BALI (Indonesia)

INCOMPARABLE BALI

From breathtaking scenery and stunning beaches to world-famous surf spots, Bali’s natural beauty is truly unmatched. The island offers a year-round warm climate, diverse cuisine, vibrant nightlife, and a rich, welcoming culture—making it a dream destination. Additionally, Bali’s surprisingly low cost of living makes it not only a great place to visit but also an ideal place to live and invest.

Understanding Bali’s Tourism Economy

Bali’s incredible diversity attracts visitors year-round from all corners of the globe. Thanks to Indonesia’s massive population of over 280 million people, Bali benefits from a strong domestic tourism market. In 2024 alone, over 7 million people visited Bali, with this number expected to rise further in the coming years. With steady demand for accommodation, investing in rental properties in Bali offers high returns.

Why Bali Real Estate is Booming

According to the Investment Coordinating Council, Bali’s real estate market has experienced a 28.5% growth over the past two years. Both local and international investors are increasingly drawn to Bali for its:

• Steady tourism growth
• Affordable land prices
• Low operating costs

Investors typically enjoy an annual ROI of 12-18%, with managed properties maintaining an impressive 78% average occupancy rate. Additionally, property values—both land and villas—have been appreciating by around 10% per year, with even higher increases in high-demand areas.

Whether you're dreaming of a permanent home or seeking a solid investment opportunity, now is the perfect time to take advantage of Bali’s thriving real estate market.

Types of Real Estate Investments in Bali

Each investment option offers unique benefits depending on your goals. Choosing the right location is crucial, whether targeting a prime area, an emerging hotspot, or an up-and-coming neighborhood. Additionally, property quality plays a significant role in determining ROI and resale value.

With a clear understanding of your needs and vision, our team of experts will guide you to the investment that perfectly aligns with your strategy, ensuring you maximize Bali’s booming real estate market.

Best Locations for Investment in Bali

Numerous areas in Bali offer exceptional returns on investment. Proximity to popular attractions, golf courses, beach clubs, restaurants, and shopping areas increases the potential for high rental yields. Some of the top investment locations include:

• Berawa
• Canggu
• Pererenan
• Umalas
• Seseh
• Uluwatu
• Nusa Dua
• Ubud
• Cemagi

Property Ownership in Bali

Freehold Ownership (Hak Milik)

• Offers indefinite ownership rights but is available exclusively to Indonesian citizens.
• Foreign buyers can only acquire freehold properties through a PT PMA (foreign-owned limited liability company).
• Typically requires a larger upfront investment and can be challenging to resell.

Leasehold Ownership (Hak Sewa)

• Provides property use rights for a set period (usually 25-30 years), with extension options.
• Leasehold agreements can be directly in the buyer’s name.
• 3 to 4 times more affordable than freehold, offering lower upfront costs and higher ROI potential.

Factors Influencing Land Prices

Several factors affect land prices in Bali, including:

• Property Size: Ensure the land size meets your needs without over-purchasing.
• Leasehold vs. Freehold: Freehold land is significantly more expensive than leasehold options.
• Location: Prime and beachfront areas come at a premium, while rural locations offer more affordability.
• Nearby Attractions: Proximity to restaurants, shops, and beach clubs increases property value.

Zoning Regulations in Bali

Understanding land zoning is crucial for sustainable and culturally responsible development. Different zoning categories determine what activities are allowed on the land:

• Pink Zone: Tourism areas (hotels, resorts, villas) – allows daily rentals with a Pondok Wisata license.
• Yellow Zone: Residential areas – suitable for homes, villas, offices, and shops.
• Red Zone: Commercial and business zones – ideal for restaurants, hotels, and offices.
• Green Zone: Protected land where construction is strictly forbidden (forests, rice fields, riverbanks).

Compliance with zoning regulations is essential to avoid legal complications.

Legal Considerations for Property Investment in Bali

When purchasing property for short-term rentals (e.g., Airbnb, Booking.com), understanding local laws and regulations is crucial. Key legal aspects include:

1. Essential Documents to Verify:

   • Land Ownership Certificate
   • Land Tax (SPPT/STTS)
   • Topographical Map
   • Zoning and access verification

2. Building Permits (PBG/SLF):

   • Required before starting construction to ensure compliance with local regulations.
   • Failing to obtain permits can result in fines and delays.

Navigating Bali's legal landscape requires expert guidance to ensure a smooth and compliant investment process.

Our experienced team stays updated on the latest regulations, ensuring a hassle-free experience. Book a FREE no-obligation consultation today and take the first step toward your successful investment in Bali's thriving real estate market.