Dubai vs Bali: Where to invest

Let's briefly compare real estate in Dubai and Bali from an investor's perspective: where is it more advantageous to invest?

Economic parity

The GDP of the UAE and Indonesia is growing at a rate of 5% per year. Indonesia ranks third in Asia in terms of GDP growth rate. In Dubai, the inflation rate stands at 3,3%. Here we observe economic parity.

Real estate market

In Bali, by law, only 1/3 of the entire island can be developed. And the local real estate market doesn't particularly impress with its diversity. Dubai, on the other hand, offers a wide range of options, from villas to townhouses, residences the size of half a football field, or even water homes. The construction sector is strictly regulated by the government, ensuring that all buildings meet high standards of quality and eco-friendliness.

Residency rights

Buying property in Bali does not automatically grant you residency rights. In Dubai, however, residency rights can be obtained with investments starting from $205,000. Additionally, foreigners in Bali cannot own land outright, only lease it for up to 30 years. In Dubai's special freehold zones, however, you can have full ownership of property and pass it on through inheritance.

Taxation

Tax rates in Bali are higher. In Indonesia, taxes ranging from 5 to 11% are levied on property purchases, rental income, and sales. One of the main advantages of real estate investments in Dubai is the absence of taxes on the same. Only a 4% land tax. And that's it.

What's the outcome

Over the past 2 years, Dubai has proven that its real estate market is lucrative and reliable. Simply invest and watch the prices rise. Rent it out with yields of up to 12% and become wealthier. You don't pay taxes on income, you can invest remotely, and obtain residency rights.