Is right now a good time to buy a property in Bali? (2026)

Authored by the expert who managed and guided the team behind the Indonesia Property Pack

Yes, the analysis of Bali's property market is included in our pack

Is it smart to buy now in Bali, or should I wait as of 2026?

Do real estate prices look too high in Bali as of 2026?

As of early 2026, Bali property prices do not look dramatically overheated compared to fundamentals, because Bank Indonesia's Denpasar index shows only about 3% to 5% annual growth, which is a modest pace for a tourism-driven island.

One clear signal that prices are not wildly stretched is that time-on-market for well-priced villas in prime areas like Canggu and Uluwatu remains short, but properties priced above market often sit for months, showing buyers are still price-sensitive.

Another signal is that smaller one-bedroom and two-bedroom units, which now make up over 60% of Bali transactions, are moving faster than oversized luxury villas, suggesting the market rewards realistic pricing over aspirational asks.

You can also read our latest update regarding the housing prices in Bali.

Does a property price drop look likely in Bali as of 2026?

As of early 2026, the likelihood of a broad price drop in Bali over the next 12 months is low, because the macro backdrop of strong tourism, stable banking, and easing rates does not support a crash scenario.

A plausible downside-to-upside range for Bali property prices in 2026 is roughly minus 5% to plus 10%, meaning the risk is tilted slightly toward continued gains rather than big losses.

The single most important macro factor that could increase the odds of a price drop in Bali is a sudden tightening of credit conditions, for example if Bank Indonesia had to raise rates sharply to defend the rupiah.

However, this factor looks unlikely in the near term because BI has been cutting rates and the Indonesian financial system remains stable according to OJK's public messaging.

Finally, please note that we cover the price trends for next year in our pack about the property market in Bali.

Could property prices jump again in Bali as of 2026?

As of early 2026, the likelihood of a renewed price surge in Bali is medium, because strong tourism demand and limited prime land could push prices higher in specific neighborhoods, though an island-wide boom is less certain.

A plausible upside range for Bali property prices over the next 12 months is around 5% to 15% in the best-located, compliant properties in areas like Berawa, Pererenan, and Uluwatu.

The single biggest demand-side trigger that could drive Bali prices to jump again is continued tourism growth, especially if international arrivals exceed the 7 million record set in 2025 and short-term rental demand remains strong.

Please also note that we regularly publish and update real estate price forecasts for Bali here.

Are we in a buyer or a seller market in Bali as of 2026?

As of early 2026, Bali's property market is split, meaning buyers have leverage in oversupplied or non-compliant segments while sellers still hold power for prime, well-located, legally clean properties.

There is no single official months-of-inventory figure for Bali, but Bank Indonesia's data shows primary sales still contracting even as prices rise, which typically means buyers can negotiate hard on most listings.

The share of listings with price reductions is notable in areas like outer Canggu and emerging zones such as Tumbak Bayuh, suggesting seller leverage is weaker there, while core Seminyak and Berawa beachfront properties hold their asking prices much better.

Are homes overpriced, or fairly priced in Bali as of 2026?

Are homes overpriced versus rents or versus incomes in Bali as of 2026?

As of early 2026, Bali homes are not dramatically overpriced versus rents if you use conservative occupancy assumptions, but they can look expensive versus local incomes because prime areas price off tourism cashflows rather than local salaries.

The price-to-rent ratio in Bali depends heavily on your rental assumptions, but with AirDNA showing around 45% occupancy and $150 average daily rate for short-term rentals, gross yields of 6% to 10% are achievable, which is reasonable compared to many global markets.

The price-to-income multiple in Bali is high for locals, because a villa in Canggu might cost 15 to 20 times the annual income of a typical Indonesian household, but this metric matters less in a market driven by foreign buyers and rental investors.

Finally please note that you will have all the indicators you need in our property pack covering the real estate market in Bali.

Are home prices above the long-term average in Bali as of 2026?

As of early 2026, Bali home prices are above pre-pandemic levels, with Bank Indonesia's Denpasar index at around 105 to 106 (base 2018 equals 100), which represents a cumulative increase of roughly 15% over seven years.

The recent 12-month price change in Bali's indexed market is about 3% to 4%, which is actually slower than the 7% to 15% growth seen in prime villa zones like Canggu and Uluwatu, where tourism-driven demand pushes prices faster.

In inflation-adjusted terms, Bali prices are modestly above the pre-pandemic peak, but not wildly so, meaning you are not buying into a market that has run away from its fundamentals.

What local changes could move prices in Bali as of 2026?

Are big infrastructure projects coming to Bali as of 2026?

As of early 2026, the biggest infrastructure project affecting Bali property prices is the Ngurah Rai Airport runway overlay work, which ran from July 2025 to around May 2026, and is expected to improve airport reliability once completed.

The timeline for this project is nearly complete, with construction finishing in early 2026, and the long-term impact should be positive for South Bali property values in areas like Kuta, Seminyak, Canggu, and Jimbaran by supporting higher tourism volumes.

For the latest updates on the local projects, you can read our property market analysis about Bali here.

Are zoning or building rules changing in Bali as of 2026?

The single most important zoning change in Bali is the enforcement of the provincial RTRW spatial plan for 2023 to 2043, which defines where development can and cannot happen across the island.

As of early 2026, the net effect of these zoning rules is to constrain new supply in protected zones while pushing development to permitted areas, which supports prices in established neighborhoods but adds compliance risk for non-conforming properties.

The areas most affected by these rule changes in Bali are green zone agricultural lands (often targeted by villa developers), coastal setback areas, and neighborhoods like Canggu where enforcement of short-term rental rules has increased.

Are foreign-buyer or mortgage rules changing in Bali as of 2026?

As of early 2026, foreign-buyer rules in Bali are not dramatically changing, but enforcement of existing structures like Hak Pakai and PT PMA requirements is becoming stricter, which means buyers need clean legal arrangements.

The most likely foreign-buyer rule development is tighter enforcement of nominee arrangements, which are technically illegal, pushing more foreigners toward compliant structures like leasehold or establishing a foreign-owned company (PT PMA).

On the mortgage side, Bank Indonesia's housing loan rates have eased to around 7.4%, down from 7.8% a year earlier, but most foreign villa purchases in Bali remain cash transactions since local mortgages for foreigners are limited.

You can also read our latest update about mortgage and interest rates in Indonesia.

Will it be easy to find tenants in Bali as of 2026?

Is the renter pool growing faster than new supply in Bali as of 2026?

As of early 2026, Bali's renter pool is growing strongly thanks to record tourism of over 7 million foreign visitors in 2025, but new supply is also very responsive, especially in fringe development areas like Tabanan and outer Canggu.

The best signal for renter demand in Bali is the year-over-year growth in foreign tourist arrivals, which increased about 11% in 2025, and the continued influx of digital nomads seeking monthly or longer-term rentals.

On the supply side, new villa completions and off-plan projects now account for about 37% of Bali listings, which is a significant increase from prior years and means absorption in some areas is getting more competitive.

Are days-on-market for rentals falling in Bali as of 2026?

As of early 2026, there is no single official days-on-market series for Bali rentals, but well-located, well-reviewed short-term rentals in prime areas typically book quickly during peak season while generic villas take longer.

The difference in tenanting speed between best areas like Berawa, Petitenget, and Uluwatu cliffs versus weaker areas like inland Canggu or North Bali is significant, with premium properties often seeing bookings within days while others sit for weeks.

One common reason days-on-market can fall in Bali is seasonal demand during high season (July to August and December to January), when tourist arrivals spike and occupancy for top-rated properties can exceed 70%.

Are vacancies dropping in the best areas of Bali as of 2026?

As of early 2026, vacancy (measured as short-term rental occupancy) in Bali's best areas like Berawa, Pererenan, Petitenget, and Uluwatu cliffs shows healthy performance, with top-tier properties achieving 50% to 70% occupancy versus the island-wide average of around 45%.

The current vacancy rate proxy in these prime areas is lower than the overall Bali market, meaning the best-designed, best-located villas are absorbing demand first while generic properties in saturated zones struggle more.

One practical sign that best areas are tightening in Bali is that average daily rates for top-rated properties in Berawa and Uluwatu have held steady or increased, even as overall Bali short-term rental revenue per listing has moderated.

By the way, we've written a blog article detailing what are the current rent levels in Bali.

Am I buying into a tightening market in Bali as of 2026?

Is for-sale inventory shrinking in Bali as of 2026?

As of early 2026, Bali does not publish an official active listings count, but Bank Indonesia's data showing prices modestly up while primary sales contract suggests inventory is not extremely tight, at least in the conventional market.

We estimate months-of-supply in Bali's general market is moderate, meaning buyers can usually find options, though prime compliant properties in areas like Seminyak and Berawa are scarcer and move faster.

Are homes selling faster in Bali as of 2026?

As of early 2026, homes in Bali are not uniformly selling faster, because speed depends heavily on location, pricing, and legal compliance, with prime properties moving quickly and overpriced or non-compliant ones sitting longer.

Bank Indonesia's sales data shows contraction in primary market transactions, which suggests the broader market is not in a "sell instantly at any price" phase, and buyers are taking their time to negotiate.

Are new listings slowing down in Bali as of 2026?

As of early 2026, we are not confident that new listings are slowing in Bali, because off-plan projects now represent about 37% of all listings (up 180% year-over-year), and new supply continues to enter the market in emerging areas.

The seasonal pattern for new listings in Bali typically sees more activity before high season as owners prepare properties for rental, and the current level does not appear unusually low based on available data.

Is new construction failing to keep up in Bali as of 2026?

As of early 2026, new construction in prime South Bali (Kuta, Seminyak, Canggu core, Uluwatu) can feel supply-limited because developable land and compliance constraints are real, but fringe areas like Tabanan and Pererenan still see active building.

The recent trend shows that Tabanan now hosts about 40% of new project launches in Bali due to available land and lower entry costs, while established hotspots are becoming increasingly saturated.

The single biggest bottleneck limiting new construction in prime Bali is land availability and zoning compliance, because the best locations are already developed and stricter enforcement makes it harder to build rental-ready properties without proper permits.

Will it be easy to sell later in Bali as of 2026?

Is resale liquidity strong enough in Bali as of 2026?

As of early 2026, resale liquidity in Bali is strong only for properties that are easy for the next buyer to underwrite, meaning clear legal structure, prime location, and realistic yield assumptions.

There is no official median days-on-market for Bali resales, but well-priced, compliant properties in areas like Seminyak, Berawa, and Uluwatu typically sell within 3 to 6 months, while overpriced or legally complex properties can sit for over a year.

The property characteristic that most improves resale liquidity in Bali is having clean documentation (proper permits, clear title structure like HGB or compliant leasehold), followed by location in a lifestyle area with proven rental demand.

Is selling time getting longer in Bali as of 2026?

As of early 2026, selling time in Bali appears stable for prime properties but may be lengthening slightly for overpriced or generic villas, reflecting a market that has become more buyer-selective since the 2022-2023 boom.

The realistic range for time-to-sell in Bali is roughly 2 to 4 months for well-priced prime properties up to 12 months or more for properties with pricing, location, or legal issues.

One clear reason selling time can lengthen in Bali is when sellers price based on peak Airbnb assumptions rather than conservative rental math, because educated 2026 buyers are not chasing hype anymore.

Is it realistic to exit with profit in Bali as of 2026?

As of early 2026, the likelihood of exiting with profit in Bali is medium to high if you hold for at least 3 to 5 years, buy at a realistic price, and choose a location with enduring rental demand.

The minimum holding period that most often makes exiting with profit realistic in Bali is around 3 to 5 years, because this gives time for modest price appreciation to cover transaction costs and for rental income to build your return.

The estimated total round-trip cost drag in Bali, including buying and selling costs, is roughly 10% to 15% of the property value (around 350 million to 500 million rupiah on a 3 billion rupiah property, or about $22,000 to $31,000 USD, or 20,000 to 29,000 EUR).

The factor that most increases profit odds in Bali is buying below market in an oversupplied pocket, then improving the property's rental performance through better design, reviews, and operations.

What sources have we used to write this blog article?

Whether it's in our blog articles or the market analyses included in our property pack about Bali, we always rely on the strongest methodology we can, and we don't throw out numbers at random.

We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.