Invest in Umalas Villas: What You Need to Know

Many investors and expats are now looking at Umalas as the next great place to invest. Umalas is in Kerobokan, between the busy areas of Seminyak and Canggu.

But what exactly makes investing in a villa in Umalas, Bali such a brilliant move for your portfolio?

Let’s look at the numbers, the lifestyle, and what you need to know legally to invest with confidence.

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Key Takeaways

Umalas offers up to 15% ROI, with rising ADR (32.84% increase from 2021 to 2023) and strong rental demand, especially in peak months like July–August.
Top investment spots in Umalas include Jalan Umalas Klecung (quiet area), Umalas II (community hub; family-friendly), and Dukuh Indah (fast-growing), ideal for different types of buyers.
Foreigners can legally invest through leasehold, Hak Pakai, or PMA, as long as proper due diligence and legal procedures (like IMB/PBG and PPAT) are followed.

See What’s on the Market: Available Bali Villas for Sale – Leasehold and Freehold

Why Invest in a Villa in Umalas?

When our clients ask us “Why Umalas?”, we point to three core benefits that make this area a standout choice.

1. Great Returns

The primary driver for any investment is, of course, the return. In Umalas, the potential for high rental returns is undeniable. Villas here can give up to 15% ROI.

Why? Because Kerobokan attracts both short-stay tourists and long-stay expats.

The ADR (Average Daily Rate) in Umalas keeps growing. It went from $209.91 (Dec 2021) to $278.82 (Dec 2023) — that’s a 32.84% increase as shown below:

Source: Oniriq Property

2. Quiet But Close to Everything

Investing in Umalas isn’t just a financial decision; it’s a lifestyle upgrade.

Imagine waking up in a tranquil retreat, surrounded by lush greenery, yet being only a 10-minute scooter ride away from Seminyak’s fine dining or Canggu’s beach clubs.

It’s perfect if you want a mix of peace and convenience. Families especially love it.

3. Property Value Keeps Growing

As Seminyak and Canggu get more crowded, people are looking at Umalas.

This growing demand, coupled with limited land availability, naturally drives property values upward.

So if you invest in Umalas Bali now, there’s big potential for growth.

Umalas Rental Market

The demand for villas in Umalas Kerobokan is going up fast.

In Sep 2021, there were 6,173 nights booked. By Aug 2024, it jumped to 44,917 nights booked — that’s a 627.64% increase.

The best time for rental income is during Bali’s summer or tourist season (according to Oniriq Property’s report):

Jul 2024: 43,239 nights booked
Aug 2024: 44,917 nights booked

The same report also shows that the more bedrooms your villa has, the more rent you can charge.

Villa Size	Avg Rental Income (Q3 2024)
1-Bedroom	$1,124.84
2-Bedroom	$2,665.07
3-Bedroom	$4,270.50
4-Bedroom	$7,598.32
5-Bedroom	$9,233.43
6-Bedroom	$15,502.13

Bigger villas bring in higher revenue. That’s why if you’re looking for a luxury villa Umalas or a family-sized one, the opportunity is there.

Explore Top Deals: Umalas Villas for Sale – Leasehold and Freehold

Best Spots in Umalas to Invest

While all of Umalas is promising, here are top spots to own villa Umalas with great potential:

1. Jalan Umalas Klecung: The Serene Retreat

This street is quiet and surrounded by rice fields.

It’s perfect if you want to offer guests a calm escape, while still being close to shops and cafes.

Many people look for villas here because it feels private and close to nature.

2. Jalan Umalas II: Lively and Family-Friendly

One of the main roads in Umalas, this area is full of cafes, small shops, and yoga studios.

It’s popular with expats and families thanks to its strong community feel and walkability.

If you’re looking for steady long-term rental demand, this is a great spot.

3. Jalan Dukuh Indah: Fast-Growing and Modern

This area is becoming more popular for its stylish villas and easy access to Berawa and central Umalas.

It’s attracting digital nomads and young families, and it’s a great place to invest if you want long-term value growth.

How Umalas Compares to Seminyak and Canggu

Source: Finns

If you’re choosing where to stay or invest in Bali, understanding the vibe of each area is key. Umalas, Canggu, and Seminyak each offer something different:

Aspect	Umalas	Canggu	Seminyak
Vibe	Calm, residential, and quiet. Great community feel.	Trendy, energetic, and surf-friendly with a social buzz.	Chic, polished, and upscale with a glamorous atmosphere.
Location	Between Seminyak and Canggu. Easy access to both.	Just north of Seminyak. Close to the beach.	South of Canggu. Very central and lively.
Lifestyle	Ideal for families or those seeking relaxation with convenience.	Popular with digital nomads and active travelers who love to socialize.	Suits luxury seekers who enjoy fine dining, shopping, and nightlife.
Amenities	Fewer commercial spots, but has schools, clinics, and groceries.	Packed with cafes, beach clubs, gyms, and coworking hubs.	High-end restaurants, designer shops, spas, and premium services.
Real Estate	Spacious villas with gardens and pools. More affordable than Seminyak.	Mix of modern villas and apartments. Generally pricier than Umalas.	Top-tier villas and apartments. Typically the most expensive of the three.

How to Invest in a Villa in Umalas

For our foreign clients, understanding the legal framework is the most critical step.

Indonesia has specific rules for foreign property ownership, but navigating them is straightforward with the right guidance.

As this is a financial matter, we always advise consulting a reputable notary and legal advisor, but here is a foundational overview.

1. Legal Options for Property Ownership

Foreign nationals cannot own land freehold (“Hak Milik”) in Indonesia. However, there are secure and well-established legal structures for you to invest:

Leasehold (Hak Sewa): This is by far the most common and popular method for foreigners. You lease the property for an extended period, typically 25 to 30 years, with clauses for extension already built into the contract.
Right to Use (Hak Pakai): If you are a foreigner residing in Indonesia with a valid residence permit (KITAS or KITAP), you can hold a “Hak Pakai” title. This title is granted for an initial 30 years and is extendable for up to 80 years.
Right to Build (HGB): This title is used by a foreign-owned company, known as a PMA (Penanaman Modal Asing). The PMA can hold the right to build and own buildings on a plot of land for a term of up to 80 years.

2. Due Diligence is Non-Negotiable

Before you agree to anything, it’s crucial to do a full legal check on the property. This step protects you from future problems.

You’ll need to hire a trusted legal advisor or notary who understands Bali real estate law. They will:

Verify the land certificate to confirm who the legal owner is.
Check the zoning regulations to ensure the land is in the correct zone (e.g., tourism or residential) for your intended use, especially if you plan to rent it out.
Confirm building permits (IMB or PBG) are in place, so you know the villa is legally constructed and approved by local authorities.

3. Offer and Agreement

Once everything checks out, you can move forward by making a formal offer.

If both sides agree on the price and terms, the next step is to sign a Preliminary Sale and Purchase Agreement (PPJB).

This document outlines:

The agreed purchase price
The payment terms
Conditions to be fulfilled before the sale is finalized

4. Deposit and Notary

To reserve the villa, you’ll usually need to pay a deposit of 10–20% of the agreed price.

This deposit is a sign of commitment and will be held in escrow by the PPAT (official notary/land deed officer) who handles real estate transactions in Indonesia.

The PPAT will:

Prepare the official sale deed (Akta Jual Beli)
Ensure all legal documents are complete and valid
Make sure the transfer of ownership complies with Indonesian law

5. Final Payment & Handover

Once all documents are ready and approved, it’s time to complete the final payment. The notary (PPAT) will then:

Finalize and register the sale
Transfer legal rights to you
Issue the official deed under your name (or legal entity, like a PT PMA or leasehold agreement)

After this, the villa is officially yours. You now legally own, manage, or rent out the villa.

Conclusion: Is Buying an Umalas Villa Worth It?

Yes. Buying a villa for sale in Umalas, Kerobokan, is a great opportunity. The area is not only strategically located, but also consistently in high demand.

Compared to nearby hotspots, Umalas offers a more stable, family-friendly investment environment with strong potential for long-term value growth.

Thinking of getting started? We’re here to help you find the right villa Umalas Bali for sale and build a smart, personalized investment plan that fits your goals.

Click the button below to book a free, no-obligation chat with one of our expert agents. Let’s explore your options together.

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FAQ

1. Is investing in Bali a good investment?

Yes, investing in Bali can be a great choice. On average, investors can earn rental profits of around 8–12% per year. In popular areas like Seminyak or Canggu, some villas even reach up to 20% returns.

2. Is Umalas part of Canggu?

Yes, Umalas is considered part of the Canggu area. Officially, it’s in the village of Tibubeneng, which is located in North Kuta, Badung Regency, Bali.

3. What to do in Umalas Bali?

Umalas is a quiet area with lots of charm. You can enjoy peaceful rice field views, try local and international food, and visit small temples.

Plus, Seminyak and Canggu are nearby if you want beach clubs, cafes, and shopping.