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Are Bali property prices going up in 2025?

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

property investment Bali

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

Bali's residential property market is experiencing significant growth as we reach mid-2025. Property prices in Bali are rising at an annual rate of 7-15% in prime areas, driven by tourism recovery, digital nomad influx, and infrastructure development. Foreign investors and expats continue to fuel demand, particularly for villas and apartments in hotspots like Canggu, Uluwatu, and Ubud.

If you want to go deeper, you can check our pack of documents related to the real estate market in Indonesia, based on reliable facts and data, not opinions or rumors.

This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.

How this content was created 🔎📝

At BambooRoutes, we explore the Indonesian real estate market every day. Our team doesn't just analyze data from a distance—we're actively engaging with local realtors, investors, and property managers in cities like Denpasar, Canggu, and Ubud. This hands-on approach allows us to gain a deep understanding of the market from the inside out.

These observations are originally based on what we've learned through these conversations and our observations. But it was not enough. To back them up, we also needed to rely on trusted resources

We prioritize accuracy and authority. Trends lacking solid data or expert validation were excluded.

Trustworthiness is central to our work. Every source and citation is clearly listed, ensuring transparency. A writing AI-powered tool was used solely to refine readability and engagement.

To make the information accessible, our team designed custom infographics that clarify key points. We hope you will like them! All illustrations and media were created in-house and added manually.

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Fact-checked and reviewed by our local expert

✓✓✓

Daniel Rouquette 🇫🇷

CEO & Co-Founder at Villa Finder

Daniel Rouquette is very knowledgeable about the Bali villa market, as Villa Finder offers a vast selection of properties across the island. As the CEO and Co-Founder of Villa Finder, he has been leading the company since 2012, providing high-quality villa rentals and personalized concierge services. With over 4,000 villas in 28 destinations, Villa Finder has become a trusted name in luxury short-term rentals in the Asia-Pacific region.

What are the current average property prices in Bali as of June 2025?

Property prices in Bali vary significantly by location and property type as we reach mid-2025.

In Denpasar City, apartments average IDR 6,150,829 per square foot, while houses cost around IDR 2,880,609 per square foot. Badung Regency, which includes popular areas like Canggu and Seminyak, sees apartments at IDR 5,183,730 per square foot and houses at IDR 2,976,686 per square foot.

For villas, which are particularly popular among foreign investors, prices range from $240,000 for a one-bedroom villa in Canggu to $650,000 for a 200-square-meter villa in Seminyak. In Ubud, villas start at $300,000 for basic properties and can reach $500,000 for medium-sized homes with premium features.

Land prices in Bali have been growing at 6-8% annually, with coastal and scenic plots commanding significant premiums. The most dramatic increases have occurred in southern areas, where land prices have risen 50% since 2019.

These price levels reflect Bali's position as Indonesia's premier tourist destination and its attractiveness to international investors seeking both lifestyle and investment returns.

How much have property prices increased in Bali over the past year?

Bali's property market has experienced remarkable growth over the past year, with prices rising 10-20% depending on the location.

Denpasar has seen the most dramatic increase with a 20% annual rise in property values, driven by urban development and local demand. Tourist hotspots like Kuta, Canggu, Seminyak, and Ubud have experienced 10-15% growth, fueled by returning tourists and digital nomads.

The rental market has been particularly strong, with prices in digital nomad areas jumping 15-20% annually. In Canggu, occupancy rates exceed 90%, and landlords have been able to command premium prices due to overwhelming demand.

Transaction volumes have also surged, with house sales increasing by 33.9% quarter-on-quarter in early 2025. Small house sales specifically jumped by 84%, indicating strong demand across all property segments.

This rapid appreciation reflects Bali's successful tourism recovery, with the island welcoming over 6.3 million international visitors in 2024, up from 4.5 million in 2023.

Which areas in Bali are experiencing the fastest property price growth?

Area Growth Rate Key Drivers Investment Appeal
Canggu 15%+ Digital nomad hub, surf culture Highest rental yields, 90%+ occupancy
Uluwatu 10-15% Luxury villas, cliff-top views Premium market, rapid development
Ubud 10-15% Wellness tourism, cultural center Eco-conscious buyers, yoga retreats
Tabanan/Pererenan 10%+ New infrastructure, lower base Emerging hotspot, high growth potential
Bingin/Bukit Strong growth Secluded beaches, new developments Untapped potential, ocean views
Denpasar 20% Urban growth, local demand Affordable entry, steady appreciation
Seseh/Kedungu Rising fast Beach proximity, new roads Next growth corridor

What types of properties are seeing the biggest price increases?

Villas are experiencing the steepest price increases in Bali's property market, particularly in tourist hotspots.

Luxury and eco-conscious villas are in highest demand, offering rental yields of 7-15% annually. These properties are especially popular in areas like Canggu, Seminyak, and Uluwatu, where price appreciation consistently outpaces other property types. The combination of strong rental income and capital growth makes villas the most attractive investment option.

Apartments and condos in urban areas are also seeing strong growth, driven by recent changes in foreign ownership regulations and demand from digital nomads. The ability for foreigners to own apartments under Hak Pakai (right to use) arrangements has opened up this market segment significantly.

Land prices have shown remarkable appreciation, particularly in coastal and scenic areas. In Canggu, Uluwatu, and Tabanan, land values have increased 50% since 2019, with annual growth rates of 6-8%. This reflects both the scarcity of prime plots and the ongoing development boom.

It's something we develop in our Indonesia property pack.

What do property price forecasts predict for Bali in 2026?

Property prices in Bali are expected to continue rising in 2026, with forecasts predicting 5-10% annual growth across most areas.

In mature markets like Seminyak and central Canggu, growth rates may moderate to 5-7% as land becomes increasingly scarce and prices reach higher levels. However, these areas will maintain their appeal due to established infrastructure and proven rental returns.

Emerging regions like Tabanan, Bingin, and Pererenan are forecasted to see faster appreciation of 8-10% or more as new infrastructure projects unlock development potential. The planned improvements to road networks and potential new airport in North Bali will be key drivers.

Several factors support these optimistic forecasts: continued tourism growth with international arrivals expected to exceed pre-pandemic levels, ongoing digital nomad influx, and limited land supply in prime areas. The Indonesian government's commitment to infrastructure development further strengthens the outlook.

However, investors should monitor potential headwinds including global economic conditions and regulatory changes that could impact foreign investment.

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How did the 2025 Indonesian property tax reform impact Bali real estate?

The 2025 Indonesian property tax reform has had minimal impact on Bali's booming real estate market.

The value-added tax (VAT) on property transactions increased from 11% to 12% in January 2025, but last-minute regulatory adjustments meant most properties still effectively pay 11%. Only luxury properties are subject to the full 12% VAT rate.

Despite initial concerns, the reform has not dampened demand or slowed price growth. Strong tourism recovery and foreign investment continue to drive the market forward, with transaction volumes remaining robust throughout the first half of 2025.

The selective application of the higher tax rate to luxury properties has actually helped maintain market balance. It prevents excessive speculation in the high-end segment while keeping entry-level and mid-market properties accessible to a broader range of investors.

Market participants have adapted quickly to the new regulations, and the overall momentum remains positive as Bali continues to attract international buyers.

What impact are digital nomads having on Bali property prices?

Digital nomads have become a major force driving Bali property prices upward, particularly in areas with good infrastructure and lifestyle amenities.

The influx of remote workers has significantly increased demand for furnished villas, apartments, and co-living spaces. In popular areas like Canggu, Ubud, and Sanur, rental prices have jumped 15-20% in the past year alone. Digital nomads now comprise 20% of Bali's long-term rental market.

This demographic shift has transformed the rental market structure. Long-term rental demand is now a primary driver of both property values and rental yields. Landlords in digital nomad hotspots report occupancy rates exceeding 90%, allowing them to command premium prices.

The economic impact extends beyond just rentals. Digital nomads' spending power has encouraged development of co-working spaces, cafes with reliable internet, and modern amenities. This infrastructure improvement further enhances property values in these areas.

Areas that cater specifically to remote workers - with fast internet, proximity to co-working spaces, and vibrant expat communities - are seeing the strongest appreciation.

How are new infrastructure developments affecting property values?

Infrastructure developments are creating significant opportunities for property value appreciation across Bali.

The planned Gilimanuk-Mengwi Toll Road, though recently excluded from the National Strategic Plan, would connect western Bali with central regions if completed. This project alone could boost property values in areas like Pemuteran, Medewi, Balian Beach, Tanah Lot, Canggu, and Pererenan by improving accessibility.

The proposed Bali Urban Subway and improved airport access are expected to further increase property values in connected areas. These projects particularly benefit less-developed western and northern regions, where property prices remain relatively affordable.

Current road improvements are already impacting values. Areas that were previously difficult to access are becoming viable investment options as travel times decrease. This is evident in the rising interest in Tabanan and northern coastal areas.

Smart investors are positioning themselves in areas slated for infrastructure improvements, as these locations typically see the most dramatic price increases once projects are completed.

We analyze this in detail in our Indonesia property pack.

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infographics comparison property prices Bali

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 foreign investment regulations changed in 2025 affecting prices?

Recent changes to foreign investment regulations have significantly boosted Bali's property market in 2025.

Foreigners still cannot own land outright but can now more easily lease land (Hak Sewa), own apartments (Hak Pakai), or establish a PT PMA (foreign investment company) for greater property control. The simplified processes have reduced bureaucratic hurdles that previously deterred international buyers.

A new visa option requiring a minimum investment of $350,000 has attracted wealthy investors seeking long-term residency. This has particularly increased demand for high-value properties in prime locations.

The introduction of the Remote Worker Visa (E33G) in 2024, valid for one year with renewal options, has legitimized digital nomads' presence and encouraged longer-term property commitments. This visa allows remote workers to stay legally while working for foreign companies.

These regulatory improvements have fueled continued growth in foreign demand, especially for high-yield investment properties in prime and emerging areas, contributing to the 7-15% annual price increases.

Is current demand for Bali properties increasing or decreasing?

Demand for Bali properties is strongly increasing across all segments as of June 2025.

Transaction volumes provide clear evidence of rising demand. House sales surged by 33.9% quarter-on-quarter in early 2025, with small house sales specifically jumping 84%. This indicates robust demand from both investors and end-users across different price points.

The rental market shows equally strong demand indicators. Occupancy rates in hotspots like Canggu, Seminyak, and Ubud range from 80-90% during peak season. Rental yields of 7-15% continue to attract investors seeking passive income.

Tourism recovery is a key demand driver, with Bali welcoming over 6.3 million international visitors in 2024, up from 4.5 million in 2023. The Indonesian Ministry of Tourism projects continued growth through 2025 and beyond.

Both sales and rental markets remain highly competitive, with quality properties often receiving multiple offers. The combination of lifestyle appeal, investment returns, and limited supply in prime areas ensures demand continues to outstrip supply.

How do Bali property prices compare to other Southeast Asian markets?

Market Average Rental Yield Annual Price Growth Investment Appeal
Bali 7-15% 7-15% Highest yields, strong tourism
Jakarta 5-7% 5-7% Lower yields, less tourist-driven
Lombok 6-8% 5-10% Growing potential, less developed
Phuket (Thailand) 5-8% 5-8% Mature market, easier ownership
Langkawi (Malaysia) 4-6% 4-7% Lower yields, seasonal tourism
Boracay (Philippines) 5-7% 6-10% Recovery phase, regulatory risks
Sihanoukville (Cambodia) 6-8% 4-8% Higher risk, development phase

What risks could affect Bali property price growth?

Several risks could potentially impact Bali's property price growth trajectory.

Oversupply in the luxury segment poses a concern, particularly if development continues at current rates. Some experts worry about a potential real estate bubble, especially with the surge in short-term rental listings reaching almost 58,500 properties.

Global economic uncertainties could affect buyer confidence and purchasing power. A significant downturn in major source markets like Australia, China, or Europe would reduce both tourism and property investment.

Environmental challenges, including water scarcity and infrastructure strain from overdevelopment, could limit future growth in certain areas. Traffic congestion in popular areas like Canggu already affects quality of life and could deter some investors.

Regulatory changes remain a wildcard. While recent reforms have been investor-friendly, future policy shifts regarding foreign ownership or visa regulations could impact demand. The Indonesian government's stance on digital nomads and property investment could change.

Despite these risks, Bali's fundamental appeal as a tropical paradise with strong tourism fundamentals suggests property prices will likely continue their upward trajectory, though perhaps at more moderate rates.

Conclusion

This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.

Sources

  1. Investland Bali - Bali Real Estate 2025: Market Trends
  2. Exotiq Property - Bali Property Market Outlook
  3. Tranio - Property Prices in Bali 2025
  4. Bukit Vista - Bali Property Market Trends
  5. BambooRoutes - Bali Price Forecasts
  6. The Bali Sun - Digital Nomads Impact
  7. Statista - Bali Property Price Index
  8. Oxo Living - Bali Property Market Insights
  9. The Bali Homes - Invest in Bali 2025
  10. ILA Global - Property Market Trends