best Bali locations for ROI 2025

Bali’s real estate continues to attract global investors, and for good reason:

• Strong tourism rebound: International visitor numbers are surging again, driving demand for short-term rentals.

• High rental yields: In prime areas, luxury villas can deliver 12–20% net ROI according to some reports.

• Emerging infrastructure & sustainable trends: There’s growing interest in eco-villas, wellness retreats, and smart/sustainable real estate.

• Shifting investment zones: As coastal zones become saturated or regulated, investors are exploring inland areas, rice-field retreats, and northern best Bali locations for ROI 2025.

Top Bali Locations to Watch for ROI in 2025

Here are the key areas that look especially promising for investors in 2025 — and why:

1. Uluwatu (Bukit Peninsula)

• Why invest here: Uluwatu and nearby areas like Bingin, Balangan, Nyang Nyang, and Pecatu offer cliffside luxury, ocean views, and a surf/lifestyle appeal.

• ROI potential: Reported net returns in Uluwatu range from 12–18%.

• Trends supporting growth:

  • Luxury villa developments are growing.

  • Limited land supply due to zoning and natural cliffs.

  • High demand from premium travelers, surf tourists, and wellness-seekers.

2. Canggu / North Badung / Pererenan

• Why invest here: Canggu remains the digital nomad and surf capital. Areas like Berawa, Pererenan, and Seseh offer a balance between buzz and serenity.

• ROI potential: Rental yields of 10–15% are frequently cited.

• Trends:

  • High occupancy for short-term rentals; boutique villas in demand.

  • Saturation and infrastructure constraints in Canggu are pushing developers to adjacent, quieter zones.

  • Wellness and sustainable design are increasingly popular.

3. Ubud (and its Outskirts)

• Why invest here: Ubud is Bali’s wellness, spirituality, and nature hub. Long-stay tourists, retreat-goers, and eco-conscious travelers favor this region.

• ROI potential: Estimated 8–12% returns.

• Trends:

  • Emerging developments in “north Ubud” or Tegallalang — often eco-retreats or wellness villas.

  • Growing demand for sustainable architecture, yoga retreats, and wellness compounds.

  • Compared to the south, land is still more affordable, offering potential for capital appreciation.

4. Tabanan / Rice-Field Retreats

• Why invest here: Inland rice-field areas (Tabanan, Pererenan-ricefield zones) are gaining traction as people look for tranquil, scenic, and sustainable retreats.

• ROI potential: Reports suggest 8–10%+ appreciation, especially for eco-villas.

• Trends:

  • Lower entry cost compared to coastal zones.

  • Ideal for eco developments: solar-powered villas, permaculture designs, wellness stays.

  • Growing infrastructure and connectivity make these areas more accessible.

5. Nusa Dua

• Why invest here: Nusa Dua is Bali’s premium resort district, known for five-star hotels, safe beaches, and a high-end tourist base.

• ROI potential: Villa developments and branded residences in this area report 11–12% net annual returns.

• Trends:

  • Strong hotel/residence demand due to established infrastructure.

  • Limited land and high tourist demand maintain premium pricing.

  • Leverage from branded-luxury projects with professional management to optimize returns.

6. North Bali (Lovina, Amed, Buleleng)

• Why invest here: More off-the-beaten-path, but increasingly attractive for eco-tourism, dive resorts, and longer-stay travelers.

• ROI potential: Some sources suggest 15–18% ROI for well-executed resort and villa projects, particularly in Amed.

• Trends:

  • Lower land cost compared to central/south Bali.

  • Growing interest in sustainable tourism, coral reef conservation, and community-based retreats.

  • Potential future boost from north Bali infrastructure (e.g., transport projects).

Risks & Challenges to Consider

Investing in Bali real estate isn’t without risks. Here are key challenges to weigh:

1. Legal & Ownership Complexity

   • Foreigners can’t typically own freehold land; most investments are via leasehold or a foreign company (PT PMA).

   • Lease terms, extensions, and contract structure are vital. Poorly structured deals can hurt ROI.

   • Some investors on forums warn about overly optimistic ROI promises or even scams. > > “There are tons of projects … promising 20% ROI … likely a scam.”

2. Regulation & Zoning Risks

   • Coastal development has more restrictions; protected zones or setbacks may limit what can be built.

   • Increasing focus on sustainability and eco-regulations could reshape development costs.

3. Market Saturation

   • In heavily developed areas (Canggu, Seminyak), competition is intense, and traffic/infrastructure challenges are growing.

   • Overbuilding risk: too many similar villas could drive down nightly rates or occupancy.

4. Maintenance & Operational Costs

   • High-end villas need ongoing maintenance, management, and marketing to maintain ROI.

   • Villa management companies charge fees; vacancy during off-season can impact cash flow.

5. Economic & Macro Risks

   • Tourism is still vulnerable to global shocks (pandemics, geopolitical risk, travel restrictions).

   • Currency risk: rental income might be in USD or other currencies—but costs are often in IDR.

Strategic Tips for Investors in 2025

To maximize ROI and mitigate risks, here are some smart strategies:

• Partner with experienced local developers
  Work with reputable developers who understand Bali’s zoning, legal structures, and market dynamics.

• Focus on mix-use or branded projects
  Branded residences (hotel-managed villas) can offer more reliable occupancy and better exit strategies.

• Go sustainable
  Eco-villas, wellness retreats, and green design are not just trendy — they attract premium guests and help with long-term value.

• Leverage leasehold wisely
  Negotiate favorable lease terms (long lease, renewals) and clearly define responsibility for land improvements and extensions.

• Diversify locations
  Instead of pouring all capital into saturated zones, consider emerging areas like Tabanan or North Bali for higher long-term upside.

• Do your due diligence

  • Validate projected ROI (ask for historical data, occupancy, financials)

  • Understand management / operational costs

  • Confirm legal structure and title (leasehold vs freehold)

  • Use local legal counsel

Conclusion

If you’re eyeing Bali for real estate investment in 2025, there are several compelling hotspots offering strong ROI potential — but success depends heavily on smart location choice, legal structure, and long-term planning.

• Uluwatu offers luxury and lifestyle appeal with high yields.

• Canggu / Pererenan remains a digital nomad and short-stay favorite.

• Ubud and rice-field retreats tap into wellness and sustainability trends.

• Nusa Dua gives stability with premium demand.

• North Bali is the “hidden gem” for eco and long-stay tourism.

But be cautious: getting the legal and operational setup right is as important as picking the right land.