What are the pros and cons of buying a villa in Bali?

The pros and cons of buying a villa in Bali, without the sales layer. Both lists are real. Which one wins depends on what you buy and what you check, not on Bali itself.

This is the quick list. The full analysis, with returns, costs and how to buy, is in the Bali property investment guide.

The pros

Demand is real and growing. Nearly 7 million foreign arrivals in 2025, up almost 10 percent, and the airport is expanding from roughly 24 to 32 million passengers a year. People keep coming.

Well-located land has held its value. Tourism-zoned land, especially on the Bukit and the established west coast, is genuinely scarce. Scarcity is what supports long-term value here. See land prices area by area.

You can use it. A villa you stay in for part of the year and rent out for the rest is the purchase that disappoints people least.

Building is good value. A well-specified villa costs roughly USD 500 to 700 per square metre to build, plus pool, landscaping and fit-out. You get a full term from day one and no developer margin. See the real build costs.

Rental income is possible. Well-run villas in good locations produce real income. Average net is 4 to 6 percent, prime and well-managed 8 to 13 percent.

New rules protect existing licensed assets. Since July 2026, new foreign-owned companies cannot register villa or homestay activities in Bali. That makes villas that already hold a valid licence harder to compete with.

The cons

You cannot own the land. Foreigners hold a leasehold, Hak Pakai with residency, or a company structure. No route gives you freehold. See leasehold vs freehold.

Every term runs down. A lease, HGB or Hak Pakai ends or needs renewing. On a USD 300,000 villa with a 25-year lease, the term alone costs you about USD 12,000 a year. At the end, the land and everything on it returns to the owner unless your extension clause holds.

Licensing decides the income. Zoning decides whether nightly rental is allowed, the licence decides whether you can operate it, and unlicensed listings face delisting under UU 18/2025. An unlicensed villa's income is a liability, not an asset.

The advertised yield is not the real one. Operating costs eat 40 to 50 percent of gross. Management 12 to 25 percent, platform commission, 10 percent regional tax, 10 percent income tax, staff, maintenance and a reserve.

It is slow to sell. Above USD 750,000, twelve to twenty-four months to sell is normal, and on a leasehold the term keeps running down while you wait.

Scams and nominees. Nominee arrangements are illegal and fail completely when they fail. Off-plan schemes with "guaranteed returns" are only as good as the company behind them. See the common property scams.

Currency and distance. Your costs and rents move with the rupiah, and a villa run remotely is usually run worse.

How to keep the pros and avoid the cons

• Buy a long remaining term with a priced, unconditional extension clause binding on heirs.
• Check zoning, PBG, SLF and the licence for this exact building before paying anything.
• Underwrite on net income at realistic occupancy, minus the yearly cost of the term.
• Use your own notary and lawyer.
• Plan to hold ten years or more.