Buy land in Bali

Land plots in Bali are a liquid asset that is constantly growing in price.

The growth in prices for land plots in Bali is stimulated by the growing deficit of land plots, which in turn is due to the high profitability of development projects and the profitability of renting out real estate.

For example, the cost of good land plots with an ocean view in the Bukit area has increased from $500 per hundred square meters per year to $1,000 per hundred square meters per year and in some locations with views has exceeded $1,500 per hundred square meters per year. At the same time, in the Ubud area, plots that cost $250 per hundred square meters per year now cost at least $500 per hundred square meters per year, and in some cases reach $650 per hundred square meters per year.

We are well versed in good locations and prices in Bali - so we can help you buy land in Bali strictly in accordance with your needs

In Bali, there are two forms of land ownership - freehold and leasehold. We would like to emphasize right away that these forms of ownership are based on Common Law and are common in many countries around the world, including London.

Freehold or Hak Milik is a full and perpetual right of ownership of land and any buildings on it.

Leasehold or Hak Pakai is the right to own and use real estate for a certain period, granted to you by the lessor (land owner).

It should be emphasized that Freehold is available to foreigners for 80 years. To do this, you need to create a company and purchase a land plot for it.

In addition, it is necessary to consider the status of the land:
Red - for commercial real estate
Yellow - real estate for yourself
Green - for agricultural services

In Indonesia, it is customary to consider the cost of a land plot per ara or as we call it per hundred square meters.

In this case, if it is Freehold, you will be told the cost per ara for full and "eternal" ownership, and if Leashold, you will be told the cost of a land plot per ara (hundred square meters) per year.

The freehold price is actually the cost of owning a land plot for a foreigner for 80 years, or for Indonesians for eternity.

For example, if you want to buy a plot of land in Bukit of 1 hectare (100 hundred square meters = 100 ara), then you can be told the price per hundred square meters (ara) of $ 80,000, that is, per hectare of $ 8,000,000 dollars.

And if you ask for this plot of land for temporary use, you will need to determine the Leashold price. And for the convenience of announcing the Leashold price, it is calculated as the cost of a hundred square meters per year. The cost of a hundred square meters per year will decrease proportionally from the cost of a hundred square meters in full ownership for 80 years.

For example, if a hundred square meters (are) of a land plot is in Freehold for 80 years -
$80,000 per hundred square meters (are), then in leasehold it will cost $1,000 per hundred square meters (are) per year
($80,000 / 80 years = $1,000 per hundred square meters)

For example, if you want a land plot for 30 years, then the price will decrease proportionally. Since 30 years from 80 years is 37.5%, then the cost of land per hundred square meters will decrease to $30,000, and for the entire plot it will already cost $3,000,000.

What is more profitable, leasehold and freehold, and why, we will tell you in the next block.

For developers and end buyers, at present, the Leashold price for 30 years is more advantageous, due to the fact that in the structure of costs per m2 of finished real estate, the cost of the land plot will be up to 15%, and in the case of Freehold, the share of costs for the land plot within m2 of finished real estate will increase by 2 - 3 times.

At the same time, theoretically, in the case of Freehold, the land plot and the real estate on it can be used as a collateral asset in the bank, but in practice this is a difficult task to achieve, since the banking system is not yet willing to use mortgage lending instruments in Bali, but it is there!

Land development is a complex process from searching for a liquid land plot with a detailed analysis of the location and its prospects.

Purchase of a land plot, bringing it to a presentable appearance, leveling the land plot, strengthening, surveying, building roads and preparing for sale to construction companies or preparing for construction. What is interesting is that this stage is one of the most profitable points of profit in development in general due to the shortage of land plots in liquid locations.