In Bali, land is zoned for different uses, and each zone is shown by a colour on the regional spatial plan. The zone a villa sits in determines what it can legally be used for.
The Pink Zone is designated for tourism accommodation. Villas built here can apply for the licences needed to take short-term holiday bookings, which is the core of a rental-led return.
Why it matters to investors
A villa outside a tourism zone may be limited to residential use, which can restrict short-term rentals and affect resale value. Buying within the Pink Zone keeps the rental plan on solid ground.
Before investing in any villa, ask for confirmation of its zoning and licence status, and take independent legal advice, as regulations in Indonesia can change.