Bali Development — Luxury Villas, Apartments & Real Estate in Bali

— Dmitry, let’s start with the basics. What is Bali and Indonesia today from an economic and investment perspective?

— First of all, it’s important to understand that Bali is just one island among more than 17,000 islands in Indonesia. At the same time, it is the most recognizable and tourist-developed one. Overall, Indonesia is one of the strongest economies in the region, with extraction of oil, gas, coal, and rare earth metals. Geographically, the country is located between the Indian and Pacific Oceans and controls key Asian trade routes.

— Tourism, however, is not the main contributor to the country’s GDP. But Bali became the island that received a powerful development impulse thanks to tourism. It was initially “discovered” by Australian surfers back in the 1980s–1990s, after which the island entered the global tourism spotlight.

— Today, Bali ranks among the world’s top tourist destinations. Visitors arrive from all over the world: Australia, India, China, Singapore, Europe, and the USA. At the same time, tourists from CIS countries account for around 5% of the total flow.

— Over the past year, about 17 million tourists visited the island, and more than 55–60% of them were domestic tourists. Indonesia is the third most populous country in the world (around 300 million people), and domestic tourism alone creates a massive demand base.

Bali Real Estate Market and Investment Returns

— Why is Bali’s real estate market so attractive to investors today?

— Because it is a young and still-forming market. If we compare it to Thailand, Turkey, or Dubai, those markets are already overheated. The difference between the price at the construction start and the price of a completed property there is minimal. Average returns are around 6%, which is considered a good result.

— Bali is different. The market is still developing, and we see potential at least 5–10 years ahead. Even completed properties generate average returns of 12–15% per year, and entering at an early construction stage can bring even higher yields.

— If an investor enters closer to completion or purchases a finished property, returns are usually around 8–10%, which is still above the global average.

— Another important point is the lack of pronounced seasonality. There are peak months, but no periods when tourist flow drops sharply. Demand remains stable throughout the year.

Infrastructure Development of the Island

— What indicates Bali’s future growth from an infrastructure perspective?

— First and foremost, government programs. A large-scale transport infrastructure development plan has been approved through 2030. A toll road over the ocean connecting the south and north of the island is already operational.

— Bali’s airport is designed to handle approximately 23–25 million passengers per year, and with current growth rates it is nearing capacity. Therefore, the government has already announced the construction of a second airport in the north of the island.

— A metro project has also been announced, primarily elevated, connecting key areas: Canggu, Gianyar, Bukit, the airport, and Sanur port.

— All of this indicates one thing: Bali is in an active growth phase, not a mature saturation phase.

Development History and Experience

— Tell us about your company and your experience building in Bali.

— We started development in 2019 with our first complex in Ubud — a 12-unit project that became a full-scale “school” for us. We went through all stages: land acquisition, permits, construction, commissioning, and rental operations.

— Since 2021, we have been scaling. Today we have 12 projects, of which:

• 4 are already listed on Booking and generating income for investors

• 2 are in the handover stage to the management company

• the rest are at various construction stages with completion planned for 2026–2028

Construction Quality and Process Control

— How does your construction fundamentally differ from most projects in Bali?

— The key difference is that we do not use contractors. We have our own construction teams from Jakarta — specialists accustomed to building high-rises rather than “resort houses.”

— We operate our own factories producing:

• windows and glazing

• concealed installation doors

• stretch ceilings

• furniture and textile production (currently launching)

— We use M300-grade concrete, always take samples before pouring, apply moisture-resistant additives, and carry out full foundation waterproofing — which is critical in a tropical and seismically active climate.

— All projects are designed to withstand seismic loads of up to 8 points, in accordance with Indonesian architectural standards.

Standardization as the Key to Quality and Efficiency

— Why do you prioritize standardization over “uniqueness”?

— Standardization allows us to achieve consistent quality. We use the same appliances, plumbing, furniture, and layout solutions. Everything is purchased in bulk and tested over time.

— This simplifies maintenance, repairs, and replacements, and reduces management company expenses. As a result, the investor receives higher net profit.

— All units are delivered fully ready for rental: appliances, tableware, textiles, bathrobes — everything is included.

Investment Model: Income, Not “A Home for Yourself”

— How do you position real estate in Bali: for living or for investment?

— First and foremost, it is an investment. Here, it is not customary to buy a “house that just stands.” It is an asset that must work.

— The average model looks like this:

• entry at an early stage

• installment plan up to 30 months

• price appreciation by completion

• 10–15% annual return

• payback period of around 7 years

— At the same time, the owner can stay in their property for up to one month per year free of charge.

Leasehold and Freehold: Explained Simply

— Explain the difference between leasehold and freehold as simply as possible.

— Leasehold is long-term land lease, usually for 30 years. This is the main investment format in Asia. It offers a low entry threshold and high returns.

— Freehold is land ownership with a state term of 80 years and subsequent extension. We have freehold projects where investors can choose ownership terms of 50 or 80 years.

— In both cases, the investment logic is the same: rental income plus property value growth.

Land Zoning Colors in Bali

— Why is it so important to pay attention to land zoning colors?

— The land color determines its designation:

• Pink — tourism (ideal for rentals), Yellow is also perfectly suitable

• Orange — requires additional permits

• Red — commercial and industrial use

• Green — agricultural use

— All our current projects are located on pink land, which allows legal short-term rental operations.

Property Purchase Process

— What does the purchasing process look like step by step?

— In 90% of cases, transactions are completed remotely:

• Zoom meeting and presentation

• Project and unit selection

• Refundable reservation (up to $1,000)

• Contract review (in Indonesian + translated version)

• Electronic signature

• Scheduled payments