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
In this article, we look at current housing prices in Bali, how they have changed over the past year, and where they are likely to go in the years ahead.
We constantly update this blog post so you always get the freshest numbers and context.
Bali's property market is unusual because it serves two very different groups at the same time: local Indonesian families buying homes to live in, and international buyers or investors chasing lifestyle and rental income.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Bali.
What are the current property price trends in Bali as of 2026?
What is the average house price in Bali as of 2026?
As of early 2026, the estimated average residential property price in Bali sits around IDR 4.5 billion (roughly USD 270,000 or EUR 250,000), though this covers a wide mix of property types across the island.
In terms of price per square meter, Bali properties typically cost between IDR 18 million and IDR 55 million per sqm (roughly USD 1,100 to USD 3,300, or EUR 1,000 to EUR 3,000), with the lower end reflecting local family homes and the higher end capturing prime villa territory in Canggu or Seminyak.
If you want a realistic range that covers most of what actually trades in Bali, think IDR 2.5 billion to IDR 8 billion (roughly USD 150,000 to USD 480,000, or EUR 140,000 to EUR 445,000), which spans from modest landed houses in the outer regencies all the way up to well-located villas in the tourist belt.
How much have property prices increased in Bali over the past 12 months?
Overall, Bali property prices in 2026 have risen by roughly 5% to 8% compared to a year earlier, with the island's prime areas pulling the average up.
That said, the range is quite wide: more affordable, locally oriented submarkets like parts of Denpasar and inland Gianyar have seen increases closer to 2% to 5%, while prime villa-heavy neighborhoods in the Canggu area and along the Bukit Peninsula have tracked closer to 8% to 12% year-on-year.
The single biggest driver of this price movement in Bali has been the continued strength of foreign visitor arrivals, which keeps rental yields attractive and encourages buyers to bid up prices in the most tourism-exposed neighborhoods.
Which neighborhoods have the fastest rising property prices in Bali as of 2026?
As of early 2026, the three neighborhoods in Bali with the fastest rising property prices are Berawa and Pererenan in the Canggu area, the Bingin-Padang Padang-Ungasan corridor on the Bukit Peninsula, and the Petitenget-Kerobokan stretch connecting Seminyak northward.
In those top spots, annual price growth in Bali is running at roughly 9% to 13%, driven partly by limited land supply and partly by strong short-term rental demand from the international traveler and expat community.
The main demand driver behind all three of these neighborhoods is their position right in the path of Bali's tourism flow: they are either near the beach lifestyle amenities, or they offer the combination of surf access, cafes, coworking spaces, and villa-style living that attracts long-stay foreign visitors and remote workers.
By the way, you will find much more detailed price ranges across neighborhoods in our property pack covering the real estate market in Bali.
We have made this infographic to give you a quick and clear snapshot of the property market in Indonesia. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
Which property types are increasing faster in value in Bali as of 2026?
As of early 2026, the ranking in Bali from fastest to slowest appreciation goes: villas first, then modern landed houses and townhouses in well-connected areas, and apartments or condos last.
Well-located villas in prime Bali neighborhoods are appreciating at roughly 8% to 13% per year, because they sit at the intersection of lifestyle demand and rental cashflow potential that investors and buyers alike are chasing.
Villas are outperforming all other property types in Bali because they map directly to what the island's tourism economy rewards: short-stay rental income, a private pool, and proximity to beaches or cultural hotspots, which means demand for them stays structurally elevated.
Finally, if you're interested in a specific property type, you will find our latest analyses here:
- How much should you pay for a house in Bali?
- How much should you pay for a villa in Bali?
- How much should you pay for lands in Bali?
What is driving property prices up or down in Bali as of 2026?
As of early 2026, the three main factors pushing Bali property prices higher are strong and recovering tourism volumes, persistently rising construction and labor costs, and supportive national monetary and fiscal policies that have made property more accessible for Indonesian buyers.
Of those three, tourism volume has the strongest upward pull on Bali property prices in 2026, because every rise in visitor numbers feeds directly into higher villa rental yields, which in turn makes investors willing to pay more for the same property.
If you want to understand these factors at a deeper level, you can read our latest property market analysis about Bali here.
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What is the property price forecast for Bali in 2026?
How much are property prices expected to increase in Bali in 2026?
As of early 2026, property prices in Bali are expected to rise by around 5% to 9% over the course of the year, with the top end of that range most likely in the prime villa belt and the lower end in more locally focused submarkets.
Forecasts for Bali property price growth in 2026 range from a cautious 3% to 4% on the conservative side (factoring in regulatory risks and supply pressures in some villa pockets) all the way to 10% to 13% on the optimistic side in the most demand-concentrated neighborhoods.
The main assumption underpinning most forecasts for Bali property prices in 2026 is that foreign tourist arrivals continue recovering toward pre-pandemic highs, keeping rental demand and investor appetite stable or rising.
We go deeper and try to understand how solid are these forecasts in our pack covering the property market in Bali.
Which neighborhoods will see the highest price growth in Bali in 2026?
As of early 2026, the neighborhoods in Bali most likely to lead price growth this year are Pererenan and Berawa in the Canggu area, the Bingin-Pecatu-Ungasan corridor on the Bukit Peninsula, and Sanur on the quieter east-facing coast.
These top neighborhoods in Bali are projected to see price growth of roughly 9% to 13% in 2026, well above the island-wide average, because they combine limited land supply with a steady inflow of lifestyle buyers and short-term rental investors.
The primary catalyst for growth in all of these Bali neighborhoods is the same: proximity to the amenities and natural settings that attract higher-spending foreign visitors and long-stay expats, which keeps occupancy rates high and makes the investment case compelling.
One area in Bali that could surprise with higher-than-expected growth in 2026 is Seseh-Cemagi, just north of the main Canggu cluster, where land is still relatively affordable but demand is creeping outward from the already-saturated Berawa-Batu Bolong core.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Bali.
What property types will appreciate the most in Bali in 2026?
As of early 2026, villas are expected to appreciate the most of any residential property type in Bali, because they are the format that best captures both lifestyle demand from individual buyers and rental income potential from the tourism economy.
The top-performing villas in Bali in 2026 are projected to appreciate by roughly 8% to 13%, with the best outcomes for two-to-four bedroom properties that are turnkey, have a pool, and sit within a 10-to-15 minute drive of a popular beach or lifestyle hub.
The main demand trend favoring villas in Bali in 2026 is the continued preference among foreign buyers and long-stay visitors for private, self-contained accommodation over hotels or apartments, which keeps the rental market for villas structurally tight.
Apartments and condos, on the other hand, are expected to underperform in Bali in 2026 because the market for them is smaller and less liquid, and most buyers who can afford to enter the Bali market still prefer the villa format for its rental appeal and lifestyle cachet.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Indonesia versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you’re planning to invest there.
How will interest rates affect property prices in Bali in 2026?
As of early 2026, interest rate trends in Indonesia are mildly supportive for Bali property prices, because Bank Indonesia cut its policy rate to 5.75% in early 2025 and held near 4.75% through late 2025, giving domestic buyers somewhat more borrowing power than they had in 2023 and 2024.
The current benchmark rate in Indonesia is around 5.75% as of early 2026, and mortgage rates for Indonesian residents typically sit 200 to 300 basis points above that level, meaning standard home loans are in the 7% to 8% range, which is still meaningful but lower than the peaks seen a couple of years earlier.
For every 1% rise in Bali mortgage rates, local-family buyers feel the pinch most directly (since they rely more heavily on loans), while foreign buyers and investor buyers tend to be less sensitive because a large share of Bali property transactions are made in cash.
What are the biggest risks for property prices in Bali in 2026?
As of early 2026, the three biggest risks for Bali property prices are tighter regulation of short-stay rentals (which could undercut the investor math behind villa purchases), an oversupply of villas in certain corridors, and a global travel slowdown that would directly hit occupancy and rental yields.
Of these three risks, regulatory tightening around short-term rentals is the one most likely to materialize in some form in 2026, because Bali's overtourism debate is already producing policy conversations about tourist taxes, behavioral rules, and short-stay restrictions that could dampen investor confidence if they escalate.
We actually cover all these risks and their likelihoods in our pack about the real estate market in Bali.
Is it a good time to buy a rental property in Bali in 2026?
As of early 2026, buying a rental property in Bali looks like a reasonable move for buyers who choose the right location, price it conservatively, and are comfortable holding for at least a few years.
The strongest argument for buying a rental property in Bali now is that tourism demand is structurally robust and still recovering in some segments, which means villa rental yields in proven neighborhoods remain attractive relative to most alternative asset classes.
The strongest argument for waiting is that regulatory uncertainty around short-term rentals in Bali is real and unresolved, so buyers who rely on peak-season occupancy assumptions to justify their purchase price may find that the numbers no longer work if enforcement or taxes tighten.
If you want to know our latest analysis (results may differ from what you just read), you can read our assessment on whether now is a good time to buy a property in Bali.
You'll also find a dedicated document about this specific question in our pack about real estate in Bali.
Buying real estate in Bali can be risky
An increasing number of foreign investors are showing interest. However, 90% of them will make mistakes. Avoid the pitfalls with our comprehensive guide.
Where will property prices be in 5 years in Bali?
What is the 5-year property price forecast for Bali as of 2026?
As of early 2026, the most likely cumulative property price growth in Bali over the next five years (to 2031) falls in the range of 30% to 55% for the island overall, which translates to roughly 5% to 9% per year compounded.
The range of 5-year forecasts for Bali property goes from a conservative scenario of around 20% to 25% cumulative (if regulation tightens significantly and global tourism softens) to an optimistic scenario of 60% to 80% cumulative in prime villa neighborhoods where land supply is genuinely constrained.
The projected average annual appreciation rate for Bali property over the next five years sits around 6% to 8% in a base-case scenario, which is above Indonesia's national average because of the tourism premium the island commands.
The key assumption most forecasters rely on for their 5-year Bali property predictions is that international tourist arrivals continue to grow modestly and that Bali does not face severe restrictions on short-stay rental operations, which would directly undercut villa investment returns.
Which areas in Bali will have the best price growth over the next 5 years?
The three areas in Bali most likely to lead price growth over the next five years are the Canggu spillover zone (Pererenan, Seseh, and Cemagi), the Bukit Peninsula growth belt (Ungasan, Pecatu, and Bingin), and Sanur, which is quietly building a reputation as a family and long-stay alternative to the busier south.
These top-performing Bali areas are projected to see 5-year cumulative price growth of roughly 45% to 80%, driven by the combination of limited available land, strong rental demand, and improving amenity bases that attract more stable, higher-spending visitors.
This is broadly consistent with the shorter 2026 forecast, but the 5-year lens amplifies the advantage of the Canggu spillover and Bukit zones because their land constraint becomes more acute over time, while some of the already-prime Seminyak and Kerobokan areas may see growth moderate as they become fully built out.
The most undervalued area in Bali with the best 5-year potential is probably the northern arc toward Lovina in Buleleng or the scenic inland valleys near Sidemen, where land prices are still a fraction of the south, but which appeal to a growing niche of buyers seeking authenticity, cooler temperatures, and lower entry costs.
What property type will give the best return in Bali over 5 years as of 2026?
As of early 2026, well-located two-to-four bedroom villas in Bali's prime tourism corridors are expected to deliver the best total return of any residential property type over the next five years.
A well-chosen villa in Bali could reasonably generate a 5-year total return (price appreciation plus net rental income) in the range of 60% to 100% cumulatively, assuming conservative occupancy rates and a continued healthy tourism environment.
The main structural trend favoring villas in Bali over the next five years is that the island's appeal as a global lifestyle destination keeps deepening while the supply of well-located, legally clean villas with modern finishes stays relatively scarce, which creates a durable supply-demand imbalance.
For buyers who want the best balance of return and lower risk over five years in Bali, modern landed houses and townhouses near the Denpasar-Badung employment corridor offer a more stable option: they benefit from local-demand fundamentals rather than tourism cycles, which makes them less volatile even if the ceiling on returns is lower.
How will new infrastructure projects affect property prices in Bali over 5 years?
The three most significant infrastructure developments expected to affect Bali property prices over the next five years are the long-planned Bali mass transit project, ongoing national road and airport connectivity improvements under the RPJMN 2025-2029 plan, and continued upgrades to utilities and drainage in the high-growth south and southwest coastal zones.
In similar markets elsewhere in Southeast Asia, properties within reasonable proximity of completed transit or major road infrastructure have typically commanded a 10% to 25% price premium compared to comparable properties without that access advantage, and Bali is likely to follow a similar pattern if and when projects are completed.
The neighborhoods in Bali most likely to benefit from infrastructure improvements over five years are those in the "next ring" just beyond today's hottest areas: Pererenan, Seseh, Cemagi (north of Canggu), and parts of Ungasan and Jimbaran on the Bukit Peninsula, where better road links or transit access would make these areas meaningfully more convenient.
How will population growth and other factors impact property values in Bali in 5 years?
Bali's resident population is growing modestly (around 1% to 1.5% per year), but its functional population of workers, expats, and long-stay visitors grows faster when tourism is strong, and this combined pressure on housing stock is expected to support prices, particularly for rental-oriented formats over the next five years.
The most influential demographic shift for Bali property demand over five years is the continued rise of remote workers and digital nomads choosing to base themselves in Bali for months at a time, since this group needs quality residential accommodation rather than just a hotel, which pushes villa and furnished house demand upward.
Migration patterns into Bali from other Indonesian islands (particularly Java) for work in the tourism and hospitality sectors add a steady floor of local housing demand, while international migration of lifestyle buyers and retirees from Australia, Europe, and East Asia supports the top end of the villa market.
Taking these trends together, villas in Canggu, Seminyak, Bingin, and Ubud benefit most from the international migration and remote-work demand, while practical landed homes and townhouses near Denpasar's services and schools benefit most from Javanese and other domestic in-migration.
We made this infographic to show you how property prices in Indonesia compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
What is the 10 year property price outlook in Bali?
What is the 10-year property price prediction for Bali as of 2026?
As of early 2026, property prices in Bali are expected to grow by roughly 70% to 140% cumulatively over the next ten years (to 2036), depending heavily on how tourism and regulation evolve over that period.
The range of 10-year forecasts for Bali is wide: a conservative scenario where regulation tightens and global travel stagnates might produce cumulative growth closer to 50% to 60%, while an optimistic scenario where tourism booms and infrastructure improves could push prime villa neighborhoods to 150% to 220% cumulative gains.
The projected average annual appreciation rate for Bali property over 10 years sits around 5% to 9% in a base-case scenario, though individual years will vary significantly and there will almost certainly be pauses or temporary pullbacks along the way.
The biggest uncertainty factor in any 10-year Bali property prediction is how the Indonesian government chooses to manage overtourism and short-term rental regulation, since a significant policy shift in that area would change the investment calculus for villas far more than any macroeconomic factor.
What long-term economic factors will shape property prices in Bali?
The three long-term economic factors most likely to shape Bali property prices over the next decade are the island's tourism competitiveness (its ability to keep attracting high-spending visitors), Indonesia's broader macro stability (inflation, growth, and banking health), and infrastructure development (especially mobility improvements that expand the accessible investment zone).
Of these, Bali's tourism competitiveness has the most positive long-term impact on property values, because as long as Bali remains one of the world's most desirable travel destinations, the structural demand for well-located residential property will stay elevated above what local purchasing power alone would support.
The greatest structural risk to Bali property values over the long term is environmental and regulatory pressure from overtourism, which could gradually erode the island's appeal, raise compliance costs for short-stay operators, or trigger restrictions that reduce the monetization potential of villa properties.
You'll also find a much more detailed analysis in our pack about real estate in Bali.
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.
| Source | Why it matters | How we used it |
|---|---|---|
| Bank Indonesia SHPR Q3 2025 | It is the central bank's official, survey-based benchmark for Indonesia's new-build residential property market. | We used it to anchor Indonesia-wide price momentum and cross-check Bali-specific figures against the national baseline. We also used it for data on the share of purchases financed by mortgages. |
| Bank Indonesia Policy Rate Table | This is the official record of Indonesia's benchmark interest rate, which directly shapes mortgage pricing and buyer affordability. | We used it to explain how borrowing costs evolved through 2025 and to build our interest-rate sensitivity analysis for Bali buyers. |
| BPS Bali Foreign Visitor Arrivals | It is the provincial statistics agency's core tourism demand indicator, which Bali's housing market depends on. | We used it to quantify the tourism tailwind that supports villa demand and rental yields, and to explain why location within Bali matters so much. |
| BPS Bali CPI November 2025 | It is the official inflation measure for Bali and Denpasar, directly shaping construction costs, wages, and purchasing power. | We used it to explain cost pressures feeding into property replacement costs and to frame real versus nominal price changes in simple terms. |
| Antara News: BI Bali IHPR Q3 2025 | Indonesia's state news agency accurately attributes official figures from Bank Indonesia Bali's property price index commentary. | We used it to pin down Bali's primary-market year-on-year growth rate and the cost drivers cited by Bank Indonesia Bali, then triangulated against the national SHPR. |
| detikcom: Rumah123 Flash Report December 2025 | A major national newsroom explicitly reporting Rumah123's secondary-market price data, giving a concrete resale price anchor for Denpasar. | We used it to establish a median Denpasar resale home price and recent year-on-year movement, then translated that into Bali-wide ranges by property type. |
| Reuters: Indonesia VAT Break Extended to End-2027 | Reuters is a top-tier global newswire that directly reports the policy details and thresholds influencing housing demand in Indonesia. | We used it to explain a real demand-side policy support affecting transaction costs, and as a policy backdrop for our 2026 forecast scenarios. |
| Asian Development Bank: Indonesia Economy | ADB is a leading regional institution publishing standardized, comparable macro forecasts for Indonesia. | We used it as a second macro forecast source alongside the IMF and World Bank so our 2026 outlook does not depend on a single institution's projections. |
| IMF World Economic Outlook October 2025 | The IMF is an authoritative global institution whose macro forecasts shape capital flows, travel demand, and investor risk appetite. | We used it to set a realistic global backdrop for 2026 and to frame downside risk scenarios for Bali demand if global growth or travel softens. |
| Perpres No. 12/2025 RPJMN 2025-2029 (Bappenas JDIH) | It is the official presidential regulation underpinning Indonesia's medium-term national development priorities, including infrastructure. | We used it to ground the infrastructure discussion in official planning documents rather than rumor, and to explain which areas may benefit from improved access. |
| TIME: Bali Overtourism Investigation | TIME is a globally respected publication whose long-form reporting on Bali's overtourism challenge captures the regulatory risk environment clearly. | We used it to document the real and ongoing policy conversation about tourist taxes, behavioral rules, and short-stay restrictions that could affect villa investment returns. |
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If you want to go deeper, you can read the following: