What to look for in a successful Bali villa investment

Everyone wants a piece of the Bali property market right now. But a successful villa investment requires more than just picking a nice 3D render off a brochure.

If you are buying a property in Bali, you need a strategy. Here is the actual checklist to separate a profitable asset from an expensive headache.

Find developers who think about the "after"

A lot of developers are just selling walls. You want to buy from someone who is selling a proven business model. Look for these three things:

• Operational reality: Have they actually consulted on how the villa will function once the guests arrive? You need evidence that they have thought through the operational side of the rental market. Where do the staff enter? Where is the luggage storage? How does the guest flow work? How they see seasonality?
• Data-driven layouts: The best developers use hard data to design their floor plans. They know exactly why a specific 2-bedroom design will yield higher occupancy than a massive, poorly planned 4-bedroom.
• The visual hook: They understand what drives bookings and incorporate aesthetics that look great on screen, while already having the infrastructure in place to run it.

Zoning and legal compliance

Skip the legal checks, and your investment goes to zero.

The land must be in the correct zone and the best place to be is the Pink Tourism Zone if you plan to run a daily holiday rental. However you can still operate in other land zoning color in Bali. Read more on land zoning in Bali.

Operating in green or other not compliant land zoning as well as in LSD/Protected zones is the fastest way to get your business shut down.

Once the zoning is cleared, make sure the project has a clear path towards the big three:

• PKKPR: The spatial planning permit confirming you can build there.
• PBG: The actual building permit (formerly IMB).
• SLF: The certificate of function proving the building is safe for use.

The above are non negotiable.

Provable track records for off-plan builds

Buying off-plan is the standard entry point for better pricing, but you are taking on the developer's risk. To protect your capital:

• Stop looking at glossy marketing materials and start looking at what they have actually finished.
• Go visit a villa they built two years ago. See how the grout is holding up and if the drainage actually works or is present. Ask about their materials and long-term maintenance plans.
• If you aren't sure who is delivering on time and who is cutting corners, ask us for suggestions. We watch these projects get built every day and have developed an “eye” for it.

Get your boots on the ground

You can't do this properly from a laptop thousands of miles away. Get on a plane and experience the area yourself.

‍Here is what you need to do:

• Test the neighborhood: Stay in the exact area you want to buy in. Is the access road a nightmare? Is there a massive commercial project starting next door? What’s good? What’s bad? Would you stay there?
• Talk to owners: The local network is incredibly accurate about which areas are saturated and which are rising. Talk to the people who already own villas there.
• Lean on your agent: A solid agent has extensive experience and isn't just opening doors for you; they are your local consultant. They know what works, what doesn't, and will happily help you out with the realities on the ground whether you are here in Bali or looking to invest from abroad.

Reach out to us to get the conversation going.

Whatsapp or email