Why Small Apartments in Bali Are Often a Poor Investment

At a time when people themselves seem to be getting larger, both in height and width, housing somehow appears to be getting smaller and smaller. It started with the tiny home trend, but this development now seems to be spreading further into the apartment market as well. Recently, we received a brochure from a property developer offering units of just 21.3 m². Let that sink in for a moment. 21 m² is roughly 7 x 3 meters, comparable to the size of a small swimming pool. The introductory price for such a unit is USD 145.000, and it can safely be assumed that prices will increase further over time.

The obvious question is: who actually wants to buy something like this? This particular project tries to distinguish itself with extensive wellness facilities, something that many apartment complexes in Bali do not offer. Even so, the question remains how many people would genuinely want to stay in such a limited living space for a longer period of time. The average hotel room in Bali is generally around 26–36 m², while luxury resorts often offer significantly larger rooms. In addition, many hotels already provide extensive facilities such as spas, massage areas, swimming pools, restaurants, and fitness centers.

There is another important issue to consider: in practice, apartments in Bali often turn out to be weak investments. New projects are usually sold with promises of high ROI, professional management, and luxury facilities such as gyms, swimming pools, and co-working spaces. But these are facilities that can already be found in many quality hotels and resorts across Bali. So the real question becomes: what truly makes an investment in a new apartment complex stand out? Why would tourists specifically choose your unit when similar facilities are available in many other locations throughout Bali?

In many cases, the promised ROI simply does not materialize. We regularly see disappointed investors trying to sell their apartment again after only a few years. And this is where another major problem often arises. Very few investors are interested in buying an existing apartment unless it is offered far below market value, meaning the owner has to accept a significant loss.

People who are serious about investing in Bali are usually looking for something very different. They are looking for a villa with a tropical garden, a private swimming pool, a spacious covered terrace, and enough living space to truly enjoy the island lifestyle. That is what tourists are actually searching for when they visit Bali. As a result, the apartment market remains relatively small and niche-focused, while demand for attractive villas is significantly higher. And if tourists specifically want an apartment or compact accommodation, they can already choose from the many hotels and resorts Bali has to offer.

The end result is often disappointing: you purchase an apartment expecting it to generate strong returns, but when the time comes to sell, there is very little interest, while your monthly costs continue regardless.

Last week, we discussed this topic with our regular architect. We talked about a joglo villa on approximately 200 m² of land, with a living area of around 60 m². The villa would include a spacious bedroom and bathroom, a separate workspace, a swimming pool, a massage area, and even a sauna — essentially a complete private wellness villa.

Such a villa could be built in Penestanan, a popular village near Ubud where many tourists enjoy staying because of its charming shops, excellent restaurants, local warungs, and yoga facilities. Everything would be within walking distance from the villa. In addition, the center of Ubud can be reached in around 30 minutes on foot, which in itself makes for a healthy daily workout.

And perhaps most remarkable of all? This entire villa could be realized for almost the same price as the previously mentioned 21 m² apartment.

So the question is simple: what would you rather own? A spacious private joglo villa with its own wellness facilities and tropical atmosphere, or a tiny apartment inside a large complex?

We already know our answer.