Analyzing Excellence: The Strategic Advantages of Villa Ownership in Kerobokan

Are you in search of a lucrative investment opportunity? Consider a property in Kerobokan! Uncover why Kerobokan is a sought-after area for property buyers in this comprehensive guide.

Discover the world of property investment in Kerobokan, where wise choices intersect with the breathtaking charm of Bali.
In this investment guide, we will reveal why investing in a property in Kerobokan is a clever decision. Join us as we delve into the intricacies of how your investment can blossom in this tropical haven. Prepare to uncover how Kerobokan delivers not only financial gains but also a blissful lifestyle.

The Pluses of Investing in a Property in Kerobokan

Kerobokan is a full potential and peaceful locale, attracting attention from those eyeing villa investments. Discover the benefits of investing in a property in Kerobokan:

Maximum Earning

Situated in close proximity to Seminyak and Canggu, Kerobokan boasts a strategic rental property profit potential. By investing in Kerobokan, you’re offering a balanced lifestyle that caters to modern comforts while maintaining a touch of Bali’s charm.

Secure a piece of this evolving locale and tap into the potential of a rental market that values accessibility and connection.

Kerobokan is renowned for its breathtaking beaches, excellent dining choices, and lively entertainment scene. Owning a villa in this area can offer you a lavish lifestyle that many can only fantasize about.

You can relish the stunning landscape, unwind by the pool, and indulge in the regional cuisine at your convenience.

Positioned strategically, Kerobokan offers a potential for noteworthy uplift to your property’s price. The area’s proximity to Seminyak and Canggu, coupled with its growing expat community, positions it as a promising investment choice.

Your property investment in Kerobokan is poised to benefit from the area’s evolution.

Maximum Earning

Situated in close proximity to Seminyak and Canggu, Kerobokan boasts a strategic rental property profit potential. By investing in Kerobokan, you’re offering a balanced lifestyle that caters to modern comforts while maintaining a touch of Bali’s charm.

Secure a piece of this evolving locale and tap into the potential of a rental market that values accessibility and connection.

Kerobokan is renowned for its breathtaking beaches, excellent dining choices, and lively entertainment scene. Owning a villa in this area can offer you a lavish lifestyle that many can only fantasize about.

You can relish the stunning landscape, unwind by the pool, and indulge in the regional cuisine at your convenience.

Positioned strategically, Kerobokan offers a potential for noteworthy uplift to your property’s price. The area’s proximity to Seminyak and Canggu, coupled with its growing expat community, positions it as a promising investment choice.

Your property investment in Kerobokan is poised to benefit from the area’s evolution.

The Thriving Tourism Industry in Kerobokan.

The tourism industry in Kerobokan is growing even better, increasing the demand for luxury accommodations like villas. Investing in property here offers a chance to benefit from this trend and earn a steady income.

The Potential of Kerobokan's Rental Property Income

Extracting insights from the above chart, we can discern the potential status of rental properties in Kerobokan region:

  • The nights booked in Kerobokan show a clear upward trend. From 6,173 nights in Sep 2021 to a peak of 44,917 nights in Aug 2024, there has been consistent growth in demand for vacation rentals, particularly during the summer months.
  • The summer peak is most noticeable in Jul 2024 (43,239 nights booked) and Aug 2024 (44,917 nights booked), indicating the area’s strong appeal during the tourist season.
  • The ADR has generally been on the rise, especially during high-demand periods. For example, the ADR increased from $209.91 in Dec 2021 to $278.82 in Dec 2023, showing that property owners are adjusting prices to capitalize on high occupancy.
  • The ADR reached its highest point in Jul 2023 ($280.89) and Dec 2023 ($278.82), reflecting the profitability during peak seasons.
  • Seasonal fluctuations are evident, with ADR dropping in off-peak months like Nov 2023 ($219.79) and Feb 2024 ($225.38), suggesting lower demand outside peak times.
  • 1-bedroom villas saw consistent growth, starting at $531.05 in Q4 2021 and reaching $1,124.84 in Q3 2024, indicating steady demand for smaller properties.
  • 2-bedroom villas follow a similar growth trajectory, increasing from $1,516.50 in Q4 2021 to $2,665.07 in Q3 2024.
  • 3-bedroom and 4-bedroom villas have experienced strong revenue growth as well, with 3-bedroom villas reaching $4,270.50 and 4-bedroom villas at $7,598.32 by Q3 2024, showcasing the rising appeal of mid-sized properties.
  • Larger villas (5 and 6 bedrooms) saw substantial revenue growth, with 5-bedroom villas reaching $9,233.43 in Q3 2024 and 6-bedroom villas peaking at $15,502.13 in the same quarter. These larger villas are generating the highest revenues, showing that they are popular among luxury travelers or large groups.
  • Jul and Aug 2023 marked the busiest months, with 29,833 and 29,930 nights booked respectively, while the ADR hit $280.89 in Jul 2023. This indicates a high willingness among guests to pay premium prices during peak tourist periods.
  • Dec 2023 also saw a significant spike in demand, with 31,205 nights booked and an ADR of $278.82, likely due to holiday season tourism.
  • Q4 2023 saw a decline in revenue for most properties compared to Q3 2023, particularly for 4-bedroom and 5-bedroom villas, which dropped to $5,869.69 and $7,397.79 respectively. This may reflect a seasonal dip in demand after the summer peak.
  • However, by Q3 2024, all property sizes showed significant revenue recovery, with 6-bedroom villas reaching $15,502.13, continuing their dominance in revenue generation.
  • Larger villas (5 and 6 bedrooms) continue to lead in revenue, with 6-bedroom villas showing consistent growth, peaking at $15,502.13 in Q3 2024. These properties are ideal for larger families, groups, or luxury travelers.
  • The steady rise in revenue for these larger villas suggests that Kerobokan is attracting a high-end market segment, particularly during peak tourist months.
  • During off-peak months such as Nov 2023 and Feb 2024, property owners appear to adjust prices downward to maintain occupancy. For example, the ADR dropped to $219.79 in Nov 2023 and $225.38 in Feb 2024, suggesting that while demand decreases, owners are still keen on keeping their properties booked through competitive pricing.
  • In 2024, there is a sharp rise in the number of nights booked, especially in May (35,912 nights), Jun (39,512 nights), and Aug (44,917 nights). This could indicate a surge in tourism post-pandemic or increased popularity of Kerobokan as a rental destination.
  • The high booking numbers, combined with increasing ADR in peak months, suggest that Kerobokan is emerging as one of the more lucrative areas for short-term rentals in Bali.
  • 2-bedroom and 3-bedroom villas show significant potential in revenue growth. 2-bedroom villas reached $2,665.07 and 3-bedroom villas hit $4,270.50 in Q3 2024, making them attractive options for mid-range travelers.
  • For 4-bedroom villas, despite a dip in Q4 2023, they recovered strongly in Q3 2024, reaching $7,598.32, indicating they remain a popular choice for families and larger groups.

Best Areas in Kerobokan to Invest in a Property

There are several areas in Kerobokan that are ideal for property investment. Those are:

Batu Belig - Kerobokan

Batu Belig

Batu Belig is a close second, offering a blend of relaxation and entertainment. Its proximity to both Seminyak and Canggu makes it a versatile investment choice.

Petitenget - Kerobokan

Petitenget

Petitenget is the top choice for those looking for luxury investments and high returns. Its reputation and the range of high-end establishments make it a magnet for affluent tourists.

Jalan Raya Semer-Kerobokan

Raya Semer

Raya Semer is ideal for those looking for a more authentic experience and potentially more affordable investment options. It’s a strategic location offers a balance between the glamporous tourist areas and the tranquility of local Balinese life.

Where’s the best place to buy a villa in Bali?

Looking for a potential area to buy a villa in Bali? Read our location guide before decide to buy one.

Frequently Asked Questions

FAQ

Why investing a property here?

Kerobokan is a strategic location between Seminyak and Canggu. This area’s growth potential, urban convenience, and blend of Balinese charm make it an attractive choice. With its proximity to popular destinations, Kerobokan provides the opportunity for both rental income and long-term value appreciation.

Kerobokan offers a mix of urban amenities and local experiences. Nearby Seminyak boasts vibrant nightlife, while Canggu offers trendy cafes and surf spots. Petitenget Temple and Batu Belig Beach are also accessible.

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