Bali is a beautiful island that anyone cannot resist. Perfectly suits the need to unwind over stress and the recent trend of healing vacation. Bali’s charm has never failed to invite people to put it on their holiday wish list. Not only happening among foreign tourists, but the tradition happens amidst locals too.
Unfortunately, during the pandemic, Bali’s conditions which were once crowded with tourists suddenly turned quiet. Kuta, Legian, Seminyak, Nusa Dua, and Ubud which were used to be crowded turned into uninhabited cities where shophouses and art shops are closed, as well as hotels around it.
Based on data from the Representative Office of Bank Indonesia Bali shows that Domestic Investment (PMDN) during 2020 reached Rp 5,432.7 billion and Foreign Investment (PMA) reached a value of 293.3 million US dollars. This data indicates that Bali is still attractive to investors who are still optimistic about the development of the Covid-19 pandemic situation in Bali.
Plus data from international research institute Knight Frank Global which noted that the super-rich in the Ultra High Net Worth Individual (UHNWI) category in Indonesia jumped by 67 percent in the period 2020-2025.
Interestingly, 25-28 percent of their funds are invested in the property sector. Based on this data set, although still in a pandemic situation, the property sector in Bali is still attractive to investors because it is considered to have a positive trend.
Do you want to build a villa ini bali? Do you know building a Villa in Bali can be tricky without the right guidelines and professional help, especially in a country full of complex land tenure regulations and investment requirements. We will provide you step by step guide to effectively build your villa in Bali in the below:
In Indonesia especially Bali, you must make a contact with the Foreign Owned CompanyA Foreign Owned Company or called PT PMA is the only legal entity that allows foreigners to conduct business or own property in full compliance with Indonesian property laws and regulations.
Bali island is a relatively small, and some of the land prices can vary from corner to corner.
In developing and developed areas such as Canggu and Seminyak, land prices are estimated to cost around Rp 600 million to 1.5 billion (USD 40,000 – 105,000) per 100 sqm, while the remote land is valued at around Rp 100 million to 350 million (USD 7,000 – 24,000) per 100 square meters.
Indonesia has many forms of land titles and ownership that are of concern to foreign investors to build villas in Bali. Generally, some of real estate agents and private landowners will refer you to rental or property rights. Contact or consult to the expert in Indonesia for more concise information on land ownership in Indonesia.
Building a villa especially in Bali can takes a lot of time and capital, and requires effective construction management skills and development. This is pretty important if the project must be completed within the allotted time to meet cost constraints and quality requirements.
Appointing with Bali Architect that fits your specific design needs requires not only in-depth knowledge of the local market, but also you need to be more understanding of the specific design style you desire. We, Satya Puri Studio Architect able to provide you effective spatial planning of some best recommended design and cost estimates to build a villa in Bali. You can see our design villa portfolio.
If you want to start building, you must have permit of Building Indonesia or it called IMB. This permit is an official permit that permits the construction of buildings in Indonesia. Before getting it, you need to check the spatial plan and land zoning regulations per area your building will be built on. The reason is some certain lands or zones only allow the use of certain buildings.
The permit is currently being phased out and already expire in January 2022. Soon it will be replaced by the PBG and SLF permits under the new Omnibus Laws that overhaul and regulate Indonesian laws under the guidance of President Joko Widodo’s administration.
You know? the cost of building a villa in Bali can start from Rp. 6 million per square meter to Rp. 14 million per square meter, so finding the right contractor who can provide services on time, within budget, and meets high standards is challenging.
The return of investment (ROI) of Villa’s investment in Bali reaches at least 10 percent with an average occupancy of 70 percent per year.
Property industry players in Bali assured that after the Covid-19 pandemic crisis period passed, the villa investment market in Bali has the potential to experience a “market boom”. Well, this is the best opportunity to invest in villas in Bali.
Investors will be strategically positioned to resell the property with the profit rate multiplying as the economy improves in the future. Moreover, various online booking sites and several tours and travel platforms put Bali as one of the most desirable locations to visit or settle in after the pandemic. No doubt, Villa in Bali is a promising long-term investment during the pandemic.
Properties purchased as investments in popular regions such as Canggu or Seminyak can provide benefits with a very attractive long-term investment value. So, now is a good time to invest in the property sector in preparation for the upcoming post-pandemic property market surge.
