Bali, often referred to as the ‘Island of the Gods,’ stands tall as one of the world’s most sought-after destinations, not only for its ethereal beauty but also for its investment potential. As the island’s landscape evolves, two areas in particular have become the cynosure of investors’ eyes: Canggu and Ubud. While Canggu boasts of its transformation from a quaint village to a surfer’s paradise, Ubud continues to charm with its age-old cultural heritage. But which of these offers the best investment opportunities?
Dive into our comprehensive analysis of Canggu’s bustling coastal developments and Ubud’s serene historical haven to discern which location holds the most promise for your investment journey.
Canggu’s Transformation and Ubud’s Historical Haven
Bali’s allure for investors has surged recently, thanks to its stunning beauty, rich culture, and varied investment prospects. In this article, we’ll explore two top investment spots in Bali: Canggu and Ubud.
Canggu has gone through an incredible transformation. Once a quiet village surrounded by rice fields, it has now become a coastal paradise. This change was driven by its beautiful coastline with famous surf spots like Echo Beach and Batu Bolong. Canggu’s appeal grew even more during the Covid-19 pandemic as it attracted digital nomads looking for an idyllic work environment. With this growth, Canggu now offers a vibrant social scene, exciting nightlife, and various dining options. However, this rapid development also raises concerns about sustainability and preserving its original charm.
On the other hand, Ubud stands as a historical and spiritual haven. Tucked inland amid rice fields and forests, Ubud has been a cultural center for ages. It’s known for traditional arts, crafts, and spirituality. Ubud’s uniqueness lies in its hands-on experiences, from traditional dances to art workshops. The town is a hub for wellness retreats, yoga centers, and holistic healing, making it a global destination. While surrounding areas like Mas and Tegallalang have grown, Ubud remains committed to preserving its historical and natural heritage.
1. Accessibility & Connectivity
Ubud, nestled in the heart of Bali, boasts a strategic position equidistant from both the Eastern and Western shores, as well as the Northern and Southern tips of the island. This advantageous positioning allows tourists and residents alike easy access to a tapestry of natural wonders, from cascading waterfalls and verdant rice terraces to majestic mountains. Yet, with its growing popularity, the bustling traffic in Ubud’s core has led many to venture slightly further out for their accommodations, ensuring peace without compromising on accessibility.
On the other hand, Canggu’s allure is deeply rooted in its coastal proximity, offering a blend of beach life with an effervescent lifestyle. Direct beach access and renowned surf spots have given Canggu its reputation as the go-to for beach aficionados. However, with such allure comes the inevitable traffic snarls, particularly during the tourist-heavy seasons. Canggu’s lively social setting also means a bustling street scene and a zestier pace of life.
Weighing in on accessibility and connectivity, Ubud emerges as the more favorable option. Its central location facilitates seamless exploration of Bali’s cultural and natural gems, sans the congestion commonly associated with the coastal zones. For those who yearn for a serene ambiance yet want the best of what Bali offers, Ubud’s harmonious blend of accessibility and tranquility remains unparalleled.
Winner : Ubud
2. Local Lifestyle & Vibes
Canggu buzzes with energy, offering beach lovers a lively atmosphere. People enjoy surfing, relaxing by the ocean, and exploring cafes. When the sun sets, Canggu’s nightlife shines, with various bars and clubs catering to different tastes. The mix of cultures here creates a unique experience.
Ubud, known as Bali’s cultural heart, offers a different vibe. It’s about serenity and culture. Art galleries, craft shops, and cultural centers fill the streets. Traditional performances and yoga studios are popular, attracting those seeking inner harmony. The town encourages reflection and connection with Balinese spirituality.
Deciding which is better depends on personal preferences. Canggu suits beach enthusiasts and party-goers, while Ubud appeals to those seeking cultural immersion and spiritual growth. Both offer distinct lifestyles, so it’s about what resonates with you.
Winner : Tie
3. Property Prices & Value
Canggu’s popularity has translated into rising property prices. Villas and lands have seen substantial appreciation in value, driven by high demand from investors and expatriates seeking the coastal lifestyle. The potential for returns on investment is considerable, thanks to Canggu’s consistent stream of tourists and digital nomads. The leasehold price for an are (100 sqm) of land in Canggu for one year is between 15 and 25 million IDR.
Ubud’s property prices reflect its unique positioning as a cultural and spiritual haven. While the growth is steady, it’s marked by cultural preservation efforts and a focus on sustainability. Ubud’s reputation as a timeless retreat ensures a stable demand for properties, making it an attractive option for those seeking long-term value. The leasehold price for an are (100 sqm) of land in Ubud for one year is between 4 and 8 million IDR.
Canggu’s potential for appreciation is tempered by the need to carefully manage development and saturation. As the area grows, maintaining its appeal and ensuring a sustainable market becomes paramount. On the other hand, Ubud’s stability lies in its cultural authenticity, making it a safer bet for investors looking for enduring value.
In the realm of property prices and value, Ubud takes the lead. Its accessible land price often offer more interesting return on investment (ROI) to its investors, while its stability and cultural resilience offer a more predictable trajectory. Canggu’s potential comes with the need for careful consideration of the area’s growth trajectory – which we believe is now limited.
Winner : Ubud
4. Infrastructure & Amenities
Canggu’s rapid growth has brought modern facilities. Top-notch hospitals like Siloam and international schools like Canggu Community School support residents’ needs. Dining spots like Finns Beach Club and shopping centers enhance urban living.
While simpler, Ubud’s offerings align with cultural preservation. Local healthcare at Rumah Sakit Ari Canti and holistic education at schools like Sekolah Bali Hati reflect this focus. Traditional markets and artisanal workshops contribute to the town’s unique charm.
When it comes to infrastructure and amenities, Canggu holds the advantage with its modern conveniences catering to a contemporary lifestyle. Ubud’s charm still lies in its cultural authenticity and more modest offerings.
Winner : Canggu
Check out the latest infrastructure development in Bali in our article !
5. Future Developments & Prospects
Future development projects play a pivotal role in shaping the trajectory of real estate investment in Canggu and Ubud.
The real estate landscape in Canggu has been strained by its rapid growth; vacant land has become scarce, and the few remaining unbuilt plots are either priced exorbitantly or are simply not on the market. Consequently, property developers are pivoting northward, with Pererenan at the forefront, followed by areas like Seseh, Nyani, Cemagi, and extending to Kedungu. This shift is evident in the land prices, which are now approaching Canggu’s rates. In essence, we describe Canggu’s real estate market as mature, with limited prospects for future growth and value appreciation, while new markets are emerging.
Ubud, on the other hand, is sprawling in its development, with its core remaining the epicenter of tourist activity. Both to the north and south, new projects are taking shape. While there is a steady rise in land prices, investments continue to pour in. Ubud’s historical and cultural center is its crown jewel, making it an essential hub for tourists. Visitors increasingly prefer accommodations situated further from the overcrowded city center, valuing comfort and views over mere proximity. Long-term development prospects in Ubud are promising. Investors can place strategic bets on emerging zones expected to appreciate in the coming years, such as areas around Ubud like Mas, Lod Tunduh, and others.
While Canggu’s real estate market is maturing with limited future growth prospects, Ubud’s sprawling development, centered around its historical core, promises encouraging long-term potential.
Winner : Ubud
Check out our list of the top development projects currently happening in Bali !
6. Occupancy & Average Daily Rate Trends
To make a well-informed investment decision, it’s crucial to consider the occupancy and average daily rate trends in both Canggu and Ubud. According to data from AirDNA, over the past 12 months, Ubud has experienced a significant uptick in occupancy rates, with an impressive increase of +23%. This surge indicates a growing demand for accommodations in this serene cultural hub. Additionally, the average daily rate in Ubud has risen by +24% during the same period, demonstrating the potential for income growth for property owners.
Conversely, Canggu’s occupancy rates have seen a modest decrease of -4% over the past year. While this might be a reflection of the area’s dynamic real estate landscape, it’s essential for investors to assess the reasons behind this dip. On the positive side, Canggu’s average daily rate has surged by +27% during the same period, signaling that despite the occupancy dip, property owners are commanding higher rates for their offerings.
The choice of a winner in this category hinges on your specific investment strategy. If you prioritize consistent occupancy growth and moderate rate increases, Ubud could be the more suitable option. However, if you are comfortable with some fluctuations in occupancy but seek higher rate increases, Canggu might align better with your investment objectives.
Conclusion
When assessing Canggu and Ubud from a real estate investment perspective, it’s evident that both locations offer unique opportunities in Bali’s thriving property market. Canggu, with its coastal appeal and modern amenities, caters to a contemporary lifestyle, attracting beach enthusiasts and those seeking a vibrant social scene. Meanwhile, Ubud, the cultural heart of Bali, offers an immersive experience in traditional arts, spirituality, and serenity. Its enduring cultural essence and commitment to preserving its rich heritage make it a unique gem.
From the six criteria evaluated – accessibility & connectivity, local lifestyle & vibes, property prices & value, infrastructure & amenities, future developments & prospects, and occupancy & average daily rate trends – Ubud emerged as the winner in four categories. It boasts a strategic location, offers a promising future in real estate prospects, presents greater value for property prices, and has shown remarkable growth in occupancy rates.
Canggu, on the other hand, has reached a maturity in its real estate landscape and faces challenges like congestion and rapid development, which might limit its growth potential.
For investors keen on securing long-term value, cultural authenticity, and a balance between accessibility and tranquility, Ubud stands out as a more favorable option. While both locations have their merits, for the discerning investor prioritizing sustainable growth, cultural resonance, and strategic future potential, Ubud is undeniably the jewel in Bali’s real estate crown.
English 
French 
Chinese 
Indonesian 
Russian