Indonesian has been reaching historic levels for land appreciation of 15-20 per cent average per annum.

The south-central part of the island is where the lion’s share of Bali’s property development is concentrated.

Jimbaran Bay is considered one of the most exclusive areas for buyers, with international hotel brands such as the Four Seasons, Ritz-Carlton and InterContinental in the neighbourhood. It has, of late, picked up the title of ‘Bali’s Golden Mile’ among property agents.

Only Indonesian citizens are entitled to own freehold land titles. However, foreigners can own land through an Indonesian nominee. To help secure their claim to the land they purchase, many foreigners opt to take out a mortgage on the property, which has the effect of placing their name on the title. This prevents any transfers on the title without the foreign buyer’s consent to remove the mortgage.

Indonesia does not currently have a specific condominium law, which has restricted development on Bali to mostly villas. Although condo projects are becoming increasingly common, many buyers still opt to buy a plot of land and build an individual villa on it.

Popular locations in Bali include Jimbaran Bay, Bukit, the area from Batubelig to Tanah Lot on Bali's West coast, the inland town of Ubud, and near the Handara golf course and Lake Bratan near Bedugul. Real estate pundits in Bali say these locations promise to produce the highest increase in value over the coming years.

A variety of villa developments are on offer throughout the country, with styles and prices for high-end beach front villas with garden and a swimming pool ranging from US$400,000 to US$2,000,000 plus.

Because of the difficulties involved in placing property in the name of someone else, many foreigners choose to lease land which in Indonesia, can be taken for a period of 25 years. It is common practice for buyers to purchase two initial leases of 25 years which run consecutively along with a 25-year option on the second lease, effectively yielding a 75-year lease.

Another popular option for foreigners seeking to invest in Indonesia is by means of a PMA company, in which it is legally permissible for foreigners to hold shares in their name or in that of an offshore company.

In northern Bali decent beachfront properties are available for US$2000 an are, so US$100,000 would buy a reasonably sized residence. In the south however, buyers can expect to pay US$500,000 and upwards for a decent sized plot.