Absolutely. Bali's real estate market offers some of the highest returns in Southeast Asia, driven by powerful, sustained growth. With over 6 million foreign visitors in 2024 and 7 in 2025, the demand for quality accommodation is at an all-time high. Major infrastructure projects like the new toll roads and potential North Bali Airport, combined with investor friendly visa reforms, are set to fuel further appreciation and rental demand, making it a prime time for international real estate opportunities.

Bali is famous for its lucrative rental yields. For a well-located and properly managed short-term rental villa, you can realistically expect an annual ROI between 12% and 20%. For established, ready-to-rent villas, the ROI is typically a very strong 10-18%. This high return potential means the payback period for your investment can be as short as 4 to 7 years in high-demand areas.

While the island wide average occupancy was around 59% in 2024, this figure is much higher in prime tourist hotspots. In sought-after areas like Canggu, Pererenan, and Uluwatu, it's common for well-marketed Bali villas for sale to achieve occupancy rates of 75% to 90%, ensuring a consistent stream of rental income.

This is the most critical question. While foreigners cannot directly own land under a "Freehold" (Hak Milik) title in their personal name, there are two secure and well-established legal structures for ownership:

1. Leasehold (Hak Sewa): This is the most common and straightforward method. You lease the land and villa for an initial period, typically 25 to 30 years. The contract includes clauses for extensions, often allowing you to control the property for 60+ years. You have the full right to build, renovate, sell, or rent out the property during the lease term.

2. Freehold via a PT PMA (HGB Title): For the highest level of control, you can set up a foreign-owned investment company (a "PT PMA"). This company can legally acquire a "Right to Build" (Hak Guna Bangunan - HGB) title. This title gives your company ownership rights for 30 years, which can be extended for another 20, and then another 30, for a total of 80 years.

Think of it like this:

• Leasehold is like a long-term rental of the land. It has a lower entry cost and is perfect for investors focused on generating income with rental villas over a few decades.
• Freehold (via HGB) is the closest a foreigner can get to outright ownership. It involves higher setup costs (for the company) but offers more stable long term value appreciation and is ideal for larger scale developments or long term family holdings.

The property reverts to the original Indonesian landowner *unless you have exercised your extension*. It is crucial that your initial leasehold agreement, drafted by a trusted notary, clearly specifies the terms, price, and mechanism for these extensions. A well written contract protects your investment for decades to come.

No, you do not need a visa to purchase property. You can complete the entire transaction on a standard tourist visa or even remotely. A visa is only required if you plan to stay in Indonesia for longer than 60 days. A local tax ID (NPWP) is only necessary once you start generating rental income from your property.

Operating costs are surprisingly affordable. You should budget for:

• Property Management Fees: Typically 10-25% of rental revenue, covering everything from bookings to guest services.
• Annual Property Tax (PBB): Very low, often less than $80 per year for an average villa.
• Banjar (Community) Fees: A small local contribution for trash collection, security, and ceremonies, usually around $100-150 per year.
• Insurance: Varies by coverage, but generally ranges from $200 to $800 annually.
• Utilities & Maintenance: Standard costs for electricity, internet, pool, and garden care.

The most profitable strategy is typically short-term (daily) rentals, which deliver the highest ROI (12-20%). To succeed, your villa must be in a prime location, feature a unique design or amenities, and be supported by excellent operational management. Offering medium-term (monthly) rentals can also be very profitable (10-12% ROI) and appeals to the growing digital nomad market.

Off-Plan: You buy a villa for sale in Bali before it's built, usually at a 20-30% discount compared to its final market value. This offers excellent capital appreciation upon completion but carries construction risks and a waiting period before you can earn income.

Ready Villa: You purchase an existing property, which allows you to start generating rental income immediately. This is a safer, more straightforward approach but requires a higher initial capital outlay.

Yes, you can. The process is managed through a legal instrument called a Power of Attorney (POA). You appoint a trusted representative (often your legal advisor or agent) in Bali to sign the documents on your behalf. You retain full control and review all contracts before they are signed. No special visa is required for a remote purchase.

1. Define Your Goal: Decide if you're buying for lifestyle, rental income, or capital growth.

2. Assemble Your Team: Engage a reputable real estate agent, a trusted notary, and a lawyer (Your agent will organise everything for you).

3. Due Diligence: This is the most critical step. Your team will verify the land title, zoning certificates, building permits (IMB/PBG), and ensure there are no disputes.

4. Negotiate & Deposit: Agree on the price and terms. A 10% deposit is standard.

5. Finalize at the Notary: Sign the official deeds (Akta Jual Beli), complete the final payment, and the notary will register the title transfer.

The vast majority of foreign investors manage their properties remotely. This is done by hiring a professional property management company. They handle everything from marketing on Airbnb and Booking.com to guest check-ins, cleaning, pool maintenance, and financial reporting, bookkeeping and handle taxes on your behalf, making it a truly passive income with rental villas opportunity.

The best location depends on your investment goals:

• For High Rental Demand & Trendy Vibes: Canggu (Batu Bolong, Berawa) remains the king, with Pererenan right next door offering a slightly more relaxed feel with massive growth.
• For Luxury & Strong Capital Appreciation: The Uluwatu peninsula (Bingin, Pecatu) is the hotspot for premium clifftop villas with incredible ocean views.
• For Emerging Growth & Future Gains: Look towards Seseh and Kedungu. These coastal areas are just past Pererenan and are poised for significant appreciation as development moves up the coastline.
• For Stable, Family-Friendly Markets: Sanur, Umalas, and Jimbaran offer relaxed atmospheres and consistent demand from families and long-term renters.