Bali’s property market has shown significant growth since the first quarter of 2023. With occupancy rates increasing, villa investment has become a notable option. The question is, how much does a villa cost in Bali? In this article, we will give you a snippet of how much it costs and what factors influence it.
Factors Influencing Villa Costs
Location
Villas in bustling tourist hubs like Canggu, Seminyak, Uluwatu, and Ubud command higher prices due to their proximity to attractions. On the other hand, those situated in quieter residential areas like Babakan, Tumbak Bayuh, and Umalas offer similar amenities at a more accessible price point, making the location a pivotal consideration for potential buyers.
For instance, a villa located in the middle of Canggu would have a price range starting from $200,000, meanwhile, similar villas located in Pererenan would have a price range starting from $170,000. Further west of Canggu, the property location is, cheaper it will be.
Rental Potential
Aesthetics is not the only thing that affects your villa’s valuation, legal considerations play a major role. Villas with daily rental permits or situated in zones allowing daily rentals hold a higher value. These factors will make the villa easier to rent out and generate returns. If you’re buying off-plan, a developer’s reputation boosts a property's worth and influences its Average Daily Rate (ADR).
Villa Amenities and Design
Luxurious amenities significantly impact villa costs. Villa with private pools, landscaped gardens, and high-end fixtures contribute to a property's cost. With a growing emphasis on wellness, the demand for villas with gyms and spa facilities is on the rise, adding another layer to the pricing.
Well-maintained properties often command higher prices compared to their outdated counterparts. Potential renovation costs should also be factored in, influencing the overall expense for prospective buyers.
Land and Building Size
For villa prices in Bali, larger villas, catering to extended families or event hosting, are in high demand, driving up their market value.
Ownership Title / Lease period
Freehold properties cost more compared to leasehold, however, freehold properties have fewer options to choose from. Leasehold, on the other hand, provides more various options from designs, amenities, prices, etc., and no complicated requirements to purchase, one only needs a passport. Thus, leasehold properties have higher demands among foreigners.
When we talk about leasehold properties, the leasehold term is the one factor that affects a villa price in Bali. A longer lease, spanning, for example, 35 years, correlates with higher property value. Few properties also provide a leasehold extension, making it a more beneficial option. While the initial price may be steeper, the extended leasehold period proves beneficial in the long run, highlighting the importance of balancing initial costs with long-term gains.
Conclusion
Once this is all sorted out, you can start your investment journey in a villa in Bali. Here is a recommendation for investments in the budget range of $150,000 to $650,000. It will be even more beneficial if you invest in a luxury villa with a starting budget of $650,000, and here's how you can do that.
If you’re considering owning a villa in Bali, you should consider various factors that influence the price. Each facet contributes to the overall cost from location and size to amenities, ownership types, and legal considerations. Bali Home Immo offers a one-stop solution for a smooth sailing villa investment journey. Check out our website to find the best-fit villa for your budget.
Disclaimer: The information presented in this article is meant solely for informational purposes and should not be interpreted as legal, financial, or investment advice. Bali Home Immo holds no responsibility for any losses or damages suffered by readers relying on the content herein. Readers should seek guidance from qualified legal or financial professionals before making any legal or investment-related decisions.
