Bali has become a popular destination for those seeking to stay for a long time, thanks to its high tourism exposure and the trend of remote working. The island offers an array of activities to keep visitors entertained and relaxed, from its stunning beaches and lush green forests to its vibrant culture and delicious cuisine. With the ease of access to affordable housing, co-working spaces, and amenities, it is no wonder why many people are choosing Bali as their home away from home.

This has made Bali an ideal place to invest, especially in real estate. The real estate market in Bali is booming and there are numerous opportunities for investors to make a profit. From luxury villas to beachfront apartments, there are plenty of options available for those looking to invest. With the proper knowledge and research, you can find great deals on properties that will provide you with a steady income or potential capital gains.

If you are looking to find your first property in Bali, check out the 5 things you must know before buying a property as a foreigner in Bali.

Start with defining the purpose of your property investment

Before anything else, it is essential to understand the purpose of your investment. Are you looking to settle in and stay for a long period of time? Do you want to visit Bali once in a while and rent out the villa while you are away or do you want to maximize it 100% as an investment property? Knowing the purpose of your property will help you make a better decision.

Personal Residence

It is always a good idea to purchase a property for personal residence as you could use it for some time and save money from renting a property. You can then rent your property yearly or resale it to gain profit.

If you are looking to settle in Bali and stay for an extended period of time (let’s say more than 6 months per year), it is essential to note your needs or preference, whether you would like to have a temporary home or for your retirement.

• Buying a retirement home in Bali. When it comes to buying retirement property in Bali, many factors need to be taken into account. From location and budget to the facility and lifestyle. Do you prefer to stay in a more quiet area that offers tranquility while still having some facilities around? Researching your options carefully is essential when buying a retirement house in Bali.

Or

• Staying in Bali for some time with your family (temporary home). Suppose you are planning to settle in Bali. In that case, it is best to check the facilities that surround the area, such as the proximity to international schools and shops, while still living in a calmer family-friendly neighborhood. You can also rent out, or sell your property to gain more profit.

Secondary residence with occasional rentals (Lifestyle Villas)

If you want to come to Bali once or several times a year, a secondary residence with occasional rentals (Lifestyle Villas, also called Hybrid Villas) might be an interesting choice for you. You can use the villa for a secondary house whenever you come to Bali and you can rent it out while you are away. You will need to find a villa that offers you personally a comfortable living experience while keeping in mind it remains suitable to the tourist demands and adapts the villa for the rental market.

Pure investment

If you want to make it a 100% investment and want to get the best possible ROI, 2 options are available:

• Purchase at a high price in tourist-dense areas and reap high ROI.

Or

• Invest in one of the upcoming areas to take advantage of the currently still low prices and take profit of future capital gain returns.

After finding out what you are looking for in your property investment, it is time to find the best area that suits you. Understanding each area’s uniqueness and forecasting the next hotspot takes quite some time and studies. To save you some time for research and analysis, we have carefully chosen our recommendations for where to invest in Bali based on our ten years of experience in Bali Property and Real Estate.

Our Current Hot Spots

1. Canggu & Berawa

(source: Villa Fika, Berawa)

Canggu and Berawa, famous for all the digital nomads in Bali, has remained the top-rated global destination for remote workers since 2015. With new constructions and establishments popping up every day, it is clear that this area is becoming an attractive destination for investors. All the development is occurring rapidly and property prices are constantly rising. If you are looking to invest, and look for immediate returns with high occupancy rates, then Canggu and Berawa are the best places to purchase a property at the moment.

Purchasing a property in Canggu is a great investment opportunity for those looking to start an immediate rental business in Bali. With the increasing number of tourists visiting the area each year, there is no doubt that the demand for rental properties will continue to rise. There are vast numbers of fancy, high-standard restaurants, cafes, and co-working spaces, beautiful spas, high-density on (western) supermarkets, constant waves for surfers, and places to party for young adults, such as The Old Man’s, Outpost co-working, BWork Bali, Milk & Madu, Revolver Canggu, The Shady Shack, Baked, Finn’s Beach Club, or Atlas Beach Fest.

However, several things need to be taken into consideration before making such an investment. Due to a large number of properties already built in this area, make sure your property is standing out through elegant and unique architecture, eye-catching interior design, or anything unique to stand out from the rest. Proximity to the beach can be a key factor, as is the use of a good management company and reliable villa staffing to accommodate the needs of your vacation rental clients. By considering all these factors, investors can ensure that their purchase will be a good investment for daily, weekly, or even monthly rentals in Canggu.

Below is an example of the ROI calculation of our properties in Canggu and Berawa.

Check out some of our hottest Villas in  Canggu for you.

2. Pererenan

(source: Villa Bold, Pererenan)

Pererenan became popular during pre-covid and has established itself within the past few years as a main hotspot in Bali. It is still very popular for residential living and becoming more and more lucrative for investors.

As Pererenan is close to Canggu and Seminyak, it has proximity to all the Canggu and Seminyak tourist attractions. It also has a quick rise of high-end, beautifully decorated cafes and restaurants making it a more-and-more attractive destination for tourists in Bali. Moreover, with its stunning greeneries, beautiful black sand beach, and growing economy, Pererenan has become an attractive destination for those looking to invest in property and land.

The area offers a variety of options for both residential and commercial properties, making it an excellent choice for those looking to invest in the long term. With the right research and due diligence, investors can find lucrative opportunities to purchase property and land that will provide them with steady returns over time.

Check out some of our hottest Villas in Pererenan for you to invest in.

3. Umalas

(source: Villa Lacht, Umalas)

Umalas is a great option for those looking to settle in Bali. Umalas offers a wide range of properties, from spacious villas to apartments, and townhouses. There are many options for international schools, while Umalas benefits from its proximity to Canggu and Seminyak. The area has less traffic compared to Seminyak or Canggu, moreover, there are no clubs established there, making the area more peaceful with lush green surroundings, an ideal place for residential living with a good deal for investment opportunities.

Umalas are becoming increasingly popular with investors looking for a more affordable option. You can enjoy the peace and tranquility of the area while remaining close to other tourist attractions in Seminyak and Canggu.

With prices still relatively low compared to other hot spots areas in Bali, now is the perfect time to invest in property in Umalas.

Check out some of our hottest Villas in Umalas for you to invest in.

4. Seminyak

(source: Villa Miura, Seminyak)

Seminyak is one of the most popular tourist destinations in Bali, and it is no wonder why. With its stunning beaches, luxurious resorts, and vibrant nightlife it is a paradise for tourists worldwide.

With its proximity to sunset road (a fast way to the airport), an abundance of cafes, restaurants, fancy boutique shops, pedestrian/shopping miles, prestige hotels, and gastro pubs, such as Oberoi, Potato Head, Ku De Ta, La favela, and many more. Seminyak has become a prime spot for those looking to invest in property.

The area offers numerous opportunities for people who are looking to invest in real estate and make a good return on investment. Purchasing a property in Seminyak can be a great investment for those looking to start a rental business. With the area’s popularity, you could find yourself a steady stream of income from renting out your property.

However, managing such properties is not easy and requires careful planning and execution. With the help of villa management services, you can ensure that all aspects of your rental business are handled professionally and efficiently. Rest assured that your property is taken care of and maintained to the highest standards. Check out one of our recommendations for villa management services here.

Check out some of our hottest Villas in Seminyak for you to invest in.

Upcoming Areas

The upcoming areas introduced here will develop to become the next hotspots in Bali, as is currently Canggu or Pererenan. If you have missed investing in a Canggu property in the past years, you have now the opportunity to invest in one of these upcoming areas of Bali.  Take advantage of the currently still low prices for future capital gain returns.

1. Seseh & Cemagi

(source: Villa Amerrya 1, Seseh)

Previously known for being secluded and a peaceful dormant area, Seseh and Cemagi are the next upcoming areas with plenty of lush greeneries surrounding them. After the recent rezoning in early 2023, many of the previously zoned green belt areas have changed their zoning title to commercial zoning, which allows the development of properties (together with a suitable building permit).  It is notable that the Banjar (leaders of the local community) engage in promoting the area as a peaceful environment with no loud clubs and big crowds,  making Seseh and Cemagi an excellent places for residential purposes.

With their stunning scenery and unique culture, these areas are increasingly popular for property investors and a big investment opportunity for the upcoming years.

It is important to note that the land in Seseh is becoming increasingly limited, as many developers are already looking for this area for their investment, therefore do not miss out on the opportunity to own land or a villa there before it’s too late!

In particular, Seseh and Cemagi areas offer attractive investment opportunities for those looking for higher returns on their investments as the area is currently still low price compared to the other current hot spot areas.

Check out some of our hottest Villas and land recommendations in Seseh & Cemagi for you.

2. Nyanyi

(source: Villa Joyce, Nyanyi)

The Nyanyi area is set to undergo a massive transformation, with an array of new project developments coming up that promise excellent infrastructure and planning. This makes investing in Nyanyi property and lands a great opportunity for those looking to make long-term investments.

The new project developments in the Nyanyi area, Nuanu, is one of the most visionary infrastructure projects in Bali that focuses on social impact, sustainability, and education designed to establish a brighter future for generations to come. The development includes residential, commercial, and educational projects, connecting dots to find a way to live in harmony with one another, nature, and technology. All of these will be equipped with modern facilities that will help enhance the quality of life for the residents.

With such a wide range of development, it is best to invest as early as possible in Nyanyi property and land. Secure your chance to invest in the Nyanyi area soon before it’s too late!

Check out some of our hottest Villas and land recommendations in Nyanyi for you.

3. Kedungu

(source: Pantai Cinta, Kedungu)

Kedungu has become famous for tourists for its main surfing hotspot with lots of chic cafes and surf schools opening up in that area, such as Beach Love, Two Coffee, Little Ripper Bali, Cafe Selancar, and many more. There is news rumoring that an international school is about to be established within the Kedungu area, which would attract many foreigners living in Bali and drive future development projects in the area.

Whether you are looking for an investment opportunity or just want to own your piece of paradise, investing in property here is sure to be a wise decision.

The land prices are still very reasonable, making it an ideal option for those looking to invest in land as well. This can become a big opportunity to invest in commercial land to build other facilities for future development.

Due to its desirable location near the beach and rural areas, many investors are looking for this next ‘Canggu alike’  area. Therefore, don’t miss out on your opportunity to secure your piece of paradise here, as the property prices will rise very soon!

Check out some of our hottest villas and land recommendations in Kedungu for you.

After checking our list of recommendations,  Which area do you think most likely suits your investment plan?

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