Bali Real Estate 2025: Lessons from Bingin
The demolition of several villas in Bingin earlier this year captured headlines across Indonesia and beyond. Investors were shocked to see modern, high-value villas torn down despite their popularity on booking platforms. The reason was not aesthetics, safety, or community objections. Instead, it was zoning. These villas were built on land not designated for tourism use.
For international buyers, this incident is a stark reminder: in Bali, zoning is not a technical detail. It is the law that defines what you can build, how you can use your property, and whether your investment stands the test of time. With Bali’s real estate market booming in 2025, understanding zoning; Green Zone, Yellow Zone, Pink Zone, and Orange Zone has become the first step to investing wisely.
Why Bali Still Leads in Property Investment
Even with stricter enforcement of land use, Bali remains a premier real estate destination for international investors. The fundamentals are strong:
- Tourism resurgence: Visitor arrivals in 2024 surpassed pre-pandemic highs, creating stronger demand for rentals.
- Consistent ROI: Villas in properly zoned tourism areas such as Canggu, Uluwatu, and Berawa are delivering yields between 8–12% annually.
- Lifestyle appeal: Bali continues to attract digital nomads, entrepreneurs, and high-net-worth individuals seeking both homes and income-producing properties.
- Infrastructure growth: Airport expansions, toll roads, and planned transport networks are boosting accessibility and property values.
Bali offers opportunity, but it rewards only those who align their investments with zoning rules.
What Each Zone Means for Investors
Foreign buyers often search: What is Green Zone in Bali? What does Orange Zone mean? Can I buy in the Pink Zone? Each zone carries its own opportunities and restrictions.
Green Zone – Agricultural and Protected Land
The Green Zone covers farmland, rice terraces, and conservation areas. No residential or commercial buildings are allowed here. Attempting to build a villa in the Green Zone is illegal and carries the risk of demolition, as seen in Bingin. While the land may appear cheap, it offers no legal return on investment.
Yellow Zone – Residential Land
The Yellow Zone is designed for housing and long-term residential villas. Properties here are ideal for expats and families planning to live in Bali. However, daily rentals such as Airbnb are not permitted. Yields in the Yellow Zone are typically lower than in tourism zones, averaging 5–7% annually, but it is one of the safest investments for personal living.
Pink Zone – Tourism Land
The Pink Zone is where most investors focus. It permits hotels, guesthouses, and villas that can legally operate as short-term rentals. Properties in this zone benefit from Bali’s booming tourism economy, with yields of 8–12% annually. For investors aiming to maximize ROI, the Pink Zone is the most lucrative and flexible.
Orange Zone – Commercial and Mixed-Use
The Orange Zone is allocated for businesses such as restaurants, shops, and offices. It also supports mixed-use projects where commercial activities can be combined with residential units. These areas are often found in Seminyak, Denpasar, and Ubud town centers. Orange Zone land suits entrepreneurs and investors looking for long-term business prospects.
FAQ:
What is the safest zone to buy property in Bali?
Answer: Pink Zone (Tourism) and Yellow Zone (Residential) are the safest, offering legal clarity and alignment with government regulations.
The Bingin demolitions were not a signal that Bali is unsafe for investment. They were a reminder that ignoring zoning is costly. Bali real estate in 2025 remains one of the most rewarding markets in Asia but only for investors who take due diligence seriously.
Before signing a sales agreement, verify zoning with the local government, consult with a licensed notary, and work with experienced real estate agencies. The right property, in the right zone, will protect your capital, deliver consistent ROI, and secure your place in Bali’s dynamic future.
