When people think about property investment, their minds often go straight to hotspots; well-developed, tourist-heavy neighborhoods that are already booming with demand. But what about the lesser-known areas? The quieter corners, the “up-and-coming” regions that haven’t yet made it to the mainstream map?
Investing in property in these lesser-known areas can be a bold move with unique advantages but also a few risks. If you’re an investor willing to think outside the box, here's a breakdown of the pros and cons you should consider.
Why It Might Be Worth the Risk
1. Lower Entry Costs
One of the most obvious advantages is affordability. Properties in lesser-known areas tend to be significantly cheaper than those in established hotspots. This opens the door for investors to enter the property market at a much lower cost, which is especially beneficial for those working with a limited budget. It also allows greater flexibility when allocating funds for design, construction, or marketing.
In many cases, investors can acquire larger land plots, enjoy better natural views, or build more luxurious homes for the same price or even less than what they’d spend in high-demand areas. This makes it not only a smart financial move but also a chance to create high-value properties that stand out once the area begins to grow in popularity.
2. Less Competition, More Room to Shine
In highly saturated markets, standing out can be tough. You're often competing with hundreds of similar listings, each offering comparable amenities and styles. This high level of competition makes it harder for your property to attract attention, especially if you're entering the market without a strong brand or unique concept.
In contrast, quieter areas give your property a better chance to shine. With fewer players in the market, a well-designed and thoughtfully positioned home such as a wellness retreat, eco-villa, or digital nomad hubs can more easily capture the attention of a niche audience. This allows you to build a distinct identity and potentially dominate a smaller, targeted market rather than getting lost in a crowded one.
What You Need to Watch Out For
1. Uncertain Market Potential
The biggest concern when investing in lesser-known areas is the unpredictability. Unlike established markets, these areas often lack reliable data, historical trends, or consistent performance records. This makes it more difficult to evaluate potential returns with confidence. Questions like how quickly tourism will grow or when infrastructure will catch up are often left unanswered, leaving investors to rely more on intuition and risk tolerance.
This uncertainty introduces a level of risk that may not be suitable for everyone. Investors looking for quick returns, stable rental income, or low-risk portfolios might find these emerging areas too volatile. While the potential for growth exists, the timeline and outcome are less certain, making it more of a long-term, visionary investment rather than a guaranteed short-term win.
2. Underdeveloped Infrastructure
Another challenge investors should consider is the limited infrastructure in lesser-known areas. These locations may lack basic essentials such as paved roads, stable electricity, clean water access, high-speed internet, or nearby healthcare facilities. These shortcomings can significantly affect the overall experience for guests or tenants, leading to lower occupancy rates and potentially reduced rental income.
In some cases, investors may need to take on additional upfront costs to fill these gaps; installing water filtration systems, setting up independent power sources, or investing in private internet solutions. While these upgrades can add value in the long run, they require more capital and planning from the beginning. For those unprepared, these infrastructure limitations can quickly turn affordable property into a more costly project than anticipated.
Conclusion: A High-Risk, High-Reward Opportunity
If you’re working with a smaller budget and are open to pioneering something new, investing in lesser-known areas can be full of potential. These regions give you the chance to launch a unique product, become an initiator of a new market, and grow in the area as it develops. In many cases, early movers create value where there was none before reap the biggest rewards.
A good property is only half the battle, strong branding turns it into a long-term success. Build something special, tell the right story, and you won’t just be buying land, you’ll be building a brand. And in a market with fewer competitors, that’s a powerful place to be.
Need help scouting opportunities in Bali’s lesser-known but high-potential areas? Contact Betterplace to find properties where your investment and your vision can take shape and deliver results.
