2024 brings exciting news for Bali’s rental market, especially for investors. This article examines the market’s performance in the first quarter of the year. We explore which areas in Bali are doing well, how much money they could make, and more. Find out why Bali remains a top spot for both visitors and investors. Get all the details in our exclusive Q1 2024 report.
Tourist Arrival
Tourism in Bali saw a significant increase towards the end of 2022, driven by the improving global situation and a growing number of visitors searching for peace in uncertain times.
The demand for travel after the pandemic led to a peak in arrivals, showing strong growth in tourist numbers by the end of 2023 compared to 2022.
Australia, China, and India were the top sources of tourists in 2023. The Chinese market rebounded strongly, and the number of Indian visitors rose significantly, showcasing Bali’s allure despite limited direct flights.
For 2024, Bali aims to welcome 7 million foreign visitors, supported by improvements in tourism infrastructure and new, traveler-friendly visa policies. These efforts are expected to boost international visits and continue Bali’s tourism growth.
With strategic planning and its unique appeal, Bali is set to remain a premier global travel destination.
Market Growth
In 2023, Bali’s rental market has not only expanded in quantity but also seen an improvement in property quality. The growth of the market is evident, with a consistent increase in the total listings, signaling investor confidence and a response to ongoing demand.
The distribution of listings by rental size indicates that one-bedroom accommodations were the most available, accounting for over half of the market at 51.7%. Meanwhile, larger properties with three to five bedrooms collectively made up around 30% of the listings, catering to a variety of group sizes and preferences.
In terms of occupancy, one and two-bedroom properties consistently showed higher occupancy rates throughout the year, with one-bedroom accommodations peaking in January at 83.24% and maintaining strong performance. The data suggests that smaller units were more popular among tourists, likely due to their affordability and convenience for solo travelers and couples.
The length of stay for foreign tourists was slightly longer than for domestic travelers throughout the year, with the longest stays recorded in February, March, and December. This pattern may be attributed to foreign visitors traveling longer distances to reach Bali, thereby staying longer to make the most of their trips.
Canggu Area Overview
In 2023, Canggu remained a hotspot for its lively lifestyle and stunning beaches.
Its mix of bars, diverse eateries, and surfer-friendly beaches drew in young travelers from Australia, Europe, and the USA. Investors recognized Bali, especially Canggu, as a promising market with growth potential, sparking a construction boom. New developments surged by +54% in 2023, showcasing confidence in Canggu’s future as a tourist hub.
The expected launch of new properties in 2024 will expand accommodation options. Although this rapid development might temporarily exceed demand, causing a dip in occupancy rates, it’s only a short-term effect. The average daily rate has stayed steady, reflecting the continuous appeal of Canggu’s offerings.
The rapid expansion, initially causing oversupply, ultimately signals anticipated demand and Canggu’s enduring appeal. Improved infrastructure and the introduction of new properties will likely lead to a recovery in occupancy rates, demonstrating investors’ long-term trust in Canggu as a top destination in Bali.
Explore our exclusive report on Bali’s rental market for the first quarter of this year. We cover everything from the occupancy rates and potential revenue of each popular area in Bali to many more interesting aspects of investment in Bali. Access the exclusive report here.