How to Build a Villa in Bali​

We maximize opportunities for building a villa in Bali by delivering the highest return on investment in the shortest time, avoiding construction and management mistakes through data-driven insights and expert consultation.

Discover Bali's Evolution from 1984 to 2022

Explore how Bali has transformed over the years. Use the interactive timeline to see the evolving landscapes that shape today’s property investment opportunities.
Click “Play” at the bottom left to watch Bali’s transformation unfold. Use the timeline to navigate different years or zoom in for a detailed view of areas you’re interested in.

Things to Consider Before Building a Villa in Bali

Regulatory Compliance

Adhere to local construction laws, codes, and zoning

Budget Management

Manage finances, anticipate costs, and plan for unexpected expenses

Location and Design

Select tourist-friendly locations; use sustainable, local designs and materials

Legal Issues

Understand property laws for foreign ownership, including specific titles and agreements

Labor and Maintenance

Hire skilled workers; design for low maintenance costs

Market Strategy

Analyze market trends to boost ROI and adapt to various guest needs

Guest Experience

Enhance guest satisfaction & manage properties efficiently

Materials

Choose durable materials appropriate for the climate; ensure quality installation

Build Your Ideal Villa with Professional Guidance

We connect you with our Community Experts—trusted professionals who will support you from planning to construction, making sure your villa is built quickly, smoothly, and with great quality.

Do This Before Building a Villa in Bali

Investment Planning

Enhance your investment returns by leveraging our data-driven property management services. We provide tailored investment strategy guidance, helping you select the optimal location and design for your villa to maximize ROI and minimize future costs.

Investment Strategy

Here, we focus on identifying the optimal location for your villa using our innovative heatmap. From there, we will determine the best and most unique design based on Airbnb data analysis to ensure your villa aligns with market demands. Finally, we plan for the future of your villa by calculating the ROI and devising strategies to minimize your extra costs. All revenue estimations are projected transparently.

Inspirational Investment Advice 

By using our investment strategy service, you will receive unparalleled data-driven, investment-grade advice tailored for building villas in Bali. Benefit from personalized business plans that not only forecast your earnings but also strategically optimize your investments throughout the project’s lifecycle, ensuring every decision maximizes your financial success.

Understanding Legal Permits in Bali

Navigate the legal complexities of property investment in Bali with confidence. We provide comprehensive information on obtaining necessary permits such as Pondok Wisata, PBG (Perizinan Bangunan Gedung), and SLF (Sertifikat Laik Fungsi), ensuring your villa meets local regulations to maximize ROI and minimize future costs.

Pondok Wisata permit is a special license required for renting out villas or houses in Bali. It’s essential for legally operating short-term rentals and capitalizing on Bali’s tourism industry.

Persetujuan Bangunan Gedung (PBG) or Building Approval Permit ensures that the proposed building plans comply with local regulations and standards.

Sertifikat Laik Fungsi (SLF) or Certificate of Functionality certifies that the building is safe for use and meets all functional requirements.

Discover More Experts from Our Bali Business Review

Get the latest trends, expert investment insights, and exclusive industry interviews in one place—your essential guide for staying ahead.

Turn Your Bali Villa Construction Into Reality

Embark on your construction journey with confidence, guided by our seasoned experts

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CONTACT US!

For a Hassle-Free Consultation

Stay informed by connecting with the most knowledgeable property manager in Bali online, or join us for a casual dinner and meet our team directly in our office! 

Frequently Asked Questions

Need some help? We’ve got you covered!

Yes, we can fully manage your property development. The service fee for this comprehensive support is a 10% charge, which applies when we take on the complete responsibility of preparing and maintaining your property to the highest standards. This includes:
  • Creating a detailed inventory list.
  • Sourcing all required materials and supplies.
  • Handling logistics such as purchasing, deliveries, and setup.
  • Ensuring that the property is fully ready for guests.
For instance, if the total cost of materials and services is IDR 1,000,000, you will pay IDR 1,100,000. This service fee ensures a seamless experience, allowing you to focus on other priorities while we expertly manage every detail of your property development. You will receive receipts for all purchases, ensuring full transparency throughout the process.
 
How does the service fee work?
The service fee is applied only when we are responsible for managing the entirety of your property development and covers all aspects of the process. We can support the rest without the service fee if you manage some aspects yourself.

Some partners will have a PT PMA, some partners will not. Every investor will have different appetites for legal risk, and there are cases where you can be overexposed or underexposed, depending on the law. We at Bukit Vista do not assume legal responsibilities for any partner; you’ll need to decide what’s the right level of compliance from a personal investment standpoint.

Learn more about Indonesian Property Law here

Taxes are the private affairs of each investor and we will follow your direction

However, when considering Bali villa investment, it’s crucial to understand that tax obligations can have a significant impact on your overall returns.

This situation could change in the future as management companies or platforms may be obligated for collecting tax on behalf of owners.

Learn more about tax here

This is where many investors get it somewhat wrong. Real estate is often about location, location, location. The truth in Bali is that the location is only a component of the primary consideration. The key is delivering exceptional guest experience. We’ve seen challenging locations that have been corrected by exceptional design and hospitality, my own workplace Aman Resorts could be an example of this, USD 3000 a night to stay in remote places with no WiFi. 

We’ve also seen prime locations that have been poisoned by a culture of exploitation, greed, and short-sightedness, this is the primary condition that Kuta suffers from. However, even in Kuta, which is generally considered a terrible location, you have exceptional businesses like Me Vui (a Vietnamese super-brand in the Food & Beverage industry) founded in Kuta. Truthfully, we can’t evaluate a location without the context of what you’re planning to build and for what audience. A feasibility study is crucial to ensure that your chosen location aligns with your business goals and the target market. When considering a Bali villa investment, it’s essential to align your chosen location with your business goals and target market to ensure long-term success.

The best way is to bring us what you think are investment-grade options and our business analysts will perform a business appraisal. We might give you some free advice if you’re nice, but this is a paid service.
If you have no idea what you’re planning to build and your audience yet, at least come with some land or buildings and we’ll direct you towards an investment strategy plan.
You run no risk, since we’ll offer you a money-back guarantee if you can factually prove our appraisals and strategy are incorrect.

Our appraisals and strategy consultations are objective advice with no strings attached. Free consultation is a form of marketing. We do not sell real estate, we do not accept kickbacks from recommendations, and we earn our income from offering management services to owners with a guaranteed promise to earn the highest return in the shortest time. Since you’ll be several years away from needing management services at this point, we are not bundling our management services with ‘free’ investment advice.

We’ve collected millions of data points in Bali since 2011, and we’re the largest Airbnb host in Asia. Our experience across a vast range of properties, including villas, apartments, guesthouses, resorts, and hotels, and the strength of our technology, gives us a unique and powerful perspective about what does & does not work as an investment vehicle. Our approach to portfolio management ensures that each investment decision is made with a long-term perspective and aligned with your specific financial goals.

Paying for an investment consultation saves you potentially millions of dollars in misery from a redesign, variation orders, or empty properties. The worst part could simply be that you have repeated a known mistake that befell a previous developer. Be smart, pay for the consultation, and confidently go ahead knowing you did your homework.

We would need to consider the locationproduct-user fit, and we’ll ask you a few questions about what kind of relationship you’d like to have with your management company. As a rule of thumb, build something differently than your neighbors in accordance to Balinese architectural principles. This will help you distinguish yourself and improve the timelessness of your design. 

Conducting a feasibility study before finalizing your design is crucial to ensure that your villa not only meets aesthetic and functional standards but also aligns with market demand and investment potential

Property owners can consider some of our standards on the page related to qualitative and quantitative assessment

There is no average ROI. Your ROI will depend long term on your branding and ranking, and that will depend on your ability to innovate in a dynamic marketplace. Short-term the most impactful factors will be your relationship with your management company, design, location and product-user fit. 

Effective portfolio management is key to navigating these variables and maximizing your ROI.

In our experience, the range goes from negative ROI (the villa functions mostly as a lifestyle centerpiece) to 500% ROI (risky design and locations that went viral).

The answer is professional networking and fostering credible, long-term relationships that are fundamental to navigating the Bali real estate market successfully. These clubs and groups serve as vital forums for aligning with knowledgeable professionals and trusted advisors in the industry.

The emergence of Uluwatu as a rapidly growing marketplace is evidenced by the high rate of discovery of new construction sites and new owners coming to invest in South Kuta. Our field discovery teams find about 10-15 new construction sites a day in the region.

Our strategy is fairly simple. We provide you with the highest return in the shortest time. Every management decision, every line of code, and every hour of time our team works supports this very simple plan.

We choose the highest growth platforms to optimize your brand & ranking. Then we apply intense focus to manage the brand quality by combining streamlined operations, savvy marketing, and intelligent business decisions so that your property sees the fastest return and positive year-on-year growth.

Part of our approach includes conducting a thorough feasibility study to ensure every investment decision is data-driven and aligned with your financial goals. We don’t just manage your property, we manage your business & investment.

The design of a property can contribute significantly to the speed of return for your investment, the rightly chosen design is timeless and will consistently draw guests to book your property, earning you high occupancy and rates.

Property design is ultimately contingent on delivering a quality & unique guest experience that can overcome limitations in location & service.

There’s a wide spectrum of design and like location, our team at Bukit Vista can speak authoritatively on what a terrible design is, but a great design can be harder to spot.

We would advise you to bring your design in for an appraisal to see where it lands amongst the tens of thousands of villas, resorts, and apartments in Bali.

Generally, the more unique the design, the safer it is for investment purposes. A general rule of thumb is that if you see more than 10 people building on the same design, then that design is probably not getting you the fastest return on investment.

Read more here for Bali villa design

Navigating the complexities of property investment can often lead to questions beyond the mere buying and selling of real estate. One such frequent inquiry we encounter is about legal consultations. Understanding the intricacies of legal matters is crucial for any property investor, and while direct legal consultation is not a service we offer, our commitment to your success and empowerment remains unwavering.

  • No Direct Legal Consultation: Our primary mission is to ensure your property investment journey is smooth and profitable. Although we do not provide legal consultation services directly, our network and knowledge base serve as a bridge to expert legal advice.

  • Trusted Recommendations: Recognizing the importance of dependable legal counsel, we have curated a list of reputable firms. These firms have a track record of offering satisfactory service to our current property partners. This step is taken to ensure that you, as our valued partner, have access to the best possible legal advice tailored to the unique needs of property investment in Indonesia.

  • Exploring Indonesian Property Law: For those who wish to delve deeper into the legal aspects of property investment in Indonesia, our Community Experts page is an invaluable resource. Here, you’ll find a compilation of esteemed companies, such as:

    • ILA Global Consulting: Has over 20 years experience on strategic, legal, and investment expertise to boost growth, compliance, and ROI for global clients in Southeast Asia through 500+ projects.
    • E-Visa Bali: Specializes in streamlining the Indonesian visa process.
    • InCorp Indonesia: Supporting businesses at all stages, from conception to operation.
    • Projasa: Service provider for business and building permit document management, website creation, design, online advertising, digital marketing and other business support services.
    • The Firm: Supporting  the legal process of investing in property in Bali.

Through this approach, we aim to not just be a conduit for property management and investment success but also a source of comprehensive support, guiding you towards informed decisions and successful ventures in the property market. Our dedication to your growth and success as a property investor is reflected in our effort to connect you with the best legal resources and expertise available.

Great question, we would need to consider the design, location, product-user fit, and we’ll ask you a few questions about what kind of relationship you’d like to have with your management company. This will give us the most clear picture your personal focus on investment, and the context of the investment. This is a high-quality paid appraisal service, with a money back guarantee.

  • Millennial Investors: A notable trend is the rise of the millennial investor. Characterized by individuals aged between 28-35 years, these investors are distinctive for their approach:

    • Investing with their own money.
    • Exhibiting a strong inclination towards self-research on market trends.
    • Demonstrating a commitment to legal compliance and a pursuit of high ROI (Return on Investment) opportunities.
    • Showing a keen interest in learning more about the market, prioritizing sustainability, and actively sharing their investment journeys on social media. An illustrative case is that of Rory & Casey, who document their experience of constructing a villa in Bingin with their channel here.
  • Uluwatu’s Growth: Another critical observation is Uluwatu’s emergence as a rapidly expanding market within South Kuta, highlighted by:

    • The high rate of discovery of new construction sites, with our field teams uncovering approximately 10-15 new sites daily in the region.
    • An increasing influx of new investors attracted to the area’s potential.

If you intrigued by the evolving dynamics of Bali’s real estate, partnering with us offers a pathway to navigating these exciting opportunities.

  • Real estate clubs and groups in Bali play a pivotal role in facilitating transactions by offering platforms for professional networking and the cultivation of credible, long-term relationships essential for success in the local market. They serve as critical forums for engaging with industry experts and securing reliable information, ensuring that members are well-positioned to make informed decisions and access valuable investment opportunities.

  • Cultural and Business Differences: The most significant hurdle is adapting to Bali’s unique culture, especially since developers come from various global backgrounds. Bali’s culture for tourism contrasts sharply with its business culture, requiring a different mindset.

  • Transparency and Data Availability: Developers often face challenges due to the lack of transparency and data regarding basic necessities. This includes finding the right price for construction materials (e.g., concrete, bricks) and understanding the correct dynamics in contractor-developer relationships.

  • Legal Landscape: Navigating the legal landscape in Bali is complicated. Laws are practiced and enforced differently from how they’re written, leading to a maze of legal requirements that can impact profitability despite the ongoing construction boom.

  • Vision, Land, and Design: Beyond these initial hurdles, developers must also contend with finding the right vision for their projects, along with securing suitable land and design. These steps are critical for ensuring the success and sustainability of their developments in Bali’s competitive market.

Bukit Vista recognizes these challenges and offers investment strategy consultation to support developers. Additionally, we provide opportunities for networking and sharing insights through our Round Table Talk, held every Tuesday and Thursday, where developers, architects, and property industry members can connect. Join us, and at the very least, enjoy a free dinner while engaging with peers in the industry.

Understanding the differences in approach between local and foreign investors is crucial in navigating the Bali real estate market effectively. Here are the insights observed at Bukit Vista:

  • Regarding the Law:

    • Local Investors:
      • Comfortable with legal ambiguity.
      • Transactions often without lawyers, using only notaries.
      • Not overly concerned about strict law enforcement due to cost and political influence.
    • Foreign Investors:
      • Often nervous about legal issues, seeking extensive legal counsel.
      • Prioritize compliance with laws and taxes to safeguard investment rights.
  • Regarding Design & Vision:

    • Local Investors:
      • Prefer safe design and locations, avoiding risks to maintain steady, but potentially lower, returns.
    • Foreign Investors:
      • Opt for riskier designs and original visions, aspiring to stand out and potentially achieve higher returns.
  • Regarding Decision Making:

    • Locals tend to rely on gut instincts or follow neighbors, rarely sharing details about unprofitable decisions.
    • Foreigners vary, with some valuing data-driven decisions and sharing insights from their experiences, fostering learning.
  • Regarding Management Strategy:

    • Local Investors often view management as temporary, seeking lower cost solutions that may impact brand and revenue negatively.
    • Foreign Investors may attempt to manage properties themselves but often recognize the need for professional management due to distance and other commitments.
    • Long-term investors, both local and foreign, understand the importance of strong management for sustained success and ROI.
  • Cultural Dynamics: Investors often form tribal groups based on nationality or language, which can influence decision-making and trust. This includes the Anglosphere, the Russosphere, and various local Indonesian groups, each with their own preferences and decision-making styles.

Here in Bukit Vista, we emphasize the importance of recognizing these diverse approaches and offers strategic consultation and management solutions to maximize investment returns. Join us at our Round Table Talk for networking and insights into Bali’s real estate market.

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