How to Evaluate a Real Estate Investment Opportunity in Bali

Start with Location Analysis

In Bali, location is the number one factor influencing rental demand and capital appreciation. Established areas like Canggu, Uluwatu, and Seminyak enjoy high tourist traffic and strong occupancy rates, while emerging spots such as Pererenan and Seseh offer long-term potential but require careful market evaluation.

Rental Demand and Yield Potential

Rental performance is a key driver of returns. Based on Baraca’s 2025 data, mid-range villas in Canggu achieve 70–90% occupancy with daily rates averaging $130–$200. Investors should calculate net yields after factoring in management fees (often 15%), staffing, and taxes.

Legal and Regulatory Checks

Verifying land titles, zoning regulations, and permits is critical. Ensure:

• PBG and SLF permits are in place.
• Lease agreements allow subleasing or transfer rights.
• The property has a valid Pondok Wisata license for short-term rentals.

Financial Metrics

Consider total acquisition cost, expected cash flow, and long-term appreciation. Baraca’s investment cases show ROI ranging from 4% to 10%, depending on property type, occupancy, and operational costs.

On-the-Ground Insights

Market dynamics can shift rapidly. Partnering with local experts helps identify undervalued areas, assess developer credibility, and avoid overpriced or non-compliant projects.

Investor Lens

Evaluating Bali real estate is a blend of data-driven analysis and local insight. By focusing on rental demand, legal compliance, and market trends, investors can make informed decisions and minimize risks.