Are you interested in buying property in Canggu? It is no surprise that many foreigners opt for property investment in Canggu, given its rising popularity among tourists. Canggu features stunning black sand beaches, world-class surfing options, a laid-back vibe, and a vibrant nightlife. This article will explore the different ways foreigners can pursue when buying property in Canggu.
Can foreigners buy property in Canggu, Bali?
Foreigners can buy property in Canggu in several ways, such as through a leasehold agreement or a PT PMA. However, foreigners can’t obtain full ownership of real estate in Indonesia. Hak Milik (HM) is the highest form of property ownership that Indonesian nationals can obtain.
Bali real estate market
Canggu’s beaches, with Echo Beach, Batu Bolong Beach, and Berawa Beach being the most popular, are major reasons for tourists to visit Canggu. These beaches offer some of the best surfing waves in Bali, with Echo Beach, in particular, attracting surfers from around the world. The area around Canggu is home to several beach clubs and restaurants, making it a popular spot for sunset drinks and dining. Many foreigners dream about owning a villa in Canggu.
The regulations and rules that apply to Canggu also apply to other regions and towns in Bali, although there might be several differences in regulations between districts and villages. Working with a legal or real estate agent who understands the local laws and regulations is smart.
How can foreigners buy land or a villa in Canggu?
Canggu is a village in Bali where foreigners can buy property in five ways. One of these methods is villa leasehold, wherein the foreigner leases the property or land for a certain period, usually 25 or 35 years. These are all the ways foreigners can buy Canggu property:
- Leasehold: Indonesian leasehold agreements, valid for 25 years, enable foreigners and PT PMAs to invest in Canggu property for residential and commercial use.
- Hak Pakai (HP): Foreigners with KITAS or KITAP can buy specific Indonesian properties under the Hak Pakai title. Buying under Hak Pakai may qualify foreigners for the Second Home ITAS, valid for five or ten years.
- Hak Guna Bangunan (HGB): Hak Guna Bangunan allows foreigners to build and own property on land owned by someone else, such as an Indonesian individual, entity, or state.
- PT PMA: Foreigners can invest in Indonesian property to generate rental income through a PT PMA and qualify for a two-year Investor KITAS.
- Passport: In 2023, the Indonesian government allowed foreigners to buy property using only their passport, subject to specific investment and land size criteria.
The best way to buy property in Canggu depends on your circumstances and the purpose of your purchase. Do you want to buy a villa in Canggu and live there yourself? Buying through leasehold, Hak Pakai, or a passport might be the best option, although you must meet specific criteria to buy under Hak Pakai or a passport. Hak Guna Bangunan is a land title that makes it possible to lease land in Canggu and build your villa on top of it.
Another way to buy real estate in Canggu is through a PT PMA, which is a legal entity that is a perfect way for those wanting to buy property as an investment or to obtain the Investor KITAS (a two-year valid Indonesian visa). However, you first have to start a PT PMA in Bali, which can take around ten weeks.
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How to find property for sale in Canggu
You can find different kinds of real estate for sale in Canggu, from beachfront villas to plots of land. However, finding the right property in Canggu that meets all your criteria is something else. There are several ways to find property for sale in Canggu, where property websites are the most common.
However, you won’t find all the available land and villas on real estate websites. Bali property agents, who understand the local real estate market and have a broad network, have many listings with land and villas for sale, making it easier to find your dream home in Canggu.
It’s not necessary to navigate the real estate market in Canggu on your own. Own Property Abroad has an expert team that can assist you. For further information on how we can help you, kindly email us at [email protected].
Property prices in Canggu, Bali
Canggu is popular among foreign investors. Buying several kinds of properties in Canggu is possible, like houses, villas, apartments, and commercial buildings. You could also buy land and build your villa in Canggu. You’ll find an overview of the average property prices in Canggu below.
| Average buy price | Average price/sqm. | Average rent price | Annual growth | Rental yield | |
|---|---|---|---|---|---|
| House | IDR 4.3 billion ($270,900) | IDR 27.4 million ($1,726) | IDR 268.6 million ($16,922) | – | – |
| Apartment | IDR 2.2 billion ($138,600) | IDR 45.4 million ($2,860) | – | + 4.2% | – |
| Commercial | IDR 4.3 billion ($270,900) | IDR 27.1 million ($1,707) | – | – | – |
| Land | IDR 1.5 billion ($94,500) | IDR 2.6 million ($164) | IDR 81.5 million ($5,135) | + 71.8% | – |
Why a property investment in Canggu is worth it
Bali is a well-established tourist destination, and Canggu is an up-and-coming area within Bali with much growth potential. Canggu is a popular destination for property investment for several reasons:
- Canggu is Bali’s most popular destination: Bali is a renowned tourist hotspot, and Canggu is one of Bali’s most popular destinations for domestic and international tourists.
- Huge growth potential for property investment: Canggu presents significant growth potential due to its emerging status in Bali.
- Canggu is surrounded by beautiful nature: Canggu is celebrated for its breathtaking beaches, picturesque rice fields, and lush tropical landscapes.
- Relaxed lifestyle: Canggu offers a serene, laid-back lifestyle, ideal for those seeking tranquility.
- Many restaurants and bars: The area of Canggu boasts a rich food and beverage landscape, featuring a mix of local and international restaurants and cafes.
- Steady market growth: Bali’s real estate market has consistently grown, with property values rising.
- Potential rewarding opportunity: Real estate in Canggu offers a potentially rewarding opportunity, especially for long-term investments with appreciation prospects.
- Canggu’s overall appeal: Canggu’s unique blend of location, lifestyle, and market potential makes it a prime choice for real estate investment.
Starting villa rentals in Canggu
If you’re considering starting a villa rental business in Bali, you may want to consider Canggu as your ideal location. There are several reasons to start villa rentals in Canggu. Firstly, Canggu is a popular tourist destination, making it an attractive place for potential renters. This area has a high demand for villas and accommodations, resulting in high occupancy rates. Profit margins can be maximized as Canggu’s operational and maintenance costs are relatively low compared to other global tourist destinations.
Canggu has evolved into a digital nomad hub, offering more than just a transient destination for tourists. This trend significantly expands the potential client base for villa rentals, as remote workers typically require comfortable and extended stays.
Property management in Canggu
If you own property in Canggu, it would be wise to consider working with a property management company. As the area’s real estate and villa rental market continues to thrive, property management has become increasingly important. By utilizing the services of a reputable property management company, you can ensure that your property is well-maintained, marketed, and overseen.
The services offered by property management companies in Canggu include handling bookings, ensuring regular maintenance and upkeep, and navigating local regulations for compliance. These companies can also help property owners optimize rental pricing and occupancy rates, leading to increased revenue. Therefore, hiring a reputable property management company in Canggu is worth considering if you desire to earn passive income from your property investment while providing excellent service to your guests.
Sell your property in Canggu in 9 steps
Do you want to sell your property in Canggu? Follow these nine steps to ensure a smooth property sale transaction in Canggu:
- Preparation: The first step is to clean, declutter, and possibly stage your property to make it more appealing to potential buyers.
- Documentation: Ensure all property documents, including ownership certificates and tax records, are up-to-date and readily available.
- Set the right price: Research the current real estate market conditions in Canggu and set a competitive price for your property.
- List your property online: Use online platforms to reach a wider audience. List your property on our platform for maximum visibility and potential buyers.
- Work with a Canggu real estate agent: Collaborate with a knowledgeable local agent in Canggu to navigate the selling process. If you’re looking for a trusted agent, email us, and we’ll assist you.
- Promote your property: Use social media, local newspapers, and word of mouth to advertise your property further.
- Negotiate offers: Once you receive offers, negotiate terms and prices for the best deal.
- Legal formalities: Engage a lawyer to help with the sale’s legal aspects, ensuring all paperwork is correctly handled.
- Finalize the sale: Once an agreement is reached, finalize the sale, transfer ownership, and hand over the keys to the new owner. Ensure to inform local authorities and utility companies about the change in ownership to ensure a smooth property transition.
Selling your villa or land in Canggu can be a complex process, but it can be a smooth and profitable experience with the right resources and guidance.
Buy a house or villa in Canggu with Own Property Abroad
Do you want to buy property in Canggu? Or are you seeking to sell your Canggu property? Own Property Abroad can assist you and ensure a seamless and hassle-free real estate transaction. Thanks to our extensive knowledge and local experience in Canggu, we can help with legal requirements, finding suitable properties, negotiating the best deals, and conducting due diligence.
With our expert team, you won’t have to navigate the complexities of the Indonesian market alone. For further information on how we can assist you, kindly drop your details below or email us at [email protected]. Let’s start working on your property success story today!
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Frequently Asked Questions (FAQs)
Can foreigners buy a villa in Canggu?
Yes, foreigners can buy a villa in Canggu, Bali. However, Indonesian property laws state that foreigners cannot own property directly in their name. Instead, they can acquire property in Canggu through a leasehold, Hak Pakai, Hak Guna Bangunan, a passport, or a PT PMA (foreign-owned company).
How expensive is real estate in Canggu?
How expensive real estate in Canggu is greatly depends on factors such as location, property type, size, and condition. The average house price in Canggu is IDR 4.3 billion ($270,900). Generally speaking, property prices in Canggu tend to be higher than in other areas in Bali due to its popularity among tourists and expats.
Where to find land or a house for sale in Canggu?
To find land or a house for sale in Canggu, Bali, you can check with real estate agents, online property portals, classified ads, or network with locals and expats. Make sure to work with reputable sellers and conduct due diligence before purchasing.
