Building property in Bali offers significant investment potential, but deciding whether to buy an existing property or build from scratch can be challenging. I’m Utami, a business journalist at Bukit Vista, and in this article, we aim to provide you with the critical information needed to make the best decision for your investment goals. We’ve gathered some of the most pressing questions from our clients seeking strategic investment advice and asked our CEO, Jing, who brings over 15 years of experience in Bali’s real estate market, to share his insights and answers.
So, what are the essential factors to consider? Let’s explore them in detail.
When deciding between building or buying property in Bali, cost and time are crucial factors. For example, leasing 500 sqm of land in Canggu at $1,295 per 100 sqm per year would cost $6,475 billion for a 25-year lease. Construction for a property in the $100-200/night category costs around $340 per square meter, leading to a total construction cost of $170,000. Therefore, the total cost of land and buildings in this simplified scenario would be approximately $176,475.
Building property in Bali may not be the ideal choice for investors who have significant family and work obligations, as the process can be time-consuming and requires a substantial commitment. Additionally, those who are not patient enough to navigate the complexities of Indonesian bureaucracy may find the experience frustrating. On the other hand, investors with a DIY mindset, ample free time, and a taste for adventure are more likely to thrive in this environment. These individuals will appreciate the opportunity to manage the quality and customization of their future home, making the building process a rewarding endeavor for those who are willing to take on the challenges involved.