Bali’s stunning landscapes, rich cultural heritage, and thriving tourism industry make it a prime destination for real estate investment. Alongside its natural beauty, Bali offers amazing opportunities for investors, with well-managed villas and resorts achieving annual returns on investment (ROI) ranging from 14% to 25%.
Understanding Bali’s zoning regulations is essential for investors looking to maximize returns while maintaining compliance. Properly zoned properties ensure lower risks, greater security, and higher valuation potential, making zoning knowledge a key asset in Bali’s real estate market. This guide explores Bali’s building zones, and how Investland Bali helps investors navigate this dynamic environment.
What Are Land Zones in Bali?
Land zones in Bali define how land can be used while protecting the island’s environment, traditions, and infrastructure. These zones ensure sustainable development and harmony between modern projects and Bali’s cultural heritage. The primary zones are:
- Green Zone: Reserved for agriculture, forestry, and conservation, with construction strictly prohibited to maintain ecological balance.
- Yellow Zone: Allocated for residential and small-scale commercial use, subject to local regulations.
- Red Zone: Designated for public infrastructure such as roads, schools, and government buildings, largely limiting private development.
- Pink Zone: Focused on tourism-related projects like hotels, resorts, and supporting facilities.
- Orange Zone: Mixed-use land for both residential and commercial purposes. Suitable for villas, vacation rentals, and tourism-related businesses, serving both locals and tourists.
Fun Fact: Bali’s zoning system is inspired by the Balinese philosophy of Tri Hita Karana, which emphasizes harmony between people, nature, and the spiritual world.
How To Check Land Zones in Bali
You can check the land zone in Bali, as well as across the entire Indonesia area, using the Gistaru interactive map provided by the Ministry of Agrarian Affairs and Spatial Planning. The website, accessible at Gistaru Interactive Map, is in the Indonesian language, but it allows you to browse different areas, including Bali, and view maps with colored zone markings.
Detailed Breakdown of Each Zone
The green zone is reserved for agriculture and includes nature reserves. The aim is to protect Bali's environment and sacred sites.
- Restrictions: construction is prohibited to minimise environmental impact.
- General locations: the terraced rice fields of Ubud, and areas close to East Bali and Mount Agung.
- Opportunities for investors: Ecotourism initiatives such as guided tours, cultural workshops, or sustainable agriculture projects.
The yellow zone is mainly for residential development. The Yellow Zones preserve the harmony that is characteristic of Bali and integrate modern architecture with traditional Balinese aesthetics.
- Building regulations: a) Building permit (IMB or PBG) is required. b) Height restrictions limit buildings to two stories.
- General locations: Sanur, Pererenan, and parts of Cangkang.
- Opportunities for investors: ideal for small businesses such as cafes or offices.
The red zone largely restricts the construction of private buildings. These zones ensure that essential services remain accessible to residents and tourists.
- Description: Mostly set aside for public infrastructure such as schools, government offices, and roads and public-oriented projects.
- Constraints: Private development is largely restricted. Land is often state-owned or managed by government authorities. Private businesses can operate within red zones if they align with public infrastructure needs.
- General locations: Downtown Denpasar, public parks, and highways.
The pink zone is dedicated to tourism-related projects such as hotels and resorts. *
- Building regulations: a) Developments must be compatible with tourism objectives. b) Height restrictions and cultural preservation guidelines must be respected.
- General locations: Kuta, Seminyak Uluwatu, and other coastal areas.
- Opportunities for investors: the zone is suitable for the development of hotels, rental villas, restaurants, and other entertainment and commercial facilities.
The orange zone is designated for mixed-use purposes, allowing both residential and commercial developments. This zoning is ideal for villas, vacation rentals, and small businesses. *
- Building regulations: a) Developments can serve both residential and tourism needs. b) Must adhere to local height restrictions and design aesthetics. c) Regulations on noise levels, traffic management, and public amenities to maintain the quality of life.
- General locations: Seminyak, Canggu, Ubud, and other mixed-use areas popular with tourists and locals.
- Opportunities for investors: Perfect for developing villas, vacation rentals, boutique shops, and small tourism-related businesses that cater to both local residents and visitors.
* The Pink Zone is designated for tourism projects like hotels and resorts, focusing primarily on the needs of tourists. The Orange Zone is mixed-use, allowing both residential and commercial developments, suitable for villas, vacation rentals, and small businesses serving both locals and tourists.
Interesting fact: Uluwatu is full of abandoned high-rise buildings exceeding the height limits. Bali's 1970s building height restrictions limit buildings to 15 meters, the average height of mature coconut palm trees. This reflects respect for Bali's traditions and ensures that no building obscures a temple (pura) or sacred mountain. This rule also protects the Bali skyline from the urbanisation of tall buildings in other destinations.
How Investland Bali Ensures Compliance
Investland Bali prioritizes transparency and legality in every property investment. Our approach includes:
- Expert Legal Guidance: Partnerships with leading local law firms to stay updated on zoning regulations and building permits.
- Transparency with 3rd Party Documents: Clients receive full access to independently verified permits and paperwork.
- Seamless Permit Acquisition: We handle the entire process, from IMB (Building Permit) to PBG (Building Use Certificate), ensuring full compliance.
By working with Investland Bali, investors can feel confident their projects align with Bali’s regulations and development goals. Before the start of any project, we consult with local authorities or legal experts to ensure you have the most current and accurate zoning information before making any investment decisions.
Spotlight on Key Areas in Bali
- Canggu and Pererenan: Predominantly Yellow Zones with thriving residential developments. Proximity to Green Zones enhances their natural appeal.
- Uluwatu and Pecatu: Dominated by Pink Zones for tourism, with sacred cliffs and temples protected by Green Zones.
- Sanur: A balanced mix of Yellow and Pink Zones, making it a hub for eco-conscious residential projects.
Interesting Fact: Despite tourism growth, Uluwatu’s zoning protects sacred spaces like Uluwatu Temple, maintaining a balance between luxury and heritage.
Read our article: "Which region of Bali reflects your lifestyle?"
Bali’s zoning regulations preserve the island’s charm while fostering sustainable growth. For investors, understanding these laws is vital for building compliant and profitable projects. The recent moratorium and reinforced height restrictions further underscore Bali’s dedication to thoughtful progress.
When you choose Investland Bali, you’re investing in more than property—you’re investing in a vision. With expert legal support, seamless processes, and a focus on cultural preservation, we turn complex regulations into rewarding opportunities.
Imagine owning a piece of paradise that aligns with your vision—designed for profitability, inspired by heritage, and poised for growth. Let’s turn your dreams into reality in one of the world’s most sought-after destinations.
Contact us today to explore sustainable and secure investment opportunities in Bali’s vibrant real estate market: info@investlandbali.com
