Bali offers among the best Return Investment on the property market nowadays for already a few years. However, with the number of offers on the market, it is not always easy to find the right property investment, and it is difficult to decide which one is really. Despite the legal aspect we always cover, we are looking at this article on how to find the best Bali villa investment and on which criteria define its choice.
Location
The golden rule also applies also on the property market in Bali. Picking up the right location is the key. For the one who has never visited Bali we advise to understand first the different hotspots in Bali. Some properties might seem close to the ocean and are in reality on the other side of a main congested road making the property at more than 25 minutes or more from the attraction.
Bali has several hotspots, such as Canggu, Sanur, Uluwatu, Berawa, Seminyak, and Ubud. Unfortunately, some developers can mention those locations, but their properties might be far from those destinations, making the investment more difficult to rent out.
New areas are under development, betting those areas will develop and are still surrounded by rice fields which unfortunately can disappear with new surrounding projects making the main point of the project (being surrounded by rice fields) gone. Those areas, such as Seseh and Cemagi, have potential and need to be studied.
The location is key in Bali villa investment and should be chosen based on the purpose of the investment. Areas like Umalas and Tumbak Bayu are primarily residential, attracting expats looking for medium- to long-term rentals. At ILA, we are happy to guide you in selecting the right location based on your preferences.
Developer and quality construction
Once the location has been selected, it is important to define which developer or seller to trust for your property. Unfortunately some projects have been developed over the years with bad quality control and the investment after a few years requires a lot of maintenance while other properties in Europe would not move for 30 years. Too many developers or contractors try to reduce the cost and the quality of the construction despite the beautiful design.
Several developers in Bali, local and foreign, with serious experience develop fantastic and beautiful projects with top quality control on their construction. We recommend checking their project in Bali or overseas to understand their experience in handling construction and which certified contractor they use. Despite the professionalism of the developers, the contractor is one the key to the warranty of the property. This is one of the reasons several developers, knowing the quality of the construction, do not offer a warranty. IF there is no warranty, RUN AWAY.
Legal documentation of the project
Once the location has been defined and the developer or property selected, it is important to look at the legal documentation of the villa or apartment. As we mentioned in several articles, there are several aspects to check, and it is important to perform due diligence to understand if the zoning allows, for example, to rent out the property on Airbnb or Booking.com for example.
Also Read: Navigating Contracts and Agreements in Bali: Your Guide to a Smooth Investment Journey
ROI and Forecast
Bali offers a great return on investment between 9% to 15% nowadays. It is important when it comes to the forecast to understand how the market is evolving. There is no market in the world staying higher than other countries indefinitely. This economic rule is simple. Once a market is surperforming, it attracts other investors, creating exceeding supply and bringing the cost for land and construction higher and a high competition on the daily rental, bringing prices lower.
The ability to sell the villa is also a factor to take into consideration for the exit strategy. We have selected a few villa projects to invest in Bali below and available on our investment page.
Example of villas in Bali
Amari Villa in Canggu
Amari Villas is a modern Bali villa development in the serene and fast-growing Padonan area of Canggu, Bali. This premium villa complex features 12 luxury villas, each with private gardens, swimming pools, and stunning rooftop terraces. Just minutes from Canggu’s beaches, dining, and entertainment hubs, Amari Villas offers the perfect blend of tranquillity and convenience. With its modern design, high ceilings, and stylish interiors, this Bali villa is an excellent choice for lifestyle buyers and investors looking for high rental yields and long-term value growth.
With a Rental Yield of 13-20% per year and Return on Sale After Completion 25-35% the developers have selected a perfect area to invest and do daily rental or spend vacation in Bali and assuring an excellent first or additional investment.
The Dune Collection in Uluwatu
Located in Pecatu, near Uluwatu the developer has worked on Mediterranean design where world-class design meets an extraordinary coastal setting. Set on Bali’s tranquil Bukit Peninsula near the Bvlgari Resort, this exclusive ensemble of villas embodies modern elegance and functional genius. Each residence’s fluid contours and thoughtfully integrated spaces invite natural light and fresh air, while the sweeping coastal views and close proximity to pristine beaches, top beach clubs, and exceptional dining enrich every moment. Here, design and location work in harmony, setting a new standard for elevated coastal living.
The rental yield in this area is between 12 to 15%. The developers have provided different forecasts with low occupancy and high occupancy making this project in any case a successful investment in Bali.
We invite you to discover more properties on our page here or contact us to know all the best offers and how to find a villa in Bali.
