There's no denying that Bali is one of the most sought-after destinations in the world for tourism and living. The island offers a wide range of leisure activities and entertainment options, including surfing and meditation, volcanoes and beautiful beaches, world-class nightclubs, and hundreds of yoga studios. Everyone can find something they love to do. Additionally, you can find any type of Bali real estate, from budget guesthouses to luxurious oceanfront villas.
How to Buy the Perfect Villa in Bali Without Breaking the Bank
The G20 summit held two years ago launched a global advertising campaign for the island. For an entire year, we heard about Bali and saw pictures of this paradise during the gathering of world leaders. It's no wonder that tourist traffic has reached record levels and has already surpassed pre-pandemic levels.
Bali has become one of the most popular places for expats, thanks to remote work opportunities and the possibility of obtaining a five-year Second Home visa through property ownership. The number of people choosing the island as their place of residence has skyrocketed, growing by 25 percent in 2023 alone.
It wouldn't be an exaggeration to say that Bali is currently experiencing its highest point of development, and the growth shows no signs of slowing down. Numerous cafes, workspaces, and recreational areas are being built, new five-star hotels are being constructed, and the Bali authorities have recently presented a new infrastructure development plan for the island, including metro lines, expressways, and a second airport.
It's no wonder that the Bali real estate market is booming. Construction is happening everywhere, and the best projects are selling out during the pre-sale stage. Land prices in popular locations are skyrocketing. Rental income yields are the highest in the world, with an expected return on investment (ROI) of around 15 percent per year.
If you want to buy property in Bali for living or investment purposes, here are some tips for you:
Buy property during the construction phase
There's no point in buying a ready-made villa with depreciation. The market offers so many options to suit every taste and budget, in any area and architectural style, that buying a typical Balinese-designed villa that most likely requires cosmetic repairs is not financially or aesthetically justified. Moreover, the cost of a villa during the construction phase, which typically lasts only one year in Bali, increases by 15-20 percent, making it an excellent investment opportunity.
Ask for a discount when buying the first villa in a plot
Developers usually build several villas in gated complexes, which significantly reduces costs compared to building a standalone villa, sometimes by half. This benefits everyone: the developer can offer real estate at a competitive price, and the buyer can acquire excellent private property without overpaying. To facilitate future sales, developers need to demonstrate progress on the construction site, and when selling the first villa in a plot, they obtain the necessary financing to continue the project. If you're the first buyer on a particular plot, you can confidently ask for a discount of up to 10 percent, and in the overwhelming majority of cases, developers will agree.
Thoroughly research the location for your purchase
Depending on your buying goal, you should choose different locations. If you're buying for rental business purposes, we strongly recommend areas like Canggu and, to a lesser extent, Uluwatu. The closer to the ocean, the higher the rental rate, but also the higher the price. A smart purchase would be a villa located within one to two kilometers from the coastline, where the rental price-to-villa cost ratio will be optimal, allowing you to generate good rental income without overpaying for the villa itself. If your goal is permanent residence, the best option would be areas around Canggu, such as Seseg, Mengwi, Padonan, Tumbak Bayuh, and locations in Uluwatu that are not too close to the ocean. This way, you'll have access to all the infrastructure within a five-minute drive while avoiding the hustle and traffic of these tourist clusters, enjoying the tranquility of your location. Additionally, you can save up to 30 percent on the purchase of an identical villa or buy a more spacious villa for the same amount.
Don't be afraid to pay the full price of the villa upfront
Developers in Bali widely offer installment plans since most good developers with European or Australian founders don't have access to bank financing. Therefore, the most effective way to attract financing is to take money from buyers, and developers are willing to provide attractive conditions to their clients. During the construction period, the villa's price increases by up to 20 percent, but you can save even more by paying the full amount upfront without installment plans and receive an additional discount of up to 10 percent.
We hope this article has been helpful to you. Our agency offers a wide selection of real estate in Bali, and our brokers will be happy to assist you in choosing and purchasing the right property.