Buying a new development at the presale (off-plan) stage is the most common entry point for investors into the Bali market — at a lower price, with installment payments and real potential for value growth before the project is even completed.
With presale (off-plan), you are buying a property that has not yet been built — at the design stage or at the beginning of construction. This is a different type of purchase from acquiring a completed property and requires understanding of both the advantages and the risks.
What presale (off-plan) represents
Instead of paying the full price for a completed property, with presale you enter the project early — at a price that reflects the not-yet-completed construction. Payment is usually in installments and tied to construction stages, rather than a one-time full sum.
Advantages
- Lower entry price. Prices at the presale stage for investment properties start from around $100,000–180,000 and are at their lowest before sales of the completed property begin.
- Choice of design. Some developers offer the option to choose the interior design or configuration as early as the presale stage.
- Installment payments. Often the initial payment is around 20–25%, and the remainder is spread over equal payments — for example quarterly — until the project's completion.
- Value growth until completion. Properties in Bali appreciate by around 30–40% until the completion of construction — this is capitalization on top of rental income.
- A liquid asset at the finish. After completion, you receive a completed property that can be sold with a potential profit (capital gain of around 20–30% in a favorable scenario) or kept in the portfolio.
Risks to take into account
- Completion timeline. Construction may be delayed compared to the announced schedule, which delays both use and income.
- Developer reliability. With presale, you pay before the property exists, so the developer's ability to complete the project on time and with quality is of primary importance.
- Market conditions. The result upon resale depends on the market situation at the time of sale, and not only on the quality of the project.
- Legal security. Without proper permits and land status, the project may carry serious risks.
For more on the risks and how they are managed, see the page Risks.
What we check before presenting a project at presale
No project is presented to a client before it has gone through a legal review. The key checks for new construction are:
- PBG (Persetujuan Bangunan Gedung) — a building permit, which since 2021 has replaced the old IMB. Without a valid permit, there is a real risk of demolition of illegal structures.
- HGB (Hak Guna Bangunan) — the right to build and use for legal entities and foreigners (30 + 20 + 30 years). It guarantees that the project is on land with proper status.
- NIB — the developer's business identification number/license, also required for legal leasing after completion.
- Land zoning. It is checked whether the plot is not in a „green“ zone or agricultural land, where capital construction is prohibited.
- Delivery and reputation. The developer's completed previous projects, met deadlines and feedback from previous buyers.
- Tying payments to stages. Payments should be tied to verifiable construction stages, rather than requiring large sums upfront with unclear deadlines.
Who it is suitable for
Presale is suitable for an investor who wants maximum capitalization from value growth and is ready to accept a delivery timeline before receiving the completed property — as well as to pay attention to checking the developer and the documents. If you prefer security and immediate use, a completed property may be more suitable.
Review the portfolio or the other categories — apartments, villas и investment projects. For assistance in choosing a project and checking a developer request an investment analysis.