Bali property investment can give you endless ways to make money. Whether you dream of steady rental income, long-term appreciation, or a chance to profit through flipping, Bali offers it all.
But that will only work if you know what to look for and have a solid strategy.
In this article, we’ll explore several ways to profit from real estate investing in Bali. This guide is perfect for everyone, from beginners to experienced investors.
Here’s how to make money from property in Bali.
Key Takeaways
- Bali is a great place for property investment, offering solid returns with rental yields averaging 8–12% a year. You can start investing from around USD $100,000.
- There are plenty of ways to make money here—whether it’s from property value growth, Airbnb rentals, commercial leases, subleasing land, buy-and-hold strategies, or even flipping properties.
- Before jumping in, make sure you think about your risk tolerance, how quickly you might need cash, the time you can commit, the capital you’ll need, and how well you understand Bali’s property market and ownership rules.
Free Download: Bali Property Investment Guide 2025
1. Let Your Property Value Increase
One of the main reasons real estate is a top choice for investors is value appreciation (when the property’s value goes up).
If you buy a property and its market value increases, you can sell it for more than you paid.
This usually happens because of:
- Market demand
- Economic growth
- Development in the surrounding area
For example, properties in booming tourist spots like Bali often see big value jumps as the demand for villas and vacation rentals grows.
Read More: How to Start Your Property Rental Business in Bali (+ Key Questions)
2. Rent Out a Villa on Airbnb
This is one of the most common ways to make money from real estate.
Whether you rent out a villa on Airbnb or an apartment, the money you earn from guests is considered residential rental income.
In Bali, especially in high-demand areas, rental opportunities can bring in strong returns—some investors see 15–18% annually.
According to AirDNA, Bali’s occupancy rate has climbed to 56%, which is two points higher than pre-pandemic levels. Short-term rental revenue per available night also grew by 8%, boosted by tourism and digital nomad demand.
3. Invest in Commercial Rentals
Another way to earn from real estate is through commercial properties. This could be retail spaces, cafés, restaurants, offices, tourism-related businesses, or co-working hubs.
The demand for commercial rentals in Bali is high and keeps growing over time—especially in tourist and expat areas, as shown in the picture below.
It’s also fair to say that commercial rentals can sometimes bring higher returns than residential ones, since you have the chance to earn from daily sales. However, you’ll need a clear strategy to boost revenue and stay competitive in the market.
4. Sublease Land
If you’ve leased land, subleasing can be a legal way to earn income—if done correctly.
In Bali, the sublease period usually can’t be longer than the time left on your main lease. For example, if you have a 30-year lease and 10 years remain, you can only sublease for up to 10 years.
The sublease must follow your original lease terms, including the end date and any conditions from the landowner.
Important: Subleasing is only legal if your main lease agreement clearly allows it. Always check with a trusted legal advisor or property expert and make sure all paperwork follows Indonesian regulations.
5. Buy and Hold Strategy
Indonesia’s residential real estate market is set to grow from USD 72.11 billion in 2024 to USD 105.73 billion by 2029, with a yearly growth rate of 7.95%.
The buy-and-hold method means buying a property and keeping it for years, earning both rental income and value appreciation over time.
It’s a steady option if you have a long-term plan. In fast-growing areas, this strategy can bring big returns. Look for properties with strong rental potential and value growth for the best results.
6. Flip Properties
If you like hands-on projects, flipping can be a good option. You buy a property below market price, renovate or upgrade it, then sell it for a profit.
Flipping can earn money faster, but it takes more upfront capital and effort.
Is Bali a Good Place to Invest in Property?
Bali Villa Realty notes that Bali’s property market offers strong returns, with annual rental yields typically ranging from 8% to 12%.
In prime locations such as Seminyak and Canggu, premium properties can even deliver up to 20%. Many properties can also cover their purchase cost in just 5-6 years.
In addition, a research done by Statista shows that Indonesia is one of the top countries for residential real estate transactions. This market is set to keep growing, potentially exceeding $77 billion by 2028.
Source: Bukit Vista – Significant growth of rental property market in Bali
With over 270 million people and rapid urbanization, the demand for homes in the country is only expected to keep rising.
What to Consider Before Buying Property in Bali
It’s important to consider a few key factors before jumping into any Bali property development project. These will help you understand the risks, rewards, and commitment needed for success:
- Your Risk Tolerance: If you prefer playing it safe, choose long-term options like buy-and-hold, which are usually more stable. If you’re okay with more risk, try property flipping.
- Liquidity: Real estate isn’t like stocks, so you can’t turn it into cash quickly. If you’ll need fast access to your money, property might not be the best option.
- Time Commitment: Owning property takes time, especially in Bali. You’ll need to manage rentals, upkeep, and guest needs—more so if you do short-term rentals.
- Capital Requirements: Buying property costs more than just the price tag. You’ll need to budget for maintenance, taxes, and management fees. Plan for both the purchase and the ongoing costs.
- Knowing the Market: Do your homework on Bali’s property scene. Learn about the best areas, rental yields, and different ownership titles before you invest.
Read More: Best Exit Strategies for Your Bali Property Investment
FAQ
1. How much money do you need to invest in Bali?
For those looking to enter Bali’s property market, a starting investment of around USD $100,000 is a common benchmark.
2. Do you pay property tax in Bali?
Yes. There are a few property taxes that foreign owners should know about. The main one is Pajak Bumi dan Bangunan (PBB), which is applied to both land and buildings.
3. What is the most profitable business in Bali?
Tourism and hospitality lead the way as Bali’s most profitable industries, with wellness and eco-tourism also generating strong returns.
4. Can a foreigner start a business in Bali?
Yes. To run a business legally as a foreigner, you’ll need to set up a Perseroan Terbatas Penanaman Modal Asing (PT PMA), which is a foreign investment company.
Conclusion: Make Your Investment Work Smarter
Investing in Bali can open the door to many ways of building wealth—whether it’s through rental income, property value growth, or flipping villas for a profit.
If quick passive income sounds good to you, renting out your villa is a great place to start. All you need is a solid plan to make it work.
Not sure where to begin? Relax—we’ve got you covered.
Click the free consultation button below and get personalized advice from our experienced team at Ilot Property Bali.
It’s 100% free and zero obligation—just expert guidance to help you move forward with confidence.
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