Purchasing property has become a popular choice for investors who want to live in Bali. Navigating Bali's property market can feel overwhelming, especially when facing leasehold and freehold terms. Both options offer unique opportunities, but they also come with distinct legal and practical implications.
Whether you're an investor or looking for your dream home, understanding these terms is key to making the right choice. Here's everything you need to know before diving into Bali's property market.
What is Freehold?
Freehold ownership in Bali refers to having complete legal rights over a property, including the land and any structures on it. This ownership can be inherited, sold, or rented without restrictions. One of its key advantages is the sense of security and long-term stability it offers.
Under Indonesian law, freehold property represents the most comprehensive form of property ownership. It grants the owner perpetual rights to the property, free from expiration dates or time-bound limitations.
Freehold ownership provides unparalleled autonomy over how the property is used. Whether for personal residence, commercial projects, or investment purposes, the owner retains full control. For more information on property ownership options, check out the article Understanding Freehold and Leasehold in Bali.
What is Leasehold?
Leasehold ownership allows buyers to acquire the rights to use and occupy a property for a set duration, typically between 25–30 years. Once the lease period ends, property ownership reverts to the original owner. Moreover, some leasehold properties offer the option to extend the lease, but it’s essential to review the terms of your lease agreement.
This type of ownership caters to the unique needs of Bali’s property market, particularly for international buyers who may not meet the requirements for freehold ownership. Leasehold properties are often more affordable than freehold ones.
Additionally, leasing property in Bali does not require a KITAS (work permit) or a PT PMA company, making it more accessible for non-Indonesians. Unlike freehold, leasehold ownership is not tied to a property deed.
Instead, it is based on a lease agreement, which serves as the legal foundation. This binding contract outlines the terms and conditions of the lease, including its duration, renewal options, and the roles and responsibilities of both the lessee and the lessor (property owner).
Freehold VS Leasehold
Here is an outline of the two property ownership types—Freehold and Leasehold. Understanding their key features will help you decide which ownership option best suits your needs and goals.
Top Area Invest in Bali
The Bali real estate market is growing as a big opportunity. Each area has a unique opportunity with a different charm from bustling expat communities. Here we reveal some of the top areas in Bali that give the best opportunity to invest in or find a perfect home with a lifestyle enriched with beauty, community, and well-being.
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Canggu Canggu is a hotspot for expats and travelers. Canggu seamlessly blends a relaxed atmosphere with modern sophistication. This thriving neighborhood is filled with stylish cafes, health-conscious restaurants, and a buzzing nightlife scene. Renowned for its top-tier surf spots, Canggu is ideal for those who crave both adventure and a lively social scene.
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Seminyak If you are looking for a cosmopolitan setting, Seminyak delivers high-end shopping, gourmet dining, and luxurious accommodations. With its vibrant nightlife and stylish ambiance, this sought after location attracts investors looking for high rental yields and premium real estate opportunities.
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Ubud As Bali cultural and spiritual center, Ubud is enveloped by lush rainforests and picturesque rice terraces. It’s the ultimate retreat for those looking for a serene environment rich in art, wellness, and traditional Balinese culture. From yoga retreats to organic cafés, Ubud caters to those embracing a holistic lifestyle.
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The Bukit Peninsula Bukit Peninsula area is famous for its breathtaking ocean cliffs and world-class surf breaks. Offering a more tranquil escape from Bali’s busier hubs, this area is rapidly evolving, attracting investors seeking luxury homes with spectacular sea views.
Ready to Invest in Bali?
Navigating Bali’s property market requires expertise, transparency, and a deep understanding of both freehold and leasehold ownership structures. At Betterplace, we bring a wealth of experience in real estate and property management, ensuring that every transaction is smooth, efficient, and stress-free.
With thousands of listings managed and extensive experience handling property transactions, we provide expert guidance at every step—from negotiating purchases and lease extensions to maintaining clear communication with property owners and developers.
Our data-driven insights and local market knowledge allow us to maximize value for investors while making property ownership in Bali hassle-free. With hundreds of satisfied property owners who trust us for daily management, you can be confident that your investment is in good hands—before and after signing an agreement with us. Get expert guidance from Betterplace and book a free consultation with us today, or explore our best properties for sale to choose your perfect investment or your dream home.
