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Bali is a beautiful island that anyone cannot resist. Perfectly suits the need to unwind over stress and the recent trend of healing vacation. Bali’s charm has never failed to invite people to put it on their holiday wish list. Not only happening among foreign tourists, but the tradition happens amidst locals too.

Unfortunately, during the pandemic, Bali’s conditions which were once crowded with tourists suddenly turned quiet. Kuta, Legian, Seminyak, Nusa Dua, and Ubud which were used to be crowded turned into uninhabited cities where shophouses and art shops are closed, as well as hotels around it.

Villa Investment Increases During Pandemic

Based on data from the Representative Office of Bank Indonesia Bali shows that Domestic Investment (PMDN) during 2020 reached Rp 5,432.7 billion and Foreign Investment (PMA) reached a value of 293.3 million US dollars. This data indicates that Bali is still attractive to investors who are still optimistic about the development of the Covid-19 pandemic situation in Bali.

Plus data from international research institute Knight Frank Global which noted that the super-rich in the Ultra High Net Worth Individual (UHNWI) category in Indonesia jumped by 67 percent in the period 2020-2025.

Interestingly, 25-28 percent of their funds are invested in the property sector. Based on this data set, although still in a pandemic situation, the property sector in Bali is still attractive to investors because it is considered to have a positive trend.

Guideline to Building a Villa in Bali

Do you want to build a villa ini bali? Do you know building a Villa in Bali can be tricky without the right guidelines and professional help, especially in a country full of complex land tenure regulations and investment requirements. We will provide you step by step guide to effectively build your villa in Bali in the below:

Establish a Connection to PT PMA

In Indonesia especially Bali, you must make a contact with the Foreign Owned CompanyA Foreign Owned Company or called PT PMA is the only legal entity that allows foreigners to conduct business or own property in full compliance with Indonesian property laws and regulations.

Searching the best location

Bali island is a relatively small, and some of the land prices can vary from corner to corner.
In developing and developed areas such as Canggu and Seminyak, land prices are estimated to cost around Rp 600 million to 1.5 billion (USD 40,000 – 105,000) per 100 sqm, while the remote land is valued at around Rp 100 million to 350 million (USD 7,000 – 24,000) per 100 square meters.

Get land

Indonesia has many forms of land titles and ownership that are of concern to foreign investors to build villas in Bali. Generally, some of real estate agents and private landowners will refer you to rental or property rights. Contact or consult to the expert in Indonesia for more concise information on land ownership in Indonesia.

Appoint a project manager

Building a villa especially in Bali can takes a lot of time and capital, and requires effective construction management skills and development. This is pretty important if the project must be completed within the allotted time to meet cost constraints and quality requirements.

Appoint an architect

Appointing an architect that fits your specific design needs requires not only in-depth knowledge of the local market, but also you need to be more understanding of the specific design style you desire. We, Satya Puri Studio Architect able to provide you effective spatial planning of some best recommended design and cost estimates to build a villa in Bali. You can see our design villa portfolio.

Apply for a building permit

If you want to start building, you must have permit of Building Indonesia or it called IMB. This permit is an official permit that permits the construction of buildings in Indonesia. Before getting it, you need to check the spatial plan and land zoning regulations per area your building will be built on. The reason is some certain lands or zones only allow the use of certain buildings.

The permit is currently being phased out and already expire in January 2022. Soon it will be replaced by the PBG and SLF permits under the new Omnibus Laws that overhaul and regulate Indonesian laws under the guidance of President Joko Widodo’s administration.

Appoint contractor

You know? the cost of building a villa in Bali can start from Rp. 6 million per square meter to Rp. 14 million per square meter, so finding the right contractor who can provide services on time, within budget, and meets high standards is challenging.

ROI Bali Villa Investment

The return of investment (ROI) of Villa’s investment in Bali reaches at least 10 percent with an average occupancy of 70 percent per year.
Property industry players in Bali assured that after the Covid-19 pandemic crisis period passed, the villa investment market in Bali has the potential to experience a “market boom”. Well, this is the best opportunity to invest in villas in Bali.

Investors will be strategically positioned to resell the property with the profit rate multiplying as the economy improves in the future. Moreover, various online booking sites and several tours and travel platforms put Bali as one of the most desirable locations to visit or settle in after the pandemic. No doubt, Villa in Bali is a promising long-term investment during the pandemic.

Properties purchased as investments in popular regions such as Canggu or Seminyak can provide benefits with a very attractive long-term investment value. So, now is a good time to invest in the property sector in preparation for the upcoming post-pandemic property market surge.

Invest Property In Bali – Bali is definitely a wonderful vacation spot. In fact, it has been named the world’s best destination by TripAdvisor. With many travelers coming to Bali, there has also been an increasing number of foreigners who invest on the island over the years.

You may not even have to buy land for your property – you may also lease land over the next multiple decades, which has its own business advantages as well.Are you interested in investing in an exclusive villa or an apartment building? Would you like to open an office branch to cater to your Asian market? You need to read this article fully.

Why should you invest a property in Bali ?

Let’s face it, no matter where you are in the world, Bali remains to be a dream destination for many people of all ages. Investing in a property in Bali could be your way to live that dream.

While you live a comfortable life in this beautiful paradise, there are ways to grow your wealth through investments and property investments are one excellent choice. While enjoying the warm and sunny weather all-year round, views of rice paddies, mountains and beaches, you get to invest in Bali and have a business and a place to call your home.

We know that property investment is not the same as going on a holiday, it’s a tough decision and you need someone you can trust to help you with it being in the real estate industry in Bali I appreciate it can feel like a confusing process at times, especially for foreigners, but it is worthwhile, given the high returns of passive income that you can turn into your own home at any given time. The point is having the right guide to make a smart decision.

If you’re not convinced yet that Bali should be your next property investment, here’s 5 reasons you should invest property in Bali.

Internationally acclaimed as one of the top destinations to visit

Bali remains on top of the list for travelers to visit and there’s a reason why. It’s a place where you’ll find almost everything: volcanoes, Komodo dragons, elephants, not to mention vast lands of rice paddies, restaurants of different cuisines, bars and hotels with spectacular sea and mountain views.

There’s always something to do and places to go, and for that it is a must-visit destination, together with places like Paris or Rome. Imagine if you can have your own place right here? Business and pleasure wrapped in one.

It is proven that real estate is an investment that gets stronger with time.

It can be complicated dealing with the legal aspects of investment, especially in a foreign country, which is why most choose a long-term rental home instead of buying one. Some people opt for yearly rentals or even five-year lock-in rentals, and this can be beneficial to homeowners on the island.

Not only that but with time, property value on the island appreciates. Business-minded individuals and holiday seekers who took the plunge and invested in real estate here have seen huge revenue returns. Property purchases are currently rented out and continue to accumulate profits on a weekly, monthly and yearly basis.

The real estate market in Bali is stable with a good return of investment.

Bali offers great potential, whether you decide to invest in busy locations like Seminyak, or a calmer spot in East Bali like Amed or Singaraja. The most important aspect in real estate investment in Bali is finding the right spot, and the right partner. If you find a place in a touristic area, you’ll get your return in less than 5 years.

If you want something more tranquil and residential, this is not a problem either. People who stay long-term on the island tend to call Bali their home, and so, there’s still a market for residential areas on the island. With the help of an expert in real estate that’s based in Bali, you’ll have a good investment in your pocket.

Costs are relatively affordable compared to other countries, and other touristic spots.

As long as you have a reasonable amount to invest, you can afford a luxurious lifestyle and have great property investments. Land and property value is generally more affordable when compared to other paradise islands in other parts of the world. You can get more value with each dollar, and therefore, you’ll be able to invest more. This can help you achieve financial security for the long run and grow your wealth.

One thing we can all agree on, real estate investment is one that you can physically see, feel and own.

In general, Indonesian laws and regulations are stables and friendly to businessmen

The Indonesian government recognises that foreign investors and investments are a huge economic drive for the country and it has become easier in recent years for businessmen to do so. There are different ways to do this, and you might need all the help you can get for the know-hows.

How does one buy or invest property in Bali?

The safest way for a foreign national to invest in Bali is to do it via a foreign-owned limited liability company, or known as PT PMA and acquire the ‘Right to Build’ (Hak Guna Bangunan) and Right to Use (Hak Pakai/HP) certificates.

In general, both licenses make you the property owner. Your family members have the inheritance rights and you also have the right to sell the property. If the Third Party is an Indonesian citizen, they are then also able to convert it to the Right to Own (Hak Milik) certificate

If you wish to hold the property after the 80 years (which would potentially be in the 22nd century by then), you can acquire a new certificate once the old one expires.

Kindly note that you can hold Hak Pakai only if the land comes with an existing building already and also, you should be aware that there are limitations for operating a property with a Right to Use (Hak Pakai) certificate for business purposes. There is also minimum value to the property and it must be located in a touristic, residential, or trading area. You cannot buy land in Bali that is in agricultural or greenbelt zones as you are not allowed to build on it.

If you have Hak Pakai and therefore intend to use property for personal purposes, a single person can only have one Hak Pakai (i.e only one property). However, one may have several properties with the Right to Build certificate.

The Process of Buying or Invest Property In Bali

To acquire the Right to Build or Right to Use, you will need to:

• Submit completed forms to the Indonesian National Land Office (BPN) requesting a certificate over the property, including relevant supporting documents. This is usually done by your representative.
• Provide proof of land payment and the conditions for Hak Guna Bangunan or Hak Pakai are met
• Acquire building permit (PBG) for the Right to Build
• The BPN will then issue the certificate under your company’s name.

10 Highly Recommended Areas in Bali for Property Investment

This starter’s guide gives you a better insight on what to expect from the most sought areas in Bali. We understand that studying the property market requires a lot of time and energy and you need all the help you can get for a location that is best suited to your investment objectives.

Here’s a list of areas you should look into when browsing for properties for sale in Bali

Why invest in Canggu?

Canggu is a trendy holiday destination for many tourists and expats alike. It is a pot of mixed cultures with the perfect balance of calm and chaos, from laid-back hipsters to digital nomads, young families, expatriates and foreign investors.

Canggu is able to accommodate various lifestyles, which is not hard considering the abundant availability of villas for sale in the area. Development is occurring at a rapid pace, in particular in Berawa and Batu Bolong where there are large constructions and new establishments happening every now and then. Properties will be sold fast in this area due to the strategic location and ample opportunities available, therefore it is advised to invest there much sooner than later.

Echo Beach is also another part of Canggu that should not be missed, with many villa offers within walking distance from the beach, leasehold and freehold.

Why invest in Pererenan?

Unlike its neighbor, Pererenan is an alternative for those who are looking for a more peaceful and calmer area. It is just north of Echo Beach, not as developed as Canggu yet but with the new restaurants and cafes popping up, the region will surely attract more attention sooner than expected.

There are only a few hotels and resorts available as of today. Tourists and visitors alike will get plenty of villa offers for accommodation. If you’re looking for some land, Pererenan might pique your interest as there are still many vacant rice fields available along the main road to the beach and surf spot.

If you’re looking for villas to buy, this area is still cheaper compared to Seminyak or Berawa.

Why invest in Seminyak?

Bali’s commercial real estate is centered in Seminyak. A well-known resort town that is lively and packed during both the day and night, with many nightclubs, bars and restaurants packed alongside the road. Most villas on leasehold and freehold are built on small streets and alleyways (or known as “gangs”) where the noise levels are reasonably low.

However, to find land for sale or vacant lots is nearly impossible, with only a few plots of rice fields left in Batu Belig and Petitenget. Nearly all the rice fields have been replaced by luxury resorts and villa complexes.

Why invest in Umalas?

Umalas is less of a holiday destination and focuses more of residentials, with only select establishments attracting large crowds, like the restaurant Nook. Umalas is smaller compared to its neighbors, Seminyak and Canggu but its strategic location by being sandwiched between the two keeps Umalas a favorite amongst expats. Petitenget and Berawa can be reached quickly via small roads. Availability of land with great views is still many and houses for rents are still abundant here.

Why invest in Kerobokan?

Kerobokan might have been a less well-known touristic area in the past but it is now catching up to its neighbors. It is still more residential than anything and is further away from Umalas but yet still easily accessible from and to Canggu, Seminyak and Denpasar. Rice field view businesses are still in demand and Kerobokan still has a lot of vacant lots to offer. Certain parts in Kerobokan are still packly dense with rice fields, giving you plenty of choices. Property prices themselves tend to be lower than in Canggu.

Why invest in Seseh?

Seseh is located just minutes away from the busy Canggu, but it still remains quiet and largely untouched. Highly recommended for early bird investing, as there are still many and vast rice fields. Villas are the only lodging available in the area for now, densely located on the beach or nearby the beach, meanwhile the streets are still very much untouched and void of restaurants and cafes.

While people are still looking at villas for sale in Canggu, Seseh holds plenty of investment opportunities as the beachfront is largely unoccupied at the moment.

Why invest in Sanur?

Sanur offers great convenience and facilities, attracting a more mature audience. It has a slower ambience and it is in close vicinity to Denpasar’s city center when compared to the other areas on this list. Sanur is a great place to find houses for sale but renting out a villa can be a difficult task as the demand is greater than the supply. Bali villa rental has shown positive growth in demand over the years and created revenue for the better part of the market.

As the area is already well developed, it does not leave much room for investment opportunities in the area. However if you have one, expect positive outcomes as Sanur is still a beloved and favored place for tourists, expats and locals alike.

Why invest in Ubud?

Far from its common perception of being a laid back village, Ubud is now a well developed area complete with various choices of restaurants, cafes, coffee shops and yoga centers. Just like Canggu in the southern region, Ubud can cater to many lifestyles but it is still mostly favored by yoga enthusiasts, vegans and digital nomads. The diverse population offers a lot of investment opportunities in Ubud and what comes with it is the fierce competition in the city center.

Villas in Ubud are favored for both foreign and domestic tourists, and even locals who are looking for a getaway. Even the villages in Ubud’s outskirts are now picking up the pace, with popular areas such as Tegalalang should be invested in the early stages.

Why invest in Bukit Peninsula?

A surfer’s paradise, with many beaches and limestone cliffs as its main and highly sought tourist attraction. Five star resorts, luxury villas and lavish nightclubs are on the cliff sides, with many more coming in the next few years as the area is developing at a speedy rate.

Villas for sale in South Bali are mainly in the form of private villas with ocean views, with property prices still being reasonable. There’s a good selection of available empty lots in Uluwatu, Ungasan and Balangan. Living standards are also increasing at a positive rate with many facilities popping up now.

Why invest in Nusa Islands?

Please do not mistake this with the Nusa Dua mentioned above. Nusa Islands – the island trio that is similar to the Gili Islands of Lombok, being a well-known vacation destination off the mainland of Bali. Known for beautiful hidden beaches for many years, targeted by adventurers and travelers.

These days, many beach clubs and hotels have been built on the islands. Nusa Penida is bigger than its two siblings and is often overlooked by foreigners who are looking for land leasehold opportunities. However, Nusa Penida has actually experienced a great increase in the number of short term rentals in the last 3 years alone. Its size also presents development progress so it is not a bad idea for a long term invest property in Bali.

Each of these regions come with their own characteristics and advantages and some of them are among the best locations to buy property in Bali at this day and age. Please note that villa freehold in Bali still cannot be owned by foreigners, so you might want to look for villa leasehold in Bali with long-term lease agreements instead.

If you intend to invest property in Bali and are looking for trustworthy, capable team to build your dream villa in Bali, discuss with our team at Satya Puri Studio for a bundle of opportunities and choices.