7 Smart Property Investment Strategies to Make Money in Bali

One of the best ways to make money in Bali is through property investment — thanks to the island’s strong tourism growth, rising rental demand, and expanding expat community.

In this guide, we’ll walk you through the best ways to make money in Bali through real estate. You’ll also learn what to consider before investing to avoid costly mistakes.

Whether you want steady returns, quick profits, or long-term gains, there are plenty of strategies to match your goals.

Key Takeaways

• Property investment is the most effective way to make money in Bali, offering options like villa rentals, off-plan projects, and commercial spaces.
• Villa rentals through Airbnb can generate strong returns, with some investors earning up to 15–18% ROI annually.
• Off-plan and buy-and-hold strategies allow investors to profit from property appreciation and long-term market growth.
• Commercial rentals and property flipping offer higher returns for those willing to invest more capital and effort.

1. Rent Out a Villa on Airbnb

This is one of the most common ways to make money from Bali 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 here see ROI of 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.

How to:

1. Prepare your villa. Make sure it’s clean, fully furnished and ready for guests. Then, take some high-quality photos of your villa to post on Airbnb.
2. Sign up to Airbnb and create your listing.
3. Add your property details, photos, amenities, and pricing.
4. Write a friendly, honest description that highlights your villa’s best features.
5. Remember to keep your calendar updated, respond to inquiries quickly, and provide great service to get the best reviews.

Pros:

• Earn steady rental income from short-term stays.
• Global exposure. Reach travelers from all over the world.
• Flexible use. You can block off dates when you want to use the villa yourself.
• You can set your own pricing, house rules, and availability.

Read More: Starting Your Bali Property Rental Business: Key Questions

2. Buy Off-Plan Project and Sell After Completion

An off-plan investment means buying a villa or property in Bali while it’s still being built. You can resell it before or soon after completion to make a profit

This method works because you buy at a lower price early in the build and gain value as the project moves forward. Plus, you may avoid some taxes and legal fees that apply once the property is fully registered.

You can read the full guide on off-plan property in our dedicated article: Buying Off-Plan Property in Bali as a Foreigner: Complete Guide

Pros:

• Buy early, pay less. Developers often sell at pre-launch prices that are 20–30% lower than the final market value.
• Many projects offer flexible payment terms (monthly or staged payments during construction).
• Easier resale due to the rising demand from expats and digital nomads who move to Bali.
• Many off plan projects finish within 9-18 months, so you can sell and reinvest quickly.

3. Hybrid ROI Strategy: Off-Plan + Airbnb

This strategy mixes two wins: steady rental income and price growth. It suits investors who plan to hold for 5–7 years, earn strong cash flow, then sell at a higher price.

The idea is simple: buy off-plan, set it up well, and rent it on Airbnb/Booking.com with a good property manager to keep occupancy high and guests happy.

And when you decide to exit, resell your property as a ready-made Airbnb business — complete with data, reviews, and marketing assets. It will add more value to your property!

How to:

1. Buy off-plan in a prime area with a reputable developer. Design and furnish it well to add value and attract more renters.
2. List your villa on Airbnb/Booking.com. Hire a property manager to handle daily operations, pricing, and guest support easily.
3. Track performance — monitor ADR, occupancy, revenue, costs, and reviews.
4. Prepare a “data pack” for future buyers, including monthly income, occupancy rate, guest reviews, manager contacts, and SOPs.
5. Exit at the right time for the best profit — for example, during peak performance, strong reviews, or after renewing the lease.

Pros

• Off-plan deals are often below expected resale value.
• Strong rental demand. Tourism, expats, and digital nomads seek furnished, well-located villas.
• Lease extension boosts value. Adding 15–25 years can boost buyer interest and final price.
• Proven income = higher offers. Solid financials and guest reviews help attract better buyers.

4. Let Your Property Value Increase (Buy and Hold Strategy)

Value appreciation is one of the main reasons real estate is a top investment choice. This concept ties directly to the buy-and-hold strategy, where you buy a property and keep it for several years. You can sell it for more when the market value increases.

This method is working because of market demand, economic growth, and development in the surrounding area are contributing to your property value.

For example, properties in booming tourist spots like Canggu often see strong value growth as demand for villas and vacation rentals continues to rise

Pros:

• One of the most stable ways to build wealth in real estate.
• Long-term growth. Property in prime Bali locations often appreciates over time, especially with new developments nearby.
• You can sell your property later for a higher price and earn profit.

5. 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.

Pros:

• Commercial spaces often generate higher rent than residential properties.
• Tenants usually sign multi-year contracts, giving you stable and predictable income.
• As the area develops, both rental rates and property value can rise significantly.
• Helps balancing your investments and reduce reliance on residential income.

Read More: Best Business to Invest in Bali for Foreigners: 2025 Guide

6. Sublease Land

If you’ve leased land, subleasing can be a legal way to earn income. But, the sublease must follow your original lease terms, including the end date and any conditions from the landowner.

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.

Important: Subleasing is only legal if your main lease agreement clearly allows it. Always check with a trusted property expert and make sure all paperwork follows Indonesian regulations.

Pros:

• If you’re not using the land yet, subleasing keeps it active and productive instead of sitting idle.
• Since you’re leasing (not owning), you avoid higher taxes and ownership costs while still generating returns.
• You can set short- or long-term sublease periods depending on your financial goals.

7. 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.

• Earn returns faster compared to long-term investments once the renovation is complete.
• Renovations or design upgrades can significantly increase the property’s market price.
• You can choose how much to invest and what kind of improvements to make based on your budget and goals.

Is Bali a Good Place to Invest in Property?

Yes. Bali Villa Realty notes that Bali’s property market still offers strong returns, with annual rental yields typically ranging from 7% 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 property development project in Bali. 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.

FAQ

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! Ask anything to our expert agent and get a personalized investment plan tailored to your goals. It’s completely free, no strings attached.