Greece, Bali, UAE: where should you invest?
In recent years, Bali, Greece, and the UAE have become top real estate investment destinations, garnering so much popularity that local governments have been prompted to take action:
🔵 Indonesia is considering a law to halt the construction of new hotels, villas, and resorts in Bali’s most popular tourist areas for the next 3–5 years.
🔵 Greece has raised the investment threshold and tightened the rules for the "Golden Visa" program, although some loopholes remain.
🔵 The UAE is grappling with a surge in fraudulent deals, with non-existent properties being marketed at suspiciously low prices.
Despite these regulatory changes, foreign investors remain undeterred. In Greece, for example, alongside the raised investment threshold, a new option has emerged: purchasing properties converted from commercial to residential use, which provides access to the most affordable residency program in Europe.
Recently, an experienced investor asked us: “I see plenty of ads for Bali and the UAE—why do you recommend Greece?”
We have several reasons. But before giving a definitive answer, let’s look at the market data, as we always rely on solid numbers.
Bali Real Estate Market: What to Expect as an Investor
In 2024, Bali’s real estate market showed steady growth, continuing to attract global investors. International tourist numbers are nearing pre-pandemic levels, and authorities are optimistic that 2024 will set a record with over 6 million visitors expected.
The current strategy to attract long-term residents, such as digital nomads, has fueled a boom in the residential villa market. Over the past year, property prices on the island have increased by 10%, remaining more affordable compared to other prime resort destinations.
Who Is Investing?
Australians: Proximity and cultural ties make Bali a popular choice.
Russians and CIS countries: These investors see Bali as a safe way to preserve capital and generate income.
Europeans and Americans: Drawn by the high potential for rental yields.
What Are They Investing In?
Villas: A favorite for short-term tourist rentals and long-term expatriate living.
Apartments: Popular for their lower entry costs and strong rental demand.
Land plots: Sought after for development opportunities.
Investment Returns and Trends
Rental yields on Bali real estate average 5–10% annually. Indonesia also offers visas for investors, making property purchases particularly appealing for long-term residents.
However, according to Global Property Guide, some areas, like Denpasar, saw property values drop slightly (by over 2%) in 2023, underscoring the need for careful investment choices.
In 2024, the completion of major infrastructure projects, such as the Gilimanuk–Mengwi toll road, is expected to improve the island's accessibility, further enhancing its appeal for investors.
Renty’s Expert Insights: Should You Invest in Bali’s Real Estate?
The Bali real estate market in 2024 offers diverse opportunities for investors, blending strong rental yields with growth potential. While some claim returns as high as 15% annually, the actual post-tax yield rarely exceeds 7–8%.
A key consideration is the leasehold land status, common for most properties. This arrangement requires lease renewal every 25 years, causing the property to lose value annually, equivalent to the ground rent. The island also faces challenges such as limited infrastructure and underdeveloped roads, which can affect investment prospects.
In Bali, most real estate is offered under leasehold agreements, granting usage rights for a specific term, typically 25–30 years. After this period, the lease must be renewed, which can involve additional expenses and legal complexities. The absence of a guaranteed renewal or changes in lease terms can lead to a decrease in property value as the lease expiration approaches.
Additionally, the exit strategy in Bali can be challenging due to significant taxes upon property sale, potentially amounting to nearly 60% of the property's value:
Income Tax on Property Sale (PPh): The seller is required to pay a tax of 2.5% of the property's sale price.
Land and Building Acquisition Duty (BPHTB): The buyer pays 5% of the property's value after deducting a non-taxable threshold, which varies by region.
Value Added Tax (VAT): If the property is sold by a professional developer, VAT applies. As of 2024, the VAT rate is 11%, with an increase to 12% planned for 2025.
Luxury Goods Sales Tax (PPnBM): For luxury properties valued at 30 billion Indonesian Rupiah (approximately USD 2 million) or more, a 20% luxury tax is applied. This tax is levied only on the initial sale of such properties, including apartments, townhouses, and villas.
Title Transfer Fee (Bea Balik Nama, BBN): A minor fee for changing the name on the ownership certificate. It is calculated by dividing the land's price per square meter by 1,000 and multiplying by the property's total square meters.
While Bali’s rental yields can be attractive, the loss of property value due to leasehold agreements and high sales taxes have diminished its appeal for us. On the bright side, the market offers flexible payment options and multiple ways to optimize rental tax liabilities.
UAE Real Estate Market: What Awaits Investors?
The UAE real estate market in 2024 has shown consistent growth, driven by strong demand from global investors. For example, investments from China into luxury projects by Emaar Properties doubled, accounting for 7% of the developer’s total transactions. Indian investors are also heavily active, particularly in Dubai’s real estate sector.
Among foreign buyers, apartments are the most popular, making up 78% of all transactions in July 2024, with 12,651 deals recorded. Villas are in demand for personal use, with 2,336 units sold in the same month for a total value of AED 14.3 billion. Additionally, interest in commercial properties is growing, with these assets favored for business operations and rental income.
Key Investment Goals in the UAE:
Investing in real estate opens the door to long-term residency.
Many investors purchase properties during the construction phase to sell post-completion, achieving profits of up to 30%.
Annual rental yields in the UAE range from 5.5% to 7% (pre-expenses), supported by an influx of over 100,000 expats each year.
Many buyers seek luxury homes for their own residence.
In 2024, alternative regions like Ajman, Sharjah, and Ras Al Khaimah gained popularity, offering more affordable options while staying close to Dubai. Abu Dhabi is also increasingly seen as a promising investment hub, with growing demand from international buyers.
Renty’s Expert Insights: Should You Invest in UAE Real Estate?
The UAE real estate market is primarily geared toward off-plan property sales rather than high rental returns. This focus explains the modest average ROI of around 5%. Additionally, the short-term rental market struggles to compete with hotels, leaving most properties better suited for long-term leases.
While the market offers excellent opportunities for capital appreciation and residency options, investors should carefully consider their goals—whether it’s rental income, resale profits, or a personal residence—to ensure alignment with the market’s unique dynamics.
Greece Real Estate Market: What Awaits Investors in 2025
In 2024, the Greek real estate market showcased significant growth, particularly in major cities and tourist regions. According to the Bank of Greece, apartment prices increased by an average of 7.8% year-on-year in the third quarter of 2024, a slower pace compared to the 13.8% growth observed during the same period in 2023.
Who Is Investing?
The market continues to attract investors from around the globe, particularly from:
Germany
The UK
China
Israel
The USA
Most investors focus on apartments in Athens and Thessaloniki, villas on the islands, and commercial properties in key locations.
Key Investment Goals:
Rental Income: The strong tourist flow creates consistent demand for rental properties, resulting in attractive yields.
Golden Visa Program: Investing in real estate provides access to long-term residency in Greece.
Resale Opportunities: The steady price appreciation in the market ensures appealing prospects for capital gains.
Renty’s Expert Insights: Should You Invest in Greek Real Estate?
Experts predict that property prices in Greece will continue to rise in 2025, particularly in high-demand areas like central Athens and its suburbs. However, the rate of growth is expected to slow compared to recent years. Foreign investors are likely to remain interested, especially in residential and tourism-focused properties.
Overall, Greece remains a compelling destination for real estate investments, offering diverse opportunities for both income and long-term value growth.
How Does Greek Real Estate Compare to Bali and the UAE?
Price Growth:
While both Bali and the UAE promise impressive annual price growth of up to 30%, this is typically only true until the building is completed and rental operations begin. After that, growth slows to around 5% per year.
In contrast, Greece offers consistent price appreciation:13.4% in 2023
11.9% in 2022
7.6% in 2021
Rental Income:
Greece boasts a stable short-term rental market, particularly in tourist-heavy areas like Athens, with average yields of up to 8%.Tax Advantages:
The UAE stands out for having no VAT or income tax for residents, with resale costs as low as 2% for secondary properties.
In Greece, the purchase tax for secondary market properties is 3% of the transaction value, still competitive compared to other European markets.
Key Takeaways for Investors
Steady Growth: Greece’s real estate market offers stable appreciation, making it a reliable choice for long-term investments.
Income Opportunities: The thriving tourism sector ensures strong demand for short-term rentals.
Golden Visa Benefits: Access to residency in Europe adds a unique value for investors.
Whether you’re looking for consistent growth, rental income, or strategic benefits like residency, Greece’s real estate market provides an attractive balance of stability and opportunity for 2025.
