There is currently a Bali real estate boom happening  and we couldn't ignore the main tourist spot on the island - Canggu. It is the number one location in Bali where you can find everything that a resident of a global metropolis is accustomed to, along with the unique pleasures that Bali offers:

• Hundreds of clothing stores
• Top-notch restaurants
• Surfing schools
• Amazing yoga studios
• World-renowned nightclubs
• Luxury beach clubs
• State-of-the-art sports clubs
• Breathtaking sunsets

 

In just a few years, this area has transformed from a small surfing location into the most dynamically developing and populous area in Bali. Millions of tourists from around the world flock here every year, and anyone who has visited will surely return.

Canggu is perfect for both travelers and expats who have chosen Bali as their place to live. This is partly facilitated by the recently approved Second Home visa by the Indonesian authorities, which grants the right to stay on the island for five to ten years to anyone who purchases property for living, such as a villa or apartment.

With such a robust infrastructure in the area and excellent beaches, it's not surprising that rental prices are the highest on the island and sometimes exceed all reasonable limits. The tourist flow continues to increase, setting new records, and with Canggu's popularity, it struggles to cope with the demand, causing prices to rise.

If you are a fortunate villa owner in Canggu, congratulations, as it's a real money printer right now. With such demand and limited supply, the rental market favors sellers rather than buyers, and an average occupancy rate of 80% throughout the year confirms this. Achieving a 20% annual return on investment from rentals is commonplace, and during the high season, luxury villa rentals can reach $50,000 per month!

The real estate market in Canggu is actively developing, with numerous new developers and hundreds of villas, townhouses, and apartment complexes being built. Many people want to acquire this golden asset, and this is where the law of supply and demand comes into play. The thing is, Canggu is a small coastal area that everyone desires, but the land is not expanding, and landowners dictate their own terms for development.

The cost of land with long-term leases in Bali can reach $50,000 per year per hundred square meters, and developers are forced to include this cost in the final price of the villa. Currently, you won't find Canggu villas for sale with two bedrooms for less than $300,000, if you're lucky. Taking advantage of the hype surrounding Canggu, everyone wants to profit: landowners, developers, and property management companies.