Bali Villa

Live or Invest in bali

Buying land in Bali

With a Average market increase
on 15 - 25% per year

300%

Increase in land value over the last 5 years

20 - 30%

Average ROI per year

+80%

Average property occupancy per year

Average property price rises in Bali

Investing in land in Bali could be your best financial decision. Over the past decade, Bali has outpaced the entire Indonesian archipelago with the fastest growth in land prices. Recently, it was distinguished as Tripadvisor’s premier travel destination in Asia for 2019. The combination of this accolade and the intense demand for land, for the execution of a myriad of property ventures, has caused a sharp escalation in Bali’s land values. Discover how our proficient team can guide you in locating and securing the ideal piece of land in Bali.

Average Property Price Rises in
Kuta, Canggu, and Seseh (%)

No Data Found

Land banking

Real estate asset accumulation, often referred to as “land banking,” involves the procurement of land as an investment with the intent of holding it for future use, without immediate development plans. 

Our team offers investment solutions in land banking that employ a buy-and-hold strategy. If meticulously carried out with comprehensive due diligence, this approach can be relatively low-risk with an anticipated average appreciation of 18% annually.
 
Land banking involves practically no overhead expenses and employing a strategy, such as enhancing the infrastructure with additions like access roads, electricity, water, or procuring building permits, can promptly augment the land value by approximately 25%. 

Buy

Buy Strategically Located Land

HOld

Imporve By Installing Water, Electricity and Road Access

Sale

Instant Sale with an Average of 25% ROI

Purchasing Land
in Bali

Acquiring land in Bali generally follows a specific timeline. After locating the ideal plot for your needs and budget, the entire process usually takes about one month, with the following approximate timeframes:

2 weeks

Inspection and due diligence

1 week

Contracts

1 week

Money transfer

These timeframes may vary depending on various factors, but they are generally applicable for most of our clients. After successfully purchasing land, you can proceed with the exciting aspects of architectural design and planning.

SCHEDULE A FREE CONSULTATION

Discover how our team can assist you in bringing your dream villa to life

Google meet / Phone Meeting

(Online)

Investing in Bali is a great investment and a lot of fun, but you will likely have plenty of questions.

Feel free to get in touch, we have are here to help and can answer any questions at all stages of the process.

Our friendly tem will be happy to hear from you.

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Bali Land Zoning

In Bali, land zoning regulations categorize areas into three zones:

Yellow Zone

The Yellow Zone is designated as the Residential Zone, where individuals are allowed to construct various types of properties including houses, villas, boarding houses (kost-kostan), offices, and shops. 

Purple Zone

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Green Zone 

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IT’S IMPORTANT

For individuals and businesses to comply with land zoning regulations when constructing in Bali to ensure they do not violate any laws or regulations.

Being familiar with the different zoning categories is vital for determining the types of structures allowed, identifying protected areas, and avoiding any legal repercussions that may result from unauthorised building activities.

MOST IMPORTANTLY

When you purchase land through Coco Development Group, you can enjoy peace of mind and the security of a transaction handled by a team of legal experts.

This includes local land agents, a solicitor, and most importantly, a skilled and experienced notary with years of experience notarising land and villa deals for Coco Development Group.

BUYING LAND IN BALI

FAQs

OWNING LAND IN BALI (FREEHOLD)

In Bali, most land parcels are available with freehold ownership titles, known locally as “Hak Milik”. Currently, only Indonesian citizens are authorized to hold this type of ownership title; foreign individuals are not allowed to purchase land in Bali under this domestic property title. However, foreigners are permitted to acquire different types of land rights such as leasehold rights (Hak Sewa) or the right to use the land (Hak Pakai) for a predetermined number of years. Another viable option that allows foreigners to hold property in Bali is through the establishment of a Foreign Investment Company (PMA).

LEASING LAND IN BALI (LEASEHOLD)

Leasehold rights (Hak Sewa) or the right to use the land (Hak Pakai) for a duration of 20-30 years is a highly favored and cost-effective strategy for foreigners to secure land in Bali. This is the only method that permits foreign individuals to safely acquire land under their own names in Bali. The prevailing regulations permit foreigners to lease land independently, without the necessity of a local nominee. We recommend land leasing in Bali as the preferred strategy for international purchasers to acquire land in the region. This method is not only secure but also straightforward, facilitating a smooth land acquisition process.

FREEHOLD VS. LEASEHOLD LAND IN BALI: WHAT'S THE DIFFERENCE?

When it comes to villa development in Bali, the two primary land ownership options are freehold and leasehold. 

 

Freehold grants indefinite land ownership, exclusively available to Indonesian residents. Consequently, this option is less common for international buyers and investment villas.

 

Leasehold, on the other hand, allows land use rights for a specific duration, with the lease agreement bearing the international buyer’s name. 

 

Initial lease agreements typically span 25-30 years, with an option to extend at the current market value. A notary (a specialized land lawyer) oversees the contract, ensuring due diligence and necessary checks before the lease commences. 

 

Leasing land in Bali is more cost-effective than purchasing freehold and offers the highest return on investment for villa developments

COMMON LAND TERMS & JARGON IN BALI

When exploring land purchase options in Bali, you may come across the following frequently used terms and abbreviations:

 

Are: A widely-used unit of measurement for land in Bali. 1 Are equals 100 sqm.

 

Leasehold: A form of property ownership that grants the right to use land for a predetermined period.

 

Freehold: Property ownership that allows indefinite land rights.

 

Rp / IDR: Indonesian Rupiah – the official currency of Indonesia. Prices may also be listed in USD (United States Dollar).

Should you have any questions or need further assistance, please don’t hesitate to contact us.

HOW LONG CAN LAND BE LEASED IN BALI?

Lease terms for land in Bali are negotiated between the landowner and the interested individual or party. Typically, leases last between 25 and 30 years, although some may be as short as 20 years or longer than 40 years. These durations pertain to the initial lease. 

 

Lease contracts usually allow the leaseholder to extend the lease for a period similar to the initial term, with the price reflecting the land’s updated market value at the time of renewal. The option to extend is advantageous when a new villa has been constructed on the property. 

 

If a landowner consents to ongoing lease extensions, the land can essentially be leased indefinitely.

HOW MUCH DOES LAND COST IN BALI?

Various factors contribute to the cost of land in Bali. Leasehold land prices are typically calculated per “are” (100 sqm) per year, starting from around Rp 5,000,000 IDR (~ $350 USD). –

Here are some key considerations affecting land prices in Bali: 

 

  1. Leasehold vs. Freehold: Freehold land, which grants indefinite ownership, is more expensive than leasehold land. Leasehold land is cheaper, with leases usually lasting 25-30 years and the option to extend at the current market value.
  2. Land Location: Land prices in Bali are heavily influenced by location. Popular areas and beachfront properties command higher prices, while rural and quieter locations offer more affordable options.
  3. Nearby Attractions: Proximity to local amenities and attractions can impact land prices. The presence of popular shops, restaurants, and beach clubs can increase costs.
  4. Property Size: Larger plots are more expensive. To find more affordable land, look for properties that fit your villa and pool requirements. 

 

Aside from the land cost, remember to budget for construction, landscaping, and furnishings when investing in Bali.

CAN FOREIGNERS BUY LAND IN BALI?

Foreigners can buy land in Bali, but with certain restrictions and regulations. While freehold land ownership is exclusive to Indonesian residents, foreigners can acquire leasehold property. 

 

When buying land in Bali as a foreigner, it is essential to be aware of specific rules and regulations, especially when renting out the property as a holiday rental through platforms like Airbnb. Taxes and fees may apply to the rental income generated by the property. 

 

Given its stunning landscapes and high tourism appeal, Bali has attracted many foreigners looking for land investment opportunities. For the most up-to-date and professional advice on buying and investing in Bali, it is recommended to consult with local legal professionals who are well-versed in the latest rules and regulations.

Determining the Ideal Land Size for Your Villa

The amount of land you need depends on the size of the villa you plan to build. Generally, the required land size might be smaller than you initially think. 

 

When investing in Bali property, it’s essential to maximize land use to achieve the highest return on investment. On each of our developments, we indicate the recommended land size required to build each villa. Most villas include a pool and landscaped garden, which are highly recommended features when searching for land to build an investment villa. 

 

For guidance on the appropriate land size for your new villa, please feel free to contact us. Our team is happy to help you find the perfect plot for your needs.

High-ROI Locations for Bali Investments

Numerous areas in Bali offer exceptional returns on investment. The most popular locations among our clients include:

 

  1. Seseh
  2. Pererenan
  3. Canggu
  4. Berawa
  5. Uluwatu
  6. Ubud

 

Proximity to popular attractions, such as beach clubs and restaurants, typically draws a higher number of tourists, making these areas ideal for holiday rentals. 

 

For guidance on the best locations to buy land in Bali, feel free to contact us.

Timeframes for Purchasing Land in Bali

Acquiring land in Bali generally follows a specific timeline. After locating the ideal plot for your needs and budget, the entire process usually takes about one month, with the following approximate timeframes:

  1. Inspection and due diligence: 2 weeks
  2. Contracts: 1 week
  3. Money transfer: 1 week

 

These timeframes may vary depending on various factors, but they are generally applicable for most of our clients. 

 

After successfully purchasing land, you can proceed with the exciting aspects of architectural design and planning.

Bali Land Zoning

In Bali, land zoning regulations categorize areas into three zones:


Yellow Zone
The Yellow Zone is designated as the Residential Zone, where individuals are allowed to construct various types of properties including houses, villas, boarding houses (kost-kostan), offices, and shops.


Purple Zone
The Purple Zone is identified as the Tourism Zone, where individuals have the ability to construct not only the structures permitted in the Yellow Zone but also villas (pondok wisata), hotels, eateries, and other hospitality-related establishments.


Green Zone
Conversely, the Green Zone is designated as a protected area where construction is strictly forbidden. This zone aims to conserve the natural environment and maintain ecological equilibrium, essential for Bali’s tourism sector.

The Green Zone encompasses areas such as forests, rice fields, and riverbanks, which play a significant role in preserving the cultural heritage and natural splendor of the island.


IT’S IMPORTANT
for individuals and businesses to comply with land zoning regulations when constructing in Bali to ensure they do not violate any laws or regulations. Being familiar with the different zoning categories is vital for determining the types of structures allowed, identifying protected areas, and avoiding any legal repercussions that may result from unauthorized building activities.

MOST IMPORTANTLY

When you purchase land through Coco Development Group, you can enjoy peace of mind and the security of a transaction handled by a team of legal experts. This includes local land agents, a solicitor, and most importantly, a skilled and experienced notary with years of experience notarizing land and villa deals for Coco Development Group.

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