Beachfront bali house prices 'rocketing'

Property prices in Bali are rocketing at the moment, and with foreign buyers jumping on the bandwagon trying to snap up bargains, the country's infrastructure is choking under the strain, reports The Telegraph.

The Indonesian island is popular with tourists and also with expats looking to invest in luxury villas, and prices there shot up 20 per cent last year. In a recent report, Bali-based property firm Elite Havens said buyers have been investing heavily in beachfront properties.

Now the land around beaches is beginning to increase in price, investors have been moving inland away from established tourist destinations. However, with the flood of tourists, developers and heavy construction, Bali’s rural roads are beginning to become choked with traffic.

Fabrice de Barsy, a consultant at the Hospitality Institute of Asia, said:

“Bali didn’t take care of its infrastructure and environment. Bali has now become dirty, the traffic terrible and the landscape is getting spoiled by ugly construction. The luxury market is not doing that well as hundreds of cheaper hotels and condo-hotels are being built. However, the country is doing well and a growing middle class can now afford Bali. Prices will keep going up, but on the very high end, a lot is for sale with nobody to buy.”

At the same time, investors are being warned to be wary of the length of leases when buying luxury villas. Most land on the island is offered on a leasehold basis.