The financial breakdown of buying an existing villa
Deciding whether to buy or build a villa in Bali can be conflicting, especially for first-time investors. Below is a table showing the real estate costs in Bali for existing villas.
| Location | Median villa price | Average price per square meter |
|---|---|---|
| Canggu | $365,477 | $2,488/m² |
| Seminyak | $435,166 | $3,097/m² |
| Ubud | $347,436 | $1,749/m² |
| Nusa Dua | $422,553 | $1,574/m² |
| Sanur | $336,431 | $2,096/m² |
Advantages of buying an existing villa
Here are the key advantages of buying villas to help establish your Bali villa investment strategy, including:
- Convenience: One important factor when deciding whether to buy or build a villa in Bali is the convenience of existing properties. Purchasing an existing villa in Bali can save you time and money, as construction is no longer necessary. This option is ideal for those who want to move in quickly.
- No construction delays: Existing villas do not experience construction delays since they are already established. Minor renovations based on your preferences may occur, but they will not cause significant construction delays.
- Ready for rental income: Ready-to-occupy villas allow investors to earn rental income immediately, making it a significant advantage when deciding to buy or build a villa in Bali.
Challenges of buying an existing villa
There are challenges associated with buying existing villas in Bali. These challenges may include:
- Limited customization: Since the villas are ready for occupancy, customization opportunities are limited compared to building one from scratch. This limited customization can be a disadvantage and should be taken into account.
- Potential renovation costs: The only way to customize existing villas is through renovation, which can lead to additional fees. Such expenses can influence the decision to buy or build a villa in Bali.
The financial breakdown of building a villa from scratch
Constructing a villa from scratch involves various financial costs, including the expenses for land and construction. Below is the financial breakdown for building a villa in Bali.
Land prices in Bali
Land purchase for villas in Bali is a crucial factor in building villas. Here is a table of the land prices in Bali in various locations.
| Location | Median price | Land price per square meter |
|---|---|---|
| Canggu | $352,719 | $624/m² |
| Seminyak | $461,199 | $857/m² |
| Ubud | $233,750 | $166/m² |
| Tibubeneng | $327,758 | $791/m² |
Construction costs in Bali 2025
It is important to note that construction expenses in Bali can fluctuate based on the property’s type and location. We have compiled the approximate cost of building a villa in Bali to support your research.
| Villa type | Estimated building cost per m² |
|---|---|
| Single villa | $479 |
| Multi-story villa | $687 to $781 |
| Villa with luxury materials (e.g., wood and marble) | $1,443 |
| Villa with swimming pool | Villa type cost + $126 per m² of the pool |
Advantages of building a villa
Evaluating whether to buy or build a villa in Bali involves understanding the advantages of building a villa, such as:
- Customization: Many people choose to build a villa in Bali primarily because it allows them to customize the property according to their preferences. Since purchasing an existing villa offers limited opportunities for customization, this feature becomes a top advantage for those deciding whether to buy or build a villa in Bali.
- Potential savings in less popular areas: Building a villa can be expensive, especially in well-known areas where construction costs tend to be high. However, there is a hidden opportunity for significant returns and savings if villas are constructed in emerging and less popular locations, as the resources in these areas are more affordable. Buying or building a villa in less popular Bali locations is highly recommended.
Challenges of building a villa
Building a villa poses several challenges, just like purchasing an existing one. The following are the challenges to villa construction in Bali:
- Managing contractors: Constructing a villa in Bali involves collaborating with multiple contractors, which can be a challenge in addition to the associated costs. Finding the right contractor is essential, and effective management is needed to ensure the construction progresses according to the planned schedule.
- Longer timelines: Construction is a lengthy process that can take 8 to 14 months or longer, depending on the conditions. Therefore, longer timelines must be considered when deciding whether to buy or build a villa in Bali.
- Risk of delays: Construction delays can occur due to unforeseen events that impact the pace of work. If you plan to move into your villa as soon as possible, it is essential to consider the potential for construction delays when deciding whether to buy or build a villa in Bali.
Valuable insights and practical advice, distilled from years of expertise and real-world experience.
Is it cheaper to build a villa or buy one in Bali?
Contrasting whether to buy or build a villa in Bali based on which is cheaper involves several considerations. The cost of building a villa can vary significantly depending on several factors, including the property type, size, location, and the materials used.
Constructing a villa in Bali can be more cost-effective in the long run, especially if you have control over the design and materials. However, purchasing an existing villa may provide quicker returns, eliminating construction time and potential delays.
Ultimately, your decision should be based on your investment goals and the level of customization you desire, whether to buy or build a villa in Bali.
Comparing return on investment (ROI)
Constructing a villa in Bali may yield a more significant ROI as it allows for cost control and personalized design, though it demands time and project management. Purchasing a ready-made villa enables faster rental income and eliminates construction uncertainties, but it often comes at a premium price.
The ideal option depends on location, market conditions, and long-term financial objectives. Conducting thorough research helps analyze whether you buy or build a villa in Bali.
Other factors to weigh before making your decision
When deciding whether to buy or build a villa in Bali, it’s not enough to simply compare the advantages and challenges of each option. You must also consider additional factors that will influence the feasibility of your investment. These factors are outlined below:
- Local zoning laws: In Indonesia, land zoning categorizes land according to its permitted use and regulates the activities allowed in each area. These regulations, established by local and national authorities, consider environmental and developmental factors to ensure balanced land management. Additionally, local zoning laws may impact the buying process and land management. Therefore, it is essential to be aware of these laws before you buy or build a villa in Bali.
- Availability of suitable land: Land supply is often a significant factor to consider if you want to buy or build a villa in Bali. Suitable land availability is crucial for your construction project, significantly impacting the property’s value.
- Access to reliable contractors: Collaborate with trustworthy contractors in Bali to avoid scams. Look for contractors with solid reputations and prior experience working with foreign investors.
How you can analyze and predict the potential costs of buying vs. building a villa in Bali
To analyze and forecast the potential costs of building vs. buying Bali villas, consider using LandLoom. This comprehensive tool offers up-to-date cost information and Bali villa market analysis. LandLoom can help you compare the current market value of existing villas with the estimated building costs, considering factors such as location, property size, and design preferences. Additionally, you can gather information from construction firms and websites to assess construction costs in Bali for 2025.
LandLoom is your ultimate tool for navigating Bali’s real estate market. Access detailed analytics, market trends, and property insights to make data-driven investment decisions.
Frequently Asked Questions (FAQs)
What are the average construction costs for villas in Bali?
The average construction costs for villas in Bali typically range from $500 to $1,500 per square meter, depending on the design, materials, and location.
What factors affect the ROI of building vs. buying a villa?
The ROI of building vs buying a villa is influenced by construction costs, property location, market demand, rental potential, maintenance expenses, and the time required to complete construction.
How long does it take to build a villa in Bali?
Building a villa in Bali typically takes 8 to 14 months, depending on the design complexity, size, and weather conditions.
Is it easy to buy land in Bali as a foreigner?
No, buying land in Bali as a foreigner can be complex, as Indonesian law prohibits direct ownership, but it is possible through leasehold agreements or setting up a local entity (PT PMA).
