Choosing the Right Area
Where do you want to build or buy? The simple answer is: build in the area you like most. That's generally the right approach.
However, different locations represent very different types of investments. Understanding these differences is crucial for your ROI.
Popular Areas Compared
Canggu
Canggu is currently one of the most popular areas in Bali. Its streets are busy with trendy restaurants, bars, local fashion stores, beach clubs, and more.
Investment characteristics:
- High rental demand (even during the pandemic)
- Higher demand = higher prices
- Land prices: approximately 19-30 Million IDR/Are/year (leasehold)
- One of the most expensive areas in Bali
Uluwatu (Bingin Area)
Uluwatu isn't as popular as Canggu, but it has unique appeal. It's close to the best surf breaks in Bali and attracts surfers and those who appreciate cliff views and white sand beaches.
Investment characteristics:
- Quieter area with growing development
- New businesses opening regularly
- Land prices: 10-16 Million IDR/Are/year (leasehold)
- Potential for significant appreciation
Many investors believe the Uluwatu area is poised to become "the next Canggu" within a few years.
Ubud
The cultural heart of Bali, known for rice terraces, temples, and wellness retreats.
Investment characteristics:
- Land prices: as low as 3.5 Million IDR/Are/year
- Different target market (wellness, culture, retreats)
- Lower tourist density but consistent demand
Other Emerging Areas
Keep an eye on:
- Babakan, Pantai Lima, Seseh - located near Canggu
- Kedungu - north of the popular Tanah Lot Temple
Investment Strategy
From an investor's perspective, you want to discover areas that:
- Aren't at peak popularity yet
- Show signs of becoming popular soon
- Offer favorable land prices relative to potential
Trust your instincts—if you sense an area is about to boom, investigate further.
However, if you find a good opportunity with appealing ROI calculations in an already popular area, don't hesitate. There are no strict rules here.
Due Diligence Questions
Once you've identified an area, examine specific plots carefully:
Zoning Compatibility
Does the land zoning fit your project? (Covered in detail in the Zoning chapter)
Warning: If an agent promises that changing zoning "won't be a problem," find a different agent.
Neighboring Developments
- What's planned for adjacent properties?
- Will a multi-story building block your views?
- Will shared access roads create traffic during construction?
Noise Factors
- Proximity to busy roads (can be mitigated with design)
- Nearby nightclubs, bars, or beach clubs
- Construction noise from neighboring projects
Wildlife Considerations
- Monkeys in Ubud and Uluwatu areas (can be aggressive)
- Consider monkey-proofing in boundary wall design
Environmental Factors
- Rice paddies nearby (burning season smoke, mosquitoes)
- Drainage patterns and flood risk
- Ground hardness for foundations
Accessibility
- Distance to restaurants, shops, gyms
- Proximity to schools/daycare (if targeting families)
- Road access and quality