If you’re planning to build and invest in property in Bali, location is everything. The right area can make a huge difference in how much your investment yields over time.
But here’s the thing: Bali has many different regions, each offering its own lifestyle, unique value, and ROI potential. Some areas are already popular and competitive, with higher prices but proven returns. Others are still emerging — more affordable today but showing strong growth potential for the future.
So, how do you find a profitable location that aligns with your goals? Don’t worry. Here’s our complete guide on how to choose the right area to build your villa in Bali, whether for investment or personal living.
Key Takeaways
- Location defines your investment success — each area in Bali offers different ROI potential, lifestyle, and long-term growth.
- For example, popular zones like Canggu, Uluwatu, and Ubud give high rental yields, while emerging areas such as Pererenan and Nyanyi offer affordable entry and future appreciation.
- Evaluate key factors before buying: accessibility, infrastructure, zoning regulations, growth indicators (capital gain, demand, occupancy rates), and alignment with your villa’s purpose — whether for investment or personal living.
- Complete due diligence by verifying land legality, zoning, and ownership with a trusted notary, then proceed with soil testing and secure purchase through proper escrow and documentation.
1. Define Your Purpose First
Before scouting land, ask yourself: What’s the main goal of your villa?
- For investment: You’ll want to target high-demand areas like Canggu, Uluwatu, or Ubud, where rental yields can reach 12–15% per year.
- For personal living: Look for peaceful zones such as Pererenan, Nyanyi, or Sanur, which offer a more laid-back lifestyle while still being connected to main routes.
Having clarity on purpose helps you balance ROI and lifestyle from the very beginning.
Read More: Bali Property Return 2025: Tips to Get High ROI and Rental Yield
2. Study the Accessibility and Infrastructure
Easy access is key for both renters and residents. When evaluating a location, always check:
- Proximity to main roads and airport routes
- Availability of electricity, water, and fiber internet
- Distance to supermarkets, restaurants, schools, and clinics
A well-connected villa is not only easier to live in but also more appealing to guests — directly influencing both occupancy rates and resale value.
It’s also important to consider who your potential renters are. For example, if you’re investing in a retirement villa, make sure the property is close to healthcare facilities such as clinics or hospitals, as your tenants may need regular check-ups.
On the other hand, if your target market is wellness travelers, look for areas like Ubud. It’s peaceful, surrounded by nature, and filled with yoga studios, spas, art centers, and traditional Balinese healing retreats.
3. Evaluate the Lifestyle and Surroundings
Each area in Bali offers a different vibe. For example:
| Area | Character & Lifestyle | Investment Insight |
|---|---|---|
| Canggu & Berawa | Trendy surf town with vibrant café culture and nightlife. | Best for short-term rentals and high tourist demand. |
| Ubud | Green, cultural, and serene with a focus on wellness and nature. | Ideal for wellness retreats or private residences. |
| Uluwatu | Dramatic cliff views, luxury developments, and strong infrastructure growth. | Offers strong long-term ROI and upscale market potential. |
| Seminyak & Sanur | Established, convenient, and family-friendly with easy beach access. | Perfect for stable rental income and lifestyle convenience. |
| Pererenan & Nyanyi | Peaceful, emerging neighborhoods close to Canggu. | Lower land prices now, with high growth potential ahead. |
At ILOT Property Bali, we encourage our clients to explore several areas with our expert agents to see the true potential and on-the-ground reality of each location.
4. Check Land Zoning and Regulations
Not all land in Bali can be used for villas. The island follows strict land zoning regulations to protect its natural beauty and cultural balance. That’s why it’s essential to verify the zoning before purchasing any land.
Here are the main land zoning categories in Bali:
- Tourism Zone: Suitable for commercial villas, resorts, or short-term rentals.
- Residential Zone: Ideal for private homes or long-term living.
- Green Zone: Strictly protected — construction is prohibited. Be cautious of anyone offering so-called “green zone conversions,” as they are illegal and highly risky.
Want to understand zoning better? Check out our full article on Bali land zoning.
5. Check the Land’s Growth Opportunity
Before you buy, take time to study the land’s growth potential. Here are key indicators of an area with healthy growth:
1) Capital Growth Rates
Study how property prices have changed in the area over the last few years. A consistent upward trend indicates strong demand and stable market conditions.
You can also compare land price-per-square-meter data between nearby areas to see which locations are appreciating faster. This helps identify where your investment can gain the most value over time.
2) Infrastructure Development Project
Look for new roads, airports, or commercial developments being planned or built nearby. Areas supported by government or private infrastructure projects often experience rapid value appreciation.
For instance, regions near the upcoming Gilimanuk–Mengwi Toll Road or the new international hospital in Sanur are expected to grow faster due to improved accessibility and services.
3) Local Employment
Check whether the area has a healthy local job market. A steady flow of working residents creates stable housing demand.
Interestingly, several areas like Ubud and Canggu have also become popular among international digital nomads, further boosting long-term rental demand and increasing property value.
4) Supply and Demand
Bali’s charm is matched by its limited supply of land, which naturally restricts new development.
Meanwhile, demand continues to rise due to growing international interest and Indonesia’s expanding middle class.
This imbalance creates excellent investment conditions — especially in areas with limited new projects but strong buyer interest, which tend to deliver the highest capital appreciation.
5) Occupancy Rates Data
High occupancy rates are one of the clearest signs of a strong location.
Recent Hotel Booking Trends data, drawn from one of the world’s most extensive hotel reservation databases, shows a 55% increase in advance bookings across Indonesia — particularly in Bali.
This rise is driven by international travelers from Australia, the UK, the United States, and beyond, planning their trips earlier than before.
Rental prices in Bali are also expected to increase by 15–20% annually, with average occupancy rates ranging between 65–80% throughout the year.
With such strong demand, investors can typically recover their initial investment within 5–6 years.
With over 20 years of experience helping expats create their homes in Bali, here’s what we do best:
- Design a villa that matches your style, personality, and vision
- Guide you through the entire building process, from start to finish
- Manage your villa long-term to maximize quality and returns
Where to Buy Land in Bali for Villa Construction? Try These Areas!
Each region of Bali offers a different atmosphere, infrastructure, and growth potential. Here’s a breakdown of Bali’s established hotspots and its fast-growing emerging areas.
Hotspots
1. Canggu
Canggu is the heartbeat of Bali’s modern lifestyle — a blend of surf culture, digital nomads, and high rental demand. The area’s vibrant café scene, beach clubs, and boutique villas attract both tourists and long-term residents.
With ROI reaching 10–15% annually, Canggu remains a top pick for investors seeking strong short-term returns and solid resale value.
Explore available land in Canggu
2. Seminyak
Seminyak offers comfort, convenience, and class. Its proximity to the beach, upscale restaurants, and luxury shopping makes it ideal for premium villas.
Infrastructure is well-established, and occupancy stays high year-round, providing reliable income for villa owners. From an investment standpoint, Seminyak delivers strong returns — averaging 7–8% net ROI, with monthly villa income ranging from $1,750 to $21,400.
Explore available land in Seminyak
3. Ubud
The cultural heart of Bali, Ubud is surrounded by rice terraces and lush jungle. It’s perfect for those who value wellness, creativity, and peace. This region attracts digital nomads, artists, and retreat operators.
Building a villa here provides steady long-term rentals with less seasonality compared to beach areas.
The average daily rent in Ubud has increased by 25% over the past three years, rising from $119.41 in 2021 to $149.80 in 2024. Some of the best areas to invest in Ubud include Tegallalang, Kedewatan, and Sayan.
Explore available land in Ubud
4. Uluwatu
Known for its dramatic cliffs and ocean panoramas, Uluwatu has transformed into a luxury destination. High-end resorts, private villas, and new infrastructure projects are driving rapid appreciation. It’s ideal for investors seeking exclusive properties with premium nightly rates and long-term growth.
Explore available land in Uluwatu
5. Sanur
Sanur blends tranquility with convenience. Its calm beaches, international school options, and new international hospital make it popular among retirees and families. The Gilimanuk–Mengwi toll road and port upgrades are expected to further boost its accessibility and property values.
Explore available land in Sanur
Read More: Underrated Bali Location for High-Yield Property Investments (It’s not Canggu)
Emerging Areas
1. Pererenan
Pererenan sits just beyond Canggu and is evolving fast. It offers a quieter lifestyle while still being close to major hotspots. The area’s modern cafés, boutique villas, and lower land prices create an excellent opportunity for early investors before prices match neighboring Canggu.
Explore available land in Pererenan
2. Nyanyi
Nyanyi provides more space and privacy while staying within reach of Canggu’s vibrant core. Developers are increasingly eyeing this area for its potential — combining open landscapes with improving infrastructure. It’s ideal for those wanting to build a villa with long-term capital appreciation.
Explore available land in Nyanyi
3. Kedungu
Close to Tanah Lot, Kedungu combines ocean views with a rural village feel. The region is drawing investors interested in off-plan projects and future appreciation. With its scenic setting and proximity to West Canggu, Kedungu is becoming a smart choice for value-driven development.
Explore available land in Kedungu
4. Bingin & Balangan (South Bukit)
These cliffside areas near Uluwatu are rising stars in the southern peninsula. With panoramic views and an expanding hospitality scene, they’re quickly attracting boutique developers. Prices are still below Uluwatu’s core area, but growth indicators point to rapid appreciation within the next few years.
Explore available land in Bingin and Balangan
Read More: Our Experience Exploring North Bali: The Best Trip to Bali’s Quiet Side
Steps After You Found the Right Land for Villa in Bali
Finding the perfect location is just the beginning. Here are the next key steps to get your villa construction started the right way:
1. Conduct Legal Due Diligence
Always do legal due diligence before signing anything. The process usually includes:
- Confirm the land is free from encumbrances (taxes, ownership disputes, or loans).
- Verify ownership certificates through a notary.
- Avoid nominee arrangements and rely on professional guidance to ensure your ownership structure is legal and secure.
Due diligence is typically handled by legal consultants, lawyers, and professional real estate agents.
At ILOT Property Bali, we offer a flexible approach — clients are welcome to work with their own notary, or they can rely on our in-house legal team for full assistance. We ensure that every transaction remains transparent, compliant, and secure.
2. Assess Land Quality and Suitability
Before construction begins, a soil test is crucial. It helps identify:
- Ground stability and drainage.
- Required foundation depth.
- Potential flooding or erosion risks.
This step can save significant costs later and ensures your villa is built on solid, safe ground.
Not sure how much land you need for your villa? Find the answer here: How Much Land Do You Need to Build a Villa in Bali?
3. Negotiate and Secure the Land Properly
Once you’ve found the right spot, it’s time to finalize your purchase. Based on our experience guiding clients, the process usually involves several key steps:
- Negotiate the price with the landowner. This ensures you get the best value for your investment. Negotiations are ideally handled through an experienced local agent who understands market standards.
- Make a downpayment (DP) as a sign of serious commitment to the transaction.
- Ensure the payment is held in escrow until all legal processes are completed and verified.
- Finalize the purchase through a local notary (PPAT). It’s recommended to choose your own local Bali notary — either independently or through your trusted real estate agent, not the seller’s. A notary appointed by the buyer prioritizes thorough verification, legal security, and true neutrality throughout the process.
Now you’re ready to complete your land purchase and begin building your villa! Check out our full guide here: How to Build Your Own Villa in Bali as Foreigners.
FAQ
Building a villa in Bali typically costs IDR 10–15 million per m² for mid-range builds and IDR 20 million or more per m² for luxury villas. Additional features like swimming pools will increase the total cost. (Read further: How Much Does It Cost to Build a Villa in Bali?)
Yes. With strong tourism demand and high rental yields, building a villa in Bali can offer excellent ROI (7% – 12% per year).
Yes, foreigners can build a villa legally through the right ownership structure or partnership with a licensed developer.
Conclusion
That’s our complete guide on how to choose the right location for your Bali villa. Remember, the best location isn’t just about looks. It’s about knowing what’s really happening around it.
With this knowledge, you’re already one step closer to making a smart, long-term investment in Bali.
We also understand that the process can feel overwhelming, especially if you’re not familiar with Bali’s current market conditions. That’s where ILOT Property Bali comes in.
With over a decade of experience, we combine architectural excellence, structural engineering, and on-site construction expertise to turn your vision into reality. Whether you’re building a private tropical retreat or an investment villa, our team ensures your project runs smoothly — from land selection to completion.
Book a free consultation today to ask further questions and explore your options — no strings attached!
