Canggu, paradise or golden trap?

Over the past few years, Canggu has become the epicenter of Balinese real estate. A favorite for digital nomads, trendy expats, and international investors, this booming neighborhood is as attractive as it is challenging.

In such a fast-moving market, how can you avoid the common pitfalls and succeed in your investment in Canggu? Here are 10 key criteria to guide your strategy.

1. Location within the location

In Canggu, the address is everything. A property in Berawa doesn’t have the same potential as one in Babakan or Pererenan.

• Berawa = booming rental demand, near international schools
  
  
• Echo Beach = surfing and upscale tourism
  
  
• Pererenan = up-and-coming, great for capital gain
  
  
• Babakan = more residential, good for long-term growth
  
  

Analyze local urban development, road access, and proximity to activity hubs (beaches, cafés, schools, yoga centers).

2. Focus on real, not theoretical, profitability

Some agencies claim 12–15% returns. Be cautious.

👉 Target a realistic net return of 7 to 9%, after:

• management fees
  
  
• maintenance costs
  
  
• taxes
  
  
• rental turnover
  
  

Always make a conservative annual projection over 5 to 10 years.

3. Choose the right type of property

Studio? Villa? Co-living? In Canggu, the property format determines success:

• 2–3 bedroom villas: ideal for families and groups, high occupancy
  
  
• Luxury studios: popular among solo travelers and digital nomads
  
  
• Hybrid spaces (co-living): growing fast, but complex to manage
  
  

Match your property to a clearly defined target.

4. Design with rental in mind

A beautiful interior is not enough. What you need is:

• natural light
  
  
• good airflow
  
  
• strong wifi
  
  
• fully equipped kitchen
  
  
• high-end finishes
  
  

Good design = higher rental rates + better reviews + more bookings

5. A well-structured lease (leasehold)

Most foreign investments in Bali are done under leasehold contracts (25 to 30 years).

✅ Check for:

• renewal options
  
  
• resale clause
  
  
• legal registration
  
  
• clear agreement with landowner
  
  

A bad contract can mean total loss of investment when reselling.

6. A trustworthy local partner

Contractors, notaries, management agency… You can’t handle it all from abroad.

✔️ Surround yourself with a reliable, transparent local partner with strong references.
Avoid any project where papers are “missing” or you’re rushed to sign.

7. Professional rental management

Without a local manager, your property won’t generate income.

Go for an all-in-one property management service:

• guest reception
  
  
• cleaning
  
  
• maintenance
  
  
• OTA platform management (Airbnb, Booking, etc.)
  
  

And above all: watch out for hidden fees and exit penalties.

8. Understand the local tax landscape

Even in Bali, rental income is taxed:

• 10–20% rental tax depending on setup
  
  
• capital gains tax on resale
  
  
• local land tax
  
  

Hire a local accountant from the start to avoid costly surprises.

9. Clear market positioning (premium, family, digital nomads)

There’s no such thing as a “universal” property. Target your audience clearly:

🎯 Premium? Add concierge service, elegant decor, personalized amenities
🎯 Families? Focus on safety, school access, child-friendly equipment
🎯 Digital nomads? Fast wifi, workspace, cafés nearby

A clear strategy = consistent income.

10. Plan your exit from day one

Think about resale within 5 or 10 years.

A well-located, well-built, well-rented property is much easier to resell.

Tip: Keep all rental history records, guest reviews, and legal documents.

Conclusion: success in Canggu demands rigor… and vision

Investing in Canggu can be a fantastic opportunity — but it’s neither a game nor a gamble. By following these 10 criteria, you increase your chances of achieving sustainable profitability, strong resale value, and a rewarding property journey in Bali.