Bali has long been a popular location for foreign tourists and investors. The island’s astonishing scenery, exotic culture, modern amenities, and dynamic economy all combine to make it a premier destination and hot market for real estate investing. From micro-entrepreneurs renting out a couple of short-term rentals to huge developers that build entire communities — vast numbers of property investors are investing in Bali long-term real estate investments.
In this article, we will look at high-growth areas in Bali, current top development projects that are in demand, tips for real estate portfolios, and sustainable property investments in Bali to add to your future acquisitions.
Is It Worth Buying Property in Bali?
If the following developments are any indication, it sure is.
Bali real estate prices have been skyrocketing since COVID-19 in 2020. The surge is being driven by several different market forces, namely:
- population growth;
- a stronger-than-ever tourism industry;
- an influx of remote workers from the West;
- growing investments from Hong Kong and Singapore;
- and domestic migration from within Indonesia.
Similarly, rental incomes have risen higher than pre-pandemic levels. According to The Bali Times, short-term rental incomes rose 8% to 1.9 million IDR (US$118) in 2023. Occupancies reached 56%, 2 points higher than pre-Covid 19 rates.
If you’re wondering what’s driving these figures, it’s mostly the arrivals of remote workers and digital nomads coming from Europe, North America, and Australia, who are staying longer than usual in Bali. This rapidly growing market segment is affecting the Bali real estate market considerably because they’re a growing source of demand for residential properties. This phenomenon, in turn, increases property values.
And many of them aren’t just looking to lease. More affluent expatriates are also interested in such long-term real estate investment in Bali. They are willing, and ready, to buy.
Western expats, drawn by Bali’s natural beauty, laid-back lifestyle, and relatively cheaper cost of living – plus the affordable entry cost into the market – are keen to buy properties in Bali that they can use or let out to others. Many prefer to visit Bali during their holidays, renting their property the remaining part of the year for a passive yet profitable income.
Indeed, investing in Bali’s long-term real estate is a wealth creation strategy worth your attention. Keep reading to find out why.
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Why Bali Long-term Property Investment is an Excellent Idea
Bali real estate can really fetch a high ROI. Well located properties can yield capital gains of 15-25% while average ones return 8-15%. Rental income amounts to around 10-15% annually.
Some of the factors that are causing these robust values are:
- High occupancy rates. Bali recorded over 7 million arrivals of foreign visitors in July 2024, representing a year-on-year growth of 20.75%. Domestic tourism, measured at around 10 million per year, saw an increase of 16.8% year-on-year. These figures have surpassed those of the year 2019 pre-Covid. At the moment, the occupancy rates are at a median of 65% in the mainstream hospitality industry.
- High profit potential. Capital appreciation and rental value continue to climb in most high growth regions within Bali. It is anticipated that the real estate market will continue to flourish in places such as Canggu, Ubud, Seminyak, Uluwatu, Nusa Dua, and Jimbaran. Investors can expect to get their capital investment back within just 5-6 years from the areas.
- Good climate for foreign investment. Recent amendments to Indonesian property laws, such as the implementation of long-stay visas, now allow foreign residents to make long-term real estate investment in Bali. There are different kinds of property ownership in Bali. Among them, foreigners can avail of the leasehold (Hak Sewa) and right-to-use (Hak Pakai) agreements which allow them to lease or hold land and property for up to 80 years. As an alternative, they can purchase freehold property by establishing a foreign-owned LLC (PT PMA).
- Political stability. Indonesia currently enjoys political, social and economic stability – factors which are all important for long-term real estate investment in Bali. The national government has been initiating steps to encourage tourism, stimulate growth, and support foreign investment across the country. These make it simpler and safer for foreign investors to buy Bali real estate and engage in tong-term business on the island.
- Improved infrastructure. Bali’s infrastructure has improved substantially in recent years. There are better roads, upgraded airports, and improved communication systems. These changes have made the island more accessible and convenient for both local and foreign business and tourism. Large tourism-related development projects are being developed, among them a theme park by Paramount Pictures, a Formula One track, and a new cruise port.
As mentioned, the entry level cost for Bali long-term real estate investment is low – especially when compared to more mature markets in the West. For example, an investor could lease an off-plan, one-bedroom villa with a pool close to a prime tourist spot like Canggu for 25 years – for just US$150,000 or less. Because construction work in Bali is fast, that villa takes just 8 months to a year to build. Once completed, a foreign investor could buy it off-plan and resell it for a quick 15-20% profit. Considering the high occupancy rates of villas in Bali throughout the year, you can expect a very favorable outcome.
Where to Invest in Bali: Top Projects in Bali You Should Consider
Most financial advisors recommend rental properties and commercial real estate as the two best options for investors seeking high-profit potential. In this case, the top real estate projects in Bali that you should be considering are:
- Oceanfront properties. In Bali, beachfront or cliffside villas and condos that offer breathtaking views of the ocean are frequent bestsellers. The demand for accommodations with direct beach acces is rising constantly, driven by buyers and investors looking for premium rental opportunities.
- Luxury villa complexes. Exclusive communities with private pools, personalized spas, concierge services, and even private chefs appeal to short-term vacation renters and long-term residents. Luxury villas by the sea or those overlooking rice fields, volcanoes and the rainforest attract the wealthier buyers and renters. Canggu, Seminyak, Ubud, Umalas, and Seseh are some of the most popular areas to buy a villa in Bali. Less developed areas yet bursting with potential are Bingin in the Bukit peninsula of Uluwatu, the beaches in Jimbaran Bay, and Ungasan in the south.
- Boutique hotels. From Ubud to Jimbaran, luxury boutique hotels are springing up around Bali. With their bespoke designs, customized services, and intimate atmosphere, these small but charming accommodations appeal to tourists who are seeking a unique vibe. Many offer private pools and modern spas that provide guests with all the personalized care and pampering that they crave.
- Mixed-use developments. These are integrated communities that combine residential, commercial, and recreational spaces, catering to mostly to expat and entrepreneurial crowd. They include shops, restaurants, office spaces, and leisure facilities. Many come with world-class infrastructure that prioritize connectivity, allowing resident and business owners to conduct international business from the comfort of their home and commercial space.
- Co-living and co-working spaces. Standard accommodations aren’t the only facilities on the radars of remote workers. There’s also a growing demand for co-living communities and hybrid spaces – development projects that combine living quarters with work areas. These enclaves have shared amenities like kitchens, dining halls, gyms, and meeting rooms. High-end co-living spaces are more stylish apartments that come with such Western creature comforts as swimming pools, restaurants, fitness centers, and rooftop bars.
- High-end residential communities. Strategically located near tourist spots, these upscale villages feature modern townhouses and duplexes with luxury designs and finishes. One of their most appealing aspects are outdoor playgrounds, kiddie swimming pools, and gated. These may appeal to families or couples wanting a combination of city living with some level of privacy in their homes. The majority of these dwellings have smart technology, providing comfort, convenience, and security for residents.
The Top Sustainable Real Estate Projects in Bali
Recently, there has been a huge wave of sustainable property investments across Bali. With increasing environmental awareness everywhere, the demand for “green” properties has exploded around the world.
In Indonesia, the Balinese culture upholds the principle of “Tri Hita Karana“, which integrates human existence, the environment, and the divine. In business and commerce, Tri Hita Karana directs citizens to seek investments that are profitable at the same time
Already, however, Bali’s fragile ecosystem is under threat due to overdevelopment. As a result, the Indonesian government has come up with regulations and incentives to motivate sustainable development, such as tax discounts and simplified licensing procedures. The real estate sector is also promoting the development of green buildings that reflect responsibility towards the natural environment and local culture.
If you would like to stay true to the Tri Hita Karana principle, here are the finest sustainable property ventures in Bali that you would definitely want to consider:
- Green hotels and resorts. These are high-end lodges that live by very stringent codes of not wasting water, using completely non-toxic cleaning agents, reducing waste, and harvesting renewable energy.
- Sustainable villas. These are eco-friendly holiday homes with energy-saving designs, solar panels, rainwater-harvesting and waste management systems. They were built or renovated with compliance to green principles. Some even have organic gardens. The purpose of these features is to reduce their Co2 footprint while offering a high level of comfort and luxury to their owners and guests.
- Wellness resorts. Wellness tourism is booming in Bali, driven by global appeal and supported by the Indonesian government. According to 2023 statistics, the size of the wellness market worldwide was US$6.32 trillion. The rate of increase is predicted to grow at an average annual growth rate of 7.3%.
Across the island, wellness resorts charge top dollar and are highly booked throughout the year. And sustainability is at the core of their operations. Beyond offering detox programs, holistic therapies, and organic cuisine, most Bali wellness resorts also have organic farms, clean energy, and water conservation systems.
Medical tourism is also growing. Each day, guests and patients in Bali continue to arrive from Australia, Asia and Europe to be treated with natural medicine and to detoxify.
- Eco-lodges. These are the accommodations you can find in remote natural settings that are undisturbed – from beautiful jungles to serene rice paddies and pristine coral reefs. They are made using eco-friendly materials and energy-efficient designs, ensuring minimum impact on their surroundings. Eco-lodges often rely on their own renewable energy sources and do waste recycling on-site.
Because of the wide variety of development projects, it is very important that you find the best option for real estate investments in Bali. Each investment type has its different advantages and disadvantages, so you’ll need to understand market trends, define personal goals, and carefully assess your investment plan before taking the dive.
Best Areas to Invest in Bali Real Estate for the Year 2025
Wondering where to invest in a property in Bali? According to investment consulting firm ILA Global, some of the most attractive places for investment are Seminyak, Canggu, Ubud, Sanur, Nusa Penida, Cemagi, Kedungu and Munduk. These are highly recommended by local real estate experts because of their promising ROI. Bingin, Nyanyi, Perenanan, Melasti, Pandawa, Ungasan, and Sidemen are up and coming areas that are also highly recommended.
Of course, choosing the most suitable neighborhood on the island depends on which market you’re targeting. As mentioned, each area has its own pluses – whether they be tourist traffic, natural attractions, infrastructures, affordability, or peace and privacy.
Areas in Southern Kuta such as Bukit, Jimbaran, and Pecatu are not as bustling as the northern part, but they’re not too far from all the action. If you’re looking for a blend of all the above factors, these could be great places to invest in.
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Key Considerations for Investing in Bali for the Long Term
Investing in Bali’s real estate market can be rewarding, but it requires a lot of careful planning and strategizing.
To start with, you have to clearly define your investment goals. Would you like to focus on rental income? Capital appreciation? Or maybe just personal use? Having clear objectives will guide you in making decisions, helping you choose the properties that align best with your budget, risk tolerance, and investment strategy.
Again, you’ll need to closely monitor the tourism industry because it impacts real estate values significantly. Properties that cater to tourists often yield higher returns, so it’s wise to target areas with high visitor traffic.
You will also want to include these other important factors:
Location
This will have a deciding effect on your property and tenancy income. Good road access, availability of useful services and infrastructure, coupled with easy access to natural attractions would all be prerequisites. Popular places such as Seminyak, Ubus, Canggu, and Uluwatu are the main hotspots, whereas Pererenan, Bingin, Cemagu, and Sidemen show large growth opportunities.
Market Saturation
It is extremely competitive in the Bali real estate market. Be mindful of saturation in the area you’re hoping to get in since an oversupply of rental properties, either already existing or still in the pipeline, can result in lower occupancy and rental income for all players.
To stand out, you’ll need to offer prime amenities, unique selling points, and extraordinary views. Consider investing in properties that feature full or high-end services like restaurant dining, a fitness center, a spa, and concierge or room service.
Development stage of the property
Are you planning to develop land or do you want to go for an off-plan project? Or do you want to go with a fully built house? Off-plan properties are often cheaper, and they become more valuable when they are finished. And you can personalize their design according to your requirements, style, and preferences.
However, buying a house that is already built will allow you to actually see what you are buying. You can start earning out of it as soon as you rent it to others, too.
If reselling is part of your investment strategy, you can purchase property that is still under construction and then resell it later. It will all depend on what is more important to you: to take the safer route and see returns sooner, or save a little money now to earn more in the future.
Whether you are building or buying, remember to work only with licensed and reputable real estate agents and developers. They can assist you in properly evaluating properties, ease up the buying process, and ensure that all transactions comply with the property laws in Bali.
There is no mortgage system
Local banks in Bali do not provide mortgages to foreigners, thus restricting expats from taking loans against properties. Real estate investments have to be made from one’s cash. Ensure that you have enough money tucked away before venturing out to invest in Bali real estate.
Finding other means of financing, such as arranging with private lenders or borrowing from your home country, could also help.
Long-term perspective
Always remember, real estate investment rental includes a steady and long-term commitment. This means managing the property, keeping it in good condition, and, if needed, upgrades and renovation. You can find property managers to help you out with these: marketing and bookings, day-to-day communication with tenants, and general maintenance of your investment property. Besides being more property savvy, local property managers possess an additional advantage in knowing the Bali market plus real estate laws and regulations to protect you from running into possible legal bumps down the road.
Navigating the Bali PropertyMarket: Tips for Building a Successful Real Estate Portfolio in Bali
To achieve optimal returns, you will probably want to diversify your investment over various geographical locations and property types–condo and beachfront villas in Seminyak as well as commercial properties in busy Canggu. Doing so can help minimize risks associated with any fluctuations in the market and those that will result from tourism variation.
As mentioned, collaborate with local real estate agents, lawyers, and property management firms. They usually have an in-depth local knowledge of the Bali property market, which can provide valuable information, expertise, and assistance in the investment process.
By the way, before settling on any of your investment plans, please do your due diligence. Do thorough research on your desired properties, the tourist traffic in the area, and potential competitors. Legal aspects of property ownership in Bali are also very important to know.
FAQ
While foreigners cannot directly own freehold land in Indonesia, there are legal structures like PT PMA (Limited Liability Company) and Hak Pakai (Leasehold rights) that allow foreign ownership of property in Bali. Consulting with a local legal expert is crucial to navigate these complexities.
Bali's real estate market has shown resilience, especially in prime locations with high demand. However, like any market, it can be influenced by global economic factors. Conducting thorough research and seeking expert advice is essential to making Bali long-term real estate investments.
Potential risks include economic fluctuations, changes in government regulations, natural disasters, and challenges arising in the day-to-day property management. Diversification, thorough due diligence, and working with experienced professionals can help minimize these risks.
Potential risks include economic fluctuations, changes in government regulations, natural disasters, and challenges arising in the day-to-day property management. Diversification, thorough due diligence, and working with experienced professionals can help minimize these risks.
Property taxes in Bali vary depending on the property's location and value. There are annual land taxes, water taxes, and other fees associated with property ownership. Consult with a local tax advisor for current and accurate information.
Sustainable real estate often attracts environmentally conscious buyers and tenants, leading to higher rental yields and resale values. Additionally, eco-friendly features can reduce operating costs and improve the property's overall appeal.
The Indonesian government has implemented various policies and incentives to promote sustainable development, including tax breaks and streamlined approval processes. Staying updated on the latest regulations can help you take advantage of these benefits when making a sustainable real estate investment in Bali.
The Bottom Line: Why invest in Bali in 2025?
Bali’s property market is very exciting because of its highly dynamic features that combine luxurious, sustainable, and community-centered developments. From opulent oceanfront apartments to isolated eco-lodges and state-of-the-art metropolitan complexes, there are endless investment opportunities for investors who want to tap into the island’s never-ending growth. Invest in long-time real estate in Bali to take part in this unique opportunity.
