Full Guide for Buying Off Plan Property in Bali

It sounds like a smart move: lower prices, custom finishes, and the chance to own a slice of paradise before it's even built. Bali’s most popular areas like Canggu, Ubud, and Uluwatu are full of off-plan opportunities that promise solid returns and modern tropical design.

But here’s the truth: while the rewards can be great, buying off plan also carries real risks. Delays, poor construction, or unclear legal agreements can turn your dream into a costly mistake.

In this guide, you’ll learn exactly what off-plan property is, why it attracts so many investors, and how to protect yourself every step of the way. If you’re serious about making a smart investment in Bali, keep reading. This is the clarity you need before you sign anything.

What Is an Off Plan Property?

An off plan property is real estate sold before it’s completed, often based on architectural designs, digital renderings, or early construction work. Buyers typically commit while the project is still in planning or early building stages. Instead of paying the full price upfront, payments are made in stages, tied to construction milestones.

This setup appeals to investors because it usually comes with a lower price, flexible payment terms, and the chance to customise finishes, layouts, and materials. It also offers the potential for capital gains once the property is completed, especially in high-demand areas like Canggu or Uluwatu.

But off plan purchases come with risks. Delays, cost overruns, and poor-quality construction can happen. Because you’re buying something that doesn’t fully exist yet, it’s crucial to choose a trusted developer, review contracts carefully, and consult with a legal advisor to ensure your investment is protected.

Why Consider an Off Plan Property in Bali?

Buying off plan in Bali offers clear benefits. You can secure a property 20 to 30 percent below market value, making it a smart entry point for prime locations. Customisation is another plus. You can choose layouts, finishes, and fittings to suit your taste or rental goals. 

Payment is usually made in stages tied to construction progress, helping with cash flow. In hotspots like Canggu or Uluwatu, property values often rise during development, giving you a head start on capital gains.

Key Risks & Questions to Ask

Before investing in an off plan property in Bali, it’s vital to do your homework. Many projects are launched by new developers with no proven track record, which increases the risk of delays or unfinished builds. Always research the developer’s history, visit any completed projects, and ensure your payment schedule follows actual construction milestones—not fixed dates.

For foreign buyers, legal structure is a major consideration. Indonesian law prohibits direct freehold ownership, so most investors use long-term leaseholds or set up a PT PMA (foreign-owned company). Whichever route you choose, make sure all land certificates, permits, and company documents are verified before signing anything.

Also pay close attention to the sale contract. Include clear delivery timelines, penalties for delays, and detailed specs for materials and finishes. Holding back a small final payment (usually 5%) gives leverage to fix any defects post-handover. Lastly, be cautious of ROI guarantees above 10%. Figures like 20% per year often signal inflated prices or unrealistic expectations. Focus on well-located projects with long-term value and strong fundamentals.

5-Step Buying Checklist

1. Due Diligence

Visit completed projects by the same developer. Speak with previous buyers if possible, and double-check all land certificates, building permits, and licenses.

2. Legal Setup

As a foreigner, secure your legal footing through long-term leasehold titles or by setting up a PT PMA (foreign-owned company) to hold the property.

3. Contract Review

Hire a professional legal advisor to review the agreement. Ensure it includes firm delivery dates, penalties for delays, and a retention clause to cover post-handover defects.

4. Payment Monitoring

Structure payments based on actual construction progress. Hire a third-party surveyor or architect to confirm milestones before releasing each instalment.

5. Post-Completion Plan

Prepare your next move early. Whether you plan to rent or resell, line up a trusted property manager and have your marketing or listing strategy in place before completion.

Recommend List Off Plan Properties

If you’re considering a Bali investment with strong potential and stylish appeal, Red Lotus offers handpicked off plan properties designed for both lifestyle and returns. Each project combines sought-after locations, elegant architecture, and flexible payment options. Ideal for early movers looking to secure long-term value.