When apartments appeared in Bali
For many years Bali remained an island of villas and detached houses with a private pool on its own or rented land. The systematic construction of low-rise apartment complexes began here relatively recently.
As told by Nikita Shelomentsev, founder of the real estate developer BREIG, there were practically no apartment projects in Bali before the coronavirus and during the pandemic, especially those that would be sold at retail. "It is possible to name only a single project of the Tamora company in Berava. There were also several projects in the format of apartment hotels, for example Citadines, but there were very few of them.
The mass construction of apartments for sale began approximately in 2023. The expert attributes this to the arrival of a large number of developers from the former Soviet Union on the island. They had experience in the implementation of apartment complexes in their homeland. When it came time to launch new projects in Bali, they often went out with this format, which was familiar to themselves and their target audience.
According to To Victoria Valenskaya, founder of the international real estate agency KULTURA, the market for apartments and branded residences was quite limited until 2018-2019. The situation began to change rapidly after the pandemic, especially from 2022-2023, under the influence of several factors at once: a rapid increase in land values in popular areas, high demand from digital nomads and long-stay tourists, as well as an increase in the number of investors with a relatively small entry budget.
"A full-fledged shift of the market to the "integrated management" format occurred after the pandemic, in 2021-2022, when investors began to request a more liquid and operationally simple product," adds the expert.
Today, the Bali apartment segment has already reached an estimated 13% of the market in terms of supply. At the same time, there are not only primary transactions, but also transactions on the secondary market.
Nevertheless, villas are still the main real estate format in Bali and retain a dominant market share. Apartments are a growing, but not yet the main segment.
What are apartments in Bali
Balinese apartments are not an apartment building in our usual sense. As a rule, they are low-rise complexes (2-4 floors) with a full-fledged resort infrastructure.
According to Nikita Shelomentsev, a full-fledged apartment complex includes a common space with a swimming pool, reception and full service from the management company. The management company takes care of everything from cleaning and maintaining apartments in perfect technical condition to finding clients and renting them out in order to create passive income for the owners.
Additional services can often be found on the territory of the complex: gyms, yoga centers, coworking spaces, spas, children's playrooms. It also goes to the exotic - for example, studios for recording podcasts.
Branded hotel residences and investment hotel rooms form a separate niche. There are few of them on the market so far, which creates high liquidity and increased interest from investors. Prices for such properties are often comparable to high-quality unbranded properties in a similar location.
"In fact, the buyer purchases a fully finished investment product for a short- or medium-term lease," Victoria Valenskaya summarizes.
The areas range from small studios of about 20 square meters (more like a hotel room, without a kitchen) to large penthouses of 100 square meters or more. The most common and frequently encountered are about 50 sq. m.
Equipment.Almost all new projects are sold fully furnished, equipped with appliances, designer finishes and an equipped kitchen. Moreover, the apartments are fully prepared for rental, right down to the forks and spoons.
Apartment prices
Average prices per square meter range from $2,500 (most often in the Ubud area, where land is significantly cheaper) to $3,500. However, for unique projects within walking distance to the beach, with well-developed infrastructure and species characteristics, they can exceed $4,000-4,500 per meter.
The entry threshold has noticeably decreased over the past two or three years: today there are projects under construction starting from $75,000 to $86,000 in Ubud and more remote locations.
The average price of apartments in Bali, according to our interlocutors, is about 150,000 dollars 170,000, while sometimes you can find small studios up to 100,000 dollars. For comparison, the average price for a villa is about $270,000, 330,000, but it can be significantly higher depending on the size. At the same time, experts add that villas with a relatively low check (up to about 250,000 dollars) They also maintain high liquidity along with compact apartments.
Bali's secondary apartment market
The secondary apartment market is just forming, as the first projects were completed only about one or two years ago. Nevertheless, Nikita Shelomentsev estimates that at the moment it is already at least 30% of the total supply market.
Victoria Valenskaya adds that the primary market is still dominant, but liquid secondary is already appearing in the first waves of completed complexes in 2022-2023. These are already leased projects for which download statistics are available, which is an undoubted advantage for some buyers.
How to buy an apartment for a foreigner: legal specifics
The main limitation to be aware of is that a foreigner cannot directly own land in the Hak Milik format (the full equivalent of freehold). Other schemes are used to purchase apartments.Leasehold (Hak Sewa) is the most common form chosen by 80% to 90% of foreigners. The buyer receives a long-term lease, usually for 25-30 years, with the right to extend it for another 25-30 years. An important caveat: extensions are not automatic, they must be fixed in advance in the contract.
PT PMA + HGB registration with a foreign company. It is used when an object is acquired as a business asset under a commercial lease or when several units are purchased at once.
Nikita Shelomentsev clarifies that a notarial agreement is most often used for the registration of apartments: the land plot and the building belong to the developer, and a separate room with a dedicated number is transferred to the buyer in the long-term lease format (leasehold).
«Optimal terms of the contract, where guarantees for the renewal of the lease are immediately stipulated. At the same time, there is no need to re-pay the full cost of the apartment, only the cost of extending the land plot at the market price is paid, the expert explains.
The key point is to check the type of land zoning.Only pink zoning with the code W-2 is suitable for apartment construction and further daily rental. A notary will help you check this point. Zoning determines whether commercial activities and short-term rentals are allowed on the site. Victoria Valenskaya strongly recommends against using nominee schemes (registration of objects for local citizens) - this is considered a high-risk practice. The buyer of apartments in Bali is usually a foreigner of 30 or 50 years old: an entrepreneur, an IT specialist, an investor, a digital nomad, a surfer. Foreigners are a key driver of demand: according to various estimates, up to 90% of the investment volume for finished facilities.
"For a long time, the purchase of apartments was primarily of interest to our compatriots. However, recently we have been seeing more and more buyers from Australia and Europe," Nikita Shelomentsev notes. Additional demand is created by new buyers from Singapore and South Korea, as well as a significantly increased influx of tourists from India and the United Arab Emirates, who have traditionally been accustomed to investing in this type of real estate. Purchase objectives: Rental income.According to experts, the average rental yield of apartments in Bali is 8-13% per annum with a load of up to 80%. The payback period is on average 5-7 years. Victoria Valenskaya suggests focusing on a conservative assessment: "If we evaluate the market professionally, I would focus on 8-13% net per annum with high-quality management of the facility. The real profitability depends not so much on the facility itself as on the location, the utilization of the complex, the quality of the management company, marketing and the level of service.Who buys apartments and for what purposes
Investment attractiveness
Capitalization growth. When buying at the construction stage, the cost increase may amount to 25% to 35%, however, it is necessary to take into account the risks when entering into such projects: contact reliable developers.
Why is an apartment in some cases more profitable than a villa for an investor?The entry threshold is lower, the operating system is simpler (everything is on the management company), operating costs are lower, and the load is higher due to the infrastructure of the complex.
Bali areas where apartments are being built
Changu, Berawa, Pererenan these locations have the largest concentration of tourist activity. It was here that developers launched the first large-scale apartment projects, as well as small boutique apartment hotels. This is the main apartment development center in Bali. The driver of demand is an active audience of digital nomads and a high interest in short-term rentals, which ensures a strong increase in prices.
Bukit (Uluwatu, Nusa Dua) the main point of growth. The land here is limited geographically, and the beaches are some of the best on the island. Resort-format complexes with infrastructure and service are actively being opened. The average load is about 72% - one of the highest rates. Uluwatu is emerging as one of Bali's fastest growing premium markets due to the luxury segment, beach lifestyle and high interest from foreign investors.
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Nusa Dua is traditionally considered a quieter and more premium location. It is dominated by villas and hotel complexes. There are significantly fewer apartments in Nusa Dua compared to Changu, but interest in the location is gradually growing due to the developed infrastructure, high safety standards, high-quality beaches and international hotel brands.
Ubud niche segment: retreats, wellness, long rentals. The profitability here is lower, but the payback horizon is predictable, and the competition is milder. The demand here is generated by tourists who come for a long time, and an audience focused on wellness and an eco-friendly lifestyle.
Sanur is a premium segment with a growing capitalization, betting on long-term bookings.
Seminyak is a premium location with a shortage of land and active recycling, although the market, according to some experts, is already oversaturated with new launches.
What the buyer needs to know: the checklist
Bali 2026 is a market of strategy, not momentum. The time to "buy anything and earn" has passed. Now the problem is solved by a combination: location + product + management + legal purity.Important when choosing an apartment
Legal purity.Verification of title, zoning, permits, and history of ownership transfers. For the legal short-term rental of apartments, the plot must be located in the pink zone (pink zoning, code W-2). This is the kind of land intended for tourism and commercial activities. This is the first thing a notary should check. Construction in other areas (for example, in residential areas) is a risk of fines and the inability to legally rent out the facility.
The choice of the developer.Apartments cannot be built in half and begin to operate, unlike a complex of villas. If the project is being implemented by a new developer with no experience in building and commissioning similar facilities in Bali, such a proposal should be treated with caution. When evaluating a developer, it is recommended to request information about completed projects, deadlines, construction quality, and financial model. It is advisable to have escrow accounts and link installment payments to the construction stages! The experience of building and commissioning similar facilities in Bali is a critical criterion. One of the ways to protect yourself is to transfer funds first to a notary's account.
Lease term and terms of extension.The wording in the contract on the right to prolongation and the consent of the landowner is critically important. In addition, it is necessary to check whether the inheritance rights and the possibility of resale of the object to third parties are specified in the contract, as well as registration of the contract with a notary.
The management company.This is a 50% success rate, especially if you are buying apartments for rent. Loading a single unit without a criminal code and a unit in combination with professional management may differ by 1.5-2 times.
Assessment of long-term liquidity.Before buying, it is worth assessing how much the object will be in demand in 3 to 5 years: whether the location itself is strong, whether there is a shortage of quality supply, whether the market is oversaturated with similar projects.
The real economy, not marketing.Consider the ROI under the conservative loading scenario to be 55-65%, rather than the promised 80-90%. Include the commission of the Management Company (20-30%), taxes, depreciation of furniture, marketing budget and downtime. Also take into account the fees of OTA platforms (Booking, Airbnb), they can reach 10-15% of the booking price. "If a project promises 18-20% guaranteed ROI, this is already a reason for a very careful review of the financial model."
Quality of construction. In Bali, many apartments are built quickly, and building regulations are not always strict. Before buying, it is worth assessing the condition of the foundation, roof, electrical wiring, water supply and ventilation. Pay special attention to waterproofing and resistance to seismic loads - the equatorial climate and the proximity of the ocean create increased risks for real estate.
"Today, it's not "any facility on the island" that wins, but a specific product for a specific audience," experts summarize.
We talked in detail about the opportunities and risks of investing in Bali in the material.
Thank you for your help in preparing the material:
Nikita Shelomentsev, founder of the real estate developerBREIG
Victoria Valenskaya, founder of the international real estate agency"CULTURE"
