Bali, long renowned as a tropical paradise, is now emerging as a hotspot for foreign property investment. This is driven by unprecedented demand for luxury villas in the island’s burgeoning Bingin area. As Australia grapples with soaring interest rates and an economic downturn, savvy investors increasingly focus on Bali’s lucrative real estate market.

The allure of Bali as an investment destination is undeniable. With the Reserve Bank of Australia’s official cash rate now at 4.1%—the highest in over a decade—and average mortgage interest rates hovering around 6.4%, the Australian dream of property ownership is becoming increasingly unattainable. However, Bali offers a compelling alternative for those with an eye for opportunity.

A Surge in Foreign Investment

According to the Indonesian Government’s Investment Coordinating Council, Bali’s real estate market has seen an astounding 28.5% growth in foreign investment over the past two years. The island, already a favourite among Australians—1.2 million visiting annually—has solidified its status as a global hub for property investments. Projections suggest that a record-breaking 5.3 million foreign visitors will flock to Bali this year, further fueling demand for premium real estate.

Investors are drawn to Bali for its sun-kissed beaches, vibrant culture, and the impressive returns that local properties promise. Annual returns in Bali’s property market range between 10% and 20%, making it one of the most attractive destinations for foreign investment globally.

Bingin: Bali’s New Investment Haven

The latest focal point for foreign investors is Bingin, a rapidly developing area in Bali’s Uluwatu region. Known for its stunning vistas and proximity to world-class surf breaks, Bingin has become a magnet for those seeking lifestyle and financial gains. The region’s transformation from a hidden gem to a thriving investment hub is epitomized by the success of developments like Mazari Villas.

Mazari Villas, a luxury development that sold out in record time, has set the benchmark for high-end property offerings in the area. The development features one-, two-, and three-bedroom villas, with prices starting as low as USD $232,800. Investors must pay just a 15% deposit, with the balance spread over a year—making it an accessible option for those looking to enter the market.

One such investor is Isabel Whitaker, a 47-year-old chocolate shop owner from Oakdale, New South Wales. “Property prices in Australia are simply unaffordable,” Whitaker explains. “I was seeking a retirement plan that offered the flexibility of a holiday home in a place like Bali, where I’ve been traveling all my life, coupled with the security of maintaining a home base in Australia.”

Whitaker’s investment in a three-bedroom villa in the Mazari development was driven by the potential for high returns through holiday rentals. “I expect to use the villa for no more than four weeks a year, so the rental income is crucial to my return on investment,” she says, noting that the projected ROI for her villa is between 15% and 20% annually.

PT Mazari Properties Group: Pioneering Luxury Developments

Behind Mazari Villas’ success is PT Mazari Properties Group, founded by Angela Udemba, a 37-year-old UK native with a background in business consultancy. Under Udemba’s leadership, the company has become synonymous with quality and innovation in Bali’s real estate sector.

“We’ve created something truly special with Mazari Villas,” says Udemba. “Bali is uniquely positioned—not just for its natural beauty and welcoming culture, but for its ever-evolving luxury offerings. From world-class resorts and restaurants to exclusive clubs and spas, Bali caters to visitors across the spending spectrum. The Indonesian government’s efforts to expand visa categories and attract long-term visitors have further solidified Bali’s appeal as a premier destination for both tourism and property investment.”

Udemba attributes the rapid sellout of Mazari Villas to the development’s meticulous design, high build quality, and seamless purchasing process for foreign buyers. “Our villas are built with long-term living in mind, which allows us to cater to both short- and long-term rentals,” she explains. “We also ensure that each villa is aesthetically pleasing, which has led to additional revenue streams through bookings for photo shoots and other events.”

The latest PT Mazari Properties Group offering is Svara by Mazari Villas, a new collection of 1-, 2-, and 3-bedroom villas set to launch in August 2024. These villas, priced from USD $232,800, offer a blend of Mediterranean and tropical aesthetics, with sizes ranging from 83 sqm to 244 sqm. Each villa is designed to the highest standards, with premium fittings, picturesque interiors, and amenities, including 24-hour security, an on-site café, a gym, a sauna, a cold plunge pool, and service staff.

Responsible Luxury: A New Approach to Property Development

Udemba’s vision extends beyond luxury living; she is committed to a concept she calls “Responsible Luxury.” This approach emphasizes environmentally sustainable developments that also benefit local communities. PT Mazari Properties Group invests in land conservation to protect Bali’s natural ecosystems and funds projects that provide local communities access to clean drinking water.

“We believe that luxury and responsibility can go hand in hand,” says Udemba. “Our developments not only offer high returns for investors but also contribute positively to the local environment and community.”

The Svara development, located at the heart of Bingin, is a testament to this philosophy. The area, which has rebounded strongly from the COVID-19 pandemic, is now regarded as a fully established region of Bali, with a thriving restaurant and café scene, numerous spas, yoga studios, fitness centres, and surf camps. Bingin’s west-facing beaches, famous for their breathtaking sunsets, are just a short walk from the Svara Villas, making the location ideal for relaxation and investment.

Navigating Bali’s Unique Property Market

Foreign investors in Bali must navigate the island’s unique property laws, which prohibit foreigners from owning freehold land (Hak Milik). Instead, investors can acquire land through long-term leases (Hak Sewa), which typically range from 25 to 30 years, with options to extend up to 70 years. Alternatively, foreigners can purchase land through a local Indonesian entity (PT PMA) under a form of ownership known as Hak Pakai. However, these properties are rare and come with higher costs.

Despite these complexities, Bali remains an attractive market for foreign investors, thanks to the high returns and lifestyle benefits of owning property on the island.

The Future of Bali’s Real Estate Market

With the launch of Svara by Mazari Villas, PT Mazari Properties Group is set to cement further its reputation as a leader in Bali’s luxury real estate market. The development is expected to be completed by October 2025, and with six villas already pre-sold, demand is strong.

“We couldn’t wait to launch Svara and showcase the passion poured into its creation,” says Udemba. “It’s an ideal holiday home for those looking to spend more time in Bali and an investment asset for those seeking high ROI foreign investments.”

As Bali continues to evolve, both as a premier tourist destination and a prime investment location, the future of the island’s real estate market looks brighter than ever.

For more information on Mazari Villas and Svara Villas, visit Mazari Villas.

 

 

 

Written by: Karuna Johnson

 

 

 

 

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