What to choose for investment in Bali: apartment or villa?

A detailed comparative analysis of investing in apartments and villas in Bali: price, profitability, management, ownership format, and demand. A practical guide for investors.

07.10.2025 • 4 min read

Real estate in Bali continues to attract investors from around the world. The question of whether to choose an apartment or a villa is key when planning an investment strategy.

This article offers a detailed comparison of both formats—from purchase cost to potential returns and management specifics—so you can make an informed decision based on your budget, goals, and level of involvement in property management.


1. Entry Cost: Apartments Are More Affordable, Villas Are Pricier

The average price per square meter for apartments in Bali is significantly lower than that of villas. You can purchase an apartment in the range of $100,000 to $180,000, while the price of a quality villa starts at $250,000 and can exceed $1,000,000 in premium locations.

Buying an apartment is suitable for investors with a limited budget, whereas a villa suits those ready to invest more for exclusivity and individuality.


2. Profitability: ROI Depends on Format and Location

Apartments typically offer stable returns due to high occupancy rates and more accessible rental prices. The average ROI is around 8–10% annually.

Villas can generate 10–15% annually if managed well—especially in premium locations like Canggu or Uluwatu, with strong unique selling points like a pool, stylish interior, or concierge service.

However, managing a villa requires more resources and control compared to pooled hotel management in an aparthotel.


3. Management Format: Pool Management vs. Independent Operations

Apartments, especially in aparthotels managed by a developer or hotel brand, offer investors peace of mind: service, cleaning, guest check-in, maintenance—all are handled by the management company. This is ideal for passive income.

With villas, it’s a different story. Without professional management, you’ll need to hire staff, handle marketing, and resolve everyday issues yourself—or hire a third-party company, paying 15–25% of the revenue for the service.


4. Demand Type: Apartments for Short-Term Stays, Villas for Unique Getaways

Apartments are often chosen by digital nomads, remote workers, and couples staying for 1–2 weeks. Demand is high in areas with good infrastructure: Canggu, Ubud, Uluwatu.

Villas are more popular among families, groups, or travelers seeking privacy and premium comfort. During peak seasons, demand remains high, but off-season downtime is possible—especially if the villa lacks unique appeal.


5. Ownership and Legal Status: Leasehold for Apartments, Freehold Rare and for Citizens Only

Foreigners can typically only acquire leasehold (land lease for 25–30 years with renewal options). Most apartments are sold under this structure, which is clear and transparent.

Villas are sometimes acquired through nominee schemes or local partners—this is riskier and requires legal support and due diligence. Ownership via a PMA (foreign-owned company) is possible, but more complex and expensive.


6. Additional Costs and Maintenance

Apartment owners rarely face unexpected expenses, as maintenance costs are often included.

Villa owners pay for security, gardening, cleaning, repairs, and utilities—especially if there’s no management in place.

Also, villas incur higher wear-and-tear costs: larger space, a pool, furniture, etc.


Conclusion: What to Choose—Apartment or Villa?

If you’re starting with a smaller investment, want transparent management and fast returns, an apartment in an aparthotel is an excellent choice—especially if operated by a reputable company like Ribas Group.

If you’re aiming for maximum profitability, ready to invest more, and want full control or to create a unique concept, then a villa can become a powerful asset—especially in a premium area.

Each format has its pros and cons. The key is to understand your investment goals and choose the strategy that suits your budget, involvement level, and time horizon.


Would you like to calculate potential ROI based on real listings?
Explore our interactive ROI calculator for PGD Aparthotel’s available units and compare your options today.

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