Can foreigners buy property in Bali?
Bali provides foreigners various real estate investment opportunities, including villas, apartments, lands, and commercial properties. Although Indonesian laws and regulations restrict foreign investment in the housing market, Bali remains open to foreign buyers with feasible options to buy a property.
Property ownership in Bali
Bali and other areas in Indonesia offer different types of property ownership, including Hak Milik (Right to Own), Hak Pakai (Right to Use), and Hak Guna Bangunan (Right to Build). Hak Milik is the most desirable form of property ownership, but it is not available to foreign buyers. Therefore, foreigners interested in investing in real estate in Bali and other cities in Indonesia must explore alternative options for property acquisition.
How can foreigners buy property in Bali?
Foreigners can establish a foreign-owned company to buy real estate in Bali. This company is called a PT PMA (Perseroan Terbatas Penanaman Modal Asing), a legal entity that can own real estate through leasehold and freehold. After conducting due diligence, the real estate transactions will be executed at the notary, where land titles such as Hak Pakai and Hak Guna Bangunan must be obtained to develop and use the property. Through a PT PMA, foreign buyers can get a Working KITAS or Investor KITAS, allowing them to stay in Indonesia for up to 24 months.
6 steps to buying property in Bali
If you’re a foreigner looking to invest in property in Bali, you can acquire property by following these six steps:
- First, establish a PT PMA in Bali.
- Obtain the property certificate from the Indonesian National Land Office (BPN).
- Make the payment and provide proof of payment.
- Provide evidence that the necessary conditions for Hak Guna Bangunan or Hak Pakai are met.
- Apply for a building approval (PGB) to gain the right to build on the property.
- The BPN will issue the property certificate in the name of your PT PMA.
Bali real estate prices
The table below provides a summary of the real estate prices in Bali.
Average buy price | Average price/sqm. | Average rent price | Annual growth | Rental yield | |
---|---|---|---|---|---|
House | IDR 2.4 million ($151) | IDR 14.7 million ($926) | IDR 85.1 million ($5,361) | + 47.2% | + 42.4% |
Commercial | IDR 4.3 billion ($270,900) | IDR 17.3 million ($1,090) | IDR 158.1 million ($9,960) | + 0.2% | + 44.2% |
Apartment | IDR 1.7 billion ($107,100) | IDR 22.9 million ($1,443) | IDR 2.2 million ($139) | + 78.7% | – |
Land | IDR 1.8 billion ($113,400) | IDR 1.7 billion ($107,100) | IDR 15.7 million ($989) | + 28.1% | + 10.5% |
Why is it smart to invest in Bali real estate?
There are several reasons why it’s smart to invest in a Bali villa. Bali’s tourism industry continues to grow, and the island is a popular vacation destination worldwide. This means a strong demand for rental properties can provide investors with a steady income stream.
The Balinese real estate market has been steadily appreciating over the years, with many experts predicting this trend will continue. This means that investing in Bali real estate can be an excellent way to build wealth over the long term. The relatively low cost of living and high quality of life make it an attractive destination for retirees, digital nomads, and remote workers. There is a growing demand for properties catering to these groups, such as villas and apartments with modern amenities.
Investing in Bali real estate provides investors with rental income, capital appreciation, and lifestyle benefits. However, as with any investment, it’s essential to research and work with a reputable real estate agent to ensure that you make an informed decision.
Are you interested in buying a Bali villa?
Are you interested in investing in a villa in Bali? Bali offers several reasons why purchasing property on the island can be a profitable investment. The island’s breathtaking natural scenery, rich cultural heritage, and thriving tourism industry are just a few reasons to consider investing in Bali’s real estate.
Foreign buyers who wish to buy real estate in Bali can explore various options, with one recommended approach being establishing a foreign-owned company or PT PMA. However, the legal process of setting up a PT PMA can be challenging. Working with a reputable Balinese real estate agent who can guide you through the process and secure your investment is advisable.
Best real estate agents in Bali
Foreigners who want to buy real estate in Bali better seek assistance from a reputable local real estate agent. These agents have the local expertise, market knowledge, and legal understanding necessary to navigate the intricacies of the real estate process in Bali. They can guide foreigners through the legal requirements, help identify suitable properties, negotiate favorable deals, and ensure a smooth transaction.
Need help with buying property in Bali?
Looking to buy property in Bali, Indonesia? Leave your name and email below, and our expert team will assist you with every step of the process, from legal assistance to finding the perfect property, negotiating terms, and conducting thorough due diligence. We provide personalized support tailored to your needs, ensuring a smooth and successful purchase experience. Whether you’re a first-time buyer or an experienced investor, we’re here to help. You can also email us directly at [email protected] for assistance. Start your property journey in Bali today!
Frequently Asked Questions (FAQ)
Can a foreigner buy a house in Bali?
Foreigners can buy a house in Bali through a foreign-owned company, or PT PMA, which grants legal property ownership. It’s important to note that the establishment of a PT PMA can be a complex process, and seeking the guidance of a reputable real estate agent or legal advisor is advisable.
How expensive is real estate in Bali?
Real estate prices in Bali vary depending on the location, property type, and other factors. In general, areas such as Seminyak, Canggu, and Ubud tend to have higher real estate prices due to their popularity among tourists and expats. However, more affordable options are also available in other parts of Bali.
Where can I find land or a house for sale in Bali?
You can explore local marketplaces, contact real estate agents, check classifieds in local newspapers, or browse online property listings. Additionally, reaching out to individuals residing in Bali through your network can provide valuable insights into the best real estate deals in the area.