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Where in Bali should I buy property? Where can I expect the highest return on investment and where are the highest capital gains?
These are the most important questions investors ask us once they have decided to get into the property market.
The answer obviously depends on your individual investment goals.
Are you looking to buy a villa and use it as a residence or do you want to rent it out and use it only when it is empty? Do you have kids that need to go to an international school? How close to the airport do you need to be? How long do you plan to stay invested before reselling your property?
Popular Areas to Buy a Home in Bali
The most popular areas to buy a home in Bali are located in the southern part of the island, where you find the most developed tourist infrastructure. Here you can chose among several international schools, enjoy good health care and of course you have all the shopping of this world as well as Bali’s finest restaurants. No wonder, that this is also where traffic is at its worst.
The crowded South of Bali has motivated some investors to seek more remote locations along the west coast towards Gilimanuk or on the northern shores of the island, where prices are still low and Bali still feels original and not overdeveloped.
Here is a detailed overview of various popular living locations in Bali and our assessment of the investment potential.
Canggu – hip, hip, hipster!
Canggu is Bali’s trendiest place to play and live. It attracts tourists and expats alike. Orginally, it was mostly surfers who came to Canggu to ride the famous waves.
The opening of the “Canggu Club” in 2006 (now called “Finn’s Recreation Club”) is what really put Canggu on the map. The club hosts an international school (the “Canggu Community School”), indoor tennis courts, a full sized football field, a water park, a restaurant, a gym and more.
Four years later, Australia’s custom bike shop “Deus ex Machina” opened its doors and attracted the hipsters. Today the village is home to digital nomads, remote workers, expat families and entrepreneurs of all couleurs. It has the highest density of vegan eateries, beach clubs and co-working spaces in Bali.
Canggu is developing rapidly and soon there will be no empty spots left. Consequently, prices for Bali property have gone up steeply since Bali reopened to international tourism in April 2022.
The typical product offered in Canggu are small townhouses erected on land as big as a handkerchief. Most of them are offered off-plan.
Here is a list of villas in Canngu on offer these days.
There are also some good opportunities to buy apartments in Canngu.
If you are interested in buying just raw land and build your own villa, there are some good building plots in Canggu.
Is it too late to invest in Canggu now?
No, it is not. For now, property prices are still climbing but not for much longer. The market shows signs of overheating and the real estate price curve is about to flatten.
Today, Canggu still offers good returns for rental villas if marketed professionally. Realistic yields will vary from high single digit to low double digits.
Beware of those developers promising that you will get “your money back in four years!” This is stuff for fairy tales and simply not feasible.
Canggu covers a relatively small area and the official census counts only 7,000 inhabitants in 2022! But the name Canggu has become a brand that is bigger than reality and is now freely applied to a much wider area. So when a property is advertised for sale in Canggu, check out its exact location. As a general rule, real estate on the west side of the main road to Tanah lot is much more expensive than on the east side.
Our recommendation: if you are in the market for a rental villa to produce solid returns for you, then you have to calculate sharp and make sure you are buying at the right price. Expect returns between 5 -10% and don’t believe those billboards promising 20% and more! If you are looking to buy a residence then we advise you to search something on the fringes of Canggu. Avoid the centre of Canggu as it is already overcrowded – it won’t get better in the future!
Want to read more about where to live in Canggu, then read our in depth guide on the area.
Pererenan – the not so sleepy neighbour of Canggu
The once sleepy village of Pererenan has fast become a highly sought after alternative to its busy neigbhour Canggu. Along its main road to the beach, a new restaurant is opening every day and construction of villas and apartments is mushrooming. Pererenan is home to some of Bali’s largest and most luxurious villas. The village is very traditional and beautiful at the same time.
Our recommendation: If you can find a home here at a reasonable price or buy an empty plot to build your own villa, you can count yourself lucky. Prices are quite high already, but Pererenan is still a desirable and beautiful Bali village, which is not overdeveloped and will never get as crowded as Canggu – simply because it is much smaller and has only one main road!
Seminyak – upscale coastal luxury
Twenty years ago, Seminyak was as hip as Canggu is today, but on a level up in terms of quality accommodation and beach resorts. Five star hotels like the W Hotel, the Oberoi, The Legian and The Alila are landmarks on Seminyak’s long and gorgeous sunny beach. Some of Bali’s best villas are located here. They are built on generously sized plots of land and were erected when land prices were still affordable. Today there is very little empty land for sale and if you want to get a villa in Seminyak, you will have to look at resales.
Alternatively, they are also a few apartments that might interest you.
Our recommendation: If you like a more chic area with some of Bali’s best restaurants and boutiques, Seminyak is definitely a good choice both as a residential area, as well as for prime villa rentals. Seminyak is fully developed so you don’t have to worry about the impact of massive construction close to your property.
Uluwatu and the Bukit – best surf and dramatic cliff front
Famous for its killer waves, Uluwatu has attracted the most daring surfers. The ‘Bukit’ (the hill, in English), as the locals call Bali’s southernmost peninsula, features some of Bali’s most dramatic cliff frontage with amazing views and sunsets on its western side. Here you find Bali’s most expensive real estate. It is home to some of the world’s leading five star hotel brands like The Four Seasons, Bulgari, Jumeirah, Six Senses and many more.
Recently, Uluwatu and the Bukit have gained enormous popularity among a younger crowd, almost rivalling Canggu. New guesthouses, co-working places, restaurants and hotels are popping up everywhere and prices are going up steadily.
The Bukit is a vast area that is much drier than the rest of Bali. It has some of the best secluded beaches on the island. Because of its size, there will always be some empty land to build your own property. But the challenge is to find a plot with an unobstructed view, which is quite rare.
Our recommendation: If you are into surfing and don’t mind to have a bit less touristic infrastructure, you should consider the Bukit. Fresh water supply can be a challenge though as you will depend on public water supply, which at times is unreliable. The Bukit offers plenty of sun and pristine waters. It’s far from Bali’s international schools, thus not ideal if you have kids that need to go to school.
Sanur – “Snore” or the cradle of Bali tourism
Digression on the birth of tourism in Bali:
After the war for independence ended in 1949 with Indonesia becoming independent from The Netherlands, a small group of Europeans settled in Sanur and gathered around the bar of The Tandjung Sari, Bali’s first boutique hotel built in 1962 as a Balinese village featuring carved wooden doors, coral walls and thatched roofs. The Tandjung Sari later gained fame for hosting Mick Jagger and Jerry Hall’s wedding and attracted stars like Ingrid Bergman, David Bowie, Annie Lennox, Ringo Star, Yoko Ono as well as numerous Indonesian celebrities.
In 1965, the Indonesian government built the first international hotel, the Bali Beach InterContinental Hotel. It is a massive and blunt 10 storey building that stood in stark contrast to the existing hotels and guesthouses built in authentic Balinese style. Strong local protest against the Bali Beach Hotel finally led the government to issue a regulation that prohibits building higher than a coconut tree. This rule is still respected today!
Around the same time, a group of visionaries like Australian artist Donald Friend, architects Goeffrey Bawa and Peter Muller and many more came to Bali and built the first Bali style residential estate: The Batujimbar Estate. It exists until today and has inspired many other hotels and residential buildings like the Matahari Hotel, which later became the Hyatt Regency or the Aman Resort in Ubud by hospitality visionary Adrian Zecha.
In the 21st century Sanur lost a bit of its fame and shine as new tourist destinations came up like Kuta and Legian, Nusa Dua, Jimbaran and later Seminyak and Canggu. That’s why some expats have dubbed Sanur “Snore” as it is more laid back and quiet.
Today it is a relief to drive through Sanur as the main roads are wide enough and traffic is comparatively mild.
Sanur is home to the recently renovated Hyatt Regency and its new and more luxurious sister hotel The Andaz.
There are two different parts of Sanur: one is on the west side of Bypass Ngurah Rai and the other is between the bypass and the beach. Obviously, the latter is the more expensive side of Sanur, where most of the hotels are located and where some large villas have been built. The cheaper west side offers plenty of options to find a house in a relatively quiet area.
The Bali International School in Sanur is Bali’s oldest international school and has an excellent reputation. Sanur also offers quality shopping for groceries at Grand Lucky, Bali’s best stocked supermarket.
Our recommendation: If you don’t need the buzz of Canggu or Seminyak and you can live without sunsets, then Sanur is the perfect choice. Real estate prices are stable and predictable. All in all, Sanur is a good residential area with plenty of restaurants, shopping and quality hotels. And above all, there are no traffic jams (yet)!
Feel free to check out our Sanur property listings.
Ubud – Cultural Capital of Bali
Ubud got known internationally thanks to its artist community that settled in the village prior to the Second World War. It attracted the likes of Charlie Chaplin, Margret Mead, Miguel Covarrubias and Vicky Baum, who wrote the famous book “Love & Death in Bali” (1937), a novel, every visitor to Bali should read, especially today.
The German painter Walter Spies inspired a whole new generation of Balinese artist with his Pita Maha artist cooperative. His influence persists till now.
Ubud is also well known for its royal palaces, museums, ancient temples and of course for the dramatic Ubud river views along the Ayung river. Some of the world’s leading hotel brands have settled along the ridge of the Ayung like the Four Seasons, the Ritz Carlton and Como Shambala, just to name two out of many more.
Today Ubud hosts international art, music, film and food festivals that attract a huge crowd from all over the world.
But with success came more crowds and Ubud now has traffic as bad as in the South of Bali. Nevertheless, the neighbouring villages offer a great canvas for villas and residences. Prices for real estate vary largely, depending on location and distance from Ubud centre.
Our recommendation: if you love arts & culture and like it a bit cooler than in the steamy south of Bali, then consider Ubud and its surrounding villages. The inventory of homes and villas for sale is not as big as in the south though. You may eventually settle for an empty plot of land and build your own dream house. Rental returns in Ubud are a bit lower than in Canggu. But still there is solid demand for quality accommodation.
Check out these pages for our Ubud propertylistings.
North Bali – The lost Bali?
The North of Bali is becoming something like an insider tip for those who don’t need all the ‘madness’ of the South and prefer to experience the ‘real’ Bali.
Let’s start on the northeast coast, in Amed, a fishermen’s village stretching along a 10 km coastline with sandy beaches and coral gardens. There are no fancy hotels here. But you find some nice guesthouses and a few boutique hotels, restaurants and simple ‘warungs’, which make up the charm of this growing destination.
We follow the coast up north and come to Tejakula, a quaint fisher village that has attracted quite a few resorts offering yoga and health retreats. In fact, Tejakula has become a bit of an alternative to Ubud as it is so much more quiet and relaxed.
Further north, one passes through the old capital of Bali, Singaraja, and then comes to Lovina, which got famous for its dolphin watching cruises but has lost a bit of its former shine.
Finally we arrive in Pemuteran, the gem of North Bali. All the sudden, the beach turns from black to a warm golden color. This is home to Bali’s national park and the world famous diving and snorkeling island of Menjangan. There is even a small airport where Garuda is training their pilots. Rumors are that the airport runway will soon be expanded for domestic flights.
Pemuteran has the best hotels in North Bali and has been a favourite destination for Bali’s expats escaping the busy life in the South.
If you are lucky, you may even discover the only beach in North Bali facing west and offering magnificent sunsets and views of Java’s volcanoes!
Our recommendation: if you want to invest long term and don’t need all the infrastructure of the south, North Bali has plenty of nature and culture to offer. Land is still very affordable, and you may even pick up a plot on the beach or on the hill with ocean views. We predict that Pemuteran will see the fastest growth in North Bali.
Feel free to browse our North Bali listings.
West Coast – beautiful black sandy beaches & waves
Bali’s west coast from Tanah Lot to Medewi is another upcoming destination. Domestic and foreign investors are picking up large beachfront plots in anticipation of the long awaited toll road linking Bali and Java. Hospitality infrastructure is still in its infancy here, but there are a few boutique guesthouses like “Wide Sandy Beach Resort” or the more fancy “Kelapa Retreat & Spa”. Recently, the 8 suite hotel “Lost Lindenberg” has opened its doors and is catering to an exclusive crowd of travellers looking for the ‘lost’ Bali.
Our recommendation: Similar to North Bali, the west coast is an attractive destination to invest long term. The toll road will eventually come and massively shorten travel times from Java and Bali’s international airport. If you can afford, invest in a plot of beachfront land and build your own dream villa or simply wait a few more years and enjoy seeing the value of your property going up steadily.
FAQ
Where is the best place to buy a house in Bali?
In our opinion the best place to buy a house in Bali is still in the South for its tourist infrastructure. But chose something that is not right in the centre of Canggu. Seminyak and Umalas are great alternatives and so is Sanur. If you want a view, go to the Bukit.
Where is the cheapest place to live Bali?
The cheapest place to live in Bali is in North Bali or on the southwest coast of the island. Here land prices are still cheap and shopping is limited so you will not be tempted by french wine and swiss cheese.
Conclusion
Bali offers plenty of good options if you want to get into the real estate market. There is something for everyone’s taste. It really depends on your preferences and must have. If you have kids that go to school you will most likely want to be somewhere in the South. If you travel a lot, you may want to be within an hour to the airport.
It is always smart to talk to the experts before making such an important decision. Contact us and get a free consultation from one of our trusted advisers.
