Everything you need to know about investing in Bali
Apartments in Bali: The Best Choice for Investment
When it comes to real estate in Bali, investors often find themselves torn between purchasing a villa, townhouse, or apartment. However, when analyzing the advantages of each type of property, it becomes clear that apartments have unique features that make them more attractive to modern investors and renters.
Apartments in Bali offer a relatively low entry threshold into the real estate market. This allows investors to acquire property with lower costs compared to villas or townhouses, leaving room for high potential returns. Investors looking to minimize purchase and maintenance expenses will find apartments to be an optimal choice.
One key aspect that sets apartments apart from villas and townhouses in Bali is the absence of certain “wildlife” that may appear in private yards. Since apartments lack large open spaces, owners don’t have to worry about unwanted “neighbors” like snakes, geckos, frogs, and other animals common to greener and more open areas. Investors and renters who prefer a clean and controlled environment will find apartments much more comfortable for living.
Modern apartment complexes in Bali offer essential infrastructural conveniences that add comfort and security. For instance, underground parking provides vehicle safety and shields them from weather conditions, which is particularly useful in a tropical climate. A concierge service adds convenience, offering assistance with household matters, leisure arrangements, and general upkeep of the complex. Amenities such as swimming pools, co-working spaces, fitness centers, and relaxation zones create an attractive environment for living and make apartments more desirable on the rental market.
Bali’s popularity among tourists and expats remains consistently high, and apartments on the island attract renters year-round. Digital nomads, tourists, and expats increasingly choose compact and functional apartments that provide a comfortable and secure living environment. For property owners, this translates into steady income and high occupancy rates even during the low season.
Apartments incur lower maintenance costs compared to villas and townhouses. The management company handles landscaping, cleaning, technical maintenance, and security. This frees owners from extra hassles and ensures the property remains in good condition. Additionally, saving on maintenance does not reduce the property's appeal, as renters receive all necessary amenities and services without needing to maintain them themselves.
The liquidity of apartments in Bali's real estate market allows investors to manage assets flexibly and quickly sell the property if needed. Smaller size, more affordable price, and high demand make apartments attractive for resale, providing an opportunity to increase capital as prices rise. As Canggu and other popular areas in Bali continue to develop, the value of apartments grows each year.
In Bali, restrictions on full land ownership for foreign nationals can complicate the purchase of villas or townhouses. With apartments, the process is much simpler: they can be purchased through a long-term leasehold, which doesn’t require creating complex legal structures. This simplifies the purchase procedure and reduces risks associated with owning property in a foreign country.
Apartments in Bali offer a blend of affordability, comfort, and potential for successful investment. Freedom from property maintenance, minimal concerns about wildlife, convenient infrastructural solutions like underground parking and concierge service make them ideal for living and renting. These benefits allow investors to enjoy stable income while preserving the asset’s liquidity and value.
Investment Guide in Bali for Beginners
Investing in Bali real estate can be attractive and profitable for beginners. A consistent demand for rentals, rapid infrastructure development, and the island’s unique atmosphere make it an ideal location for property investment, particularly in apartments. Modern complexes in areas like Canggu with developed infrastructure are perfect for those seeking stable income with minimal risk. This guide will help you understand the main steps and key aspects of real estate investment in Bali.
1. Why is investing in Bali real estate profitable?
Bali offers steady rental demand, thanks to its popularity among tourists and expats. Areas like Canggu provide a unique blend of leisure and comfortable living, attracting long-term tenants. Apartments are in high demand, as they are suitable for both short-term and long-term rentals, ensuring stable income for owners.
2. How to choose the right property for investment?
When selecting property in Bali, consider not only the price but also demand and potential for appreciation. Apartments in popular areas like Canggu often outperform other types of property because they attract consistent rental demand and offer high liquidity. Complexes with amenities like pools, co-working spaces, and underground parking are appealing to tenants and boost profitability.
3. What kind of returns can be expected?
The average rental yield for apartments is 10-15% per year, with even higher returns in the premium segment. Many investors who buy apartments at the construction stage achieve additional capital growth of up to 20-30% once the project is complete. This makes apartment purchases in Canggu an excellent option for those seeking stable income and capital growth.
4. What types of property ownership are available in Bali?
For foreign investors, the most common option is a long-term leasehold, which grants the right to use the property for 30 to 80 years. This option is well-suited for rental purposes and does not require complex legal structures. Investors can easily manage apartment rentals and receive income, especially in Canggu, where rental demand is high.
5. What are the main maintenance costs?
Maintaining apartments is typically cheaper than villas, as management is often handled by a property management company. This includes utilities, cleaning, technical maintenance, security, and upkeep of amenities like pools. On average, the upkeep of a two-bedroom apartment costs around $100-150 per month, making it a cost-effective option for investors seeking to minimize maintenance expenses.
6. Taxes and legal aspects
The tax rate on property sales in Bali is around 11% of the transaction amount. In the case of rental income, the tax rate is 10%, paid by the landlord. There is also a small annual land tax. To complete the transaction, a notary is required, and their fee is about 1% of the property’s value.
7. How to minimize risks?
To reduce risks, it’s essential to work with a reliable developer and legal advisor. By investing in apartments in popular areas like Canggu, investors can expect stable rental demand and property appreciation, reducing risks and making the investment more secure.
8. What is the liquidity of Bali real estate?
Apartments in popular areas, particularly in Canggu, have high liquidity. With stable rental demand and well-developed infrastructure, apartments can be quickly sold if necessary. This is especially valuable for investors who wish to have flexibility in managing assets and a quick exit strategy if needed.
9. How to get started with investment?
Before purchasing, decide on the area and type of property. Apartments in Canggu, with their comfort and popularity, ensure steady income and high demand, making them one of the best choices for beginner investors.
For more information, feel free to contact our managers. They will provide a free consultation and help you find the most profitable properties for investment.
Why Investing in Canggu is Profitable
In recent years, Canggu has emerged as one of the most popular investment destinations in Bali. Its growing infrastructure, constant flow of tourists, and unique atmosphere have turned it into a focal point for both locals and expats. In this article, we’ll explore why Canggu is an attractive location for real estate investments, particularly in apartments.
1. Rapid Infrastructure Development
Canggu has transformed from a small beachside village into a fashionable district with diverse infrastructure. New restaurants, cafes, gyms, and co-working spaces continue to open, making the area appealing for both tourists and long-term residents. Modern apartments in Canggu are often situated close to essential amenities like shops, fitness centers, and cafes, increasing their desirability among renters.
2. High Rental Demand
Bali is a popular destination for tourists and expats, and Canggu is one of the most sought-after areas for accommodation. Apartments, in particular, are in high demand, as they are convenient for both short-term and long-term rentals. Canggu attracts those seeking an active lifestyle, comfort, and easy access to the beach. This high rental demand makes investing in apartments in Canggu especially profitable.
3. Quick Return on Investment and Stable Income
Investments in Canggu real estate show high returns. The average rental yield for apartments in this area is around 10-15% per year, making it one of the most profitable locations in Bali. With constant rental demand, investors can expect a return on investment within 7-10 years, providing stable passive income for property owners.
4. Property Value Growth
Canggu’s ongoing development contributes to rising property values. Investing in apartments here is also advantageous for long-term capital growth. Given the current pace of development and the area’s popularity, further property appreciation is expected, making apartment purchases an excellent option for building long-term assets.
5. Attractive Lifestyle for Renters
Canggu is popular among those seeking a balance between relaxation and an active lifestyle. The area offers quiet zones for unwinding as well as a vibrant infrastructure for active living. This mix attracts a diverse range of renters, including digital nomads, creating steady demand for apartments and increasing their profitability.
For more information, feel free to contact our managers for a free consultation and assistance in selecting the most profitable properties for investment in Canggu.
Investing in Bali Real Estate: Key Benefits
Bali has long attracted investors with its unique combination of natural beauty, a steady stream of tourists, and a growing real estate market. But what specific advantages does this island offer to investors?
1. High Demand for Rentals
Bali is one of the world’s most popular tourist destinations, where demand for rentals remains consistently high. This makes it an ideal location for those looking to earn regular income from property rentals. Apartments are especially popular, as they are convenient for both short-term and long-term stays, attracting digital nomads, tourists, and expats.
2. Quick Return on Investment
Rental yields in Bali can reach 10-15% per year, making the island one of the most profitable destinations for investors. Thanks to the high demand for rentals, the average return on investment is achieved within 7-10 years, providing stable passive income.
3. Property Value Appreciation
Every year, Bali grows in popularity, which contributes to property price increases. The development of infrastructure and improving business conditions on the island also play an important role in driving property values up, making Bali a promising location for long-term investments.
4. Convenient Ownership Options for Foreigners
In Bali, foreign investors have several property ownership options. Long-term leasehold allows them to use the property for 30 to 80 years. This option provides foreign investors with the opportunity to own a property and earn income without complex legal procedures.
5. Attractive Lifestyle
Bali offers a unique lifestyle that combines nature, comfort, and modern amenities. Here you can find everything from relaxing beachside retreats to active urban life with cafes, restaurants, and fitness centers. This makes Bali appealing to renters, especially in popular areas like Canggu, where modern apartments are in constant demand.
For additional information, feel free to contact our managers. They will provide a free consultation and help you find the most profitable properties for investment in Bali.
Why is Bali Real Estate Increasing in Value?
Bali is not only a popular tourist destination but also a promising market for real estate investors. In recent years, property values on the island have continued to grow, leaving many to wonder what factors are behind this increase. Let’s explore the main reasons for Bali’s real estate price growth and how this trend can benefit investors.
1. Constant Flow of Tourists
Every year, millions of tourists visit Bali, and this trend remains strong. The global popularity of the island creates a high demand for rental housing, which in turn drives up real estate prices. Since tourists prefer comfortable apartments in areas like Canggu, rental rates remain high, and property values steadily appreciate.
2. Influx of Digital Nomads and Expats
The island has become a magnet for digital nomads and expats from around the world who choose Bali for long-term living and working. Convenient living conditions, internet infrastructure, and unique culture make Bali a popular destination for both work and leisure. Apartments in areas like Canggu offer comfort and easy access to amenities, attracting tenants and boosting property values.
3. Infrastructure Development
Bali is actively developing its infrastructure, which increases the island’s appeal. In popular areas, new cafes, co-working spaces, restaurants, and fitness centers are constantly opening, making these neighborhoods even more convenient for living. This infrastructure development positively impacts real estate prices, as improved conditions make these areas attractive for both rental and permanent residence.
4. Limited Supply of Property
The amount of land on Bali is limited, while demand for housing continues to grow. This imbalance between supply and demand contributes to the gradual increase in property prices. In areas like Canggu, this is especially evident, as they are popular among tourists and expats, creating the conditions for steady appreciation of apartment values.
5. Growth Potential and Reliable Investment
The increase in Bali real estate prices makes it a promising location for long-term investment. For those seeking an asset with stable appreciation, property in areas like Canggu offers optimal conditions. The opportunity to earn rental income along with rising property values provides investors with both stability and profit.
For more detailed information on profitable properties in Bali, feel free to contact our managers — they will provide a free consultation and help you select the best investment options.
How Can a Foreigner Buy Property in Bali?
Foreign investors increasingly see Bali as an attractive place to invest in real estate. However, the buying process may differ from standard procedures due to local legal restrictions. In this guide, we’ll cover the main steps that will help a foreigner successfully purchase property in Bali.
1. Understanding Legal Restrictions
In Bali, foreigners cannot own land directly. Instead, they have access to two forms of ownership: long-term leasehold and right to use. Leasehold allows foreigners to own property for up to 80 years, which is convenient for rental and long-term investments.
2. Choosing Property Type and Location
Depending on investment goals, you can choose a villa, townhouse, or apartment. Location is also important. For example, Canggu is a popular area among tourists and expats, where apartments are in high demand, providing a stable rental income.
3. Conducting Legal Due Diligence
Before purchasing, it is essential to ensure the property’s legal status is clear. Working with a trusted developer and lawyer helps avoid risks and ensures proper transaction documentation. Legal due diligence includes reviewing ownership rights, construction permits, and other necessary documents.
4. Signing a Long-Term Lease Agreement
For a foreigner to buy property in Bali, a long-term lease agreement (leasehold) needs to be signed, usually through a notary. This lease can be set for 25-30 years with an option to extend, giving the owner full usage rights, including renting and reselling.
5. Finalizing and Paying Taxes
The notary fee for drafting the lease agreement is about 1% of the property value. Taxes include an 11% sales tax and a 10% rental income tax, paid by the landlord. These expenses should be considered in the investment plan.
6. Property Maintenance and Management
Many foreign investors choose to use a property management company to handle maintenance. This is convenient for those planning to rent the property remotely. Property managers in Bali handle technical maintenance, cleaning, and tenant relations.
7. Benefits of Leasehold for Foreigners
Leasehold in Bali is a reliable way for foreigners to own property with minimal risks. This form of ownership is easy to arrange, doesn’t require complex legal structures, and allows access to rental income. It’s especially convenient for those planning to rent out apartments in high-demand areas like Canggu.
For more information, feel free to contact our managers — they will provide a free consultation and help you find the most profitable properties for investment in Bali.
What to Choose: Apartment, Villa, or Townhouse in Bali?
The real estate options in Bali range from apartments to villas and townhouses. Each property type offers unique advantages and is suited to different investment goals. Let’s examine what sets each option apart to help you make the best choice.
1. Apartments: Compact and Convenient
Apartments are ideal for investors focused on steady rental income. They are compact, easy to rent out long-term, and in demand in areas with strong infrastructure like Canggu. Apartments also require less maintenance since they’re typically managed by a property management company, reducing upkeep costs.
2. Villas: More Space and Privacy
Villas are popular among tourists seeking comfort and seclusion. These properties often feature private pools and gardens, making them attractive for short-term rentals. However, villas require more upkeep due to their size and landscaping needs, leading to higher maintenance costs than apartments.
3. Townhouses: A Balance Between Convenience and Privacy
Townhouses offer a middle ground, providing more space than apartments but requiring less maintenance than villas. They can appeal to renters looking for a balance between privacy and convenience, offering unique layouts and multiple floors.
Choosing between an apartment, villa, and townhouse depends on your investment goals. If reducing maintenance costs and ensuring steady income are priorities, apartments are an excellent choice. For those seeking more privacy and willing to invest in property upkeep, a villa may be ideal. Townhouses suit those looking to balance comfort with privacy.
Contact our managers for a free consultation and help in finding the perfect property in Bali.
Why is Bali Called the Island of the Gods?
Bali is not only a popular vacation destination but also a place with profound spiritual traditions that attract people from all over the world. Its unique energy and atmosphere permeate every part of life on the island, from ancient temples to modern retreats. This is why Bali is called the Island of the Gods, a place where culture, nature, and spirituality intertwine harmoniously.
Spiritual Culture and Traditions
Bali is known for its rich spiritual culture, which is carefully preserved by its residents. Temples, shrines, and daily offerings can be found throughout the island, symbolizing reverence for the gods. These rituals create a serene and harmonious atmosphere, immersing both locals and visitors in a world of spirituality. Each temple and ceremony reflects Balinese philosophy, focused on maintaining balance and harmony with the universe.
Scenic Natural Landscapes
Bali’s natural beauty is truly breathtaking: lush rice terraces, powerful volcanoes, dense jungles, and pristine white beaches create an inspiring backdrop for introspection and relaxation. Locals believe that Bali’s nature holds healing powers, and the island’s unique landscapes provide an ideal setting for meditation and personal renewal. Many find strength and energy in the natural beauty, using it as a source for reflection and rejuvenation.
A Community of Like-Minded Individuals
Bali also attracts people from around the world united by a desire for self-discovery and spiritual growth. The island is home to yoga centers, retreats, and events focused on physical and mental well-being. Bali draws in those who seek harmony and a break from the hustle, offering a space for mindfulness and self-exploration. Local festivals and cultural events enhance this atmosphere, establishing Bali as a center for those seeking meaning and personal development.
Bali is not just a place for relaxation but a setting where each visitor can find something special, inspired by the island’s culture and nature. Contact our managers to learn more about investment opportunities in Bali and find the perfect property for living or renting on this remarkable island.