Bali Zoning Regulation, Desirability, and ROI Unveiled

img Reyhan | March 29, 2024

Hi, I’m Reyhan, the Marketing Strategist at Bukit Vista. I’ve read articles that cover everything investors planning to build and buy a villa in Bali should know about Bali property zoning. Most of the info focuses only on zoning rules and land use regulation. If that’s all you need, you can check out: https://gistaru.atrbpn.go.id/rdtrinteraktif/ for your research.

But here’s the question: What else do we need to know about land use regulation and how they apply to your Bali villa investment strategy?  Let’s find out together! 

Basic Understanding: Decoding Zoning Colors

I’m sharing this information for those who might not know much about it. Zoning means dividing land into different parts, each with specific rules about how you can use the land and build things on it. In Bali, these rules are really important. They help keep the island beautiful, protect its culture, and control how cities grow. There are five types of zones in Bali:

  1. Agricultural Land (Green):
    This is for farming and not good for building villas. There are strict rules here to save the farmland.
  2. Residential Land (Yellow):
    This is where you can build villas. But even here, there are different types – some areas allow fewer houses, some allow more. You need to research well to know which type fits your plan.
  3. Commercial Land (Red):
     This is for businesses, not villas. But it’s important to understand nearby commercial areas to know about the local economy and your potential customers.
  4. Tourism Land (Pink):
    Great for building villas, especially if you want tourists to stay. These areas are meant for places like hotels and villas, so they’re good for your villa project.
  5. Commercial & Residential Land (Orange):
    These areas have a mix of businesses and houses. They can be a good choice because you can cater to both locals and tourists, making it a good option for building villas.
Looking at this Bali property zoning, it’s clear that the pink zones are the safest for building villas, according to the rules. The map in Figure 1 shows an example of the Ubud area. Now, what’s important to figure out next is the exact location within the pink zone where you want to invest.
bali pink zoning - zoning regulation
Figure 1. Zoning in Ubud

Choosing the Perfect Location: The Intersection of Zoning and Desirability

Airbnb Reviews Analysis: A Strategic Insight

In the digital realm of travel, insights often come from the experiences shared by fellow adventurers. Figure 2 serves as a window into the world of Bali’s southern region, displaying a mosaic of Airbnb reviews. The visual language is simple: larger bubbles signify more reviews, while colors, from purple to green, reveal the spectrum of guest satisfaction. Red marks the less happy 4-star ratings, while green signifies delighted 5-star reviews. For investors seeking promising spots, the focus naturally shifts to the vibrant green bubbles, indicating both popularity and positive experiences. This clever analysis provides essential guidance, offering valuable clues about the area’s desirability and its potential for Bali villa investment.
airbnb review map - bali villa investment
Figure 2. Airbnb reviews distribution in Kuta Selatan

Navigating Bali Villa Investment Landscape: Insights from Airbnb Reviews

For investors seeking prime opportunities in Bali, the Airbnb review map acts as a valuable compass. Imagine being in their shoes, eyeing the appealing pink areas on the map. The natural question that arises is, “Which specific spot within this pink zone is the most desirable?” The answer is surprisingly straightforward: look for the pink areas adorned with sizable green bubbles. These vibrant green bubbles, symbolizing satisfied guests, are a telltale sign of high desirability.
 
Now, let’s consider the Bali property zoning in the Badung area (Figure 3) as an illustrative example. Here, the pink hue signifies the area’s eligibility for villa construction, aligning with hospitality facilities. To gauge its desirability accurately, we turn to Figure 4, a comprehensive Airbnb reviews map. By merging the pink and green shades, a particular area labeled ‘A’ emerges as the cream of the crop. This area attracts a substantial influx of Airbnb guests, indicating robust demand.
zoning regulation in kuta
Figure 3. Zoning Regulation in Kuta Selatan
airbnb review distribution in kuta map
Figure 4. A-labeled area by Airbnb reviews distribution in Kuta Selatan
While this observation is promising, a direct investment decision isn’t prudent. So, what additional factors should investors consider? Let’s delve deeper to make an informed choice.

Maximizing Profit: Unraveling Return on Investment (ROI)

Once the pink area with a substantial green bubble is identified, the next crucial step in the Bali villa investment journey involves understanding the Return on Investment (ROI). ROI, short for Return on Investment, is a vital metric providing insights into the annual returns an investor can expect from a specific area. Various factors such as land price, operational costs, villa prices, and occupancy rates directly impact this percentage. Particularly in the A-labeled area, discerning the ROI becomes pivotal. If you’re keen to unravel this financial puzzle, reaching out to Bukit Vista is your next prudent move.
 

Conclusion: Your Bali Villa Investment Journey Begins

In the tapestry of Bali’s real estate market, Bali property zoning as the land use regulation is the first stroke, desirability is the vibrant hue, and ROI is the masterpiece that follows. Armed with this knowledge, you’re not just an investor; you’re a strategic player in Bali’s evolving landscape. Let’s embark on this journey together. Reach out to Bukit Vista, where expertise meets opportunity, and let’s sculpt your investment dreams into a prosperous reality. Happy investing!

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