Investments in Real Property on Bali: What Options Are Available?

Real estate on Bali, Indonesia is becoming more and more popular with foreign investors. This is not surprising because many people want to live in a country of an endless summer and/ or acquire good return on investment. Purchasing property on Bali would bring several important advantages. The main of them include the following ones:

• An opportunity to spend your vacations in a villa on the shore of the ocean.
• High return on investment into real property because the inflow of tourists to Bali never ends.
• A residence permit or an investor visa to Indonesia that has recently become available to foreign investors purchasing property in the country.

To make your dream come true, however, you have to choose the right region of Bali, pick the right piece of property, and take the legal aspects into account. Our experts will be happy to assist you in the matter.

Are investments into real property on Bali going to bring you good profits?

Would it be a good decision to invest into real property in Indonesia in the times of a global crisis? According to the latest statistics, the economy of Bali and Indonesia as a whole is picking up and the tourist flow is increasing after the pandemic.

You can visit Bali on a tourist visa or you can apply for an investor visa if you purchase some real estate on Bali. The validity term of an investor visa is 5 to 10 years, which is considerably longer than that of a tourist visa. This is one more reason to buy a house on Bali, a paradise island where you could live with your family.

You can return your investment fast if you let your property on Bali on a lease:

• The return on investment in real estate on Bali is the highest in the world and it can reach 35%. If the occupancy rate of your house or apartment is 80% to 90% during the year, you can return your investment after 5 to 7 years.   
• New villas are currently under construction on vacant sites on Bali, which is an indicator of high demand for real estate on the island.  
• In addition, more and more foreign nationals are interested in making long-term rent agreements. This is especially true for the regions of Bali popular with tourists such as Canggu, Ubud, and Uluwatu. Because property rent is a popular option, the rental prices grow by 15-20% per year.
• The growth of the number of foreign brands on Bali is also indicative of the fact that the island’s popularity with foreign investors is growing. These factors provide for economic stability and infrastructure development on Bali. Even the northern regions of the island are becoming popular with tourists and investors.

Without doubt, you have to investigate the investment opportunities with great care if you do not want to lose money. Please also bear in mind that opening a bank account in Indonesia might be a difficult task. It is solvable, however, with some professional assistance.

Where should you buy property on Bali?

What region of Bali should you choose to buy a house or an apartment there? Naturally, the most popular locations are found by the water. The infrastructure, however, can be different in different regions of Bali. Below we discuss some regions of the island that should be of interest to foreign investors.

Canggu

Canggu is the region of Bali most frequently visited by tourists. Everything is there:

• The ocean;
• Entertainment centers and restaurants;
• Shops and stores;
• Schools and hospitals.

The neighborhood is already densely built up and tourists stay at villas or at hotels in Canggu. Foreigners often make 10- (or more) year rent agreements so you could let your villa in the region on a lease and make a nice passive income.

Bukit

You can find deluxe residential accommodations in Bukit, a peninsula with fantastic views that take your breath away. You can live and rest in Bukit or build a career there. You can also rent your villa on the peninsula to foreign tourists who love visiting the place.

We must admit that finding nice accommodations at a decent price may be problematic in Bukit. Normally, you will be offered a luxury apartment at a high price or an old villa. Thus, finding a good investment object in Bukit may prove problematic.

Due to the proximity of the ocean and wonderful nature, Bukit is highly popular with foreign nationals who wish to reside on Bali permanently or who want to have a stable passive income. But even though the choice of property is rather limited there, you may be able to find an affordable one- or two-bedroom villa (the most popular floorplan on Bali) in Bukit. We have a couple of offers that you may like.

Ubud

The neighborhood is located in the interior of the island away from the ocean and its atmosphere is good for spiritual enlightenment, meditation, yoga practices, and a slow-paced life. The area is a bit cooler in comparison to the coastline, which is an advantage on Bali rather than a disadvantage.

Ubud is only starting to be popular with developers. New hotels, villas, and malls are under construction there. The opportunity to invest in Ubud is worth considering indeed because the place is charming and more digital nomads and foreign retirees are certainly going to settle down in the neighborhood.  

The demand for rental property is growing in Ubud and the prices of residential accommodations are still quite affordable. Foreign investors looking for long-term investment projects do appreciate these facts.

Sanur

Sanur is a well-developed and highly popular region of Bali. A villa on the coast can cost several million US dollars and finding a nice investment object is close to impossible. However, if you are lucky, you will love living in the neighborhood with your family.

The availability of all sorts of infrastructural objects can make our life in Sanur extremely comfortable. There you will find:

• An international school;
• A golf course;
• The ocean and a gentle shoreline;
• Kindergartens and various educational institutions;
• Shopping centers;
• Restaurants and cafes;
• Hospitals, pharmacies, and other objects of social infrastructure.

You will have the highest return on investment into real property on Bali if you purchase a house or an apartment in Sanur.

Northern regions of Bali

The north of the island should be of interest to the foreign investor who wants to buy a luxurious villa at a modest price and who does not plan to rent it out or resell it later at a higher price. The matter is that this part of Bali is located 20 to 30 kilometers away from the coast and the tourist infrastructure. The place is good for living a quiet and peaceful life.

As the number of digital nomads, entrepreneurs, and pensioners wishing to relocate to Bali is growing, so is the demand for real property in such neighborhoods as Northern Pererenan (Tumbak Bayuh and Tiying Tutul) and Seseh. The ocean is not too far away, after all and you can still fully enjoy the beautiful nature of Bali.

Property prices on Bali

The prices of houses and apartments in Indonesia depend on their location and quality: they can cost very little or very much. Below we quote property prices in the largest neighborhoods on Bali:

• Property prices in Canggu:
  • An apartment in the outskirts without direct access to the ocean and the infrastructure — from US$150,000;
  • A 50-square-meter one-bedroom apartment in the second street from the coast — from US$250,000;
  • A three-bedroom villa away from the coast — US$400,000 or less;
  • A villa on the coast in Canggu is not going to cost less than 3.5 million US dollars;
  • Rent of a 100-square-meter land plot — US$ 1,700 per year.
• Property prices in Sanur are basically the same as they are in Canggu. However, you can find a small villa away from the ocean that costs 100,000 to 150,000 US dollars.
• Property prices in Bukit: 200,000 to 300,000 USD for an apartment and 500,000 to 2 million (or more) for a villa with the view of the ocean. You can also rent a land plot for up to 30 years but the price is going to be rather high. In 2023, you would have to pay from 120,000 to 300,000 USD per year to rent a 500-square-meter land plot in Bukit.
• Ubud is a neighborhood of Bali where the infrastructure development and active construction is only beginning. Currently, you could rent land at a low price (US$ 250 per hundred square meters per year) there and you could buy a three-bedroom villa for 300,000 to 500,000 USD.

Please contact us and apply for a personal consultation to learn more about the investment objects in Bali.

Invest in Bali!

Experts believe that the tendencies in the Bali real estate market will continue in 2023–2024 and the prices will keep growing. Tourism is the central sector of the economy of Bali and since foreign nationals are now eligible for long-term visas if they purchase property on the island, the demand for houses and apartments is going to increase. Purchase a villa on Bali and you will qualify for a 10-year residence permit in Indonesia! Isn’t it a fantastic opportunity?

The real property prices are growing on Bali but they are affordable thus far. If you purchase a piece of property on the island today, it is going to cost much more in a few years. And living on the shore of the ocean is many people’s dream.

If you would like to purchase real property on Bali at a reasonable price and in a safe manner, please request our expert assistance in the matter.