Are you thinking of building a villa in Bali? As a foreign investor, the process might feel overwhelming.
But don’t worry—this guide will walk you through everything you need to know to build your dream villa in Bali, whether you’re just starting or are a seasoned property investor.
Let’s dive in!

Get a Customized Investment Plan in Bali
With over 12+ years in the market, here’s what we can do for you:
- Find the best location to invest in Bali.
- Reliable guidance on Bali’s property market and laws.
- Personalized strategy to maximize returns and meet your financial goals.
Why Build a Villa in Bali?
Before we get into the “how,” let’s look at why building a villa can be uniquely rewarding and profitable.
- Attract the Right Guests
When you design the villa, you can tailor it to match what today’s Bali visitors are looking for.
Tourists and digital nomads seek unique, Instagrammable spaces that feel luxurious but are also functional.
By customizing your villa, you create a design that stands out from standard rentals and meets these desires.
- Higher Nightly Rates and Occupancy
Travelers are willing to pay a premium for unique, comfortable spaces.
By customizing your villa, you can add in-demand features, like a private pool, spacious bathrooms, or sustainable elements (like solar panels), which increase its value and attract eco-conscious travelers.
- Effortless Branding and Marketing
Building allows you to custom-design your villa. This creates a unique selling point that’s easy to market, making it simpler to brand as a premium stay.
You can even target niches like family-friendly villas, remote workspaces, or luxury romantic getaways.
- Durability and Lower Maintenance
Rental properties experience wear and tear in a high-traffic location like Bali. By building, you can choose durable materials that withstand frequent use and Bali’s climate, saving on maintenance costs over time.
- A Villa Built to Your Vision
What if you want to build a villa for your future retirement? No worries. With building, you can choose your style and design exactly as you wish, perfect for your sanctuary.
Designing your villa in Bali gives you control over a high-value asset that reflects your taste and strategically appeals to renters.
By aligning your design with what the Bali rental market wants, you increase the villa’s rental potential and create a standout property.
How to Build a Villa in Bali
Now, let’s talk about building a villa in Bali.
Building a villa in Bali can be an exciting journey, but it’s essential to understand each step, especially if you’re managing things from overseas.
Here’s a simple, step-by-step guide to get you started, with tips to ensure the process goes smoothly and aligns with Bali’s requirements.
1. Research and Find the Right Land
Before investing in any property in Bali, do some research.
Researching the right land area is crucial because different locations in Bali cater to different goals.
For example, if you’re looking to attract tourists for rentals, a vibrant area like Seminyak or Canggu might be ideal. But if you want a quiet retreat, places like Tabanan offer more privacy.
Many first-time buyers think they can handle it themselves after some online research.
However, online listings rarely reveal essential details like the area’s future development plans.
A local agent offers insider knowledge and real-time, accurate information that online resources often miss.
They know each area’s vibe, future development plans, and pricing, so you don’t overpay.
Related: Ultimate Guide to Finding the Perfect Piece of Land to Buy in Bali.
2. Set a Budget and Outline Your Vision
Before diving into construction, it’s vital to have a clear budget in mind.
The entire construction process typically takes between 8 months and a year, depending on the size and complexity of the villa. This prep work keeps you on track and avoids costly surprises.
To get started, outline your vision with essential details, such as the number of bedrooms you want, the style, and special features (like a pool or outdoor kitchen).
List essentials and the “nice-to-haves,” then talk with a local contractor or architect. They’ll give you a rough estimate to know what’s realistic for your budget.
Related: How Much Does Building a Villa in Bali Cost?
3. Find a Great Architect and Contractor
What is considered a great architect?
A great architect brings skill and local know-how to your project, and this local expertise is significant in Bali.
Bali has specific building regulations, including rules on zoning, height restrictions, or traditional design elements that should be on your property.
For example, there are certain height and Balinese design guidelines that only local professionals are familiar with.
Beyond meeting regulations, a great local architect can design a villa that suits Bali’s tropical climate—like optimizing natural ventilation and using durable materials to handle humidity.
With a local team, you get a smoother process, legal compliance, and a design that feels authentic and functional in Bali’s landscape.
Related: How to Find the Right Architect for Your Villa in Bali.
4. Land Inspection and Permits
Once you’ve selected your land, your contractor and architect will inspect it to ensure it’s ready for building.
They’ll check crucial factors like soil quality, water access, and whether the land can support your villa’s structure.
They’ll also help ensure you have all necessary permits, like the building permit (IMB now PBG), so the construction is legal and hassle-free.
5. Draft an Agreement and Set Construction Milestones
Drafts and milestones are like a roadmap for your villa project—they keep everything clear, organized, and on track.
Think of the draft as the big picture: it lays out the villa’s design, layout, materials, and budget.
It’s a way to ensure everyone is aligned and knows what to build and how much it should cost before anything starts.
Then, we have milestones.
Essential stages include laying the foundation, putting up walls, adding the roof, and finishing the interiors.
In Bali, these milestones help keep things running smoothly, especially with the local weather and permit process, which can affect timelines.
Milestones also make payments easier and safer. You pay as each stage is completed, so you’re always in control.
6. Monitoring Progress from Overseas
Regular communication is key if you’re not in Bali during the build. Set up a plan with your team to receive weekly updates with photos and videos.
That’s why it’s essential to hire an agent who is used to working with foreign buyers, like Ilot Property Bali.
With 14 years of experience in Bali’s property market, we’ve helped hundreds of clients build and buy their dream properties.
We’ll provide progress reports to keep you informed every step of the way.
7. Final Inspections and Furnishing
Once your villa is built, it’s time for the final inspection.
This is when you and your team check that everything’s been done as planned, from the finishes to the plumbing and electrical work.
If you’re not in Bali, your project manager or contractor can do this inspection for you and flag anything that needs fixing before the villa is officially done.
After that, it’s onto the fun part: furnishing!
Bali is known for its high-quality, handcrafted furniture made from local materials like teak, rattan, and bamboo. These pieces add a unique, tropical charm to any villa.
But if you bring your pieces, ensure to find pieces resilient to Bali’s heat and humidity so they’ll last longer.
8. Bonus: Get the Right Licenses for Rentals (if you’re renting out)!
If you plan to rent out your villa, you’ll need a “Pondok Wisata” license, which lets you operate as a short-term rental.
This step is essential for legal renting in Bali, and getting it means making sure your property follows zoning and rental rules.
Your agent or a local legal expert can help you handle the paperwork and guide you through the process.
This step ensures that your villa is fully set up to start earning income legally and enjoy the benefits of your Bali investment!
Building a villa in Bali may seem complex, but with a trusted local team, clear communication, and organized steps.
Your villa will be a beautiful retreat and a smart investment, customized to suit your vision and Bali’s rental market.
Why Now is the Best Time to Invest
Do you ever notice how something becomes more desirable when it’s limited edition?
Think about a sneaker release with only a few pairs made…
Suddenly, the value of those sneakers skyrockets because not everyone can get them…
And that is the situation we’re seeing with Bali’s property market now.
Bali’s government plans to put a moratorium on property development in the hotspots area of Bali for 5 to 10 years!
This means that no new buildings will be allowed.
Think about that for a second—exclusivity!
The demand will still be high, but supply won’t be.
So, while Bali is still booming and visitors keep coming, the existing properties will become rarer and more valuable.
If you want to secure your slice of paradise, now’s the time to act.
Right now, you’re looking at a window of opportunity to grab something before it becomes that exclusive, limited-edition property everyone else wishes they had.
Though this regulation is not yet set in stone, when it happens, the market could shift fast.
Don’t miss out on buying at a lower price while sellers are still willing to negotiate.
And if you’re ready to take action, our knowledgeable senior advisors are here to help you build those villas in the most desirable locations…
What’s more, we’ll give you a personalized investment plan suitable to your budget and goals.
If that’s something you want, book your free no-obligatory strategy session below.