What are the best property investments in Bali?

Last updated on August 26, 2025

Authored by the expert who managed and guided the team behind the Indonesia Property Pack

Yes, the analysis of Bali's property market is included in our pack

Bali's property market in 2025 offers exceptional opportunities for foreign investors, with villa prices rising 50% year-over-year and rental yields reaching 15-20% in prime areas.

The island presents diverse investment options from affordable $100,000 villas in Ubud to luxury $1M+ beachfront properties in Seminyak, attracting digital nomads, retirees, and hospitality entrepreneurs seeking high returns and lifestyle benefits. With 37% of new listings being off-plan developments and strong tourism recovery driving demand, Bali remains Southeast Asia's most accessible and profitable real estate market for foreign investors.

If you want to go deeper, you can check our pack of documents related to the real estate market in Indonesia, based on reliable facts and data, not opinions or rumors.

Quick Summary:

Bali's property market offers villas from $100,000 to $1M+, with rental yields of 7-20% and annual price appreciation of 7-12%.

Foreign investors can access freehold ownership through PT PMA companies or opt for long-term leaseholds, with Canggu, Seminyak, and Ubud being the most profitable areas for both short-term and long-term rentals.

Investment Type	Price Range	Rental Yield	Best Areas
Budget Villas	$100,000 - $300,000	7-12%	Ubud, Tabanan
Mid-Range Villas	$300,000 - $600,000	10-15%	Sanur, Nusa Dua
Luxury Villas	$600,000 - $1M+	15-20%	Canggu, Seminyak
Apartments	$70,000 - $300,000	8-14%	All major areas
Land Development	$300 - $2,000/sqm	Variable	Emerging areas
Off-Plan Projects	20-30% below market	12-18%	Canggu, Berawa
Short-Term Rentals	Any price range	15-25%	Tourist hotspots

Who is the author of this content?

BAMBOOROUTES

A team specialized in real estate investing in APAC countries (Japan, Thailand, Indonesia, Australia, etc.).

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Bali. If you'd like to learn more about us, you can check our presentation page.

How this content was created 🔎📝

At BambooRoutes, we explore the Indonesian real estate market every day. Our team doesn't just analyze data from a distance—we're actively engaging with local realtors, investors, and property managers in cities like Denpasar, Canggu, and Ubud. This hands-on approach allows us to gain a deep understanding of the market from the inside out.

These observations are originally based on what we've learned through these conversations and our observations. But it was not enough. To back them up, we also needed to rely on trusted resources

We prioritize accuracy and authority. Trends lacking solid data or expert validation were excluded.

Trustworthiness is central to our work. Every source and citation is clearly listed, ensuring transparency. A writing AI-powered tool was used solely to refine readability and engagement.

To make the information accessible, our team designed custom infographics that clarify key points. We hope you will like them! All illustrations and media were created in-house and added manually.

Fact-checked and reviewed by our local expert

✓✓✓

Daniel Rouquette 🇫🇷

CEO & Co-Founder at Villa Finder

Daniel Rouquette is very knowledgeable about the Bali villa market, as Villa Finder offers a vast selection of properties across the island. As the CEO and Co-Founder of Villa Finder, he has been leading the company since 2012, providing high-quality villa rentals and personalized concierge services. With over 4,000 villas in 28 destinations, Villa Finder has become a trusted name in luxury short-term rentals in the Asia-Pacific region.

What types of properties can you actually buy in Bali right now?

As of September 2025, Bali's property market offers five main categories for foreign investors.

Villas dominate the market and range from cozy 1-2 bedroom properties starting at $100,000 to luxury beachfront villas exceeding $1 million. These are the most popular choice among foreign buyers because they offer the highest rental yields and best resale potential.

Apartments and condos have become increasingly common, especially for budget-conscious investors, with prices ranging from $70,000 to $300,000 depending on location and amenities. Houses provide more affordable per-square-meter pricing and work well for personal use or long-term rentals.

Land purchases start at $300-$800 per square meter in developing areas and $1,000-$2,000 per square meter in prime locations like Canggu and Seminyak. Off-plan developments now represent 37% of all listings, showing significant growth in new construction projects across the island.

It's something we develop in our Indonesia property pack.

Should you buy or rent if you're planning to invest in Bali?

Buying makes financial sense for investors planning to stay involved in the Bali market for at least 3-5 years.

Property prices in Bali have risen 7-12% annually, with villa prices jumping from $321,000 in 2024 to $484,000 in 2025. Rental yields average 7-15% for villas and apartments, reaching 15-20% in prime tourist areas like Canggu and Seminyak.

Buying allows you to benefit from both capital appreciation and rental income, while also providing security and the ability to customize the property for maximum rental appeal. The total return on investment often exceeds 20% annually when combining rental yield with price appreciation.

Renting only makes sense if you're testing the market, have limited capital, or want maximum flexibility without dealing with legal complexities, maintenance costs, and property management responsibilities. However, renting means missing out on Bali's strong property price growth and income generation potential.

What do properties cost now, and what should you expect for prices going forward?

Area	Small Villa/House	Luxury Villa	Apartment	Land (per sqm)
Canggu/Seminyak	$120,000 - $1,000,000	$500,000 - $1,000,000+	$70,000 - $300,000	$1,000 - $2,000
Ubud	$100,000 - $600,000	$300,000 - $1,000,000	$60,000 - $180,000	$300 - $800
Nusa Dua/Sanur	$150,000 - $700,000	$300,000 - $1,000,000+	$100,000 - $250,000	$800 - $1,500
Tabanan	$100,000 - $300,000	$300,000 - $500,000	Limited options	$300 - $700
Berawa	$150,000 - $800,000	$400,000 - $1,200,000	$80,000 - $250,000	$800 - $1,800
Bingin	$120,000 - $500,000	$300,000 - $800,000	$70,000 - $200,000	$400 - $1,000
Jimbaran	$180,000 - $900,000	$500,000 - $1,500,000	$100,000 - $300,000	$1,000 - $2,500

What are the main trends shaping Bali's real estate market in 2025?

Off-plan developments are experiencing explosive growth, with a 180% year-over-year increase in new project listings.

Digital nomad and expat demand continues driving the market, especially for furnished villas and apartments with reliable internet and co-working spaces. This demographic shift has created sustained high occupancy rates across most areas.

Wellness, eco-friendly, and sustainability-focused properties are commanding premium prices as buyers increasingly value environmental consciousness and health-focused amenities. Properties with solar panels, water recycling systems, and organic gardens are selling 15-25% above comparable conventional properties.

Infrastructure development is opening new investment opportunities in North, West, and Central Bali as improved roads and planned airport expansions make previously remote areas more accessible to tourists and residents.

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How does the buying process work step-by-step for foreign investors?

Foreign investors have two main ownership options: long-term leasehold or freehold through a PT PMA company structure.

1. **Choose ownership structure** - Most foreigners either buy via 25-30 year leasehold or establish a PT PMA company for freehold ownership2. **Property selection** - Identify property type and area based on investment goals and budget3. **Legal verification** - Engage a local notary and property lawyer to verify title, permits, and zoning compliance4. **Sign preliminary agreement** - Submit 5-10% deposit with head of agreement outlining terms5. **Due diligence period** - Verify IMB building permits, land certificates, and seller background checks6. **Final payment** - Complete remaining payment on deed signing day7. **Transfer and registration** - Notary handles paperwork, government registration, and tax payments (BPHTB 5%, legal fees 1-2.5%)8. **Property management setup** - Arrange management services for rentals (typically 10-20% of rental income)

The entire process typically takes 30-60 days from initial agreement to key handover, depending on legal complexity and financing arrangements.

Who typically invests in Bali property and what motivates them?

Bali attracts a diverse mix of foreign property investors with different motivations and backgrounds.

Digital nomads and remote workers represent the largest growing segment, seeking properties that combine lifestyle benefits with income generation through short-term rentals. Retirees from Australia, Europe, and North America invest for lifestyle upgrading and portfolio diversification in Southeast Asia.

Entrepreneurs and hospitality investors target multiple properties to build rental portfolios, taking advantage of Bali's year-round tourism and high occupancy rates. Expats living in other Southeast Asian countries often buy vacation homes that generate income when not in personal use.

Primary motivations include high rental yields (7-20%), stable price appreciation (7-12% annually), lifestyle enhancement, business opportunities in tourism and hospitality, access to flexible visa programs, and portfolio diversification outside traditional Western markets.

What are the good and bad reasons to invest in Bali property?

Good investment reasons focus on concrete financial and lifestyle benefits.

**Strong investment cases:**- Vacation home that generates income when not in personal use- Portfolio diversification with high-yield Southeast Asian real estate- Expanding existing hospitality or rental business operations- Lifestyle upgrade combining wellness, surfing, and tropical living- Stable investment with both rental income and capital appreciation potential**Poor investment decisions to avoid:**- Emotional buying based on vacation experiences without financial analysis- Pure speculation in unproven or remote areas without infrastructure- Insufficient understanding of Indonesian property laws and foreign ownership restrictions- Buying without proper due diligence on legal title and permits- Ignoring ongoing property management, maintenance, and tax obligations

It's something we develop in our Indonesia property pack.

Which property types match different investment budgets?

Budget Range	Property Types	Expected Locations
Under $100,000	Studio apartments, small rural houses, land plots	Tabanan, outer Ubud, emerging areas
$100,000 - $300,000	Small villas (1-2 bedrooms), apartments	Ubud, Tabanan, Sanur outskirts
$300,000 - $600,000	Medium villas (2-3 bedrooms), luxury apartments	Ubud premium areas, Sanur, Nusa Dua
$600,000 - $1,000,000	Large villas (3-4 bedrooms), near-beach properties	Seminyak, Canggu, Berawa
$1,000,000+	Beachfront villas, luxury compounds, commercial	Prime Seminyak, beachfront Canggu, Jimbaran
$2,000,000+	Ultra-luxury estates, resort developments	Exclusive beachfront, private estates
Mixed budgets	Off-plan developments (20-30% discounts)	All major areas with new projects

We did some research and made this infographic to help you quickly compare rental yields of the major cities in Indonesia versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.

What are the most common investor mistakes and how can you avoid them?

Legal and due diligence failures cause the majority of foreign investor losses in Bali.

**Critical mistakes to avoid:**- **Ignoring legal complexity** - Always hire experienced local notaries and property lawyers to verify titles, permits, and foreign ownership compliance- **Insufficient due diligence** - Survey land boundaries, verify seller credentials, check zoning restrictions, and confirm IMB building permits- **Emotional decision-making** - Focus on rental yield projections and market data rather than vacation memories and beach views- **Underestimating ongoing costs** - Factor in property management (10-20%), maintenance, taxes, insurance, and utility costs- **Poor exit strategy planning** - Research market liquidity and resale potential before buying, as some areas have limited buyer pools- **Buying in unproven areas** - Stick to established locations with proven rental demand and infrastructure rather than speculating on emerging areas

Professional property management and legal counsel typically cost 1-3% of property value annually but prevent much larger losses from poor decisions or legal complications.

Which areas offer the best investment opportunities at different price points?

Area	Investment Profile	Strengths	Weaknesses	Best Use Cases
Canggu	Upscale expat hub	High rental yields, strong demand, lifestyle appeal	Premium pricing, increasing competition	Airbnb, long-term expat rentals, resale
Seminyak	Luxury tourism	Premium tourism market, excellent yields	Very expensive, crowded, limited inventory	Luxury short-term rentals, high-end flips
Ubud	Wellness and nature	Lower entry costs, unique market niche, serenity	Limited nightlife, narrower tenant pool	Wellness retreats, boutique Airbnb, personal use
Berawa	Trendy emerging	Rapid growth, strong expat community, good value	Traffic congestion, still developing	Long and short-term rentals, lifestyle investment
Bingin	Upcoming coastal	Ocean views, growth potential, affordable entry	Limited infrastructure, remote location	Long-term appreciation, surf lifestyle
Tabanan	Budget-friendly	Cheap land, rural charm, authentic Bali	Less developed, limited tourist appeal	Long-term holding, personal retreat
Jimbaran/Nusa Dua	Upmarket resort	Resort lifestyle, family-friendly, premium market	Higher entry costs, corporate feel	Retiree market, upscale family rentals

Where should you focus for long-term rentals and what returns can you expect?

Long-term rental markets in Bali target expats, digital nomads, and extended-stay visitors who prefer 6-12 month leases.

Prime areas for long-term rentals include Ubud, Sanur, Berawa, Canggu, and Jimbaran, where expat communities are well-established. Tenants typically seek furnished properties with reliable internet, air conditioning, Western-style kitchens, and proximity to cafes, co-working spaces, and international schools.

Rental yields for long-term lets range from 7-12% annually, with Canggu and Berawa achieving the highest returns due to strong expat demand. Ubud offers steady 8-10% yields with lower vacancy rates, while Sanur provides consistent 7-9% returns with mature, stable tenant pools.

Successful long-term rental properties feature reliable property management, regular maintenance, and competitive pricing relative to hotel alternatives. Monthly rents range from $800-$1,500 for 1-2 bedroom villas and $1,500-$3,000 for larger family homes in prime locations.

It's something we develop in our Indonesia property pack.

What about short-term rentals - where do they work best and what regulations apply?

Short-term rentals in Bali achieve the highest yields but require active management and regulatory compliance.

Top-performing areas for Airbnb include Canggu, Seminyak, Berawa, Bingin, and Ubud outskirts, where tourists seek authentic experiences with modern amenities. Guests typically want Instagram-worthy properties with pools, tropical gardens, modern design, and proximity to beaches, cafes, and surf spots.

Average occupancy rates reach 64% annually, with daily rates averaging $95 and top properties earning $19,000+ annually. Peak season (July-August, December-January) can achieve 90%+ occupancy with daily rates 50-100% above off-season pricing. Annual yields range from 15-25% for well-managed properties in prime locations.

Legal requirements include obtaining a Pondok Wisata permit (tourism accommodation license) and establishing a PT PMA company structure for full compliance. Properties must meet safety standards, provide proper insurance, and pay tourism taxes.

Professional management is essential and typically costs 15-25% of gross rental income, covering guest communication, cleaning, maintenance, marketing, and regulatory compliance.

What makes a property a good versus bad investment in Bali?

Good investments combine strong fundamentals with unique market positioning.

**Characteristics of strong investment properties:**- Prime or emerging locations with proven rental demand and infrastructure development- Distinctive features like ocean views, unique architecture, or premium amenities that command rental premiums- Complete legal compliance with proper titles, building permits, and zoning clearances- Realistic purchase prices relative to rental income potential and comparable sales- Strong rental yield potential (10%+ for villas, 8%+ for apartments) with low vacancy risk**Red flags indicating poor investments:**- Unresolved legal issues including unclear titles, missing permits, or zoning violations- Overpriced properties relative to rental income potential and market comparables- Poor locations with limited rental demand, difficult access, or infrastructure problems- High ongoing costs not factored into ROI calculations including management, maintenance, and taxes- Emotional pricing based on personal attachment rather than market fundamentals

Due diligence should include rental income projections, comparable property analysis, legal verification, and realistic cost projections before making investment decisions.

Are there better investment opportunities in similar destinations outside Bali?

Several Southeast Asian destinations offer compelling alternatives to Bali, each with distinct advantages and challenges.

Phuket, Thailand provides more mature infrastructure and established legal frameworks for foreign ownership, but property prices are 30-50% higher than comparable Bali locations with lower rental yields. Lombok and the emerging Mandalika development offer significantly lower entry costs and potential upside, but with higher risk due to limited infrastructure and tourism development.

Vietnam's Da Nang and Hoi An attract retirees and yield-focused investors with government incentives and growing tourism, but face regulatory uncertainty and limited foreign ownership options. Malaysia's Penang offers stable legal frameworks and established expat communities, but with more modest appreciation potential and lower tourism yields.

As of September 2025, Bali maintains the best combination of accessibility, yield potential, price appreciation, and legal certainty for foreign property investors in Southeast Asia. The island's global brand recognition, established tourism infrastructure, and growing digital nomad community create sustained demand that smaller destinations cannot match.

However, investors seeking higher risk/reward opportunities might consider emerging Indonesian destinations like Lombok, while those prioritizing legal certainty might prefer Thailand or Malaysia despite higher entry costs.

Conclusion

This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.

Bali's property market in 2025 offers exceptional opportunities for informed investors willing to navigate legal requirements and market dynamics.

With proper due diligence, realistic expectations, and professional management, foreign investors can achieve 15-25% annual returns while enjoying one of the world's most desirable lifestyle destinations.