All sources have been thoroughly verified for credibility. Furthermore, a local real estate expert has reviewed and approved the final article.
Yes, the analysis of Bali's property market is included in our pack
Thinking of buying a property in Bali? You're not alone!
Many people are enchanted by Bali's tropical paradise and dream of owning a luxurious villa or a serene beachfront bungalow there.
Would it be a smart investment, though? Are property prices increasing in Bali? Is it expensive? Is it wiser to buy property in Seminyak or Ubud? Are there any secret taxes? Which place will give me the best yields?
We've solved it for you.
The BambooRoutes team has extensively researched this market. As a matter of fact, we've organized all our findings in a pack. Get it now.
In the lines below, we will share some of this knowledge.
How is the property market in Bali?
Is the property market going up or down? People have different ideas. Us? We rely on the latest data and stats for accurate answers.
Property types
In Bali, you can find various types of properties for sale.
These include charming villas with private pools nestled amidst lush landscapes, serene beachfront bungalows offering stunning ocean views, modern apartments in bustling towns, traditional Balinese-style houses showcasing intricate designs, and expansive plots of land suitable for building your dream home or commercial ventures.
Whether you're seeking relaxation, investment opportunities, or a unique living experience, Bali offers a diverse range of properties to explore.
What's better: buy or rent?
(If you're buying for yourself and not to rent out)
If Bali is your city of choice, you might be considering whether it's better to buy a property or opt for renting in this picturesque Indonesian island paradise.
Without a doubt, it's better to buy if you want to benefit from potential capital appreciation and the security of owning a property in Bali.
One data can help us make a decision - the price-to-rent ratio. It's like a measure of how much rental income you'll need to afford the property at its current value.
According to Numbeo, the property price-to-rent ratio in Bali is around 6.66, which is one of the lowest in the world.
Simply put, on average, you could buy a property with just 7 years' worth of rental payments. Worth buying.
Property prices in Bali
On average, according to the last data from Bank Indonesia, purchasing a property in Bali would cost you around $1,140 per square meter.
Naturally, things are quite spread out. The value of a square meter for a luxury villa in Ubud might differ from a beachfront property in Seminyak. We actually offer a more in-depth analysis in our pack for buying property in Bali and in Indonesia.
To put things in perspective, it means that, instead of buying an apartment in Paris or London, you can afford 12 properties in Bali.
Also, housing prices in Bali are 64% cheaper than in Phuket.
The most expensive places in Bali are probably Seminyak, Canggu, Sanur, and Ubud, while the cheapest areas are likely to be Gianyar, Klungkung, and Karangasem.
Trends
First and foremost, we have to acknowledge that Indonesia is, today, a relatively stable country. The last Fragile State Index that has been reported for this place is 66.6.
Keep this in mind when thinking about whether it's a good idea to buy a property in Bali.
If we look at the IMF’s forecasts, we can see that Indonesia's economy is expected to soar by 22.5% in the coming 5 years, resulting in an average GDP growth rate of 4.5%.
If you intend to invest in real estate in Bali it's a good thing because an expanding economy usually means people earn more, so they can buy property for themselves or as an investment, causing property demand (and then prices) to increase.
Also, the average GDP per capita has changed by 8.9% over the last 5 years in Indonesia. It's a satisfactory number.
This data is a positive signal - housing prices in Bali might soar in 2024 and after that.
Looking for more updated data? We've done a big-picture study to find out if it's a good idea to purchase property in Indonesia right now.
Buying property in Bali
It can be difficult to buy property in Bali due to the lack of reliable and up-to-date information available. That's why we have created the pack to buy property in Bali and in Indonesia.
Buying process
In our pack, we've explained the entire process of buying properties in a detailed way. We've pointed out the mistakes to steer clear of, shared tips for finding properties that give you the best returns, and provided information about taxes and necessary documents.
Now, we're giving you a simplified version of the buying process.
This is the step-by-step process to purchase a property in Bali:
- Check Indonesia's property ownership laws, including foreign ownership restrictions.
- Engage a licensed notary and reputable local agent familiar with Bali's regulations.
- Obtain an "IMB" (Building Permit) from the local authorities for the property.
- Conduct due diligence to verify the property's land certificate ("SHM" or "HGB").
- Prepare a "Preliminary Sale and Purchase Agreement" and pay a deposit.
- Obtain a "Tax Identification Number" (NPWP) from the Indonesian Tax Office.
- Finalize the "Sale and Purchase Agreement" and settle the remaining payment.
- Obtain "No Objection Certificate" from the Ministry of Agrarian and Spatial Planning (if needed).
- Sign the transfer of ownership at the notary's office.
- Pay all necessary taxes and fees, including the 5% acquisition duty for non-residents.
- Register the property at the local Land Office under your name.
- Receive the new land certificate (SHM or HGB) and ensure it's properly recorded in your name.
Also, if you're not from the country, you might want to check our article on how to buy property as a foreigner in Indonesia.
Make a profitable investment in Bali
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Where to find a property
Discover properties in Bali using these websites:
- Veles Club - Offering a real estate directory and a survey to help find ideal properties for investment and living in Bali, with participation bonuses.
- Power Property - A leading real estate company in Bali, specializing in villas, developments, apartments, and commercial properties for sale and rent.
- Lazudi - Bali Treasure Properties specializes in long-term villa rentals, property lease, and sales in Bali.
- Dot Property - Dot Property Indonesia is a comprehensive online platform for buying, renting, and selling real estate in Indonesia.
- FazWaz - A leading real estate marketplace in Indonesia that offers a platform for buying, renting, and selling properties.
Also, know that we have included contacts of real estate agencies, property lawyers, moving companies, expats communities and more in our pack for buying property in Indonesia.
What you could get
As mentioned before, the average price per sqm in Bali is $1,140. A 1-bedroom property (60 square meters) would cost approximately $68,000, and a 2-bedroom (85 square meters) would cost approximately $97,000.
However, property prices can vary because of their qualities and where they're located.
Premium locations in Bali typically mean higher property values. A residence in Seminyak might cost around $280,000, while a property in Canggu could be about $120,000.
Of course, certain regions are more affordable. You have the option to find a house in Gianyar for $90,000 or a house in Bangli for only $70,000.
Find a more detailed breakdown in our full pack for buying property in Indonesia.
Risks and pitfalls
Here are the main pitfalls specific to buying property in Bali, Indonesia:
- Foreign ownership restrictions: Limited to leasehold agreements for residential properties.
- Land use regulations: Zoning restrictions and green belts affecting property development.
- Land rights disputes: Unclear titles and conflicting claims in local communities.
- Building permits and licenses: Delays and complexities in obtaining necessary approvals.
- Cultural and religious factors: Sacred areas or burial grounds impacting property use.
- Water and drainage issues: Inadequate infrastructure affecting property functionality.
- Foreign investment rules: Evolving regulations for non-citizens purchasing property.
- Currency fluctuations: Impact on property value and international funds transfer.
We don't want this to happen to you, so we have included a full checklist for your property investment in our pack of documents. Avoid these mistakes and save a lot of money.
Everything you need to know is included in our Indonesia Property Pack
Living in Bali
Living in Bali is an incredible experience, with its stunning beaches, lush jungles, vibrant culture, and friendly locals, it is an ideal destination for those looking to buy property and enjoy a relaxed island lifestyle.
Cost of living
The cost of living in Bali is generally quite low compared to most western countries. Rent and utilities are typically quite affordable, while food, transportation, and entertainment are also quite reasonably priced.
Here are some examples to better understand the cost of living in Bali, Indonesia:
- Rent for a one-bedroom villa in the trendy neighborhood of "Canggu": $800 per month.
- A meal at a local warung with "Nasi Campur," a traditional Indonesian mixed rice dish: $5.
- Monthly scooter rental in "Ubud": $60.
- Utilities (electricity, water) for a small villa in "Kerobokan": $50 per month.
- A cup of "Jamu," a traditional herbal drink made from natural ingredients: $2.
- Entrance fee to "Pura Tanah Lot," a famous Balinese sea temple: $10.
- Monthly membership at a yoga studio in "Uluwatu": $40.
- A bottle of "Bali Hai," a popular local beer brand: $2.
Areas
We like to show information in an easy-to-understand way. So, we made a summary table that lists the different parts of Bali. For yields, prices and rents, check our property pack.
| Place | Description | Strengths | Weaknesses |
|---|---|---|---|
Ubud | Ubud is a cultural and artistic hub, surrounded by lush rice terraces and offering a serene retreat for tourists. Its popularity ensures a steady flow of tourists, making it an attractive location for property investment. | Cultural appeal, thriving tourism industry, tranquil surroundings. | Higher property prices due to demand, limited beach access. |
Canggu | Canggu is a trendy coastal village known for its vibrant surf culture, beach clubs, and hip cafes. It attracts a young and affluent crowd, making it a hotspot for short-term rentals and potential high returns on investments. | Booming tourism, strong rental demand, attractive to younger demographics. | Heavy traffic, rapid development, limited land availability. |
Seminyak | Seminyak is a high-end resort area offering upscale dining, boutique shopping, and luxury villas. Its reputation as a luxury destination ensures a constant flow of high-paying tourists and potential for luxury property investment. | Luxury appeal, upscale amenities, steady rental income. | Expensive land prices, stiff competition, seasonal fluctuations. |
Jimbaran | Jimbaran is known for its picturesque beaches and famous seafood restaurants by the shore. It offers a blend of luxury and a relaxed coastal lifestyle, attracting families and retirees looking for a peaceful retreat. | Beautiful beaches, family-friendly, growing interest from retirees. | Limited land availability, vulnerability to coastal erosion. |
Kuta | Kuta is a bustling beach resort area with a vibrant nightlife and a popular destination for surfers. Its central location and budget-friendly accommodations make it an attractive choice for budget-conscious investors. | Active nightlife, tourist hotspot, affordable property options. | Crowded, traffic congestion, noise pollution. |
Nusa Dua | Nusa Dua is a luxury enclave known for its upscale hotels, golf courses, and pristine beaches. It offers a secure and gated community, making it an ideal location for high-end property investments. | Exclusive resort area, luxury market demand, secure environment. | Restricted development regulations, limited land for sale. |
Sanur | Sanur is a laid-back coastal town with a relaxed atmosphere and a long stretch of beach. It appeals to families, retirees, and long-term visitors, making it a good option for mid-range property investments. | Quiet ambiance, family-friendly, strong expat community. | Slower capital appreciation, limited nightlife, tidal beach. |
Uluwatu | Uluwatu is renowned for its stunning cliff-top views, world-class surf breaks, and the iconic Uluwatu Temple. Its popularity among surfers and luxury travelers drives the demand for upscale accommodations. | Breathtaking views, top surfing spots, growing luxury market. | Challenging access, rocky beaches, limited land availability. |
Life in Bali
Bali is a popular tourist destination and has experienced significant economic growth in recent years. The economy is largely driven by tourism, with agriculture, manufacturing, and services also contributing to the overall GDP.
What expats usually like the most in Bali are the rich cultural heritage, and the stunning natural beauty of the island. They also enjoy the friendly locals, affordable cost of living, and the wide variety of activities available.
Also, you have to know that Bali is vulnerable to volcanic activity and tourist-associated environmental impacts due to its popularity as a destination.
Access to healthcare in Bali is generally good, with a range of options available both private and public.
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Renting out in Bali
If you're interested in buying property not to live in, but to rent out and generate income, this section is for you.
Long-term
According to the data reported by Wikipedia, the home ownership rate in Indonesia is 84%, which is rather high.
When people buy in Bali it's usually to live there or to rent on the short-term rental market.
If you decide to rent out long-term, you might want to target expats looking to relocate to Bali, as well as digital nomads who are seeking an extended stay in the region.
Here is a little summary table we've made for you.
| Property type and area | Profiles of potential tenants | What they are looking for | Expected monthly rent in $ |
|---|---|---|---|
Villa in Seminyak | Tourists, expatriates | Proximity to beaches, restaurants | $1500 - $5000 |
Apartment in Kuta | Travelers, young professionals | Nearby nightlife, shopping centers | $500 - $1500 |
Bungalow in Ubud | Spiritual seekers, artists | Lush green surroundings, yoga studios | $300 - $1000 |
Beach House in Canggu | Surfers, digital nomads | Close to surf spots, co-working spaces | $800 - $2000 |
Now, you will probably ask us about the yields. Unlike for other places, it would be difficult to give you the average rental yields in Bali due to insufficient long-term rental properties available for analysis. Also, it's quite diverse. For example, rental yields in Kuta and Ubud are quite different from those in less crowded spots.
Finally, know that, in Bali, the taxes stand around 20% of the total rental income.
Short-term
You could also decide to rent short-term to travelers, digital nomads, and holidaymakers looking to explore Bali's beaches and cultural sites. Additionally, short-term rentals could be attractive to business travelers looking to stay in Bali for a few weeks.
If you decide to go with that option, look for properties in Seminyak, Canggu, or Ubud, which are all popular tourist destinations and offer plenty of short-term rental options. Additionally, the Jimbaran Bay area is also a great option for those looking for an upscale and luxurious experience.
You will have some competition though - there are around 52,000 Airbnb listings in Bali. The average daily rate stands around $55.
You have the opportunity to generate a nice additional income stream then. According to online testimonials and analytics platform like AirDNA, Guesty and Inside Airbnb, people who offer short-term rentals in Bali can make around $700 per month. Also, the average occupancy rate is estimated at 62%.
Is it worth buying real estate in Bali then?
Buying property in Bali can be a fantastic idea if you're looking for a slice of tropical paradise to enjoy personally. The island's charm, diverse property offerings, and potential for capital appreciation make it a great choice for those seeking a dream home.
The low property price-to-rent ratio in Bali means that owning property can be more financially attractive than renting, allowing you to invest in your own slice of heaven. Additionally, Bali's stable economy and promising GDP growth forecasts suggest that property demand and prices may rise in the coming years, potentially benefiting property owners.
However, keep in mind that navigating the complexities of property ownership in Bali can be challenging, with foreign ownership restrictions and various pitfalls to consider. Engaging local experts is crucial to ensure a smooth buying process.
On the flip side, if you're solely looking for short-term rental income and quick profits, Bali may not be the best choice. The rental market is highly competitive, and you'll face stiff competition from other property owners, with fluctuating occupancy rates and daily rates.
Foreign ownership restrictions also limit ownership of residential properties to leasehold agreements, which may not align with your investment goals. It's crucial to weigh the pros and cons carefully and consider your specific investment objectives and risk tolerance before taking the plunge.
While Bali can offer an idyllic living experience, it may not be the ideal choice for everyone's investment portfolio.
Make sure you understand the real estate market in Bali
Don't rush into buying the wrong property in Indonesia. Sit, relax and read our guide to avoid costly mistakes and make the best investment possible.
The content provided here is for informational purposes only and does not imply endorsement or advice. While we strive for accuracy, we do not guarantee the completeness or reliability of the information, including text, images, links, or other elements in this material. Following the content and analyses presented here does not assure specific outcomes. For guidance tailored to your individual circumstances, it is recommended to consult with a professional, such as a lawyer, accountant, or business advisor.