Buy House in Bali | Harcourts Purba Bali


If you are familiar with Indonesia real estate regulations, you know that foreigners are not able to buy land or property. There are two categories of properties in Indonesia – freehold (hak milik), for Indonesian citizens, and leasehold (hak sewa), which are the properties available for foreigners to buy.  To clarify, a leasehold property is a type of property ownership where the buyer purchases the right to use a property for a specified period of time, typically 25 years. The land remains owned by the original landowner, who is often a Balinese individual or company.  

At Harcourts, we have one of the largest selection of leasehold properties in Bali, with some of the most beautiful villas and estates. Some of our off-the-plan properties are also leasehold, which are perfect for real estate investment in Bali.

Leasehold properties Bali. A quick guide to understanding purchasing Bali real estate as a foreigner

If you are looking to invest in Bali as a foreigner, leasehold properties are a favorable option. A few questions that we are asked frequently are the following:

What is a leasehold property?

A leasehold property is a type of property ownership where the buyer purchases the right to use a property for a specified period of time, typically 25-30 years. The land remains owned by the original landowner, who is often a Balinese individual or company.

This is in contrast to freehold properties that are owned outright by the purchaser with full rights to use, develop, and sell the property as they see fit. Freehold ownership in Bali is available to Indonesian citizens, but can be purchased by a foreigner through a PT PMA.

Who is eligible to buy leasehold property in Bali?

Leasehold properties in Bali are available to both Indonesian citizens and foreign buyers. However, foreign buyers must comply with Indonesian regulations regarding foreign ownership of property.

Can a leasehold agreement be renewed or extended?

Leasehold properties can have their leases extended, but it’s important to note that the extension of a lease is not always guaranteed. The lease term for a leasehold property in Bali is typically 25 to 30 years, after which the lease may be renewed for a further term as stipulated in the lease agreement.

The terms of lease renewal can vary depending on the agreement between the landowner and the lessee, but it’s common for the lease to be extended for another 25 or 30 years, subject to negotiation and agreement between both parties.

However, the renewal of a lease is not always straightforward, and there are factors that can affect the ability to extend the lease, such as changes in local regulations, disputes with the landowner, or changes in land use zoning.

Can a leasehold property be sold or transferred to another buyer?

Yes, a leasehold property in Bali can be sold or transferred to another buyer during the lease term. However, the buyer will need to comply with Indonesian regulations regarding foreign ownership of property, and the terms of the original lease agreement will need to be transferred to the new owner.

What are the advantages of purchasing leasehold properties?

There are several advantages of buying leasehold properties in Bali, including:

  • Affordability. Leasehold properties in Bali are often more affordable than freehold properties. This makes them an attractive option for buyers who want to invest in Bali real estate but have a limited budget.
  • Location. Leasehold properties in Bali are often located in desirable areas, such as beachfront or hillside locations. These locations may be more expensive or unavailable for freehold ownership, making leasehold properties an attractive option for buyers who want to enjoy the benefits of these locations without the high cost.
  • Flexibility. Leasehold agreements can be structured to provide flexibility for both the buyer and the landowner. For example, the lease term can be negotiated, and provisions can be included for renewing the lease or buying the land outright after the lease term expires.
  • Investment potential. Leasehold properties in Bali can still appreciate in value over the lease term, providing the potential for a good return on investment. Additionally, Bali’s tourism industry continues to grow, which can increase demand for Bali real estate and drive up property values.
  • Lower taxes and fees. Bali properties with leasehold title often have lower taxes and fees associated with ownership than freehold properties. This can make them a more affordable option for buyers who want to invest in Bali real estate without incurring high ongoing costs.

What are the risks that come with purchasing a leasehold property?

There are several risks associated with buying leasehold properties in Bali that buyers should be aware of. Here are some of the most significant risks:

  • Uncertainty of lease renewal: The lease term for a leasehold property in Bali typically ranges from 25 to 30 years. After the lease term expires, the lease may be renewed, but this is not always guaranteed. If the lease is not renewed, the property may revert back to the landowner, and the buyer may lose their investment.
  • Dependence on the landowner: With a leasehold property, the buyer is essentially a tenant and is dependent on the landowner to honor the terms of the lease. If the landowner breaches the lease or refuses to renew it, the buyer may be forced to vacate the property.
  • Limited ability to alter the property: With a leasehold property, the buyer may be restricted in their ability to alter or renovate the property without the permission of the landowner. This can be problematic if the buyer wants to make changes to the property to suit their needs.
  • Difficulty in reselling: Leasehold properties can be more challenging to resell than freehold properties, as potential buyers may be hesitant to invest in a property with a limited lease term.

It’s essential to thoroughly research the terms of the lease and the reputation of the landowner before purchasing leasehold villas in Bali. It’s also recommended to consult with a qualified lawyer or real estate agency, such as our team at Harcourts, who is familiar with Indonesia laws and regulations to minimise the risks involved

Where are the best areas for purchasing leasehold properties in Bali?

If you are searching for a beautiful villa in Bali, the best places to look would be closer to the tourism hotspots, because there is the higher potential to rent out your property for tourists and the property value tends to appreciate more in those areas. Our favourite areas are the following:

Seminyak: Seminyak is known for its upscale resorts and hotels, shops, restaurants, and nightlife. Leasehold properties in this area can be expensive, but they can offer excellent rental returns due to the high demand for accommodation.

Canggu: Canggu is a trendy coastal area that has become increasingly popular in recent years. It offers a laid-back lifestyle with plenty of restaurants, cafes, and beaches. Leasehold properties in this area can also be pricier, due to the popularity of the area, but you can also expect strong rental returns.

Ubud: Ubud is a cultural and spiritual hub known for its stunning rice terraces, temples, and art galleries. Though the scenery is a contrast from Seminyak and Canggu, Leasehold properties in this area can also offer an investment opportunity, as they can be used as vacation rentals or retreat centers.

Uluwatu: Uluwatu is a popular tourist destination located on the southern tip of the island, known for its beautiful beaches, stunning cliffs, and world-class surf breaks. There is more value for money in this area, when compared to Seminyak or Canggu, but the area is certainly growing in popularity, so the potential for ROI is quite high. 

Sanur: Sanur is a laid-back coastal town on the Eastern coast of Bali, that offers a quieter alternative to some of the more crowded tourist destinations. Leasehold properties in this area can make for good investments, especially for family rentals. 

Harcourts Purba Bali can help you find your perfect leasehold property.

It’s important to work with a reputable real estate agent and attorney to ensure that the leasehold agreement is legally binding and provides adequate protection for the buyer’s investment. At Harcourts, our team is experienced and professional, and can help you find the perfect property and walk you step by step through the purchase process.  We will be by your side to answer any questions, and facilitate all of the contracts between you and the owner. 


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Trust the experts at Harcourts Purba Bali. If you are thinking of buying property in Bali, or if you have been trying to sell your villa, ask us what we can do for you!

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What They Say

I must say coming from Australia to Bali to buy land. With the dream to build a villa in paradise. .Was very nerve-racking. But luckily along the way.. after a few failed attempts.. I met a champion guy Eugene. Of Harcourts Canggu...A great bloke. Down to earth, very honest and experienced. He made my experience.. Very easy and made me feel I was in trusted hands.. which was my biggest concern.. As well along the way. I Had help from him. lovely family. and staff. I 100 percent...recommend him and his Team ..thank you 
by David Paterson
Siti, Eugene and the team have been very helpful in finding my dream property on Bali. They went the extra mile to make sure I got the villa I wanted. The whole process were very complicated as other agencies were involved, but with Siti and Eugene’s help I now own my dream villa. I am very satisfied and highly recommend them!
by Lili Tjandra
A million thanks to Siti and Eugene who helped us sell our Bali villa. It was a long process that required a lot of patience and that is why I really admire your dedication, perseverance and professionalism in closing the deal. Thank you for standing by us and guarding our interests throughout several years of rental management and ultimately the sales process itself – you did a fantastic job!
by Bojan Tercon
I would like to thank both Siti and Eugene and their staff. We are impressed by your professionalism and extremely happy with the result of closing the deal and working with us hand in hand to make sure that all the legal aspects of the deal have been dealt very professionally. Thank you again ... we are fully satisfied and highly recommend Siti and Eugene to anyone who would like to find a property in Bali or Lombok
by Eddie and Jane Walters
Dear Siti thanks again for what you and your staff have done to be able to complete the deal. We are impressed by your professionalism and responsiveness and your kindness throughout this process. We are extremely happy with the result.
by Alex and Beurt Van Heerigen
Siti Purba and Eugene Shivnan are my trusted Property Agents in Bali/Indonesia. Since I started acquiring Villas in 2011. I have turned to them not only for purchasing properties. But many times simply for advice, or a friendly ear. They remain at the pinnacle of their game, and will provide factual information and data. Even if it means a deal not come their way from it! This impartially makes them special in an industry not known for it. I recommend them as individuals and Real Estate Professionals, without hesitation.
by Richard Ernster

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