Bali’s real estate market is already popular among foreign buyers enticed by the island’s tropical lifestyle, burgeoning tourism, and consistent interest in holiday rentals. Off-plan properties – where you buy a property before it is built – have become increasingly popular due to the prospect of lower prices and higher returns compared to other buying strategies. But is this investment method universally appropriate? Let’s explore the real advantages, hidden risks, and key considerations when buying off-plan property in Bali in 2025.
Luxury off-plan purchases often come with a hefty discount from market value. Prices for early buyers are often 20% to 30% cheaper, meaning canny investors can enjoy capital appreciation while the property is still under construction. This is especially important in hot spots like Canggu, Uluwatu, and Seminyak, where real estate has seen a consistent increase in prices over the last 36 months.
One of the biggest appeals is the flexibility that off-plan buyers have. When compared to a ready-built villa, where there is little or no room for personalization, an off-plan project can give you a say in layouts, finishes, and sometimes even colors – and may even influence the architectural design. This type of customization can offer significant emotional value for buyers who envision creating a unique vacation home or investment property.
Also, off-plan project payment plans are more flexible. Buyers don’t usually pay the full purchase price upfront; instead, they pay in installments at predefined dates linked to development progress. This staged investment can alleviate the financial load and make overseas investment more feasible.
But the lure of glossy brochures and attractive floor plans needs to be weighed against a realistic understanding of risks. Leading this is, of course, the question of developer trustworthiness. Bali’s real estate market has been overwhelmed by new developers, and not all have the experience or finances to deliver on their promises. Mounting construction delays, cost escalations or – in the worst case – abandonment, are not uncommon.
Quality is another concern. Although a floor plan can look perfect, once constructed, the results can vary widely due to inferior materials, shoddy workmanship, or simply lack of oversight. With Bali’s complex legal system and limited buyer-friendly recourse, it is obviously very important to make sure you buy from a developer with a proven and transparent track record.
There are also market risks to be concerned about. The property market in Bali is closely tied to tourism, which can wax and wane depending on global or regional developments. Regulations could change, supply could abruptly increase in a destination, or demand may shift among travelers – all of which can impact your anticipated return on investment.
The fact that properties are rarely freehold for foreigners adds another level of difficulty. Foreigners in Indonesia are generally not able to own freehold property, and most off-plan sales will be under long-term lease agreements. This is why it is so crucial to have reliable legal advice and to ensure that contracts and agreements are strong and beneficial to you.
Before you sign up for any off-plan development, it is important to check the pedigree of the developer. Review past work, ask for references, and if possible, visit homes the builder has completed. Clear conversations, thorough contracts, and progress-based payment terms can offer further safeguards during construction.
Location is also a very important factor. Places like Canggu and Ubud are still lifestyle-buyer and digital-nomad magnet areas, but micro-location matters. Choosing a site with strong infrastructure, convenient access, and lower competition can significantly improve your rental yield and resale potential.
And finally, it’s important to define your investment goal from day one. Are you intending to sell the home after completion? Rent it out for short stays? Use it as a second home? Each objective brings different financial and legal implications.
New off-plan property investments in Bali can be highly rewarding – particularly for those who want to enter the market early and shape the final product to their preferences. For those who select their developer carefully, navigate payment terms wisely, and obtain expert legal help, the payoff can be significant. It is also true, however, that investing off-plan is not for the faint-hearted. Construction issues, legal obstacles, and quality concerns remain common. If speed, certainty, and the ability to inspect a finished asset matter to you, a completed property might be the safer choice.
It’s 2025, and Bali continues to be a vibrant and evolving real estate market. Off-plan investing can work – if you approach it with a realistic mindset, do your due diligence, and surround yourself with the right advisors. And if you need to find property in Bali, DDA Real Estate can help you with that. Contact us now!
