At Propertia Bali we often have customers asking “what is going on with the rental market in Bali?”

We have to agree with our customers. The market seems to be very inflated and has been the last few years. There are many factors influencing the rental market in Bali, but here are a few reasons, why we think the market is so inflated.

  • Every year more than 6 million people are visiting this lovely island. A lot of them have hopes and dreams about creating a new life for themselves in Bali. They want to rent a beautiful home and live the dream life they planned. The first year most people living here long term, rent a villa to live out their dream.

  • A lot of private persons are renting villas yearly and subletting them on a daily basis through mainly AirBNB. It’s a lovely way to make an income, but of course you always have to remember to follow the laws and regulations and have the right permits and registrations.

  • It’s fantastic to see how local Balinese land owners are building new lovely villas to rent out on a yearly basis. However for these owners it’s normal practise, that their land certificate is with their bank, until they get the villa rented out. This is why, we see so many villas listed with a minimum rent of 3-5 years. Simply because they need to pay back the bank, for the villa they build, to get back their certificate. At Propertia Bali we often wonder who has that kind of money to put up front?

Will the market change anytime soon?

At Propertia Bali we don’t think so. A market changer, could be that the government is intensifying their search for illegally build villas and checking AirBNB hosts for rental villas.

Of course Covid19 has had a huge impact on the occupancy of the villas, but the owners are patient and they know the market will probably return in the last quarter of 2020. Owners are more willing to negotiate now but we haven’t seen a big drop in the rental prices, like many predicted.

In the end it’s all about supply and demand and Bali seems to become more and more popularly as a destination for tourists and people who want to live in create a new life in this beautiful island.

Where do you think the rental market will go?

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