International Journal of Social Science and Business
Vol. 9 No. 1 (2025): February

Foreign Investment Decisions in Southern Bali’s Property Market: The Role of Economic Conditions, Investment Regulations, Behavioral, and Property Location

Louis, Karina (Unknown)
Setyari, Ni Putu Wiwin (Unknown)



Article Info

Publish Date
20 Jul 2025

Abstract

This research examines factors influencing foreigners' investment decisions in Bali’s property market, focusing on economic conditions, foreign investment regulations, behavioral trends, and strategic location. A quantitative approach was applied, collecting data from 93 foreign property owners in Southern Bali (Badung Regency, Denpasar City, and Gianyar Regency) through structured questionnaires using a four-point Likert scale. Structural Equation Modeling (SEM) with Partial Least Squares (PLS) was utilized for data analysis, revealing that economic factors, behavioral trends, and property location significantly influence investment decisions, with property location being the strongest determinant. Conversely, foreign investment regulations had a positive but non-significant effect, suggesting that complex regulations do not strongly deter investors. These findings highlight the paradox of foreign investment in areas with restrictive ownership laws, emphasizing the necessity for enhanced investment policies, infrastructure development, and strategic urban planning. This research contributes to the discourse on international property investment, offering insights for policymakers, real estate developers, and financial advisors in creating a more conducive investment climate while balancing regulatory frameworks.

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Journal Info

Abbrev

IJSSB

Publisher

Subject

Social Sciences

Description

International Journal of Social Science and Business (IJSSB) is an open access, peer-reviewed and refereed journal published by Universitas Pendidikan Ganesha (Undiksha), Indonesia. The main objective of IJSSB is to provide an intellectual platform for the international scholars. IJSSB aims to ...