Invest in Umalas Villas: Full Guide to Foreigner 2026

Many investors and expats are now looking at Umalas as the next great place to invest in Bali. This area sits strategically in Kerobokan, between the busy 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 growth numbers, lifestyle, the best spots to invest in Umalas, and the steps to legally buy a property here as a foreigner.

Is Umalas a Good Place to Invest in Bali?

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

1. Great Returns (Up to 15% ROI)

Many foreign investors are quietly choosing Umalas rather than Canggu. This area sits strategically between Seminyak and Canggu, and attracts both short- and long-stay expats, bringing potentially high rental returns up to 15% per year.

The ADR (Average Daily Rate) in Umalas keeps growing. As the picture below shows, there's a ~33% increase in average revenue for Umalas properties from $209.91 (Dec 2021) to $278.82 (Dec 2023).

2. Quiet Area But Close to Everything

Investing in Umalas isn't just a financial decision. It's also a lifestyle upgrade with a perfect mix of peace and convenience.

Families, especially, love it. And you can find many international-grade schools, kids' entertainment hub, gyms, markets, restaurant, and healthcare facilities.

This area is often called as the low-noise, high-quality area. There is less crowd in Umalas compared to its neighbors: Canggu, Seminyak, and Batubelig.

Residents here can wake 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.

3. Property Value Keeps Growing (7% - 15% annually)

As Canggu and Seminyak real estate investment get more crowded, the growing demand shifts to Umalas. This means limited land availability naturally drives property values upward with annual capital growth potential of 7% – 15%.

As of late 2024 to early 2025, rental yields for villas in Umalas typically range between 8% and 15%, with further upside potential for investors.

Leasehold villas in Umalas are generally priced from around $225K to $550K (approximately IDR 3.3B–IDR 8B), making them a relatively accessible entry point compared to other prime areas.

Read More: Bali Real Estate Market 2026: A Shift Toward Realistic Investment

Umalas Rental Market

The demand for villas in Umalas Kerobokan is going up fast. We see a ~628% increase from 2021 to 2024, from 6.173 nights booked (Sep 2021) to 44.917 (Aug 2024), with peaks happening during Bali's high season (tourist/summer season).

There's also correlation between the number of bedrooms in your villa with rental income:

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 (we've explained it further here: Why More Bedrooms Mean Bigger Profits for Your Bali Villa Investment). So, Umalas is the right spot for investors seeking luxury villa or family-sized property investment.

Best Spots in Umalas to Invest

While all of Umalas is promising, here are the top spots to buy a villa in Umalas with great potential.

1. Umalas Klecung Street: The Serene Retreat in Residential Area

This street is quiet, filled with family residential complexes and near river view. It's also only 8 minutes ride to Batubelig beach.

Umalas Klecung street is perfect if you seek for a calm, private escape, while still being close to shops and cafes. 

The majority of properties here are already equipped with pools, tropical gardens, open living spaces, and modern amenities. It is also close to international schools (e.g. French School, CCS, ProEd), and trendy cafes.

2. Jalan Umalas II: More Lively with Strong Expats Community

Jl. Umalas II is one of the main roads in Umalas. This area is full of cafes, small shops, and yoga studios as you can see on map image above.

If you're looking for steady long-term rental demand, this is a great spot. This road is also popular among the expats community and families (especially French).

Properties here belong to the "upscale" type, with elegant, modern design furnished with private pools, gardens, contemporary designs, and luxurious amenities. You can also enjoy lush rice paddies view in this side of Kerobokan.

Read More: Cost of Property in Bali 2026: What You Need to Know

3. Jalan Dukuh Indah: Fast-Growing Urban Area for Digital Nomads and Traveler

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

This place is has a strong urban style that attract digital nomads, short-term travelers, and young families, that's why you can find many short and long rental villa available on this street. It's a great place to invest if you want long-term value growth.

Some public amenities you can find here are international-grade supermarket (Pepito), Australia international school, gym, restaurant, and expats-friendly cafes.

You can also reach the Ngurah Rai International Airport in 30-40 minutes from this location.

How Umalas Compares to Seminyak and Canggu

Many expats are struggling to decide between Umalas, Canggu and Seminyak as their destination to stay or invest in Bali. Here's a quick overview on how they compare:

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.

As we always suggest, deciding what area to invest in always depending on your goals, needs, or preferences, since there is actually no "wrong area".

You can also learn further comparison of Bali's top investment location here: Canggu vs Seminyak vs Uluwatu: Who Wins as The Best Investment Spot (2026)?

How to Invest in Umalas Property

Before buying a villa in Umalas and investing in it, foreigners must understand the Indonesian legal framework of property ownership. This is the most critical step.

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.

Read More: Freehold vs Leasehold Bali Property: Which One Is Better for Investors?

2. Due Diligence is Non-Negotiable

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

For this step, 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 for your intended use.
• 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. This step involves signing 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. Paying Deposit

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.

5. Final Payment and Handover

Once all documents are ready and approved, it’s time to complete the final payment.

The notary (PPAT) will finalize and register the sale, transfer legal rights to you, and issue the official deed under your name (or legal entity). After this, the villa is officially yours.

Ready to start your Bali investment journey? Begin with exploring our exclusive Umalas villa for sale listing here.

You can find various leasehold and freehold villa types, with various number of bedrooms, style, amenities and unique characteristics to invest.

Not only that, you can also browse our Bali Villas for Sale page if you also want to discover best properties to invest in other parts of Bali.

To simplify your investment process, contact our agent and tell us your desired properties. We’ll handle due diligence, negotiations, and the full transaction process for you.

Conclusion

Investing in villa in Umalas is worth it in 2026 since this area still offers great opportunity with consistent 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? Bali Villa Realty is 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 chat session with one of our expert agents at your convenience. Let’s explore your options and invest smarter, together.

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