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.
Whether you’re just exploring the idea or already preparing your budget, this guide will give you a clear picture of what to expect and how to do it right. Let’s dive in!
Key Tips (TL;DR)
- Hire trusted professionals who understand the local market.
- Set aside extra funds to cover unexpected costs.
- Stay involved in the project, even if you’re managing it from afar.
Step-by-Step Constructing a Villa in Bali as a Foreigner
Starting a construction project in Bali is exciting, but it can also feel confusing if you don’t know where to begin. Here are the Bali villa construction steps to follow:
1. Do Your Research
Before you begin the process, it’s important to do your research. Here’s what to think about:
- Check Price Trends: Look at how property prices have changed in your chosen area. This could impact your budget and the timing of your purchase.
- Pick the Right Area: 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.
- Understand What Each Area Offers: Explore what makes each part of Bali unique. Whether you want to be close to the beach, rice fields, or cafes, your location choice will play a big role in your project’s success—especially if you’re planning to rent or build.
Pro Tip: To get full disclosure of these locations, talk to locals or other property owners to better understand the area. They can share valuable tips that you won’t always find online.
2. Find the Right Land
Once you’ve got a good idea of where to build, it’s time to find the right land. It’s essential to pick a spot that’s legally available for building and fits your needs.
Here’s what you should know to find the right land:
- Legal Status: In Bali, different areas are zoned for different purposes, like residential, commercial, or agricultural. Ensure the land is approved for the villa you want to build.
- 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.
- Location Appeal: If you plan to rent your villa out later, consider whether the land attracts tourists. Is it close to beaches, shops, or popular attractions?
3. Work with Reliable Professionals
The next step is to assemble a great team of Bali villa builders. These experts will ensure your villa is built properly, on time, and up to code.
Here’s who you need on your team:
- Architect: Your architect will design your villa, ensuring it looks amazing and follows Bali’s building codes. They’ll work with you to bring your ideas to life, from layout to materials.
- Builder: Your builder, or contractor, will handle the actual construction of your villa. They’ll manage the workers, order materials, and make sure everything goes smoothly.
- Lawyer: Your lawyer will handle all the legal stuff—permits, contracts, and ensuring your villa follows the rules. They’ll help you avoid legal issues that could delay your project.
Pro Tip: Look for a Bali villa contractor with a solid reputation. Make sure to check their portfolio, reviews, and other references to verify their credibility.
Check Out: Ilot Property Bali Villa Portfolio and ROI (2025)
4. Get Your Permits
Before building your villa in Bali, you must ensure everything is legally approved. This means obtaining the right permits.
Here are the key 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.
While it might seem like a lot of paperwork, your lawyer, architect and property agent will usually handle all the applications. They know the process and will work with local authorities to ensure you get the necessary permits.
5. Stay Involved
Once the design is approved, construction can finally begin. It’s essential to stay involved and monitor the progress. Regular check-ins can help catch any issues early and keep everything on track.
Also Read: Buying vs Building Villa in Bali: 9 Key Factors to Consider
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 Much Does It Cost to Build a Villa in Bali?
The cost of building a villa in Bali are usually measured per square meter of built area, with 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.
Pro Tip: Construction in Bali is usually paid in cash, so most investors use their personal savings. Foreigners can’t get loans from local Indonesian banks.
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.
Here’s a breakdown of what to expect:
| 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. |
Pro Tip: Schedule your construction during Bali’s dry season (April to October) to minimize delays caused by heavy rains.
Also Read: Building Materials for Tropical Climate: What You Need to Know
Challenges to Build a Villa in Bali and Tips
There are several challenges that you may encounter when building your dream home in Bali. You can see all of them below, along with tips to handle them:
1. Budget Overruns
Unexpected costs can result from changing prices, surprises during construction, or changes to the plan.
To avoid this, make a detailed budget with your architect and builder. Set aside 10-20% extra for unexpected costs, and check your monthly spending to stay on track.
2. Time Delays
Bad weather, material shortages, and permit issues can delay construction. Plan to build during Bali’s dry season (April to October).
Use multiple suppliers for materials and choose contractors with a good track record of staying on schedule.
3. Quality Concerns
Poor construction can cause big problems, such as leaks or weak structures.
Use high-quality materials and ensure your contractor hires skilled workers. Hire an independent inspector to check the work at important stages.
4. Communication Issues
Bad communication can lead to mistakes and dissatisfaction. Have regular meetings with your construction team to discuss progress and any changes.
You can also set a formal process for approving changes to the plan.
5. Finding Reliable Contractors
It can be hard to find good contractors, especially for foreigner who is away from Bali.
But you can look of for some references online, interview them, check references, and look at their past projects. Make sure all agreements are in clear, detailed contracts.
Have regular performance reviews to discuss any issues and ensure quality.
If you need more guidance on starting your construction project in Bali, contact us here to get free expert advice and support.
6. Navigating Local Regulations
Understanding local laws can be tricky, so, work with a local lawyer who knows property law to get all the permits and meet legal requirements.
This helps avoid legal problems and ensures your project follows Bali’s building codes.
7. Managing Remote Construction
Staying on top of things can be hard if you’re managing the build from far away.
Visit the site regularly or hire a trusted local project manager. Use video calls and project management software to stay updated with the 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.
Ready to Build Your Dream Villa in Bali?
That’s our complete guide and tips on constructing a villa in Bali as a foreigner. The best way to ensure your home in Bali turns out great is to respect how things are done there, plan well, and always ask for advice when needed.
Now, if you’re ready to build your dream project, our team is here to help you!
With transparent costs and sustainable, high-quality materials, we help you plan and build your dream investment without any hassle. Click the link below to book a consultation for free with Ilot Property Bali today.
