Property Sales & Investments

“It is said that there are only three
important factors in buying property:
location, location, location.”

Location location location

This is generally true in Bali too, but the other real estate adage, that the worst house in the best street is a better buy than the best house in the worst street, is probably less true in Bali than it is in London, New York or Sydney.

Locations in Bali have a fairly rigid pricing structure because it is a strictly cash-based market. Price is driven by desirability – either stunning views, beach front, or close proximity to shopping, dining and nightlife.

Over the last 30 years, the suburbs of choice for residential purchase, whether owner-occupier or for rental purposes, have changed as development has increased.

Kuta was the residential district of choice back in the early 1970s. As it rapidly commercialised, Legian became the “in” locale.

As Legian turned into just a northern extension of Kuta, Seminyak took over. When Seminyak started to get touristy, expatriate buyers started moving to Umalas to build their houses. Now they’ve moved even further a field, to Canggu.

These days, from a rental perspective, villas close to popular areas such as Seminyak tend to offer the most consistently high rental occupancy.  These districts are still relatively quiet and unspoiled, but close to the beach and sophisticated shopping, restaurants, and nightlife.

However, properties with exceptional views – cliff-top, beachfront, river valley, rice fields – or other natural attractions are also good value.

Proximity to the airport remains an important consideration. But Bali has enjoyed considerable improvements in its infrastructure over the last few years, so a 30- or 40-minute drive from the airport now takes visitors much further than it did just a few years ago.

This has resulted in locations like Ketewel and even Candi Dasa in the east, and Pererenan and Cemagi on the west coast now becoming value areas from a rental perspective.

As of the beginning of 2009 there has been discussion at the highest levels of the government about putting in a new airport into the north that would change the current investment factors in that area.

Residential Locations

People buy houses in Bali for a number of reasons.

Some are looking for a place to live full time.

Others seek a holiday home which will generate rental income when they are not in residence themselves. Still others just want to buy as an investment.

Your choice of location will be driven by your reasons for buying.

If you want to live in the house most of the time, then you’ll want a location which suits your own tastes and preferences.

If you love peace and solitude, then a rural environment far from the action may fill your bill. If you have a young family, then proximity to schools, healthcare and other facilities may be your priority.

If you are planning to rent when you are not living there yourself, you would be wise to give some consideration to an area’s attractiveness to the villa rental market. Some people may share your desire to be far from the maddening crowds, but the majority of holidaymakers generally want to be close to beaches, shopping, restaurants, and nightlife.

If your purchase is strictly an investment, then you will choose an area which delivers the highest rental yield.

 Click any of the following links to view details regarding particular areas.