The Jakarta Post
A study by hospitality consulting firms Horwath HTL and C9 Hotelworks states that domestic buyers, mostly from Jakarta and Surabaya, dominate 80 percent of the condominium hotel (condotel) or residential hotels market in Bali.
“We expect the trend to continue,” Bill Barnett, C9 Hotelworks’ managing director, told The Jakarta Post recently.
The condotel is a real-estate concept that sees hotels selling units to function as vacation homes to the public. When not in use by the buyer, the units are rented as hotel rooms.
Barnett added that property laws in Indonesia that prevent foreigners from owning land had contributed to the trend. Foreigners are prohibited from owning land, and therefore, property. However, the Building Ownership Certificate (SKBG) allows foreigners to own condominiums for 60 years, extendable by an additional 60 years.