In August, it was announced that Indonesia’s population of 255 million is expected to grow a further 43% by 2050. Amazingly, this actually means the country is on track to lose its current position as the world’s fourth most populous country, and be overtaken by Nigeria.
One claim to fame Indonesia is not likely to relinquish to West Africa in this century (or the next) is that it is home to the world’s two hottest property markets – central Jakarta (+37% in 2013) and Bali (+20%). Recent government announcements indicate that the market in paradise is about to get even hotter – a planned relaxation of foreign property ownership laws in Bali is expected within the next two to three months. Although foreigners are not currently able to own property outright in Indonesia, this has by no means deterred droves of investors and second homebuyers. Currently, many are finding their way around the ban by using local citizens as proxies or by structuring their purchases as a long-term lease. With a prominent local bank forecasting a further price hike of +10% for prime Balinese residential property in 2015, demand clearly isn’t an issue. We’ll be sending detailed updates when the new regulations and conditions governing real-estate purchases are finally released.