As demand for land in Bali surges in 2025, one question echoes across investor circles: Should I buy a ready-built villa or invest in a vacant plot of land? The answer depends on your goals, your timeline, and how you plan to capitalize on Bali’s booming property market.
In this article, we compare these two popular options — villa vs. vacant land — helping you understand which path suits your vision, while integrating the legal and financial considerations that shape land investment in Indonesia.
Bali’s Land Investment Landscape in 2025
With more than 6 million international arrivals forecasted this year and property values rising across coastal and inland zones, Bali offers some of the best places to invest in land in Indonesia. Both villas and empty plots offer high potential — but their returns, risks, and responsibilities differ significantly.
Let’s break it down.
Option 1: Buying a Ready-Built Villa in Bali
Purchasing a turnkey villa is a common approach for those wanting fast returns, minimal effort, and passive income. Especially in established areas like Canggu, Seminyak, or Ubud, there’s a strong rental market fueled by digital nomads, wellness travelers, and long-term expats.
Key Benefits:
- Immediate income: Start earning rental income as soon as the deal closes.
- Low barrier to entry: No need to manage design, permitting, or construction.
- Proven locations: Often located in zones with strong tourism demand.
- Leasehold options: Most villas are available under 20–30 year leasehold land in Indonesia, ideal for foreign buyers.
Drawbacks:
- Limited customization: You inherit someone else’s vision.
- Higher upfront cost: Especially in prime locations, villa prices are rising.
- Lower ROI over time: Compared to developing your own property on a vacant plot.
Example:
- 3-bedroom villa in Berawa (leasehold 25 years): USD 320,000
- Estimated nightly rental: USD 200–350
- Average occupancy: 70–80%
- ROI: 8–12% annually
Option 2: Buying Vacant Land for Development
For those seeking flexibility, long-term value, and higher margins, buying land for sale in Bali and building from scratch is often the smarter move — especially in emerging property markets in Indonesia like Tabanan, North Bali, or Bingin.
Advantages:
- Higher ROI: Building your own villa can reduce cost per square meter by 20–40%.
- Full control: Customize the layout, style, and business model (rental, resale, retreat, etc.).
- Land appreciation: Vacant plots in rising areas like Pererenan or Nyanyi are increasing in value rapidly.
- Multiple exit strategies: Hold, lease, flip, or develop multiple units.
Considerations:
- Time investment: Building can take 10–18 months including permits.
- Legal complexity: You’ll need to manage zoning, land certificates, and permits.
- Foreign ownership rules in Indonesia apply — use a PT PMA or leasehold structure.
Example:
- 500 sqm vacant land in Tabanan: USD 85,000
- Build cost for 2-bedroom villa: ± USD 100,000
- Resale value post-construction: USD 280,000
- Potential ROI: 30–50% on project
Which Option Is Best for You?
| Criteria | Villa (Turnkey) | Vacant Land (Build Your Own) |
| Initial Investment | Higher | Lower (depending on location) |
| Time to Profit | Immediate | 12–18 months |
| ROI Potential | Moderate (8–12%) | High (20–50% possible) |
| Control Over Design | Limited | Full |
| Legal Complexity | Lower | Higher (but manageable with advisors) |
| Custom Development | Not possible | Fully possible |
| Suitable For | Passive investors, short-term focus | Active investors, long-term strategy |
Legal Tip for Foreigners
If you’re planning to build on vacant land, you’ll need to understand how to buy land in Indonesia as a foreigner. For most investors, forming a PT PMA is the best path. This legal structure allows you to:
- Secure long-term land rights (Hak Guna Bangunan)
- Operate a rental business legally
- Access freehold land in Indonesia under a corporate structure
- Apply for investment visas or KITAS residency permits
Read more in: Guide to Buying Land in Indonesia
Best Areas for Vacant Land Development in 2025
Tabanan
Still undervalued with beachfront land available for under USD 100/sqm. Rapidly growing due to spillover from Canggu.
Uluwatu & Bingin
Perfect for boutique resorts and villas. Land prices rising fast as infrastructure expands.
North Bali
Eco-tourism zone with jungle and mountain plots ideal for retreats or long-hold strategies.
Final Thoughts: Villa or Vacant Land?
Choosing between a villa or land depends on your mindset:
- Want speed, simplicity, and passive income? A ready-built villa is the way to go.
- Want control, customization, and high ROI? Go with vacant land for sale in Bali and develop.
Either way, Bali offers strong opportunities for safe land investments abroad, especially when combined with the right legal setup and due diligence.