Building villa in Bali as a foreigner is not the same as renting or buying a property.
It has its own rules and challenges, so you must understand how the process works from permits and land ownership to choosing the right materials.
Ilot Property has spent over 14 years helping people build villas in Bali, both for personal use and investment. Today, we’ve put put together practical tips based on our real experience to guide you through the process.
Key Takeaways
- Foreigners can build villas in Bali, but must follow legal steps like land research, due diligence, zoning rules, permits, and working with notaries or representatives.
- Hiring a Bali architect is essential, with full services (design, MEP, structural, budgeting) typically starting at USD 10,000. Good architect–contractor collaboration ensures quality results.
- Villa construction costs range between USD 500–1,500 per sqm, plus land costs. The process usually takes 12–18 months.
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Step 1: Buy Land for Your Bali Villa Project
To build a villa in Bali, you first need a piece of land. Here’s a quick guide on how foreigners can legally find and secure land in Bali:
1. Do Your Research
Always start by doing your research. Your location choice will play a big role in your project’s success, especially if you’re planning to rent your villa in the future.
Here’s what to think about:
- Look at how property prices have changed in your chosen area. This could impact your budget and the timing of your purchase.
- Decide what kind of location fits your goal:
- Busy spots like Canggu or Uluwatu are great for rental income but come at a higher price.
- Quieter areas like Seseh or Kedungu are more affordable and offer a peaceful lifestyle.
- Check the legal status. Ensure the land is approved and aligned with the zoning rule. It’s best to pick the orange or pink zone for villa investment. Remember, always avoid the green zone!
- Clarify the land ownership. Does the person selling the land have clear ownership? Surely you don’t want to get stuck in a legal dispute over who owns the land.
Read More: How Much Land Do You Need to Build a Villa in Bali?
2. Paying a Down Payment
After reviewing land due diligence, sellers in Bali usually won’t wait unless you provide a down payment. This shows you are serious about the deal and have the funds ready.
The money is placed in escrow and will be refunded if the property fails due diligence.
3. Selecting a Notary in Bali
It’s best if the buyer, not the seller, chooses the notary. If needed, you can ask for recommendations for trusted notaries in your area.
Keep in mind that each notary only covers one regency, so if you’re buying in multiple regions, you’ll need separate notaries.
4. Appointing a Buyer’s Representative
If you don’t live in Bali, don’t speak Indonesian, or don’t have the time, it’s common practice to hire a buyer’s representative. They can attend notary meetings and handle the process on your behalf.
A professional representative will also help prepare the required documents to complete your purchase smoothly.
Step 2: Choosing Bali Architect
So, you’ve secured the land. But if you don’t yet have a proper villa design, it’s best to consult and hire a professional Bali architect. They can create the right design based on your vision and the area where you want to live.
This way, your villa will not only suit your needs but also look more refined and well-planned!
A professional architect in Bali typically charges from around USD 10,000 for a standard villa project. This fee usually includes full services such as:
- MEP Consultant – to handle electrical plans and installations.
- Structural Consultant – to develop structural drawings based on the design.
- Quantity Surveyor – to prepare a detailed Bill of Quantities, ensuring materials are bought at fair market prices and in the right amounts.
It’s best to work with an architect who partners with trusted contractors. Good collaboration ensures the villa is built as planned, with changes made for quality, not just cost-cutting.
Read More: How to Choose the Right Villa Developer Bali: Best Practice
Step 3: Get Your Permits
Source: Ilot Property Bali – Bali real estate building
While the architect is working on the villa design, you can start obtaining the right permits to ensure your villa is legally approved. Here are the main permits you’ll need:
- IMB (Izin Mendirikan Bangunan) / PBG: The legal permit to build your villa. It confirms your plans meet zoning, safety, and environmental standards.
- SLF (Sertifikat Laik Fungsi): This certificate confirms your villa is safe to occupy and built according to approved plans.
- Environmental Permits (UKL-UPL / AMDAL): Depending on your villa’s size and location, you may need an environmental assessment. UKL-UPL is for smaller projects, while AMDAL is for larger ones.
- Zoning Permit (Izin Lokasi): Make sure the land is zoned correctly—residential, commercial, or agricultural—to match your villa plan.
- Building & Utility Connections: You’ll need approvals to connect electricity and water. Your builder usually handles this, with help from your agent if needed.
Read More: Freehold vs Leasehold: Which Ownership Type is Right for You?
Step 4: Start Building Your Villa
Once you have the land, finished the drawings, gained zoning approval, and secured your building permit, you’re ready to start construction!
In Bali, contractors typically use two common payment methods:
- Milestone-based payments: Paying by milestone is generally the smarter choice, as it keeps both parties focused on completing each stage efficiently.
- Monthly payments: A monthly payment plan can be useful if you anticipate making frequent design changes and prefer more flexibility.
It’s also essential to stay involved and monitor the progress. Regular check-ins can help catch any issues early and keep everything on track.
Pro Tips: To ensure safety, some villa owners also choose to buy villa insurance.
How Much Does It Cost to Build a Villa in Bali?
The cost to build villa in Bali are usually measured per square meter of built area. Most villas ranging between $500 to $1,000 USD per square meter.
While the final price typically depends on the materials used, building a property in Bali is generally more affordable than in many Western countries.
Here are some points to consider:
- Land Lease Costs: The cost of leasing land varies based on location. Popular spots like Canggu tend to be more expensive, while remote areas are cheaper.
For example, 100 sqm of land in Canggu might cost $2,595, while ocean-view land in Seseh can be around $1,234. - Construction Costs: On average, building a villa costs between $800 to $1,500 per square meter. The final price depends on the materials and design features you choose.
- Unexpected Expenses: Always set aside 10-20% of your budget for unexpected costs. Delays, design changes, or supply shortages can increase expenses, so it’s smart to have a buffer.
Read More: Indonesian Property Loan for Foreigners Explained: Easy Financing Options
How to Find a Reliable Bali Construction Team
Constructing a villa in Bali as a foreigner is easier with trusted project development agent. To find reliable professionals, you need to start by doing your homework:
- Start with Online Research: Search online to explore architects and builders in Bali. This helps you get an overview of available professionals and their styles.
- Ask for Recommendations: Talk to friends, expats, or real estate agents who have built villas in Bali. Personal referrals are often reliable.
- Check Reviews and Portfolios: Read reviews and study their portfolios to shortlist potential candidates. Pay attention to their past projects and design quality.
- Interview or Explore Their Websites: Once you have a shortlist, interview the candidates or explore their websites. This will help you gauge if they’re a good fit for your project.
- Review the Contract Carefully: After choosing your team, go over the contract thoroughly. It should clearly state the scope of work, timeline, and payment terms. This ensures everyone is aligned and helps avoid future misunderstandings.
How Long Does It Take to Build a Property in Bali?
On average, the entire process of building a villa in Bali can take 12 to 18 months, depending on the size and complexity of your project:
| Step | Duration | Process |
|---|---|---|
| Planning & Permits | 2–4 Months | This stage includes designing your villa, hiring professionals, and securing permits. |
| Construction Phase | 12–18 Months | After approvals, construction begins. A typical villa takes around 12 months, but larger builds may take longer. Delays can happen, so plan buffer time. |
It’s better to schedule your construction during Bali’s dry season (April to October) to minimize delays caused by heavy rains.
Read More: Cost of Building a Pool in Bali (With Real Case Breakdown)
Challenges to Build a Villa in Bali
There are several challenges that you may encounter when building your dream home in Bali:
- Budget Overruns: Unexpected costs can come from price changes, construction surprises, or plan revisions. Create a detailed budget with your architect and builder, set aside 10–20% extra for emergencies.
- Time Delays: Bad weather, material shortages, or permit issues may slow down progress. It’s best to build during Bali’s dry season (April–October).
- Quality Concerns: Poor construction can cause leaks or weak structures. Use high-quality materials, ensure skilled labor, and hire an independent inspector to check work at key stages.
- Communication Issues: Miscommunication leads to mistakes and frustration. Hold regular meetings, set clear updates, and create a formal approval process for plan changes.
- Complicated Ownership Issues: Inheritance disputes, spousal disagreements, or nominee agreements can block sales or cause legal conflicts. Always check ownership status carefully.
- Hard to Find Reliable Contractors: Good contractors can be hard to find, especially if you’re not in Bali. Research online, interview candidates, check references and past projects, and use clear, detailed contracts for safety.
- Navigating Local Regulations: Local property laws and permits can be complicated. Work with a lawyer who understands Balinese property law to secure the right permits and keep your project fully compliant.
- Managing Remote Construction: If you’re away from Bali, staying in control can be difficult. Visit the site when possible, hire a trusted local project manager, and use video calls or project management tools to track progress.
FAQ
1. Can a foreigner build a house in Bali?
Yes, constructing a villa in Bali as a foreigner is allowed, but you must follow specific legal frameworks. Common approaches include leasehold agreements or forming partnerships with local landowners.
2. Is building a villa in Bali a good investment?
Yes. Constructing a villa for holiday use or long-term rental is a popular investment route among foreigners in Bali.
3. Is it cheaper to build or buy in Bali?
Building your own villa can save money over time, especially with energy-efficient or low-maintenance materials. You can see the full comparison and analysis of buying vs. building a villa in Bali here: Buying vs Building Villa in Bali: 9 Key Factors to Consider
Conclusion: Build Your Dream Villa in Bali, Hassle-Free
That’s our complete guide to building a villa in Bali as a foreigner—from securing the right land, working with an architect on the design, obtaining permits, to overseeing the construction process.
As mentioned earlier, it’s best to work with a Bali real estate agency that provides all-in-one services, such as ILOT Property Bali.
For nearly 20 years, we’ve been helping expats build their dream homes in Bali—whether as a personal retreat, retirement property, or investment asset.
With transparent pricing and sustainable, high-quality materials, our team knows what works and will guide you in planning and building your villa smoothly, without hassle.
Have questions? Click the link below to book a free consultation with our agent—no strings attached, anytime at your convenience.
