Buying a property in Amed – Profit from Amed’s Rental Market

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Buying a property in Amed – Profit from Amed’s Rental Market

by | Oct 7, 2024 | News, Property Investment

Buying a property in Amed – About this article…

The real estate market in Amed is beginning to show clear signs of growth. Buying a property in Amed during the early stages of the growth cycle can make you a significant amount of money.

Property developers and savvy investors are looking to Amed as an alternative to Bali’s southern areas. Property prices in Canguu, Seminyak, and Sanur are so high that many new buyers can not pay the high asking prices.

As the property market in Amed evolves, early investors are in a position to make life-changing returns from short-term rental income and longer-term property value growth.

The property market in Amed

Buying a property in Amed for investment purposes during these early stages of the property cycle presents investors with an exceptional value proposition. Buying a villa to capitalize on the holiday rental market in Amed can deliver investment returns of over 15% per year.

Amed is becoming popular as tourists begin to recognize the beachfront town for its stunning landscape and world-class diving waters. Lonely Planet recently voted Amed as its #2 choice for places to visit in South East Asia.

Potential of Amed's property market

Property investors worldwide use the 18-year property cycle to determine whether property valuations are rising or falling. Using the 18-year property cycle, Amed is in the third year of a fourteen-year upward trend. 

This indicates that now is a great time to buy a property in Amed as the upside potential to profit from rising valuations is positioned to reward early adopters. This article details how Bali’s southern resorts are currently positioned in the property cycle.

Chart showing that Amed is in the third year of the 18 Year property cycle.

Rental demand from tourists

Demand for rental accommodation has increased as more tourists put Amed on their list of places to go. 

Property owners are enjoying the benefits of the increased demand with high year-round occupancy rates and rising prices per day.

The supply of quality villas for rent in Amed is low. The trend for private villa accommodation in the south of Bali has seen the real estate market in places like Canggu and Seminyak explode over the past twenty years.

The demand for private villas is now rising in Amed and savvy investors are looking to buy property to capitalize on the growing rental market.

Is Amed a good place to buy property?

The property market in Amed is less established than in Bali’s southern areas. However, as Bali’s south becomes too busy, tourists and long-term residents are looking at other areas of Bali in search of a more laid-back and less hectic pace of life

Amed is a popular choice for those in search of a more authentic experience of Bali. 

Stunning scenery, world-class driving waters, and a growing lifestyle scene with restaurants, cafes, and fitness facilities.

Property prices in Amed

Property prices are dictated by the value of land the property occupies. Land prices in Amed are currently low compared to prices in the south. As a result, property prices are much more affordable in Amed.

As an example, the following list is what you can get when buying a property in Amed for $279,000;

  • 3-bed / 3-bath villa built on 2 floors
  • 470 SQM total plot size
  • 330 SQM total building size
  • Large swimming pool
  • Landscaped garden
  • Ocean views in a sought-after location of Amed
  • Only minutes away from Amed Beach and the town center

Value proposition of property in Amed

The graph below shows the value proposition of buying a property in Amed over buying in other areas of Bali.

The data compares 3-bed/3-bath luxury villas for sale in other areas of Bali.

  • Amed = $279,000
  • Canggu = $595,000
  • Seminyak = $425,000
  • Ubud = $438,000

You can see from the chart that the property in Amed is less expensive to buy, comes with a larger plot of land, and comes with a larger built-up living space than the other areas.

In short, buying a property in Amed gets you a lot more for your money. You get a larger property built on a larger plot of land.

Is Amed property a good investment?

If you are buying a property for investment purposes you should determine whether the property can generate enough rental income to satisfy your financial needs.

Using a professional rental management company to analyze the earning potential of your property can give you a good indication of how your investment property will perform.

Buying a property in Amed while prices are still low provides you with a lot of upside potential. You can capture long-term capital appreciation as property values rise and enjoy the benefits of rising rental prices as demand increases.

Amed’s property market is showing similar characteristics to the property markets in Bali’s south. 

Early investors have an exceptional opportunity to buy when prices are low, enjoy a high-rate passive income, and sell when property prices increase.

Rental market in Amed

The data in the following sections demonstrates that the rental market in Amed is an attractive proposition for investors interested in buying a property in Amed.

Amed’s holiday rental market is often overlooked as the more developed resorts in the south have captured the large majority of tourists over the past twenty years.

However as places like Canggu, Seminyak, Kuta, and Sanur become congested with traffic, tourists are exploring other areas of Bali in search of a slower pace of life.

As a result, Bali’s northeast is becoming busier as tourists swap traffic jams in the south for a more peaceful environment in Amed.

Demand for short-term and long-term rentals in Amed has grown over the past 3 years. Property owners are enjoying the benefits of sustained occupancy rates and higher prices per day.

4-bed rental villas in Amed

The information below shows the latest data on 4-bed rental properties in Amed. The data has been taken from October 2023 to September 2024.

41%

Occupancy Rate

$206

Average Daily Rate

$29.6k

Average Annual Revenue

Map showing locations of 4-bed villas for rent in Amed

3-bed rental villas in Amed

The information below shows the latest data on 3-bed rental properties in Amed. The data has been taken from October 2023 to September 2024.

78%

Occupancy Rate

$228

Average Daily Rate

$47.8k

Average Annual Revenue

Map showing locations of 3-bed villas for rent in Amed

2-bed rental villas in Amed

The information below shows the latest data on 2-bed rental properties in Amed. The data has been taken from October 2023 to September 2024.

64%

Occupancy Rate

$99

Average Daily Rate

$19.7k

Average Annual Revenue

Map showing locations of 2-bed villas for rent in Amed

How to buy a property in Amed

As an emerging real estate market, choices to buy a property in Amed are limited. You can search through several real estate brokers and review any available listings, however, most of the search results return with ‘land for sale’ instead of ‘property for sale’.

Vesica Villas Celuke is the first of its kind villa development in Amed. Nine luxury villas with ocean views are being built in a central location of Amed. The development company is based in Amed and has a full handle on the potential of this emerging property market.

Priced at $279,000, the 3-bed villas have been developed for investors looking to capitalize on Amed’s growing rental market. The villas represent exceptional value and early buyers are already being rewarded with rising land prices in the area.

Buying a property in Amed on the Vescia Villas Celuke development.

Buying a rental property in Amed

Buying a rental property in a prime location of Amed will help you to maximize your earning potential. The location of your property can have a significant effect on the performance of your rental income.

Buying a property around the Amed Beach area will deliver the best rental returns on your investment. A location central to lifestyle amenities, convenience stores and restaurants will always perform better than a property situated in a remote location.

Click this link to download a rental performance report for 3-bed/3-bath villas in the Amed Beach area.

Summary: Buying a property in Amed

Investment returns from Bali rental villas continue to reward property owners and real estate investors. With continued high demand from increasing tourist numbers and little effect on seasonal occupancy rates, Bali rental villas are a great way for investors to generate a high rate of passive income.

Buying a property in Amed as an investment in the early part of the growth cycle presents an exceptional value proposition. Low buying prices combined with high rental occupancy rates deliver returns on investment of over 15% per year.

A 3-bed / 3-bath property in Amed valued at $279,000 can generate around $50,000 of rental income per year. 

As more tourists visit Amed, the demand for rental accommodation increases. With more demand, property owners can increase their rental charges resulting in increased income per year.

The supply of quality rental properties in Amed is low. Property developers are buying land and building villas to service the growing demand. 

Land prices in Amed are rising and the value of property is also increasing. 

Buying a property in Amed before prices explode could be one of the best financial decisions you make.

End-to-end Rental Management Services

We help property owners to manage the daily tasks involved in the running of a profitable rental business.

Combining Western management with local charm to deliver a 5-star service for guests and owners alike.

Holiday Rental Villas in the Best Locations of Amed

Prepare for the holiday of a lifetime by booking your accommodation with us. View our range of long and short-stay villas in Amed. 

From beachfront bungalows to luxury villas, our range caters for romantic getaways and unforgettable holidays for all the family.   

Authentic experiences in Amed

Discover the true meaning of Bali’s rich heritage and explore the culture with a selection of Amed experiences.

The Amed experience can be tailored to your needs and organized around your schedule.

Investment Villas and Holiday Homes

Discover your perfect real estate investment in Amed. Amed’s real estate market offers compelling value

Whether you are seeking a tranquil holiday home, a lucrative rental property, or a strategic second residence.

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