Bali, with its stunning landscapes, rich culture, and increasing demand from both tourists and expats, has become a prime location for real estate investment. Whether you’re drawn to its thriving rental market or seeking a permanent residence, purchasing an apartment in Bali offers unique opportunities. However, this is not a decision to be made lightly. Navigating the complexities of Bali’s property laws, market dynamics, and financial landscape requires a deep understanding of the island’s real estate environment.
In this guide, we’ll break down the essential factors to consider before purchasing an apartment in Bali. From legal ownership structures for foreigners to the nuances of property maintenance, we’ll provide expert insights to ensure that your investment is both informed and secure. Whether you’re a first-time buyer or an experienced investor, this article will equip you with the knowledge you need to make a sound decision in Bali’s competitive market.
Own your COCO property in paradise with benefits for life
- +200 properties in construction
- +250 properties in full operation
- Pay 20% of your property straight from rental profit
Bali Property News: Is Bali Real Estate Market Facing a Bubble?
With the increasing price in some parts of Bali, especially in the most in-demand tourist spots, many investors and analysts raise the question: Is the real estate market in Bali in a bubble in 2025? The following are several factors which contribute to concerns over the sustainability of the current market conditions.
A real estate bubble occurs when property prices increase rapidly due to speculative buying, rather than being supported by genuine demand or strong economic fundamentals. Overvaluation, too much investment, and oversupply are factors usually fueling such a bubble, leading to a sudden market correction or crash when conditions normalize.
Speculations of a potential property bubble in Bali, just like in other destination honeypots, are not uncommon. Rapid appreciation in hotspot areas has fueled concerns about overvaluation. However, the current market dynamics suggest otherwise. Unlike speculative markets, Bali’s property growth is largely supported by consistent demand from tourists, expatriates, and digital nomads.
Is there a Bali Real Estate Bubble Explosion Soon?
While there’s no immediate sign of a “bubble explosion,” potential investors should approach the market cautiously. Although the market remains stable in 2025, external factors such as global economic downturns or sudden changes in Indonesian regulations could destabilize conditions. Key concerns include tighter foreign investment laws or revisions to visa policies, which may impact demand. To mitigate risks, investors are advised to monitor these developments closely and seek expert guidance when navigating the market.
Bali Real Estate Guide: Everything You Should Know and Consider
When it comes to buying property in Bali, understanding the local real estate landscape is crucial. Below are the key factors you need to know before making an investment, ensuring you’re well-prepared for a successful purchase.
1. Navigating Property Laws for Apartments
When buying property in Bali, especially as a foreigner, the legal landscape is one of the most important aspects to understand. Indonesia has strict property ownership laws, and foreign nationals are not allowed to directly own land. However, there are ways to legally own an apartment, and understanding these methods will help you avoid potential pitfalls.
Ownership Options for Foreigners
The most straightforward method is the Hak Pakai (Right to Use) title, which allows foreigners holding a KITAS or KITAP to legally own and use a property for an initial period of up to 30 years, with the possibility of extending it to a total of 80 years. This title is only applicable to properties with existing structures, making it a suitable option for those purchasing a ready-built apartment rather than undeveloped land. Buyers must pay the full market value upfront, along with legal fees, and ensure the property is certified for Hak Pakai status.
Another option is through the establishment of a foreign-owned company, or PT PMA (Perseroan Terbatas Penanaman Modal Asing). This route allows foreigners to acquire property under a Hak Guna Bangunan (HGB) title, which grants land-use rights for up to 80 years through extensions. Unlike Hak Pakai, this structure provides more flexibility and security, as the PT PMA owns the property and can resell it, lease it, or upgrade the title to Hak Milik when selling to eligible Indonesians. However, setting up a PT PMA involves higher upfront and ongoing costs, typically ranging from $5,000 to $8,000 for company registration, plus annual maintenance and tax obligations.
A riskier and less (if not) recommended route is the nominee arrangement, where an Indonesian citizen holds the freehold title on behalf of the foreign buyer. While this method may seem simpler, it carries significant legal and financial risks, including the potential loss of property rights in disputes. For a safer and more sustainable investment, foreign buyers are encouraged to pursue ownership options that are legally recognized and properly documented under Indonesian law.
Due Diligence is Crucial
Buying an apartment in Bali isn’t just about liking what you see—it’s about making sure the property is legally and structurally secure. Before finalizing any deal, you need to verify that everything checks out.
Some of the key due diligence checks you must do before buying an apartment in Bali include:
Verifying Seller’s Legitimacy
- Request the seller’s KTP (national ID) and NPWP (tax ID).
- If the seller is married, ensure they have spousal consent for the sale.
- Confirm the seller’s legal right to sell the property.
Checking Land Ownership Certificates
- Request the original land certificate (Hak Milik, Hak Pakai, or Hak Guna Bangunan).
- Verify if the land size in official records matches the advertised size.
Confirming Tax & Legal Compliance
- Ensure the PBB property tax is up to date.
- Check for any outstanding liens, debts, or encumbrances on the property.
Reviewing Zoning & Land Use Regulations
- Confirm that the land is zoned for residential or commercial use based on your intended purpose.
- Avoid properties in green zones or protected areas, which cannot be legally developed.
Assessing Infrastructure & Road Access
- Verify that the villa has legal access to main roads (some properties lack formal road agreements).
- Check for water, electricity, and internet availability, especially in remote areas.
Doing Physical Inspection & Checking Environmental Factors
- Conduct a soil test to ensure the land is suitable for construction or renovations.
- Check for flood risks, land stability, and potential environmental hazards.
Invest in Bali’s #1 Lifestyle Property Brand
Discover high-yield villa investments starting at just $50,000 with average returns of 17–20%—all in one of the world’s most sought-after destinations.
2. Financial Aspects: Calculating Your Total Investment
Bali’s real estate market offers a range of prices, and it’s easy to get caught up in the excitement of the purchase. However, to make a smart investment, you must account for more than just the purchase price.
Current Market Prices (2025)
As of 2025, the real estate market in Bali’s top tourist destinations reflects the island’s growing popularity and development. Below is an overview of the average apartment prices in key areas, presented in both Indonesian Rupiah (IDR) and United States Dollars (USD):
- Canggu: Known for its surf beaches and vibrant café culture, Canggu has seen a surge in property demand. One-bedroom apartments near the beach are priced between IDR 3 billion and IDR 6 billion (approximately $200,000 to $400,000), while two-bedroom units range from IDR 4.5 billion to IDR 9 billion (about $300,000 to $600,000).
- Ubud: Renowned for its cultural heritage and lush landscapes, Ubud offers a serene living environment. Two-bedroom apartments with rice field views are typically priced between IDR 4.5 billion and IDR 7.5 billion (approximately $300,000 to $500,000), reflecting the area’s tranquil appeal.
- Seminyak: As a hub for luxury and nightlife, Seminyak commands higher property prices. Standard two-bedroom apartments are priced from IDR 6 billion to IDR 9 billion (approximately $400,000 to $600,000), while premium units in prime locations can exceed IDR 15 billion (over $1 million).
- Uluwatu: Famous for its dramatic cliffs and surf spots, Uluwatu offers a range of property options. Apartments with ocean views start at IDR 7.5 billion (around $500,000), with luxury units reaching up to IDR 15 billion (approximately $1 million), catering to those seeking exclusivity and stunning vistas.
Total Cost Considerations
When purchasing an apartment in Bali, it’s essential to factor in the full scope of expenses, not just the listing price. Beyond the purchase cost, buyers should account for legal and administrative fees, tax obligations, and optional expenses like interior furnishing or engaging an agent. While apartments generally incur lower maintenance and staffing costs compared to villas, proper budgeting ensures a smooth and compliant transaction.
To guide your planning, here’s a breakdown of one-time and annual costs typically associated with apartment ownership in Bali:
| Cost Type | Description | Estimated Cost |
|---|---|---|
|
Notary Fees |
Covers document preparation and legal services |
1–2% of the property value |
|
Tax on Land & Building Transfer (BPHTB) |
Mandatory tax during the purchase transaction |
5% of the property value |
|
Legal Documentation |
Drafting of contracts, permit validation, due diligence |
$2,000–$4,000 |
|
Agent Commission |
If purchasing through a property agent |
2.5–5% of the property value |
|
Furnishing & Appliances |
For unfurnished units or upgrades |
$5,000–$15,000 (depending on quality) |
|
Property Tax (PBB) |
Annual tax based on assessed value |
Around 0.1% of the property value |
|
Building Maintenance Fees |
Paid to the building management (for shared facilities) |
$600–$1,500 annually |
|
Utilities |
Electricity, water, and internet |
$1,000–$2,500 annually |
|
Insurance |
Property and contents coverage (optional) |
$300–$1,000 annually |
Remember, these figures are averages and may vary based on location, property type, and whether the apartment is part of a serviced complex. For more accurate estimates, it’s recommended to consult with a local legal advisor or property consultant.
Financing Options for Foreign Buyers
For most foreigners, securing financing in Bali can be challenging. While Indonesian banks are generally hesitant to offer loans to non-residents, some financial institutions may offer financing through joint ventures or specific agreements. This said, be prepared for a potentially lengthy approval process and higher interest rates than you’d find in your home country. Or, you can explore these options:
- Local Bank Mortgages: Some Indonesian banks offer mortgage products to foreign buyers, though these come with stricter lending criteria and higher interest rates compared to those for local citizens.
- International Financing: Foreign buyers often rely on personal savings or loans from financial institutions in their home countries to fund property purchases in Bali. International banks with branches in Bali may offer mortgage options, but these can be complex to navigate and may require substantial collateral.
- Developer Financing: Some property developers in Bali offer in-house financing options, particularly for off-plan apartments. These payment plans are typically tied to construction milestones, allowing buyers to manage cash flow more effectively. However, it’s crucial to thoroughly review the terms and conditions of such arrangements.
- Private Financing: Arranging private loans, often by leveraging assets or income in one’s home country, is another avenue some buyers explore. This approach requires careful consideration of the legal and financial implications.
Standard Payment Structure for Off-Plan Apartments:
If you plan to purchase an off-plan apartment in Bali, know that payments are typically structured as follows:
- Booking Fee: 1–2% of the property value (refundable, secures your interest).
- Down Payment: 10–20% of the property value (confirms the purchase).
- Progress Payments: Installments made based on construction milestones (e.g., foundation completion, roofing, finishing).
- Final Payment: Due upon completion and transfer of ownership.
Overall, it’s advisable to consult with legal and financial professionals familiar with Indonesian property laws to navigate the financing process effectively.
why investors choose
coco development group?
Passive income on full auto pilot
Profit Maximization
We do not just put your property on Airbnb hoping for a guest to book it. More than 40% of our bookings comes today through our own medias, a strong community and a digital and data driven management approach.
A Convenient and fast payment system
The investors receive net profits currency that is convenient for them. we transfer the money once every three months
No need to handle taxes
High Liquidity
Fast Payback
Oceanside villas in Bali are in High demand for daily rentals. You will earn about 5000 USD per month
3. Location, Location, Location: Choosing the Right Neighborhood
Your ideal location should hinge on your primary objective: is it for rental investment or for personal use? To help you choose a location, below are some of the most recommended Bali regions for each purpose.
- For Investment:
- Canggu, Kuta, and Seminyak are some of the best areas for short-term rentals due to their high tourist footfall.
- Jimbaran and Nusa Dua are growing luxury markets, attracting high-end travelers.
- Uluwatu and Bingin are gaining popularity for surf tourism and offer strong rental demand.
- For Lifestyle:
- Ubud and Lovina offer a tranquil, nature-filled environment perfect for long-term living.
- Sanur is a great option for families and retirees looking for a quiet yet well-developed community.
- Amed and North Bali provide a slower pace of life away from tourist crowds.
How to Choose the Best Location
After selecting your preferred area in Bali based on your property’s purpose and goals, finding the best fit location should be next in your agenda.
Certain areas are prime rental hotspots, offering strong potential for short-term income, while others provide a tranquil escape perfect for long-term living. To help you screen locations, here’s how to strategically choose the ideal area for your investment or lifestyle needs:
1. Research Growing Areas
Look for up-and-coming regions with major infrastructure projects that enhance connectivity and drive property value growth. Areas with newly constructed roads, highways, and public infrastructure, along with developments like international schools and hospitals, enhance connectivity, increase property desirability, and attract expat families and long-term residents, creating a steady demand for housing. Additionally, future commercial and tourism hubs signal long-term appreciation potential, ensuring that your investment continues to grow in value over time.
2. Talk to Local Residents and Expats
Engaging with locals and expatriates in different areas provides first hand insights into the benefits and drawbacks of each region. For instance, expats and long-term residents can offer valuable knowledge on factors such as living costs, property management, rental success rates, safety, accessibility, and the overall vibe of the community. You may also join expat forums, Facebook groups, and real estate investment communities to further enhance your understanding, helping you make more informed decisions when choosing the right location for your villa investment.
3. Check Property Price Trends
Understanding market trends is crucial for making a sound investment. Analyzing historical property prices helps you see how values have fluctuated over time, while assessing current market demand enables you to identify high-demand areas that offer better rental yields and resale potential. It’s also important to consider government regulations that may impact foreign ownership, taxes, and investment opportunities. To track price trends and predict future growth areas, property listing websites and consultations with real estate agents can be valuable resources.
4. Property Inspection and Maintenance: Ensuring the Apartment is in Top Shape
After narrowing down your preferred location and confirming the legal aspects, the next step is to focus on the condition and upkeep of the apartment itself. A well-maintained apartment not only protects your investment but also enhances its rental and resale value over time.
Conducting a Thorough Inspection
Before committing to any purchase, arrange for a comprehensive inspection by a certified professional or building engineer. This inspection should cover both structural integrity and functional systems—such as plumbing, electrical wiring, water pressure, and ventilation. Watch out for signs of wear like mold, roof leaks, faulty drainage, and termite damage, which can be costly to fix. In older buildings, outdated electrical systems or non-compliant renovations may also raise red flags. It’s also wise to request access to the building’s maintenance logs and previous renovation records to assess long-term upkeep.
Maintenance Costs and Responsibilities
Unlike stand-alone villas, apartments in Bali typically fall under a building management or strata title system. This means you’ll share responsibility for communal spaces like corridors, elevators, gardens, and swimming pools. Monthly maintenance fees—often ranging between IDR 1 million to 3 million ($65–$195 USD), depending on the amenities—are used to fund these services. Clarify what these fees include and whether any upcoming renovations or special assessments might require additional payments. Also, confirm who is responsible for maintaining fixtures within the unit itself, such as air conditioning systems, water heaters, or structural repairs.
Property Management Services
If you don’t plan on living in Bali year-round, enlisting a reliable property management company can offer peace of mind. These services typically handle tenant screening, rent collection, bill payments, cleaning, and emergency repairs. They ensure your apartment remains in good condition and income-generating while you’re away. Management fees usually range from 10% to 20% of the monthly rental income. Be sure to choose a reputable company with experience managing expat-owned properties, and check whether they provide detailed financial reports and regular property updates.
No Taxes, No Hassle: COCO Handles Everything for Your Property
Let COCO Development Group take the stress out of property ownership. From accounting to tax optimization and payments, we handle every detail, so you enjoy hassle-free profits straight to your account.
Bali Property Buying and Living Tips
To ensure a smooth purchase and avoid unexpected surprises, consider these buying tips:
Buying Tips:
- Work with trusted professionals: Engage reputable local experts for legal, financial, and apartment-specific property advice. Choose notaries and agents experienced in dealing with apartment or condominium units. Their fees may seem high, but their expertise can protect you from legal pitfalls like unclear strata titles or illegal developments.
- Create a comprehensive budget: Account for all costs beyond the sale price, including legal fees, taxes, agent commissions, monthly maintenance dues, and building management fees. Ask for a breakdown of ongoing building fees, and be clear about who covers repairs within your unit vs. shared facilities.
- Verify permits and titles: Confirm that the apartment is part of a legally registered building with complete documentation, including an IMB (building permit) and proof of ownership. Ensure the unit you’re buying is listed correctly in the building’s strata title.
- Understand leasehold terms: Most apartments sold to foreigners are on leasehold terms (typically 25–30 years). Clarify the renewal process, conditions, and costs. Ensure that the contract includes renewal clauses and whether lease extensions are pre-negotiated or require revaluation.
- Review building rules and fees: Apartments in Bali often come with building regulations regarding rentals, renovations, and use of common areas. Review the building’s house rules, check if short-term rentals are allowed, and ask for a copy of the monthly maintenance fee structure (usually around IDR 1M–3M or $65–$195 per month).
- Inspect the apartment and common areas thoroughly: Hire a qualified inspector to check the apartment for leaks, structural damage, electrical issues, and plumbing. Don’t forget to evaluate common areas like stairwells, elevators, and security. Poor maintenance in shared spaces can affect your property value and rental potential.
- Plan for long-term maintenance and upgrades: Maintenance doesn’t stop at your unit. Shared facilities such as pools, gyms, and gardens often require periodic upgrades. Some buildings issue one-time “capital calls” or special assessments—check the building’s financial reserve fund to see how prepared it is for future repairs.
- Consider property management services: If you don’t plan to live in the unit full-time, hiring a property manager can help maintain your apartment, handle tenant concerns, and maximize rental income. Some apartment complexes offer in-house management services, while others require third-party solutions.
Once you’ve made your purchase, it’s important to focus on maintaining and living in your new apartment. Below are some living tips to help you make the most of your Bali property investment:
Living Tips:
- Respect local customs and neighbors: Many apartments are located in areas surrounded by Balinese communities. Respect ceremonies, temple days, and communal traditions. For rentals, leave a guide for guests to ensure they don’t unintentionally cause disruptions.
Join expat and apartment owner communities: Connect with other foreign property owners for insider tips on legal updates, recommended contractors, and property managers. Facebook groups, building-specific chat groups (e.g., on WhatsApp or Telegram), and monthly resident meetings can be helpful.
FAQ
Foreigners can buy apartments in Bali through leasehold agreements or by setting up a PMA (Foreign Investment Company) for long-term leases. Consulting a local legal expert is essential to navigate these requirements.
Rental rules vary by location and building. Some apartments allow short-term rentals, while others have restrictions, so it’s important to check with building management and local laws.
Common amenities include pools, gyms, security, and on-site management. Additional services may be offered in premium apartments. Factor these costs into your maintenance budget.
Property insurance is not required but highly recommended. Compare policies that cover damage, theft, and natural disasters to protect your investment.
The process includes signing a sale agreement, paying taxes, and registering with the National Land Agency (BPN). Legal help ensures compliance with regulations.
Construction you can trust
We handle all the details – no hassle for you.
5 Years full warranty
20+ Finished developments in Bali by our team
25+ Years of shared experience
Learn the Art of Buying Apartments in Bali and Secure Your Property Wisely
Buying an apartment in Bali offers a unique opportunity for both personal living and investment. With careful attention to legal requirements, property conditions, and ongoing maintenance, you can secure a valuable asset in one of the world’s most sought-after locations. Whether you’re looking for a peaceful retreat or a rental property, understanding the market and making informed decisions will ensure your investment thrives in Bali’s dynamic environment.
