Investment Property in Batam

Investment Real Estate in Batam

Investment Property in Batam
Investment Property in Batam

Batam property investment can be a worthwhile venture if you are selective with the areas you choose to invest in. If not, you could find that your investment suffers due to low rental yields, dwindling demand, and slow property price growth in many parts of Batam.

Get Our Latest List of Investment Property in Batam

Search Map of Batam Investment Real Estate

Batam is the largest city in the province of Riau Islands, Indonesia. The city administrative area covers three main islands of Batam, Rempang, and Galang (collectively called Barelang), as well as several small islands. Batam Island is the core urban and industrial zone, while both Rempang Island and Galang Island maintain their rural character and are connected to Batam Island by short bridges. Batam is an industrial boomtown, an emerging transport hub, and part of a free trade zone in the Indonesia–Malaysia–Singapore Growth Triangle, located 20 km (12 mi) off Singapore’s south coast and also part of the Indonesia–Malaysia–Thailand Growth Triangle.

According to Statistics Indonesia’s 2020 Census, Batam had a population of 1,196,396, making it the third largest city in the region of Sumatra, after Medan and Palembang. It is the closest part of Indonesia to Singapore, at a minimum land distance of 5.8 km. During the 2010 national census, Batam was the fastest-growing municipality in Indonesia the decade prior, with a population growth rate of 11% per year. In 2017, the island suffered severe job losses, some 300,000 workers were laid off.

Get Our Latest List of Investment Property in Batam

The financial stability of Batam has translated into a real estate market that rewards forward planning and a willingness to look beyond areas of traditional affluence.

Buy to Rent in Batam

Renting out your Batam buy-to-rent investment property can grow wealth and income.

Whatever your goals with investment property in Batamare – preparation is key.

  • Set goals based on how much rental yield will be required and the local rental yield rates in Batam and be prepared to change your initial outlook.
  • Thoroughly research the Batam location with a special emphasis on fringe areas outside the main Batam metropolis that may be valued lower than their better-known neighbours. Rental yields of around 5% are still attainable in certain areas of Batam.
  • Ensure that your target investment property in Batam appeals to professionals. This is a demographic that ensures maximum income and low voids.
  • Finding and vetting suitable tenants is a job ideally left to the professionals. Working with an established letting agent such as Physis Realty with local knowledge and experience of property legislation will give you the best chance of success.
  • You may think that managing your Batam properties yourself is an easy option, but are these savings justifiable when you run into Batam red tape? Physis Realty Batam office in downtown provides you with peace-of-mind and leaves you time to plan your next move in the growing Batam buy-to-rent sector.

With our expert guidance, investing in Batam provides the secure knowledge that your money is working harder than it would in a local Batam bank and that future generations of your family will be left with substantial capital growth assets.

We are always happy to advise on buying investment property in Batam, where we have been established for over 35+ years. Physis Realty has been a firm fixture in the Batam property market through good times and bad. Our experts have seen it all and our portfolios continue to outperform.

Flipping Investment Property in Batam

Flipping property in Batam

Flipping property is when we advise clients to buy a Batam property below market value, renovate it and then make a profit by selling it at a higher price, all within a few months, and often before the Batam market has a time to react to the renovation.

The Flipping Strategy in Batam

Investment property flipping in Batam is a simple strategy. You find a property that is in need of renovation from our list and purchase it for a low price. These type of Batam real estate investments are sometimes referred to by professionals as ‘distressed’ Batam real estate.

What is distressed Batam property:

  • Batam property in need of renovation
  • Batam real estate with a change of puropose and use
  • Oversold Batam property
  • Bank repossessions in Batam

Put simply, long term investors in Batam purchase the property, renovate it and make it a lot more attractive to potential buyers.

Calculate profit that you make from Batam investment property flipping:

Final Selling Price less Cost of Purchase less Costs = Profit

Here is an example:

Batam property purchase price: $220,000

Renovation costs: $20,000

Other costs: $25,000

Property sale price: $400,000

Profit: $135,000

Experienced property developers in Batam use a minimum profit value of 22% when looking at potential Batam projects. The reason for this is because there are lots that can go wrong in Batam property flipping and working on a potential margin of 22% should still leave a good margin of error.

Luxury Property in Batam

For luxury property investors hoping to add a superb property in {AsainCity} to their luxury real estate investment portfolio, Physis Realty is a trusted partner.

Click Here for the Physis Realty Facebook Page

A world leader in luxury real estate with a portfolio comprising some of the most sought-after real estate in Batam, Physis Realty caters particularly to high net-worth individuals and families in Asia. A luxury real estate investment in Batam should be entrusted to only the highest-quality agency.

Get Our Latest List of Investment Property in Batam

Compare listings

Compare