Bali Villa

Constructing a Villa in Bali As a Foreigner: A Comprehensive Guide

Navigating the property market in Bali demands caution and thoroughness. If a deal appears overly enticing, there’s a high likelihood it’s not as it seems. Sellers undergoing personal distress are rarely willing to dispose of their property significantly under market value. It’s hence advisable to allocate some funds towards property due diligence to avert potentially substantial losses. 

Zoning is integral in the Bali property market as each parcel of land is assigned a specific “zone” determining its usage. Common zoning types encompass residential, tourism, agricultural, and forestry. Understanding the land’s zoning is imperative as it stipulates the kind of structures allowed and usage limitations. For instance, a “flyover zone” may be susceptible to government acquisition at an established price. 

Thus, it’s crucial to conduct due diligence and comprehend zoning laws applicable to your land. Collaborating with a trusted property investment firm can help you transform your Bali villa dream into a reality. 

A Crucial Step in Bali Property Acquisition 

Confirming the legitimacy of the land seller is a challenge encountered during property acquisition in Bali. Sellers need to furnish buyers with an exhaustive list of ownership certificates, which can be cross-checked with the National Land Institution (BPN) by your due diligence team. Hesitance by the seller in providing this information is a glaring warning sign. –

Potential issues with ownership certificates include intricate inheritance disputes or the necessity of consent from both spouses for the sale. It’s also essential to inspect any outstanding tax liabilities, such as unpaid property taxes. 

After comprehensive land due diligence, the most arduous part of villa construction in Bali is behind you, and you can transition to more enjoyable parts of your project. 

Selecting a Regency in Bali for Your Villa Development 

The initial step in building a Bali villa is securing the land for construction. If you are uncertain about which area to choose, consider locations preferred by other foreign investors. Based on the volume of foreign investments, popular regencies in Bali include Canggu, Uluwatu, and Ubud.

Land Acquisition Process in Bali

  1. Downpayment: It’s commonplace for sellers to demand a downpayment before due diligence, demonstrating your commitment and financial readiness. This amount will be refunded if due diligence fails.
  2. Notary Selection: It’s advisable for you, the buyer, to choose the notary overseeing the transaction’s legal aspects. Bear in mind that notaries cover particular areas, so purchasing properties in different locales might necessitate multiple notaries.
  3. Buyer Representative Appointment: If you are unable to attend notary meetings due to language barriers or time constraints, it’s typical to appoint a buyer representative. 

Call to action. Our team is here to assist you with all aspects of land acquisition and the due diligence process. Book a free consultation 

Selecting an Architect in Bali: Key Points 

Upon land acquisition and completion of legal formalities, you’re ready to commence villa construction. When choosing an architect in Bali, be aware of “international” firms outsourcing work to local companies and charging inflated fees. It’s recommended to meet potential architects in their office to get a better grasp of their operations. 

Opt for firms with experience catering to international clients as local and Western-style preferences can vary significantly. For instance, western clients might favor larger windows while local clients prioritize shade. Avoid paying all fees upfront. It’s prudent to do your research and select an architect capable of bringing your dream villa to life while offering top-notch service. 

Our team is ready to help with all the architectural aspects of your Bali construction project. Book a free consultation 

What to Expect from an Architectural Firm in Bali

When selecting an architectural firm in Bali, consider the scope of services offered and their costs. In 2022, an exceptional architect in Bali for a standard-sized villa costs approximately 10,000 USD, inclusive of:

  1. MEP consultant: Responsible for creating electrical plans and overseeing the installation process.
  2. Structural consultant: Develops structural drawings based on the architect’s concept.
  3. Quantity surveyor: Ensures the Bill of Quantities is accurate and that all materials are purchased at market price and in the right quantities. 

Most architects in Bali have preferred contractors they’ve previously collaborated with. This can be beneficial, facilitating constant communication between the architect and contractor and ensuring any revisions are for valid reasons and not corner-cutting. 

Our team is ready to help with all the architectural aspects of your Bali construction project. Book a free consultation 

Securing a Building License (IMB or PGB) in Bali 

After finalizing your villa’s plans, the next step is obtaining a building permit, also known as IMB (recently renamed Persetujuan Bangunan Gedung or PGB). The approval process in Bali is relatively swift compared to other countries. Once you’ve received zoning approval, you can start construction and apply for PGB concurrently, typically issued within 3-5 months. For more information on building permits,

visit: https://projasa.co.id/en/building-permit 

Initiating a Construction Tender in Bali

With your land, building plans, and zoning approval in place, you’re ready to kick-start the construction process. You can choose a contractor recommended by your architect or select your own. In either case, it’s wise to open a tender and solicit bids from various firms. In 2022, construction costs in Bali range from 500 USD/m2 for standard quality to 1500 USD/m2 or more for luxury villas. 

Contractor Payment in Bali

When it comes to contractor payment in Bali, two common methods exist: paying per milestone or a monthly fee. Generally, milestone payments are more beneficial as they align your objectives with those of the contractor, encouraging them to work efficiently. 

In Conclusion

Building a villa in Bali can be an exhilarating and rewarding journey, provided you’re well-prepared and mindful of common pitfalls. By adhering to the steps highlighted in this guide and understanding the unique dynamics of the Bali real estate market, you can increase your success probability and possibly enjoy a handsome property investment return. Or simply, you may just have a magnificent place to call home. We hope this guide has addressed most of your queries on how to build a villa in Bali as a foreigner.

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