Real estate investment in Bali
Before investing in Bali real estate, it is important to define your budget, your strategy and your return objectives. Depending on the amount invested, the area chosen, the villa type and holding period, several approaches are possible.
In this section, we answer four frequent questions about budget, returns, the choice between buying or building, and the various investment strategies in Bali.
What budget should you plan to invest in Bali?
What budget should you plan to invest in Bali?
The budget needed to invest in Bali mainly depends on the villa type, the location, the desired finish level (see our Bali villa catalogue) and the leasehold duration. For a complete project including land, construction, furnishing, company set-up and a 30-year leasehold, plan around €225,000 for a 2-bedroom villa.
For a 3-bedroom villa, the budget is generally around €300,000, with variations depending on the area and the project quality. The more sought-after the location, the longer the leasehold, and the higher the finish level, the higher the budget.
Why does Bali remain an attractive investment destination?
Why does Bali remain an attractive investment destination?
Bali remains a particularly attractive destination for real estate investment thanks to continued tourism growth and strong infrastructure development. The market benefits from sustained demand, high occupancy rates in some areas and yields often higher than those seen in Europe.
Areas such as Canggu or Uluwatu are now considered very secure investment locations, while developing areas like Nyanyi can offer more long-term potential. The choice mainly depends on the desired security level and on the investment strategy.
The development of new infrastructure — projects around the metro, the new northern airport or road improvements — also reinforces Bali’s attractiveness for the years to come.
Should you buy a villa already built or have one built?
Should you buy a villa already built or have one built?
Both approaches have their advantages. Buying a villa already built is faster and lets you generate rental income almost immediately. However, you often take over a leasehold that has already started, which can reduce the resale potential in the medium to long term.
Conversely, having a villa built in Bali lets you choose the land, the environment, the layout, the materials, the finishes and the furnishing. Construction therefore offers more flexibility, as well as a better resale leverage in many cases — especially when the leasehold starts on a long duration.
It also lets you spread payments over the build period, unlike buying an existing villa, which usually requires a quick payment.
Which strategy to adopt depending on your budget?
Which strategy to adopt depending on your budget?
In Bali, the investment strategy depends directly on the available budget and on the investor’s objectives. For an individual project, you can start from €160,000, with initial net yields that can exceed 10% depending on the project.
With a budget of around €210,000 to €230,000, you can develop a 2-bedroom villa including land, construction and furnishing. With €400,000, several options open up: a beautiful 3- or 4-bedroom villa, a freehold plot, or a more exceptional location depending on the chosen strategy.
From €450,000 to €500,000, the comparison between leasehold and freehold becomes particularly relevant. Leasehold often delivers higher initial returns, while freehold offers a more attractive long-term resale and transmission potential.
For investors with a smaller budget, there are also shared investment solutions starting from €25,000, giving access to the Balinese real estate market by buying shares in a company that owns the project.
Continue reading
Continue exploring investments in Bali with the next topic in our guide series.
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