Estonians Developing 65 Luxury Villas in Bali
Kristjan Ploompuu, former CEO of Uus Maa Real Estate, is developing 65 villas on the island of Bali in Indonesia together with Estonian partners, which will be completed by the end of the year.
Kristjan Ploompuu, CEO of Investland Bali, is simultaneously managing three developments in South Bali, in the popular beachside Canggu tourism area. "By autumn, 12 Amari Villas with rooftop terraces in townhouse-type design will be completed, as well as 38 Maya Residence villas, and construction of a third development has just begun, with which we are building 15 new lofts," said Ploompuu and added that plans are in place for several development projects that are many times larger than the current ones.
"Out of 50 villas in the first and second phases, 47 have already found owners and the sale of the third project, which is 15 new homes, is about to begin. Investor interest is high – there are buyers from more than 15 countries, including many Estonians," said Ploompuu.
"For us, it is important to have a low entry barrier in development, and the prices of fully custom-furnished homes remain below 200,000 euros. For the third development, prices start from 125,000 dollars for a fully furnished loft," added Ploompuu.
"Bali villas are intended for personal vacation use, rental, and investment. Bali is clearly a growing destination both in terms of tourism and cash flow. This year, 20 million visitors are expected to Bali, which is a third more compared to last year. Last year, nearly 5,000 Estonians visited the island and this number is also on the rise," said Ploompuu.
According to Kristjan Ploompuu, Estonia has recently been mainly discussing investment in Spanish real estate, which has an average annual rental yield of 4-6% on its southern coast, similar to Estonia. "Since Bali has a year-round season, the average occupancy of rental properties is 70-80% and the annual rental yield is 10-20%, which greatly exceeds most destinations in the world," said Ploompuu.
"On average, real estate prices in Bali rise 5-15% per year and quite a few investors who purchased Maya Residences have already resold their villas at 20-30% above the purchase price," added Ploompuu.
According to the CEO of Investland Bali, the Bali real estate market does not depend solely on tourism, but the country is also rapidly developing as a business and digital services center. "The local political situation is stable and favorable to foreign investment. According to Forbes, Indonesia ranks fifth in the world in terms of investment attractiveness. According to Goldman Sachs' global economic report, the country will rise by 2050 to become the world's fourth largest economy in US dollars, surpassing Germany, the United Kingdom, Russia, and France," described Ploompuu the potential.
