Indonesia property is considered one of the most attractive ventures when it comes to investing your money. With a lot of potential on offer from investment opportunities in Indonesia cities, such as strong rental returns and capital gain, investing in the Indonesia market is a great way to build a lucrative portfolio and grow your income over time.
As with any investment, however, there are certain things you need to know before you make an investment purchase, and knowing about property investment hotspots is one of them.
If you’re interested in investing in Indonesia, it’s important to find out about the best places to buy property before committing to a buy to let purchase. In this detailed guide, we’ll discuss the different benefits of each property investment hotspot, helping you select the best places to invest in property in the Indonesia.
In this articles, you’ll find information on the Indonesia cities with the most affordable property prices, the highest rental yields, and the strongest capital growth potential.
Where Is the Best Place to Buy Property in the Indonesia for Affordability?
When thinking about investing in property, it’s likely that you will have set yourself a personal budget to stick to, as this is a key part of any property business plan. If you’re just starting out in property as a beginner investor, you may not have a huge amount of money available to make the investment, so will want to explore the best places to invest in property the Indonesia offers when it comes to affordability.
Even if you’re not a beginner and you’re simply looking to build up your portfolio, affordability is still an important element to consider. While affordability doesn’t necessarily indicate a good investment, it’s definitely worth identifying the areas where property prices are lower before exploring their potential further.
Wondering how to invest in property in the Indonesia while keeping costs as low as possible? Out of the top buy to let hotspots listed above, here are some options for the best place to buy property in Indonesia when it comes to affordability.
Bali
Bali comes out on top as one of the Indonesia most affordable investment cities. With an average property price, this an island located in the middle of Indonesia is a favorite for those seeking the best places in the Indonesia to buy property if you’re looking to keep costs low while reaping the full benefits of your investment. Bali has always been considered one of the Indonesian most affordable cities for buying rental property, especially when compared to property prices in the North.
Why invest in Bali?
– Abundant resources
Bali is blessed with a unique culture, beautiful beaches and mountains, fertile land, biodiversity and human resources. You can basically enjoy a complete holiday in Bali: from climbing to diving, eating to shopping, meditation to learning a new culture.
– Development of infrastructure
Investors consider infrastructure in Bali before putting in their money. Fast developing Bali has complete infrastructure such as an international airport and highways. In addition, the Indonesian government has a mission to make Bali more accessible to tourists from various parts of the world.
– Stable Political Situation
The political situation in a region affects the tourism industry. Higher political stability means a more prosperous tourism industry. Bali has long been known for its stable political situation, and this is one reason the tourism sector looks increasingly promising to foreigners.
Lombok
Another of the most up and coming areas in the Indonesia for buy to let, Lombok is a fantastic city to consider if you want to invest in low-priced property.
As an island located east of Bali and west of Sumbawa, Lombok is one of the best performers in the region for both local and foreign investment. This is especially true for tourism and property investment, thanks to the never-ending infrastructure and property developments..
Why invest in Lombok?
– Great location
Location is often cited as the main determining factor in the value of any given property. The same concept applies when considering Indonesia’s 17,000 islands. This community-driven islet is just a couple of hours from Singapore and a half-hour from Bali.
– Social & economic strength
Indonesia has experienced consistent economic growth of between 5-6% year-on-year since 2010 and this is expected to continue in years to come. The rising domestic demand of Indonesian investors and tourists is an additional factor. The country’s emerging middle class is creating a boom for consumer companies across many industries, from hotels and airlines to cars and mobile phones.
– Political stability
Indonesia continues to forge ahead as one of the world’s largest democracies, with very few tensions within the existing political power structures. This ensures politics is unlikely to impede significant reforms and economic growth.
Yogyakarta
The smallest province in Indonesia is the Special Region of Yogyakarta just outside of Jakarta. It is one of the most densely populated provinces.
The vibrant and historic city of Yogyakarta is another of the best areas for buy to let in the Indonesia, and a great choice if you want to know where to invest in property without breaking your budget. Yogyakarta is rising in reputation as a top property investment city due to its popularity with a young population of tenants. Both students and young professionals are seeking properties in Jogjakarta, which is why the area has attracted more investment over recent years.
Why invest in Yogyakarta?
– Maintain political stability
The passing of the Yogyakarta Privileges Law No. 13/2012 has made it possible to appoint regional heads through stipulations so as to minimize the potential for conflict. This has guaranteed political stability in Yogyakarta and supported a positive investment climate.
– Geolocation
Yogyakarta’s strategic position, which is in the middle of the island of Java and well connected to other regions in Indonesia through various infrastructure supports, makes Yogyakarta play an important role as the center of growth and services for the southern part of Java.
– Rich in culture and tradition
As a cultural city where traditional Javanese culture is combined with modern culture, Yogyakarta is strategic as a place for the development of the tourism, education and culture sectors.
– Quality human resources
With more than 100 universities in Yogyakarta, it supports the abundance of educated and skilled human resources with a good ratio of computer understanding.
What buy-to-let property investment locations should you be considering in 2022?
First of all, don’t take our words as gospel. What may work for someone else might not work for you, and these locations we’ve picked might not suit your strategy or goals. Before diving into buying property left right and center in any of these locations, you still need to do your thorough research and due diligence.
One thing is for certain, you need to be considering the fundamentals of each area to see if they stack up for you and offer the type of property investment opportunities you’re looking for.
