The two main options for owning land in Bali for villa development are freehold and leasehold.
Freehold land for sale in Bali means that you own the land indefinitely. This option is exclusively available for Indonesian residents, so is not the most common option for international buyers and investment villas.
Leasehold land for sale in Bali is similar to freehold in many ways, but you only hold the rights to the land for an agreed time frame. Importantly, international buyers will have their name on the lease and a legal right to use the land.
Typically, land is initially leased for 25-30 years, with the option to extend the lease at the current market value. The contract is overseen by a notary (specialist land lawyer), with checks and due diligence carried out before the lease begins.
Leasing land in Bali is much cheaper than buying freehold and provides the highest return on investment on villa developments.
Foreigners can buy land in Bali, but there are a number of rules and regulations that need to be followed. Freehold land can only be purchased by Indonesian residents, but leasehold property can be purchased by foreigners.
There are also rules and regulations that must be followed in certain circumstances, such as renting out the villa as a holiday rental on Airbnb or other platforms. As with any country, taxes and fees may be applicable to rental income generated by the property.
Bali is one of the most scenic destinations in the world, which has resulted in many foreigners looking at land for sale in Bali as an investment. For professional advice on the latest rules for buying and investing in Bali, we can put you in touch with local legal professionals.
The terms of leasing land in Bali are agreed between the land owner and the individual or party interested in leasing the property. A typical lease will last from 25-30 years, however, some leases are as short as 20 years, whilst others can be longer than 40 years. The figures refer to the initial lease.
The lease contract will normally permit the leaseholder to extend the lease for a similar period to the initial lease, however, the price will reflect the updated market value of the land at the time of the renewal. Extending the lease is beneficial when a new villa has been built on the property.
If a landowner continues to agree to further lease extensions, the land can be leased indefinitely.
Many areas in Bali can deliver exceptional returns on investment. Some of the most popular areas in Bali for our clients include:
Areas with popular attractions nearby, such as beach clubs and restaurants, tend to attract high numbers of tourists, which is ideal for holiday rentals. For advice on popular locations to buy land in Bali, get in touch.
Below are some of the most common words and abbreviations you will likely run into if you are looking to buy land in Bali.
Are: A popular unit of measurement for land in Bali. 1 Are = 100 sqm.
Leasehold (Hak Sewa): A type of property ownership where you own the rights to use land for a set timeframe.
Freehold (Hak Milik): Property ownership whereby you own the rights to land indefinitely.
Rp / IDR: Indonesian Rupiah – the currency used in Indonesia. It is also common for prices to be listed in USD (United States Dollar).
If you have any questions or require additional help, please get in touch.
Several factors can influence the cost of land in Bali. Pricing for leasehold land is normally calculated per “are” (100 sqm) per year, with prices starting from around Rp5.000.000 IDR (~ $350 USD).
Below are some of the main considerations in pricing land in Bali:
As well as the cost of land, it is important to budget for construction, landscaping and furnishings when investing in Bali.
As well as the cost of land, it is important to budget for construction, landscaping and furnishings when investing in Bali.
The amount of land required will depend on the size of the villa you want to build. In most cases, the amount of land required to build will be smaller than you may think.
If you are looking to invest in Bali property, you will want to maximise your land use for the highest return on investment. On each of our developments, we indicate the recommended amount of land required to build each villa. You can view the developments here:
Most villas have a pool and landscaped garden, which is strongly recommended when looking for land to build an investment villa.
For advice on the right land size for your new villa, please get in touch.
The first step of buying land in Bali is finding the perfect plot for your budget and requirements. Once suitable land is found, the process typically takes around 1 month, as per the following timeframes:
Timeframes can vary for many reasons, but the above timeline is typical for most of our clients. Once land has been purchased, you can then begin with the fun process of architectural design and planning.
Once land has been purchased, you can then begin with the fun process of architectural design and planning.
4 primary types of zoning will pertain to most purchases:
To make a successful and smooth purchase of land in Bali, it is crucial to verify the zoning and Ijin Tata Ruang (ITR) before purchasing land for any project. It is also necessary to check if the zoning allows for various types of building permits and licenses (Izin Mendirikan Bangunan or IMB) for commercial or residential purposes.
Which land has the highest taxes? In Bali, land in prime locations and tourist hotspots generally attracts higher taxes due to their higher assessed values. Areas that may have higher land taxes include:
Can foreigners buy a villa in Bali? Absolutely! While there are restrictions on freehold ownership, foreigners can purchase Bali leasehold villas for sale, allowing them to enjoy villa ownership for extended periods.
Imagine being able to call a beautiful villa in Bali your own, even if it is just for some time. With a leasehold contract, you will have the opportunity to be a homeowner for a specific period, usually 25 years, but the great thing is you can even extend it to more than 50 years.
This can be a great option for foreigners who are looking to buy a villa in Bali as a holiday home or as an investment. When you decide to buy a leasehold villa, the villa is technically yours for the duration of the lease, as well as all the rights and responsibilities that come with it and allow foreigners to enjoy the benefits of property ownership. So, don’t wait any longer, take the first step to make your Bali villa dream a reality.
When it comes to buying a property in Bali, you have two types of ownership: leasehold and freehold.
Bali leasehold villas for sale offer a long-term lease agreement, typically lasting 25 years, and it can be extended further where you can become the owner of the property for the duration of the lease. This is a popular option for foreigners looking to buy property in Bali because Indonesian laws sometimes restrict foreign ownership. The great thing is the flexibility to enjoy the benefits, like the right to rent out the property or make improvements to it during the lease period, without being worried about any restrictions.
Bali villas for sale freehold, on the flip side, is the complete ownership of a property, where the buyer becomes the legal owner and has full control over it. This option provides long-term security as there is no expiration date on the ownership and allows the property to be owned by future generations. But, this is only available to Indonesian citizens or foreign citizens who are married to Indonesian citizens. So, if you are a foreigner looking to buy property in Bali, this might not be an option for you. But, if you’re an Indonesian citizen or a foreigner married to an Indonesian, it is a great way to have the stability of long-term ownership and the ability to pass it on to your family.
When thinking about buying villas in Bali, seek legal advice from a trusted local lawyer to make sure you fully understand the rules and requirements of both leasehold and freehold agreements. Also, consider the location, the current condition of the property, and its potential. All in all, this will help you find a property that fits your needs and will be a good investment.
Buying a villa in Bali is a great investment and a smart move for several reasons. Bali is a top tourist destination with an ever-increasing number of visitors. The Central Statistics Agency (BPS) reported that Bali recorded the highest number of foreign tourists among all provinces in Indonesia in 2020 with 5.96 million visitors, and has been consistently ranked in the top – second place, in TripAdvisor’s Travelers’ Choice for the top 25 popular destinations worldwide.
Bali’s property market is strong and has been steadily growing in recent years. The average price of a villa in Bali in 2020 was IDR 17.9 billion (around 1.2 million USD), representing a 4.5% increase from the previous year. With that great news, the property market in Bali is stable and has a good potential for capital appreciation and is likely to continue rising in the future.
The island’s unique culture, lifestyle, tropical climate, stunning scenery, and a wide range of leisure activities attract many people to purchase a property as a holiday home or a retirement property. The island is known for its beautiful beaches, temples, and delicious cuisine, as well as its friendly locals and relaxed pace of life. Buying a villa in Bali allow you to enjoy all that the island has to offer.
Overall, buying a villa in Bali is a good investment as it offers a combination of rental income, capital appreciation, and personal enjoyment. With the strong property market, the high number of tourists visiting the island, and the unique culture and lifestyle, it is not hard to see why you need to consider buying a property in Bali.
Yes, many investors find Bali villas for sale to be profitable due to the island’s strong tourism industry and potential for both rental income and property value appreciation.
It is no wonder that owning a villa in Bali could yield high returns as there is a constant need for accommodation.
Bali’s property market is strong and has been steadily growing in recent years. The average price of a villa in Bali in 2020 was IDR 17.9 billion (around 1.2 million USD), representing a 4.5% increase from the previous year. With that great news, the property market in Bali is stable has a good potential for capital appreciation and is likely to continue rising in the future.
The island’s unique culture, lifestyle, tropical climate, stunning scenery, and a wide range of leisure activities attract many people to purchase a property as a holiday home or a retirement property. The island is known for its beautiful beaches, temples, and delicious cuisine, as well as its friendly locals and relaxed pace of life. Buying a villa in Bali allows you to enjoy all that the island has to offer.
Overall, buying a villa in Bali is a good investment as it offers a combination of rental income, capital appreciation, and personal enjoyment. With the strong property market, the high number of tourists visiting the island, and the unique culture and lifestyle, it is not hard to see why you need to consider buying a property in Bali.
No, you can buy property in Bali without having to be there physically, but it is important to keep in mind that every place has its own rules and regulations. Doing your own research and making sure you fully understand what you are getting into before investing will also help you a better look at what you are looking for.
Buying property in Bali can be complicated and it is always best to seek the help of a legal professional and real estate agent who is familiar with the local laws, customs, and procedures.
But, it is highly recommended to visit the property and the area before making a purchase, if possible, to get a better sense of the property and the neighborhood. If you are unable, you can also ask the realtor to take videos and pictures of the property and the surrounding area.
The cost can vary widely depending on location, size, and amenities. Bali villas for sale can range from around $100,000 for a modest property to several million dollars for luxury beachfront villas.
Factors that influence the cost of owning a villa in Bali include:
– Purchase price (leasehold or freehold)
– Annual property taxes
– Maintenance and upkeep costs
– Staff salaries (if applicable)
– Utilities
– Insurance
It’s important to budget for these ongoing costs when considering a Bali villa purchase.
Why are Bali villas so cheap compared to other tropical destinations? Several factors contribute to the relatively affordable villa prices in Bali:
– Lower land and construction costs compared to many Western countries
– Favorable exchange rates for many foreign buyers
– Abundance of skilled, low-cost labour for construction and maintenance
– Government incentives to attract foreign investment in certain areas
However, it’s important to note that while some Bali villas may seem inexpensive, luxury properties in prime locations can still command premium prices.
When looking for a trusted real estate company in Bali, make sure to research and read reviews of different companies. This will give you an idea of the level of service and expertise that they provide. Look for firms with good reputation in the industry that has been around for a while.
A reputable real estate firm should also have a team of experienced agents who are knowledgeable about the local market and can assist you in finding the ideal property for your needs. Take a look at their portfolio of properties and previous projects, it will give you an idea of their work and experience. It is also beneficial to have a company familiar with the legal and administrative requirements to buy property in Bali.
If you are looking for a villa in Bali that you fancy and are interested in but not sure about a real estate company you could trust, Balitecture Realty has got you covered with our best selections.
We have got a great selection of leasehold villas for you to choose from. You can pick between tropical villas, luxurious houses, and modern apartments. With Balitecture, you have a one-stop shop for all things property in Bali. We specialize in end-to-end property services and are dedicated to bringing you the best of luxurious houses, tropical modern villas, perfect lands, and other properties in Bali. Our expert team is well-versed in the ins and outs of Bali’s property market, and we know the best areas to be in. Whether you’re looking to buy or rent, our team of experts is here to help guide you every step of the way. Discover the exclusive selections and find your dream property in Bali with Balitecture Realty.
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