Bali’s property market is still going strong, and foreign investment has been climbing fast. According to MediaIndonesia.com, interest from overseas buyers has jumped by 85%, with total investment reaching around USD 764 million.
As more people embrace tropical living, the demand for homes, commercial spaces, and long-term villa rentals keeps growing. Digital nomads, expats, and professionals in tourism and creative industries are all looking for places that offer comfort and lasting value.
Leasehold as a Legal Path for Foreigners
So yes, Bali is a great place to invest in real estate. But here’s the catch: foreigners can’t own land under a freehold title. So how do investors work around that? There are two main options:
1. Set up a foreign-owned company (called PT PMA in Indonesia). This company can buy property with a freehold certificate and convert it into a Right to Build (HGB) title. HGB gives you 30 years of ownership, extendable by 20 years, and renewable for another 30—up to 80 years total. Just make sure to renew at least two years before it expires.
2. Go for a leasehold (Hak Sewa). This lets you use the property for a set period—usually 25 to 30 years—with the option to extend for another 25 to 30 years. The renewal cost is based on land value only, not the building. While you can’t own the land, leasehold still gives you solid control over the property. Just keep in mind that once the lease ends, the land goes back to the original owner.
Bottom line: even without land ownership, leasing villas in Bali is still a smart and profitable way for foreign investors to tap into the island’s booming real estate scene.
Leasehold Opportunities for Foreign Buyers
There are some great examples showing how valuable leasehold properties in Bali can be. For instance, in Umalas, villas with about 27–28 years left on the lease are selling for USD 269,000 to 395,000. In Canggu, you can find a 2-bedroom villa for around USD 115,800. If you’re looking for something more luxurious, like a beachfront or 3–5 bedroom villa in Uluwatu, prices can go over USD 500,000.
When it comes to renting, long-term leases usually cost between USD 1,000 and 5,000 per month, depending on the location and features. One example: a villa is listed at around USD 46,862 per year. These numbers show that if you manage the property well, leasehold villas can bring in good rental income and stay booked.
Since foreigners can’t own land in Bali, leasehold contracts are one of the easiest and smartest ways to invest. You can rent out villas to long-term tenants, expats, or vacation guests and earn steady returns if the property is well taken care of. Legally, leasehold and HGB (Right to Build) titles are recognized and protected under Indonesian law.
Even though you don’t own the land, leasehold still gives you control over the property, a chance to earn money from rentals, and potential for the property’s value to grow. With Bali’s strong tourism, growing expat community, and steady flow of foreign investment, leasing villas is a great way to get into the real estate market.
Ready to Invest in Bali’s Leasehold Market?
With international tourist arrivals on the rise, Bali’s property market continues to deliver impressive returns, especially in the villa rental sector. Whether you’re looking for passive income, portfolio growth, or a slice of tropical living, now is the perfect time to start.
At Seven Stones Indonesia, we specialize in guiding foreign investors through every step of the buying process, ensuring transparency, legal security, and strategic insight. As your trusted buyers agent, we offer expert advice to help you invest with full compliance in Bali’s real estate landscape.
Schedule your free 30-minute consultation with our real estate advisors today. Message us on WhatsApp or email us at [email protected] .