Investing in Bali Real Estate in Indonesia

Published on and written by Cyril Jarnias

The island of Bali, a true tropical paradise, has long attracted tourists from around the world. But did you know it has also become a top destination for real estate investors? With its dynamic market and promising outlook, Bali offers unique opportunities for those looking to diversify their international real estate portfolio. Let’s dive into the details of this fascinating market and discover why Bali could be your next investment destination.

Discover How to Invest in Real Estate in Bali, Indonesia:

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The Irresistible Appeal of Balinese Real Estate

Bali isn’t just an idyllic vacation destination; it’s also a booming real estate market. Each year, the island welcomes over 6 million visitors, creating constant demand for quality accommodations. This growing popularity translates into steady increases in property prices, with an average annual growth of 15% in 2024.

Real estate investment in Bali offers several key advantages:

  • A consistently growing market
  • Attractive rental yields, potentially reaching 12% per year
  • Sustained tourist demand ensuring a steady flow of potential tenants
  • An exceptional living environment combining paradise beaches and rich culture

Foreign investors are particularly drawn to modern villas with private pools, which offer excellent short-term rental potential. These properties, located in sought-after areas like Canggu, Seminyak, or Ubud, can generate substantial rental income while offering interesting long-term capital appreciation.

Good to Know:

The Balinese real estate market shows 15% annual growth, with rental yields potentially reaching 12%, making Bali a particularly attractive investment destination.

Price Overview: An Accessible and Promising Market

One of the most appealing aspects of real estate investment in Bali is price accessibility, especially compared to other luxury tropical destinations. In 2025, a modern villa with a private pool in Bali costs on average between 2 and 5 billion IDR, approximately 124,000 USD or 117,000 EUR. These prices, while varying by area, remain competitive in the international market.

Here’s an overview of average prices in different areas of Bali:

  • Canggu: 2,500 – 4,000 USD/m²
  • Seminyak: 3,000 – 5,000 USD/m²
  • Ubud: 2,000 – 3,500 USD/m²

It’s important to note that prices can vary considerably depending on proximity to the beach, quality of finishes, and amenities offered. Properties located immediately adjacent to the sea or offering panoramic views typically command higher prices.

For investors seeking more affordable options, apartments in residential complexes offer an interesting alternative. For example, a 3-bedroom apartment in downtown Bali can rent for around 2,989 EUR per month, according to 2025 data. These properties, while more modest in size, can offer attractive rental yields, particularly with expatriate or digital nomad clientele.

Good to Know:

Real estate prices in Bali range from 2,000 to 5,000 USD/m² depending on the area, with investment options for all budgets, from city apartments to luxury beachfront villas.

A Range of Choices: From Dream Villas to City Apartments

The Balinese real estate market offers remarkable diversity of properties, suitable for all types of investors and budgets. The two main housing categories attracting foreign investors’ attention are villas and apartments.

Luxury villas: True gems of Balinese real estate, these properties embody the ultimate tropical dream. Typically featuring 2 to 5 bedrooms, a private pool, and lush gardens, they offer an idyllic setting for vacationers seeking tranquility and luxury. The price of a luxury 3-bedroom villa in a sought-after area like Seminyak can range between 500,000 and 1 million USD, with potential rental yields reaching 10-12% per year.

Modern apartments: For those seeking more affordable investments or city-center options, apartments represent an excellent alternative. Upscale residential complexes offer apartments ranging from studios to 3-bedrooms, often equipped with hotel services. A 2-bedroom apartment in a well-located complex in Canggu can be negotiated around 200,000 – 300,000 USD, with potential rental yields of 6-8% per year.

Concrete example: Take the case of a Ruby Escape 2-bedroom apartment in Nusa Dua, an area renowned for its pristine beaches and luxury hotel complexes. This type of property, offered at approximately 250,000 USD, offers not only an exceptional living environment with access to complex amenities (pool, spa, gym) but also interesting rental potential. With an average occupancy rate of 70% and a daily rate of 150 USD, such an investment could generate gross annual income of approximately 38,000 USD, representing a gross yield of 15% before expenses and taxes.

Good to Know:

Luxury villas in Bali can offer rental yields up to 12% per year, while apartments in residential complexes present yields of 6-8%, offering investment options for different investor profiles.

Golden Investment Zones in Bali Real Estate

Bali offers a mosaic of regions, each with its unique charm and investment potential. Here’s an overview of the most attractive areas for real estate investment:

1. Seminyak: Considered Bali’s chic heart, Seminyak attracts upscale clientele with its luxury boutiques, starred restaurants, and fine sand beaches. Luxury villas and apartments in this area are particularly sought-after, offering high rental yields thanks to constant short-term rental demand.

2. Canggu: Once a surfers’ village, Canggu has transformed into a trendy hotspot, attracting a young and dynamic clientele. Investments in this area benefit from strong growth, with opportunities in modern villas and residential complexes near renowned surfing beaches.

3. Ubud: Bali’s cultural center, Ubud attracts nature and spirituality enthusiasts. Properties here, often nestled amid green rice fields, offer a unique experience. Villas with jungle views or yoga retreats are particularly in demand, promising stable yields thanks to a loyal clientele.

4. Nusa Dua: This luxury enclave in southern Bali is renowned for its pristine beaches and world-class hotel complexes. Investments in apartments or villas within managed complexes offer a secure option here with premium services.

5. Uluwatu: Known for its spectacular cliffs and breathtaking sunsets, Uluwatu attracts clientele seeking exclusivity. Luxury villas with ocean views command premium prices here but promise exceptional returns.

Each area presents its own investment advantages. For example, a villa in Seminyak might offer higher short-term rental yields due to strong tourist demand, while an investment in Ubud could benefit from more stable long-term appreciation, supported by the area’s enduring appeal for cultural and wellness tourism.

Good to Know:

Seminyak, Canggu, Ubud, Nusa Dua and Uluwatu represent the most attractive areas for real estate investment in Bali, each offering unique opportunities depending on property type and desired yield profile.

Bali vs. Other Tropical Paradises: An Enlightening Comparison

To better appreciate Bali’s appeal as a real estate investment destination, it’s instructive to compare it to other popular tropical destinations. This comparison highlights Bali’s competitive advantages while offering a broader perspective on investment options in tropical paradises.

Bali vs. Phuket (Thailand): Although Phuket is also a popular tourist destination, Bali stands out for its unique culture and more authentic atmosphere. In investment terms, Bali generally offers higher rental yields (up to 12% vs. 6-8% in Phuket) and more sustained property price growth. Moreover, regulations concerning foreign ownership are often perceived as more favorable in Bali.

Bali vs. Koh Samui (Thailand): Koh Samui, like Bali, attracts investors with its paradise beaches. However, Bali benefits from more developed infrastructure and a more diversified economy, thus offering greater long-term growth potential. Property prices in Bali are generally higher, but this comes with a more dynamic rental market and more significant capital appreciation opportunities.

Bali vs. Caribbean Islands: Compared to popular Caribbean destinations like the Dominican Republic or Jamaica, Bali stands out for its lower cost of living and more accessible property prices for comparable quality. Moreover, Indonesia’s political and economic stability is often perceived as an advantage compared to some Caribbean islands.

Bali vs. French Riviera (France): Although the French Riviera remains a safe bet for luxury real estate investment, Bali offers opportunities at significantly lower entry prices. Rental yields in Bali are generally higher, partly due to lower operating costs and a longer tourist season.

This comparison highlights several key advantages of Bali:

  • Among the highest rental yields of tropical destinations
  • Sustained real estate market growth
  • Relatively low cost of living and operating costs
  • Unique culture and authentic atmosphere that continues to attract tourists

Good to Know:

Compared to other tropical paradises, Bali stands out for higher rental yields (up to 12%), sustained real estate growth, and a unique balance between tourist development and cultural preservation, offering a particularly attractive investment profile.

The Foreign Buyer’s Guide: Navigating Balinese Waters

For foreign investors, acquiring real estate in Bali may seem complex at first glance. However, with good understanding of the rules and available options, it’s entirely possible to make a safe and profitable investment on the Island of the Gods.

Property rights for foreigners: Contrary to some misconceptions, foreigners can indeed acquire real estate in Bali, but under certain conditions. Indonesian law offers several options:

  • Right of Use (Hak Pakai): Allows foreigners to own property for 30 years, renewable for an additional 20 years.
  • Long-term Lease (Leasehold): Offers the possibility to lease a property for up to 80 years.
  • Establishment of a PT PMA company: An option for investors wishing to acquire multiple commercial or residential properties.

The purchase process: Buying a property in Bali involves several crucial steps:

1. Due diligence: Thorough verification of property title and permits. 2. Negotiation and price agreement. 3. Signing a preliminary agreement. 4. Payment of a deposit (generally 10% of purchase price). 5. Finalization of sale contract before a notary. 6. Property registration with local authorities.

Tax considerations: Foreign investors must be aware of the tax implications of their purchase:

  • Purchase tax: Approximately 10% (including various fees and duties)
  • Annual property tax: Starting from 0.5% of property value
  • Rental income tax: Varies according to owner’s tax status

Tips for a successful transaction:

1. Engage a local lawyer specialized in real estate law to guide you through the process. 2. Work with a reputable real estate agent well-versed in the local market. 3. Ensure you fully understand contract terms before signing. 4. Consider rental management options to maximize your investment if you don’t live on site.

By following these guidelines and surrounding yourself with competent professionals, foreign investors can confidently navigate the Balinese real estate market and seize the unique opportunities offered by this paradise destination.

Good to Know:

Foreigners can acquire properties in Bali via Right of Use (Hak Pakai) for 30 renewable years or long-term lease up to 80 years. Thorough due diligence and assistance from local professionals are essential to secure your investment.

Rental Profitability: The Numbers That Dream

One of the most attractive aspects of real estate investment in Bali is undoubtedly its rental profitability potential. With a flourishing tourist market and growing demand for quality accommodations, owners can benefit from particularly interesting returns.

Average rental yields: Gross rental yields in Bali can reach impressive levels, ranging from 6% to 12% per year, depending on property type and location. These figures place Bali among the most profitable destinations for rental investment worldwide.

Concrete profitability example: Take the example of a luxury 3-bedroom villa located in Seminyak, purchased for 500,000 USD:

  • Purchase price: 500,000 USD
  • Annual rental income (70% occupancy): 60,000 USD
  • Expenses and management fees (20% of income): 12,000 USD
  • Net annual income: 48,000 USD
  • Net rental yield: 9.6%

This scenario illustrates the high profitability potential of well-located luxury properties in Bali.

Factors influencing profitability:

1. Location: Areas like Seminyak, Canggu, and Ubud generally offer the best yields thanks to their popularity with tourists.

2. Property type: Villas with private pools and modern apartments in complexes with services are particularly in demand.

3. Rental management: Professional management can maximize occupancy rates and income, justifying associated fees.

4. Seasonality: Bali experiences high season from June to August and December-January, with higher rates during these periods.

Strategies to maximize profitability:

  • Target the short-term rental market to benefit from higher rates
  • Invest in decoration and equipment to stand out from competition
  • Use online booking platforms to increase visibility
  • Offer additional services like airport transfers or guided tours

It’s important to note that these high yields come with certain risks and challenges, including remote management, fluctuating tourist demand, and maintenance costs in a tropical climate. However, with a well-thought-out strategy and effective management, real estate investment in Bali can offer particularly attractive returns on investment.

Good to Know:

Gross rental yields in Bali can reach 6% to 12% per year, with concrete examples showing net yields around 9-10% for well-located villas. Professional management and an adapted rental strategy are key to maximizing these yields.

Conclusion: Bali, A Golden Opportunity for Savvy Investors

Real estate investment in Bali represents a unique opportunity to combine financial returns and exceptional quality of life. With its paradise landscapes, rich culture, and dynamic real estate market, the Island of the Gods continues to attract investors from around the world.

Key takeaways:

  • A consistently growing market with annual price appreciation around 15%
  • Attractive rental yields potentially reaching 12% per year
  • Diversity of real estate properties suitable for different budgets and investment objectives
  • Prime investment areas like Seminyak, Canggu, and Ubud, each offering unique advantages
  • A legal framework allowing foreigners to invest through options like Right of Use or long-term lease

However, as with any international investment, it’s crucial to approach the Balinese market with a well-defined strategy and thorough understanding of local realities. Due diligence, judicious choice of local partners, and professional management are essential to maximize your investment potential.

Bali offers not only the promise of attractive financial returns but also the opportunity to own a piece of paradise. Whether for personal use, seasonal rental, or long-term investment, the island offers options for all investor profiles.

In a world where real estate portfolio diversification becomes increasingly important, Bali positions itself as a destination of choice, combining economic potential and incomparable quality of life. For those ready to explore opportunities beyond traditional borders, the Indonesian island could well be the key to successful and fulfilling real estate investment.

Disclaimer: The information provided on this website is for informational purposes only and does not constitute financial, legal, or professional advice. We encourage you to consult qualified experts before making any investment, real estate, or expatriation decisions. Although we strive to maintain up-to-date and accurate information, we do not guarantee the completeness, accuracy, or timeliness of the proposed content. As investment and expatriation involve risks, we disclaim any liability for potential losses or damages arising from the use of this site. Your use of this site confirms your acceptance of these terms and your understanding of the associated risks.

About the author
Cyril Jarnias

Cyril Jarnias is an independent expert in international wealth management with over 20 years of experience. As an expatriate himself, he is dedicated to helping individuals and business leaders build, protect, and pass on their wealth with complete peace of mind.

On his website, cyriljarnias.com, he shares his expertise on international real estate, offshore company formation, and expatriation.

Thanks to his expertise, he offers sound advice to optimize his clients' wealth management. Cyril Jarnias is also recognized for his appearances in many prestigious media outlets such as BFM Business, les Français de l’étranger, Le Figaro, Les Echos, and Mieux vivre votre argent, where he shares his knowledge and know-how in wealth management.

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