Every year Bali is becoming an increasingly attractive destination for foreign investors. Many people are interested in buying real estate on this paradise island not only for their own residence, but also for profitable investment. We tell you how much housing costs in Bali and how to buy it for a foreigner

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Bali attracts not only tourists, but also those who dream of owning their own home here. But before buying real estate on the island it is worth familiarizing yourself with the main aspects of this process. About the cost of housing in Bali, the nuances of buying real estate for foreigners, as well as what properties are the most promising for investment - read on in the article.

How much is real estate in Bali: types of real estate and examples of prices 

Bali offers a variety of real estate options, including villas, hotels, apart-hotels and houses that cater to the needs of both locals and tourists. Housing prices here depend on the location, type of property and its condition.

The most affordable housing on the market is represented by bungalows or studio apartments. Prices for such objects start from 80 thousand dollars. 

The most budget options for the purchase of real estate can be found on the east coast of Bali, in remote areas of Amed and Chandidas. These places are far from the popular tourist centers, and attract those who are looking for privacy. Here you can fully experience the true spirit of Balinese culture and the daily life of the locals.

Bali is increasingly seeing an increase in demand for hotel apartments in 2024. This is becoming a notable trend in the real estate market. Hotel apartments attract investors due to their high level of service and developed infrastructure, which makes them attractive to more tourists. For this type of real estate is characterized by prices from $140 thousand to $350 thousand, and yields of 14-16% per annum. 

Another format of investing in real estate on the island is villas. The cost of villas starts at $ 200 thousand. Despite their popularity, villas provide a slightly lower yield of 12-13% per annum. 

The next place in popularity is occupied by townhouses. The entry check for investing in this segment ranges from $160 to $300 thousand, with returns of 12-13% per annum. Townhouses offer a balance between personal space and community amenities, making them attractive to families and long-term renters.

Also on the market are small apartments without a management company, available at prices starting at $75k. However, the market for this type of real estate is oversaturated, resulting in the lowest yield of 10% per annum.

The most sought-after locations to buy real estate in Bali include the districts of Changgu, Ubud and Bukit. Changgu stands out as the most popular area in Bali, attracting tourists all year round. Due to the constant flow of tourists, rental yields here are high, making the area particularly attractive to investors. 

The optimum amount for the purchase of real estate in Changgu is $ 200 thousand. With this budget you can buy an apartment under construction, within walking distance of the ocean and an area of about 70 square meters. This amount will also include the cost of repairs, furniture and appliances for the house.

How to buy a home in Bali: popular investment strategies

Buying real estate in Bali is accompanied by the choice of one of several investment strategies, each of which offers unique advantages and opportunities. 

1. Buying a ready-made property and then renting it out. 

The owner can rent out the property for a few months or all year round. The expected yield is 10-15% per annum. This approach provides a stable income, especially in tourist areas with a constant flow of guests.

2. Buying real estate at an early stage of construction for the purpose of subsequent resale. 

This method allows investors to take advantage of a significant increase in the value of the object during construction (40% or more). During construction, the property significantly increases its value, which makes this strategy attractive to those seeking to quickly capitalize their investment.

3. investing at the construction stage with subsequent renting out.

The most common business model in Bali is investing in real estate during the construction phase and then renting it out to generate passive income. 

This approach combines the advantages of both previous strategies: growth in value during construction and stable rental income after completion. 

In any of the selected strategies, an important aspect is the capitalization of investments, which takes into account two main indicators: the cost of the land plot and the cost per square meter. 

On average, a plot of land in Bali appreciates by 5-7% per year. In addition, during the construction period, which usually takes about two years, developers increase the value of the property by 20-25%. Also, the overall real estate market grows by 5-7% annually. 

Thus, during the construction period, you can expect a total increase in the cost of the project by about 40%, which is equivalent to 20% per annum.

Installment and equity investment options

It is not necessary to invest the entire amount for a home in Bali, as developers offer installment programs. Usually the first installment is 25%, and then every three months the investor pays a set amount until the completion of construction.

Moreover, it is not necessary to buy the entire property at once, you can start with individual shares.

By purchasing a share of real estate, the investor gets the right to manage this part and receive income from the investment. Each participant has a share proportional to the size of his investment.

This model is especially attractive for young investors with limited financial resources, as it allows you to start with small amounts and gradually build up your capital.

International developer ANTA Group offers exclusive equity investments in premium apartments in the most popular area of Bali - Changgu, in the complex ANTA Residence Canggu.

How to buy an apartment in Bali?

Foreigners can invest without Indonesian citizenship. However, according to Indonesian law, a foreign resident is not allowed to purchase real estate property. A non-resident can own real estate under a long-term leasehold Leasehold Agreement.

This is a notarized contract with legal force. The term of the leasehold is 25 years with an option to extend it for another 25 years. During this period, the foreign buyer is a full owner and can resell the property.

Ownership of real estate under this contract is absolutely safe. Indonesian authorities are very responsible for the protection of the foreign investor and, in general, always take his side in problematic issues.

After the construction is completed, the property is handed over to a management company that carries out all hotel customizations. Investors conclude a service contract with the management company and start receiving income.

According to local law, the land lease agreement is formalized for the developer. The investor can own the property on the basis of an investment contract signed at the time of the first installment, or formalize the lease agreement for their property and part of the land plot in their own name.

When buying real estate from the developer, taxes are included in the unit price and only 1% extra is paid for notarizing the contract. However, when reselling housing, the owner pays income tax of 10%.

What are the most profitable objects for investment?

If you consider real estate in Bali for successful investments, the most profitable option is to invest in premium apartments in apart-hotels.

These are apartments or studios that provide the opportunity to live in your own apartment, while using the service of the hotel, as well as receive passive income from renting apartments if necessary.

A good investment option in Bali is the purchase of premium apartments ANTA Residence Canggu. 

ANTA Residence Canggu :

- 5* business class apartments with unique infrastructure

- on the main street of the most fashionable location of Bali, Changgu - Batu Bolong. 

- 7 minutes from the Indian Ocean, beach and surfspot.

- 5 variants of apartments, from 40 m², from 139 000 $

The complex includes 113 apartments with modern renovation, furniture and appliances, as well as combines all possible services - Jungle roof-top (jungle park on the roof), tropical infinity pool overlooking the ocean, restaurant and cafe, underground parking with your own bike as a gift, co-working, personal transfer by golf cart, children's area with babysitter, surf school, beauty and SPA salon, smart gym and event hall on the roof.

Close to supermarkets, restaurants, bars, Premium sports club, schools and kindergartens, airport only 40 minutes away.

ANTA Residence Canggu has been developed by a reliable international developer AntaGroup, guaranteeing high quality construction. 

More offers, current prices and competent advice from the developer AntaGroup at the link. 

Daria Rogova, Head of Insurance at Visit World

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More articles on the topic: 

Reasons for choosing global investment: the power of international investment.

Global Investment Opportunities: Where to Look for the Best Deals?
Investing abroad: how to invest in foreign markets.

Comparison of investment instruments: pros and cons of investing in real estate.