There are endless ways to make money through property investment in Bali.
Whether you dream of steady rental income, long-term appreciation, or a chance to profit through flipping, Bali offers it all—but only if you know what to look for and have a solid strategy.
In this article, we’ll explore six ways to profit from real estate investing in Bali…
Whether you’re a beginner or an experienced investor, you’ll find insights to make informed, profitable choices.
Ready to dive in? Let’s get started!
How to Make Money from Property in Bali?
Real estate builds wealth in many ways, from monthly rental income to growing property value. Here’s how property investment in Bali can help you generate profit.
1. Value Appreciation: Watch Your Property’s Worth Grow
One of the main reasons real estate is investors’ top choice is value appreciation (or when the property increases in value).
It’s probably one of the most well-known ways to profit from real estate. If you buy a property and its market value increases, you can sell it for more than you paid.
This typically happens due to factors like:
- Market demand
- Economic growth
- Development in the surrounding area.
For example, properties in booming tourist destinations like Bali appreciate significantly as the demand for villas and vacation rentals increases.
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.
With over 270 million people and rapid urbanization, the demand for homes in the country is only expected to keep rising.
Fg. 1 Significant growth of rental property market in Bali (Bukit Vista)
2. Rental Income: Earn Steady Money Through Rentals
This is one of the most common ways to make money in real estate.
Whether you rent out a villa on Airbnb or an apartment, the income you generate from tenants living there is considered residential rental income.
In Bali, properties in sought-after areas can generate higher yields, with some investors seeing returns of 15-18% annually.
AirDNA also shows Bali’s occupancy rate has risen to 56%, two percentage points higher than pre-pandemic levels. Short-term rental revenue per available night increased by 8%, driven by tourism and digital nomad demand.
Hotspot areas are even seeing incredible results. Canggu, for example, has experienced an average occupancy rate of over 90%.
Source: Bukit Vista
3. Commercial Rentals: Tap into Bali’s Business Boom
Investing in commercial properties is another way real estate generates income.
In Bali, this might include retail spaces, offices, or co-working hubs, particularly in areas frequented by tourists and expats.
With Bali’s thriving entrepreneurial scene—especially for cafes, restaurants, and tourism businesses—commercial rentals can yield higher returns than residential properties.
Fg.2 Commercial property price index in Bali from 2020 to 2024 (Statista)
4. Subleasing Land: Profitable, if Done Right
In Bali, subleasing land can be a legal way to earn income if you have already leased the land.
When subleasing land in Bali, the duration of the sublease typically can’t exceed the remaining time on your primary lease.
For example, if you hold a 30-year lease and have 10 years left, you can only sublease the land for up to those 10 years.
The sublease must align with the terms of your original agreement, including the expiration date and any conditions set by the landowner.
However, subleasing is only legal if your primary lease agreement explicitly allows it—so it’s essential to confirm with a trusted legal advisor or property expert and ensure all paperwork aligns with Indonesian regulations to avoid future issues.
5. Buy and Hold Strategies: Earn Income While Growing Equity
Indonesia’s residential real estate market is expected to grow from USD 72.11 billion in 2024 to USD 105.73 billion by 2029, with a yearly growth rate of 7.95% (as shown in the figure below).
The buy-and-hold strategy involves purchasing and holding onto a property for an extended period, allowing for rental income and appreciation.
This is a stable choice if you have a longer investment timeline. In high-growth areas, this strategy can yield significant returns over time.
Look for properties with high rental yield potential and appreciation to maximize long-term gains.
6. Flipping Properties
If you’re open to taking on a project, flipping can be a great option. This involves buying a property below market value, making upgrades or renovations, and then selling it for a profit.
Flipping can be a faster route to making money but comes with more upfront costs and effort.
These basic ways real estate investors generate income can vary depending on your strategy, market conditions, and location.
Key Factors to Weigh Before Investing in Bali Real Estate
Before jumping into property investing, it’s essential to consider a few key factors.
These considerations will help you better understand the potential risks, rewards, and level of commitment required for successful investing.
- Your Risk Tolerance
If you’re risk-averse, you may prefer long-term investments like buy-and-hold, which are generally more stable properties. If you have a higher risk tolerance, you might explore options like property flipping, which could offer quicker but more uncertain returns.
- Liquidity of Real Estate Investment
Unlike stocks or bonds, real estate is not easily converted into cash, making it a “non-liquid” investment. Real estate might not be the best choice if you need quick access to your money.
- Time Commitment
Real estate investment requires time, especially in a foreign country like Bali. You’ll need to be involved in managing your property, handling rentals, and maintaining its condition—especially if you rent it out to short-term tenants.
- Capital Requirements
Real estate investment requires significant capital to purchase the property and cover ongoing expenses like maintenance, property taxes, and property management fees. Make sure you’re ready for these extra expenses. Take a moment to plan your finances, covering the initial purchase and future upkeep.
- Understanding the Market
Before investing, it is essential to research the Bali property market thoroughly. What are the best areas for investment? What are the rental yields? What are the ownership titles?
What Do You Need to Get Started?
If you’re considering making money in Bali’s real estate market, keep a few key things in mind.
1. Capital or Financing
Unlike in many other countries, there is no mortgage. You’ll need the full purchase price upfront for most real estate deals.
If you’re planning to invest, you’ll want to ensure you have enough capital to cover the cost of the property.
2. Choosing the Right Property
In Bali, not all properties are created equal. What you buy will depend on your goals.
Are you looking for a property that can bring in immediate rental income, or are you playing the long game, hoping for significant appreciation over time?
3. Patience and Time Commitment
Real estate investing isn’t a get-rich-quick scheme. It often takes time to see a return on your investment.
Patience is key, whether finding the right property, waiting for it to be appreciated, or managing tenants.
4. Plan for Extra Costs
It’s not just the purchase price that you need to account for. There are other costs, such as:
- Legal fees for setting up the right contracts.
- Taxes, which you’ll need to pay annually.
- Maintenance costs, especially if you’re planning to rent out the property.
- Staff costs for cleaners, gardeners, or security personnel.
5. A Solid Strategy
Making money in real estate isn’t just about buying any property and hoping for the best. You need a plan.
Are you flipping properties for a quick profit? Or are you in it for the long-term rental income?
A clear goal and strategy will help you stay focused and make smart decisions.
6. Finding a Trusted Real Estate Agent
Working with a good real estate agent is crucial. They’ll help you find the right property and ensure you don’t overpay.
At Bali Villa Realty, we understand the market, what kinds of deals are available, and how to negotiate on your behalf.
By considering these key factors, you’ll be better equipped to navigate the world of real estate investing and increase your chances of making money.
Make Your Investment Work for You
Investing in Bali offers various ways to build wealth, such as rental income, appreciation, or flipping properties.
In the short term, renting out a villa provides a quicker path to passive income, especially in high-demand locations.
For those with a long-term vision, investing in land or commercial properties can offer higher returns but may take longer to materialize.
Whatever you choose, ensure you’ve done thorough market research, aligned your choice with your goals, and consulted experts to maximize your chances of success.
If you need help finding the right investment path, our legal and knowledgeable team is here to help.
Book your free investment consultation below for personalized advice tailored to your goals!
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