5 Myths About Real Estate Investment in Bali: Expert Breakdown

Bali has long outgrown its image as just a tourist paradise — today, it’s a fully-fledged real estate market attracting international investors. However, the internet is full of misconceptions that often scare away potential buyers. Let’s break down the most common myths and see what’s really true.

Myth 1. Foreigners Cannot Own Property in Bali

Reality: It’s true that foreigners cannot directly own land in Bali, but they can hold rights to real estate through leasehold agreements or via a PMA (foreign-owned company) structure.

Why it works:

• Leasehold contracts are typically signed for 25–30 years with the option to extend.
• PMA companies allow foreigners to legally hold and control property through a corporate entity.

Myth 2. Property Transactions Are Risky and Rely on Grey Schemes

Reality: Bali offers a well-regulated and legally transparent process for purchasing property — provided you’re working with a trusted developer and legal advisor.

What matters:

• Due diligence is performed to verify land titles.
• Contracts are signed in the presence of a notary.
• All documentation can be issued digitally.

Myth 3. Rental Yields Are Overhyped

Reality: Reputable management companies report 8–12% annual returns on high-quality properties in Bali — driven by strong demand in key tourist zones.

What affects profitability:

• Location (e.g., Canggu, Berawa, Umalas)
• Management quality (rental pool, guest services)
• Occupancy rate and pricing strategy

Myth 4. Only Ubud or Seminyak Are Worth Buying In

Reality: As of 2025, demand and pricing are shifting toward Canggu, Berawa, and Pererenan — areas seeing stable price growth and increasing interest.

Why Canggu is booming:

• It’s the heart of the digital nomad community
• High tourist traffic
• Proximity to beaches and urban infrastructure

Myth 5. Investing Is Complicated and Not for Everyone

Reality: Modern developers offer turn-key solutions.
The process is simple:
Consultation → Unit Selection → Contract → Management

Many investors don’t even visit Bali — everything is done remotely, from signing contracts to receiving income reports.

Who benefits:

• Entrepreneurs
• Individuals with passive income
• Parents buying for their children
• Anyone looking to safely store capital

Conclusion: No Need to Fear — Just Be Informed

Investing in Bali isn’t scary if you approach it wisely.

Understand the legal framework
Work with verified developers
Ask questions — and expect clear answers

PGD Aparthotel is a great example of a project where everything’s already prepared: legal documents, management systems, financial models. You simply choose your priority — income, personal use, or future resale.

Want help choosing the right unit?
Send us a request — we’ll send you a personalized selection with ROI estimates and prices…
No pressure. Just facts and logic.