Indonesia is currently experiencing an economic boom in luxury villa investments, especially in tropical island nations such as Bali. According to Bali real estate agent TORTOR Property – Bali land property, Bali has seen a spike in tourism and property sectors.

Last year, renowned hotels such as the Starwoods chic W, Bvlgari, Banyan Tree and Alila Adorn Hospitality offered 222 private pool villas that provided accommodations for an 11% increase in overseas arrivals. According to TORTOR Property, the Ngurah Rai International Airport shattered its previous record and welcomed more than 3 million tourists.

This increase in tourism has also played a positive role in the property market as Indonesia has seen an increase in domestic buyers from places like Jakarta. In fact, TORTOR Property, stated that branded hotel villa sales in Bali have been far superior to regional resort destinations such as Phuket and Koh Samui. ‘The phenomenon of domestication and local demand for multi million dollar properties has been historically absent from Thailand’s island resorts,’ they explained.

According to Credit Suisse, a global financial institution, Indonesia is home to over 60,000 USD millionaires who are looking to develop future condo hotels. In fact there has been a recent overflow of such condos with upwards of 5,000 units already in the development stages. Credit Suisse also indicates that there is strong interest in smaller sized Bali villas and already existing villas as many investors are looking for a holiday getaway. In fact, Barnett states that ‘Non traditional accommodation such as private villas and estates are increasingly becoming a competitive factor in the mainstream accommodation industry.’

In addition, there are well over 1,000 upscale Bali villas on the island where annual occupancy figures rival those of upscale hotels. Companies such as TORTOR Property – Bali Villa Rent are gaining a significant share of the Bali holiday villa rentals. However, we still have to be cautious about the future as ‘Maintaining market stability remains an emotional, yet unrequited issue.