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
Bali's property market is experiencing remarkable growth with villa prices averaging $2,000-$4,000 per square meter and apartment prices in similar ranges as of September 2025.
The island's property values have increased by 7-20% annually over the past five years, driven by strong tourism recovery, foreign investor demand, and infrastructure development. Short-term villa rentals deliver 12-20% gross yields while long-term apartment rentals generate 7-12% returns, making Bali one of Southeast Asia's most attractive property investment destinations.
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Bali's property market shows exceptional performance with villa and apartment prices ranging $2,000-$4,000 per square meter as of September 2025.
The market has delivered consistent 7-20% annual growth over five years, with short-term villa rentals achieving 12-20% yields compared to 7-12% for long-term apartments.
| Property Type | Price per m² (USD) | Rental Yield | 5-Year Growth |
|---|---|---|---|
| Canggu/Seminyak Villas | $3,000-$4,000 | 15-20% | 10-20% annually |
| Ubud Villas | $2,000-$3,000 | 12-18% | 7-15% annually |
| Prime Apartments | $2,500-$4,000 | 7-12% | 8-12% annually |
| Secondary Apartments | $1,000-$2,800 | 7-10% | 7-10% annually |
| Off-Plan Projects | $1,800-$3,500 | 10-15% | 12-25% annually |
| Beachfront Properties | $3,500-$5,000 | 15-25% | 15-30% annually |
| Rural/Mountain Areas | $800-$2,000 | 8-12% | 5-8% annually |
Fact-checked and reviewed by our local expert
Daniel Rouquette 🇫🇷
CEO & Co-Founder at Villa Finder
What's the average price per square meter for villas and apartments in Bali right now?
As of September 2025, villa prices in Bali range from $2,000 to $4,000 per square meter depending on location and quality.
Prime areas like Seminyak and Canggu command the highest prices at $3,000-$4,000 per square meter for villas, while Ubud properties typically cost $2,000-$3,000 per square meter. Beachfront villas in exclusive locations can reach $4,000-$5,000 per square meter.
Apartment prices follow similar patterns, ranging from $2,000-$4,000 per square meter in main tourist areas. Seminyak and Canggu apartments sell for $2,500-$4,000 per square meter, while Ubud and secondary locations range from $1,000-$2,800 per square meter. New developments and luxury complexes typically price at the higher end of these ranges.
Off-plan properties offer better value at $1,800-$3,500 per square meter, providing investors with pre-construction pricing advantages. Rural and mountain areas like East Bali offer the most affordable options at $800-$2,000 per square meter, though with lower rental potential.
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How have those prices changed over the last five years, year by year?
Bali property prices have shown consistent upward momentum with annual increases ranging from 7% to 20% over the past five years.
The 2019-2020 period saw moderate growth of 7% annually, followed by stronger performance in 2020-2021 with 7-10% increases as the market adapted to pandemic conditions. Recovery accelerated in 2021-2022 with 8-11% growth, while 2022-2023 delivered robust 10-12% appreciation.
The most dramatic increases occurred in 2023-2024 with 10-15% growth as pandemic restrictions lifted and international travel resumed. Prime areas experienced even sharper gains, with Canggu, Berawa, and Pererenan posting 15-20% increases during this period.
The 2024-2025 period has continued this strong trajectory with 12-20% growth in prime locations, driven by increased foreign investment, tourism recovery, and limited supply in desirable areas. Secondary locations have seen more moderate but still healthy 7-12% appreciation.
This consistent upward trend reflects Bali's growing appeal as an investment destination and lifestyle choice for international buyers seeking tropical property opportunities.
What's the current rental yield for short-term villas versus long-term apartments?
Short-term villa rentals in Bali deliver significantly higher returns than long-term apartment leases, with gross yields ranging from 12-20% for villas compared to 7-12% for apartments.
Tourist hotspots like Seminyak, Uluwatu, and Canggu generate the highest short-term villa yields at 15-20% gross annually, benefiting from premium nightly rates and strong occupancy during peak seasons. Mid-tier locations like Ubud and Sanur achieve 12-18% yields for short-term villa rentals.
Long-term apartment rentals provide more stable but lower returns at 7-12% gross yield annually. Prime apartment complexes in Seminyak and Canggu reach the upper end at 10-12%, while secondary locations typically deliver 7-10% yields. The lower yields reflect longer vacancy periods and lower monthly rates compared to short-term options.
Beachfront and luxury villas can achieve exceptional yields of 18-25% through short-term rentals, particularly those with unique features like infinity pools or direct beach access. However, these properties require active management and higher maintenance costs to maintain premium rates.
Yield performance depends heavily on property management quality, seasonal occupancy rates, and local competition levels in each specific micro-location.
How many new residential and commercial units are being built annually in Bali?
Bali's construction sector has experienced explosive growth with off-plan project pipelines increasing by 180% year-over-year in 2024-2025.
The development boom is concentrated in prime areas like Canggu, Berawa, Pererenan, and Uluwatu where land availability remains relatively abundant compared to established areas like Seminyak. Most new projects focus on villa developments rather than high-rise apartments due to building height restrictions.
Transaction volumes and development activity show significant annual increases, particularly in areas with improved infrastructure access. The surge in construction reflects both strong demand from international buyers and developers capitalizing on rising property values.
New residential projects typically range from boutique villa complexes with 10-50 units to larger developments with 100+ properties. Commercial development focuses on retail, restaurants, and co-working spaces to support the growing expat and digital nomad population.
However, exact annual unit numbers vary significantly due to informal development practices and varied project timelines, with many developments taking 12-24 months to complete depending on size and complexity.
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What's the current occupancy rate for rental properties in tourist hotspots like Canggu, Seminyak, and Ubud?
Occupancy rates for short-term rental properties in Bali's main tourist areas typically range from 65-85% during high season periods.
Seminyak achieves the highest occupancy rates at 75-85% during peak months (June-September and December-January) due to its established reputation, beach access, and dining scene. Canggu follows closely with 70-80% occupancy in prime locations, particularly properties near popular surf spots and beach clubs.
Ubud maintains steady 65-75% occupancy rates throughout the year, benefiting from its appeal to wellness tourists and digital nomads who often book longer stays. The cultural center attracts visitors seeking spiritual retreats and jungle experiences, providing more consistent demand patterns.
Off-peak months (February-May and October-November) see occupancy rates drop to 45-65% across all areas, though well-managed properties with competitive pricing maintain better performance. Properties offering unique experiences like rice field views, infinity pools, or direct beach access achieve higher occupancy rates.
Long-term rental occupancy rates are generally higher at 80-95%, though with significantly lower daily rates and less flexibility for owners to adjust pricing based on demand fluctuations.
How many international buyers are purchasing property in Bali each year, and from which countries mostly?
International buyer demand in Bali has surged post-pandemic, with the majority of foreign purchasers coming from Australia, China, Singapore, and Western Europe.
Australian buyers represent the largest segment of international purchasers, attracted by Bali's proximity, favorable exchange rates, and established expat community. Chinese investors form another significant group, particularly focusing on luxury villa developments and commercial properties in prime tourist areas.
Singapore and Malaysian buyers contribute substantial investment due to regional familiarity and business connections, while Western European buyers (particularly from Germany, Netherlands, and UK) seek lifestyle properties and retirement destinations. American buyers have also increased significantly, driven by remote work flexibility and lifestyle preferences.
Russian and Middle Eastern buyers have emerged as growing segments, particularly in the luxury villa market, seeking tropical property investments and alternative residency options. The exact annual buyer numbers fluctuate due to economic conditions and travel restrictions, but overall foreign demand has shown consistent upward trends.
Digital nomad visas and improved visa policies have further attracted international buyers looking for long-term lifestyle changes and investment opportunities in Indonesia's growing economy.
What are the government rules and restrictions for foreign ownership, and have they changed recently?
Foreign property ownership in Bali operates primarily through leasehold arrangements and corporate structures, with no major legal changes implemented in 2024-2025.
Foreigners can purchase leasehold properties with typical terms of 25-30 years, renewable for additional periods depending on negotiations. This remains the most straightforward ownership structure for international buyers seeking residential properties in Bali.
Freehold ownership is possible through PT PMA (Foreign Investment Company) structures or Indonesian nominee arrangements, though both require careful legal structuring and ongoing compliance. The PT PMA route involves establishing an Indonesian company with foreign investment approval, while nominee structures rely on local partners.
Recent regulatory changes have shown slight easing for foreign investors, with streamlined processes for investment approvals and improved transparency in property registration. However, fundamental ownership restrictions remain unchanged, maintaining the focus on leasehold and corporate ownership models.
Hak Pakai (Right to Use) titles offer another option for foreigners, providing 25-year renewable rights that can be extended. These structures require proper legal documentation and compliance with Indonesian investment regulations throughout the ownership period.
How many mortgages are being issued locally for property purchases, and at what average interest rate?
Local mortgage availability for foreign buyers remains extremely limited, with most international purchasers using cash or foreign-based financing solutions.
Indonesian banks typically do not offer mortgages to foreign buyers due to regulatory restrictions and risk management policies. The few available options usually require significant local business presence or Indonesian resident status, making them impractical for most international investors.
For Indonesian citizens and residents, property loan interest rates range from 7-10% per annum in Indonesian Rupiah, depending on loan terms, property type, and borrower qualifications. These rates fluctuate based on Bank Indonesia's monetary policy and individual lender assessment criteria.
Foreign buyers typically arrange financing through their home country banks, international private banks, or alternative lending solutions. Some developers offer payment plans or financing arrangements directly, though these are limited to specific projects and usually require substantial down payments.
It's something we develop in our Indonesia property pack.
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.
What's the expected tourism growth in Bali for the next five years, in visitor numbers?
Bali's tourism sector is projected to grow at 7-10% annually over the next five years as international travel continues recovering and expanding beyond pre-pandemic levels.
Visitor numbers are expected to reach and exceed 2019 levels by 2026, with continued growth driven by improved air connectivity, expanded tourism infrastructure, and Bali's growing reputation as a digital nomad destination. The Indonesian government's tourism promotion efforts are targeting specific markets including Australia, China, India, and Western Europe.
Infrastructure improvements including airport expansions, new toll roads, and enhanced connectivity between tourist areas will support higher visitor capacity and longer stays. The development of new tourism zones beyond traditional hotspots aims to distribute visitor impact more evenly across the island.
Sustainable tourism initiatives and premium positioning strategies focus on attracting higher-spending visitors rather than just increasing total numbers. This approach benefits property investors through stronger rental demand and higher achievable rates for quality accommodations.
The growing trend of extended stays, remote work tourism, and lifestyle migration from developed countries provides additional demand beyond traditional short-term tourism, supporting both rental yields and property value appreciation.
How does infrastructure development, like airports, roads, and hospitals, impact property demand in different areas?
Major infrastructure investments in Bali are driving significant property demand increases, particularly in areas directly served by new developments.
Airport expansion projects and improved connectivity have boosted property values in Canggu, Uluwatu, and southern peninsula areas by 15-30% as travel access improved. The new toll road connecting Ngurah Rai Airport to Canggu has reduced travel times and increased investor interest in previously less accessible areas.
Hospital and healthcare facility development creates substantial property demand from both investors and residents seeking convenient access to quality medical services. Areas like Sanur and Denpasar benefit from proximity to international-standard hospitals, attracting long-term residents and retirees.
Road infrastructure improvements open new development areas and increase land values along improved transportation corridors. The bypass roads and improved connectivity to rural areas create opportunities for resort and residential development in previously isolated locations.
Utility infrastructure including reliable electricity, high-speed internet, and water systems are essential for property development and significantly impact demand. Areas with established infrastructure command premium prices and attract higher-quality developments compared to locations requiring extensive utility investments.
What's the projected annual growth rate of property values in Bali over the next five years?
Bali property values are projected to grow at 7-12% annually over the next five years, with prime tourist areas likely exceeding this range.
Canggu, Seminyak, and Uluwatu are expected to deliver 10-15% annual appreciation due to limited land availability, strong tourism demand, and infrastructure improvements. These areas benefit from established rental markets and continued international buyer interest.
Secondary locations like Ubud, Sanur, and emerging areas such as Pererenan and Bingin are projected to achieve 8-12% annual growth as they develop better infrastructure and attract more tourism investment. These markets offer opportunities for higher growth potential as they mature.
Rural and undeveloped areas may see 5-8% annual appreciation, primarily driven by overall market growth and gradual infrastructure development. However, these locations face challenges including limited rental demand and longer development timelines.
Growth projections assume continued tourism recovery, stable Indonesian economic conditions, and no major regulatory changes affecting foreign investment. Market performance will depend on global economic conditions, travel patterns, and local government policies supporting tourism and foreign investment.
How do Bali's property prices and rental yields compare to other Southeast Asian markets like Phuket or Kuala Lumpur?
Bali offers superior rental yields and competitive pricing compared to other major Southeast Asian property markets.
| Location | Average Price per m² | Rental Yield Range | Annual Growth Rate |
|---|---|---|---|
| Bali, Indonesia | $2,000-$4,000 | 10-20% | 7-12% |
| Phuket, Thailand | $2,500-$4,000 | 6-9% | 5-8% |
| Kuala Lumpur, Malaysia | $2,200-$3,500 | 4-7% | 3-5% |
| Ho Chi Minh City, Vietnam | $1,800-$3,200 | 6-10% | 6-9% |
| Manila, Philippines | $2,000-$3,800 | 5-8% | 4-7% |
Bali's rental yields significantly outperform Phuket and Kuala Lumpur due to shorter-term rental opportunities and strong tourism demand. While Phuket offers similar price points, its rental yields are considerably lower at 6-9% compared to Bali's 10-20% range.
Kuala Lumpur provides more affordable entry prices but delivers the lowest yields in the comparison at 4-7%, primarily due to oversupply in certain segments and longer lease terms. The city's mature market offers stability but limited growth potential compared to Bali's dynamic tourism-driven demand.
Bali's annual property growth rates also exceed most regional competitors, with 7-12% appreciation compared to Phuket's 5-8% and Kuala Lumpur's 3-5%. This superior performance reflects Bali's growing international appeal, limited prime land supply, and robust tourism recovery trends.
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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.
Bali's property market demonstrates exceptional investment potential with consistent double-digit growth and superior rental yields compared to regional competitors.
The combination of tourism recovery, infrastructure development, and limited prime land supply positions Bali as one of Southeast Asia's most attractive property investment destinations for both short-term returns and long-term appreciation.
Sources
- BambooRoutes - Average Price House Bali
- BambooRoutes - Bali Property Market Trends
- Bali Home Immo - Housing Prices
- Bali Villa Realty - Cost of Property
- Bali Visa - Property Prices 2025
- EMA Estate - Real Estate Price Evolution
- ILOT Property Bali - Construction Costs
- Bali Exception - Real Estate Prices