Top Areas to Invest in Bali : Real Estate Market Insight

img Ardana Neswari | November 12, 2023

Hi! I’m Ardana the Hosting Supervisor at Bukit Vista. I’ve dedicated my career to exploring the intricacies of Bali’s diverse property market. My journey through the vibrant world of villa management has not only fueled my passion for real estate but also equipped me with invaluable insights into Bali’s ever-evolving investment opportunities.

When it comes to investing in the paradise that is Bali, choosing the right area can make all the difference. With the help of our data scientist team and offline canvasser analyzing and observing data trends, I’ve had the privilege of exploring and understanding the diverse real estate landscape of this tropical haven. In this article, I’ll shed light on the top areas to invest in Bali property, focusing on Uluwatu, Canggu, Mengwi, Bingin, and Ubud.

Table of Contents

How We Determine the Best Areas to Invest in Bali

Our team of data scientists and analysts collects and analyzes thousands of rental property data points from OTAs (e.g., Airbnb) to determine the popularity of a location relative to all other potential properties in the area that a guest or homeowner might consider. This includes review ratings, counts, prices, occupancy, and potential ranking. We then plot this data on a heat map to identify specific grade areas based on our analysis.

bali review map : areas to invest in bali
Review Heatmap from OTAs review to determine popularity of location

Uluwatu: Riding the Wave of Property Development

First on our list is Uluwatu, a gem currently experiencing a surge in property development. From new hotels to luxurious villas and trendy beach clubs, Uluwatu has become a highly sought-after location for savvy investors. The coastal charm and the booming hospitality industry contribute to the area’s allure. As someone deeply involved in the villa management business, I can attest to the increasing demand for accommodations in this thriving region.
 
Uluwatu’s popularity as indicated by the heat map data below shows it to be a favorable area for real estate investment, particularly for those looking to engage in the daily rental market. Investors would likely find opportunities in both established ‘hotspot’ locations with high turnover and in up-and-coming areas where the market is not yet saturated. Whether you’re looking to establish a vacation rental or own a piece of this tropical paradise, Uluwatu stands out as a promising choice.
Uluwatu rating bubble heat map
Our next recommendation is Canggu, a rising star among digital nomads and influencers seeking an affordable haven with stunning surroundings. Known for its affordability and beautiful landscapes, Canggu has become a favored home base for those who value a tranquil yet vibrant lifestyle. While working with inquiries and reservations, I’ve witnessed the increasing demand for property rentals in Canggu, making it a noteworthy area to consider for investment.
 
The map also shows a high density of bubbles throughout Canggu, indicating a significant number of properties are available for rent. And the presence of many green bubbles implies that properties in Canggu are generally receiving high ratings, which can be an indicator of guest satisfaction. Whether you’re eyeing long-term rentals or vacation properties, Canggu provides a promising landscape for a sound return on investment.
canggu heatmap
Canggu rating bubble heat map
Ubud, a haven for those seeking a peaceful and rural environment away from the bustling tourist hubs. As the jungle surroundings envelop Ubud, property investors find a serene backdrop for their ventures. With its tranquil atmosphere and proximity to nature, Ubud appeals to those desiring a more laid-back and authentic Bali experience.
 

Over the past semester, I recognized the growing interest in Ubud as a prime area for property investment. The lush landscapes and cultural richness create a unique selling point for investors looking to cater to a market seeking solace in the heart of Bali. Whether it’s boutique resorts or eco-friendly accommodations, Ubud offers a canvas for diverse investment opportunities.

The data from the heat map also underscores Ubud’s strong performance with a dense cluster of  numerous large green bubbles near Ubud, it is a strong indicator of areas with a solid track record of both high occupancy and high guest satisfaction, key factors for a successful real estate investment, especially for those looking into short-term rental markets.

However it is worth noting also the high concentration of listings also implies that the market is competitive. To succeed, investors will need to find ways to differentiate their properties through unique offerings, exceptional service, or targeting niche traveler segments.

ubud heatmap
Ubud rating bubble heat map

Bingin, a gem on the Bukit Peninsula in Bali, is renowned for its laid-back atmosphere and picturesque coastline. Known particularly for its world-class surf break, Bingin Beach offers consistent waves that attract surf enthusiasts from across the globe. 

Bingin is also experiencing a  phase of development, signaling a ripe opportunity for investment. Our offline canvasser reports a notable uptick in construction projects, with new villas, boutique resorts, and infrastructure enhancements emerging near the area. This uptick is a testament to Bingin’s growing appeal as a destination, aligning with the increasing demand for luxury accommodations and amenities that cater to discerning travelers. 

Bingin’s real estate market, as represented by the heat map, shows promise for both short-term and long-term investment strategies. The presence of highly rated properties suggests a market that can yield good returns. However, the mixed levels of ratings also highlight the importance of investing in quality services and amenities to ensure high guest satisfaction. 

 
bingin heatmap
Ubud rating bubble heat map
Mengwi

The fact that Mengwi is not as densely populated with rental properties as some of the more saturated areas implies there is room for growth. The presence of more affordable options, relative to Canggu and Uluwatu, could be particularly appealing to investors looking to enter the market without the premium costs associated with more established areas.

Mengwi’s emerging status as an attractive destination is underscored by its potential for growth. As an area that is not yet oversaturated, investors have the opportunity to capitalize on lower property prices and the growing tourism interest.  With strategic development and marketing, properties in Mengwi can attract tourists who are looking for new experiences outside the well-trodden paths of Bali’s popular areas.

Conclusion: Navigating the Bali Property Market

In conclusion, Bali’s property market is a treasure trove for investors, and the key is to choose the right area. Uluwatu, Canggu, Bingin, and Ubud each present distinctive opportunities, catering to different preferences and investment goals. We encourage prospective investors to carefully consider these areas when exploring the dynamic Bali real estate landscape.
 
Investing in Bali is not just about financial returns; it’s about becoming a part of the vibrant tapestry that makes this island a sought-after destination. By strategically choosing your investment area, you not only secure a promising financial future but also contribute to the sustainable growth of Bali’s tourism industry. Dive into the investment opportunities that Bali offer, and unlock the potential of your Bali property investment journey.
 

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