, I expect that many will find Bali not only a wonderful place to relax but also to enhance their health and spirit. At the same time, the growing interest in remote work and "digital nomads" could make this place a new hub for creative, active, and adventure-seeking people from all over the world.

What should be taken into account:

• Unique rental opportunities:Rental prices are decreasing, which opens up access to luxury villas.
• The real estate market is coming to life.There is expected to be an increase in interest in purchasing real estate from both local residents and foreigners.
• Growing interest in remote work:Bali is becoming an attractive destination for digital nomads.

So, if you dream of the perfect vacation, vibrant experiences, and a real connection with nature, Bali will once again be the ideal choice. Therefore, I recommend keeping an eye out for new opportunities and being ready for your next adventure on this beautiful island!