Introduction
Umalas is a neighbourhood in Kerobokan, between Seminyak and Canggu in Bali. It combines peace, accessibility, and growth potential. For real estate investors, Umalas has become one of the most promising areas on the island. This article explores the key reasons that make Umalas attractive, what to watch out for, and how to make a smart investment there.
1. Strategic Location
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Between hotspots: Umalas lies roughly between Seminyak and Canggu — two of Bali’s most popular areas for tourism, expatriates, nightlife, shops, restaurants, and beaches. This gives Umalas the benefit of being close enough to all the action, but not directly in the busiest zones.
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Tranquility and residential appeal: Compared with Seminyak and Canggu, Umalas is more peaceful, greener, and less congested. Many buyers and renters prefer this kind of balance.
2. Growing Demand & Rental Income Potential
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High interest from tourists and expats: Umalas is seeing increasing demand for villas from both short-stay tourists and long-stay expatriates. This translates to higher occupancy for well-managed properties.
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ADR and bookings rising: The Average Daily Rate (ADR) of properties in Umalas has increased significantly in recent years. For example, ADR rose from about US$209.91 in December 2021 to US$278.82 in December 2023 in Kerobokan/Umalas. Also, nights booked have grown sharply — from ~6,000 in September 2021 to ~45,000 in August 2024.
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Strong Return on Investment (ROI): In Umalas, villas can deliver high ROI, especially when sized and positioned correctly. Some reports suggest returns up to 13-16% depending on investment cost, property type, and management.
3. Capital Appreciation & Market Trends
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Limited new land: As Seminyak and Canggu become more fully developed, Umalas is now one of the growth corridors. Land is becoming scarcer, which tends to push up property prices.
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Steady property price growth in Bali: Bali overall has shown consistent annual property appreciation of about 7-15%, depending on area, infrastructure, and property quality. Umalas benefits from this broader trend, especially being close to high-demand areas.
4. Lifestyle & Amenities
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Quality of life: Umalas offers a quieter, more relaxed life than the busier tourist frontlines. Green spaces, quiet roads, views of rice fields in some locations, boutique cafes, wellness centres, and restaurants are all part of Umalas’s charm.
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Good infrastructure & accessibility: Because Umalas is close to major roads and hubs, access to airports, beaches, shopping, international schools, and medical facilities is relatively good. It offers many of the conveniences of Seminyak or Canggu without the same level of traffic or crowds.
5. How to Invest Safely and Legally in Umalas
One of the biggest concerns for foreign investors is understanding how to buy property in Bali the right way. The good news is that there are secure legal frameworks to help you invest safely in Umalas.
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Ownership options: While foreigners cannot own freehold land (Hak Milik), they can invest through long leaseholds, Hak Pakai (Right to Use), or by setting up a PT PMA (foreign-owned company). These structures are widely used and legally recognized in Indonesia.
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Safe transactions: Always do due diligence — check zoning, land titles, building permits, and access rights. This prevents problems later and ensures the property can be rented legally.
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Professional support: Working with reputable notaries, lawyers, and property agencies is essential. They guide you through the paperwork and protect your investment.
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Property management: If your goal is rental income, good property management will help maintain occupancy, keep the villa in excellent condition, and maximize ROI.
👉 Instead of seeing the legal system as a barrier, think of it as a safety net. With the right structure, investors can confidently enjoy strong returns in Umalas.
6. Best Types of Properties to Invest in Umalas
Investors in Umalas have several attractive options depending on their goals. At Bali Home Immo, we provide a wide range of listings that fit different strategies:
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Modern villas with private pools – These are the most popular choice for both short-term rentals and long-term expats. Stylish design, privacy, and amenities help ensure high occupancy rates.
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Family-friendly homes – Umalas is loved by families thanks to its quiet environment and international schools nearby. Properties with multiple bedrooms, gardens, and easy road access rent well to long-term tenants.
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Boutique villas in green areas – For investors who want to target Bali’s boutique holiday market, Umalas still offers villas with rice field views and tranquil surroundings, perfect for premium daily rentals.
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Land plots for development – With limited space left in Seminyak and Canggu, buying land in Umalas is a smart way to benefit from future capital appreciation.
👉 Whether you want steady rental income, family tenants, or long-term growth, our team at Bali Home Immo can match you with the right property in Umalas.
Conclusion
Umalas offers a compelling mix: proximity to Bali’s most popular zones without being overwhelmed by their downsides; strong rental income potential; and good chances for capital growth as land becomes scarcer. However, investment success depends heavily on choosing the right location, understanding legal ownership structures, maintaining quality, and matching the product to the market.
If you're considering real estate in Bali, Umalas deserves serious attention — with proper planning, it can be both a profitable and satisfying investment.
