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
Why is Bali emerging as a prime destination for property investment in 2025? Is it the attractive rental returns, the thriving tourism sector, or the competitive pricing compared to other international markets? What makes Bali a compelling choice for investors?
We often encounter these questions because we're actively engaged with developers, real estate agents, and investors like you on the island. With the growing interest in this market, we've decided to compile our insights into a comprehensive article for everyone's benefit.
Our aim is to present a clear case for investing in Bali's real estate market, drawing from our firsthand experience and deep market understanding.
If you feel we've overlooked an important aspect or want more information, please reach out (we respond very quickly). Your feedback enhances our content.
Finally, please remember that this is not financial or investment advice. Real estate investment involves inherent risks, and market conditions can change unexpectedly. We strongly recommend conducting thorough research and consulting with a qualified financial advisor before making any investment decisions.
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2) Bali’s diverse landscapes are perfect for niche markets like eco-tourism and wellness retreats
Bali is now a top destination for eco-tourism and wellness retreats due to its stunning landscapes and focus on sustainability.
Imagine lush forests and pristine beaches as your backdrop for a vacation that’s both relaxing and eco-friendly. Bali has become a magnet for travelers who want to enjoy natural beauty while engaging in wellness activities. This trend is not just about enjoying nature; it's about finding a place that offers a holistic experience.
As more people look for sustainable travel options, Bali has smartly positioned itself to meet this demand. The island is seeing a boom in wellness retreats that combine its breathtaking scenery with health-focused activities. This isn't just a passing fad; it's a strategic effort to protect Bali's delicate ecosystems while attracting high-value tourists.
The economic benefits of eco-tourism in Bali are huge. Initiatives like the Green Growth 2050 Roadmap are in place to ensure tourism grows sustainably, improving the quality of offerings and conserving biodiversity. These efforts are crucial for making sure that eco-tourism not only survives but thrives, boosting the local economy and protecting the environment.
Successful eco-friendly resorts and retreats on the island are a testament to Bali's dedication to sustainability. They offer unique experiences with minimal carbon footprints, showing that luxury and eco-consciousness can go hand in hand.
Sources: Development of Ecotourism in Bali, Green Growth 2050 Roadmap for Bali Sustainable Tourism Development, The Future of Pacific Tourism - World Bank Documents and Reports, Bali Towards Energy Independence and Sustainable Development
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.
3) Bali’s tropical climate ensures steady rental demand all year round
Bali's tropical climate, with temperatures consistently between 21°C and 30°C, makes it a year-round hotspot.
Even during the wet season from November to April, Bali remains bustling. In 2024, the island saw over 100,000 more tourists than in 2023, proving that a little rain doesn't scare off visitors. This steady influx keeps rental demand stable.
Festivals like the Bali Arts Festival in June and the Ubud Food Festival in April attract tourists all year, ensuring consistent occupancy rates for vacation rentals and hotels.
Short-term rentals in Bali boast an average occupancy rate of 66% throughout the year. While July to August and December to January see peaks, even the low season maintains strong demand.
These events and the island's natural allure mean that visitors are drawn to Bali regardless of the season, keeping the rental market vibrant.
For those considering property investment, Bali's climate and cultural calendar offer a unique advantage: reduced seasonal rental fluctuations.
Sources: Climates to Travel, Virgin Australia, The Bali Sun, Hospitable, Affordable Luxury Travel
4) Bali’s unique culture draws tourists, making it easy for you to rent out your property
Bali's unique culture and traditions have always drawn tourists from around the world.
In 2023, the island welcomed over 5 million international visitors, marking a 144.61% increase from the previous year. This surge continued into 2024, with a steady influx of tourists each month, ensuring high demand for rentals. The island's vibrant festivals, traditional dances, and stunning temples are just a few reasons why people keep coming back.
Hotels and vacation rentals in Bali are thriving, with consistent high occupancy rates. In August 2024, starred hotels boasted an average occupancy rate of 70.16%, a clear sign that tourists are not just visiting but staying longer. This trend is a boon for the rental market, as longer stays mean more business for property owners.
Getting to Bali is a breeze, thanks to numerous direct flights from major Australian cities and convenient one-stop flights from Europe. This easy access keeps the tourist flow steady, supporting the high demand for rental properties. Whether it's a quick getaway or an extended vacation, Bali's accessibility makes it a top choice for travelers.
Sources: Bali Management Villas, Bali Discovery, World Adventure Divers
5) Wellness tourists flock to the island for yoga and meditation retreats, boosting demand for peaceful accommodations
Bali is a top choice for wellness tourists, especially those into yoga and meditation.
With the global yoga and meditation market booming, expected to hit $18,945 million by 2032, Bali's serene vibe is a magnet for those seeking peace. The island's lush landscapes and spiritual atmosphere make it a perfect spot for rejuvenation.
Wellness tourism is on fire, growing at an impressive 30% annually. Bali stands out with its unique mix of tranquility and spirituality. High occupancy rates at places like Goddess Retreats show just how popular these retreats are, offering packages for both solo travelers and groups.
Visitors rave about their experiences at Bali's yoga and meditation centers, such as Soulshine Bali. Personal growth and inspiration are common themes in their feedback. The presence of world-class instructors only adds to Bali's allure as a top wellness destination.
To keep up with demand, Bali is expanding its wellness facilities. Partnerships between international wellness brands and local retreats ensure that the island continues to offer top-notch accommodations for those seeking a peaceful escape.
Sources: The Private World, Market Data Forecast, Goddess Retreats, ILOT Property Bali
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6) Bali’s vibrant festivals and events make it easy to rent out your property short-term
Bali's vibrant festivals and events calendar keeps the island bustling and boosts short-term rental demand.
During major festivals like Nyepi and Galungan, the island sees a surge in visitors, with occupancy rates hitting 89% in July and August 2023. These celebrations draw tourists from all over, eager to experience Bali's unique culture, which in turn drives up the demand for accommodations.
The Bali Arts Festival in June is a prime example of how cultural events can significantly boost Airbnb bookings. This month-long celebration showcases Balinese culture and crafts, attracting tourists who are keen on cultural experiences. As a result, property owners enjoy higher occupancy rates and increased revenue.
In January, the Suwat Water Festival also draws a crowd, with tourists flocking to participate in its unique cultural offerings. This influx of visitors translates to higher rental income for property owners, as more people seek out short-term stays to be part of the festivities.
Many tourists cite these cultural events as a primary reason for visiting Bali, ensuring a steady stream of visitors. This interest in cultural experiences is a key driver of tourism, consistently boosting short-term rental demand.
Government statistics back this up, showing a noticeable increase in visitor numbers during peak festival seasons. This data highlights the significant impact of festivals on tourism, making them a crucial element in Bali's appeal.
Sources: Kura Kura Bus Blog, Airbnb, Hospitable
7) Bali’s wedding destination fame boosts demand for event-friendly properties
Bali is becoming a top choice for weddings, hosting between 6,000 and 16,000 weddings each year.
With this surge in weddings, there's a growing need for event-friendly properties. In 2024, Bali saw 7.75 million international visitors from January to July, a 20.75% increase from the previous year. Many of these visitors are likely attending weddings, driving up demand for venues.
The tourism boom is a big deal for Bali's economy, supporting nearly 20% of the population and creating 58,000 jobs. The accommodation, food, and beverage sectors are thriving, with a 12.25% growth year-over-year, and hotels are bustling with an average occupancy rate of 68%.
Wedding planners are busy, as there's a high demand for venues that can host these events. Social media is buzzing with over 1.3 million Instagram posts tagged #BaliWedding, showcasing Bali's appeal as a wedding destination.
Positive reviews and high ratings on travel platforms further cement Bali's reputation as a wedding hotspot. This trend is not just a passing phase; it's a growing market that shows no signs of slowing down.
Sources: Your Bali Wedding, The Bali Sun, Bali Discovery
8) Bali’s rise as a digital nomad hotspot boosts demand for long-term rentals
Bali's digital nomad population jumped by 40% in 2023 and 2024.
This boom is thanks to the island's affordable lifestyle, fast internet, and lively community of remote workers.
The Indonesian government sweetened the deal with a digital nomad visa, making it easier for these workers to settle in Bali for longer stays.
With Bali now a hotspot for remote work, long-term rental demand has skyrocketed, prompting investors to develop properties with modern amenities.
These new properties are designed to be both affordable and appealing to the growing number of digital nomads.
Sources: Body Factory Property, We Are Synergy Pro
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.
9) Bali’s infrastructure investments are boosting accessibility and increasing property values
Bali is buzzing with infrastructure upgrades that are set to make the island more accessible and boost property values.
The government has been pouring money into these projects, with a 47% increase in the infrastructure budget back in 2021. This means more roads, better airports, and even new public transport options. One of the big-ticket items is the Gilimanuk-Mengwi toll road, a massive project costing around Rp24.6 trillion. It's not just a road; it's a game-changer for connecting different parts of the island, and it's expected to wrap up by 2029.
Then there's the expansion of Ngurah Rai International Airport, which is a big deal for both locals and tourists. More flights mean more visitors, and that’s always good news for property owners. The airport is getting ready to handle more passengers, making Bali even more of a hotspot.
Public transport is also getting a facelift with a smart bus system launching in 2025. This is going to make getting around places like Denpasar and Ubud a breeze. With these improvements, property values in these areas are likely to rise, and real estate agents are already seeing more interest from buyers.
All these developments are not just about convenience; they’re about making Bali a more attractive place to live and invest. The increased buyer interest in areas benefiting from these upgrades is a clear sign that the property market is on the up.
Sources: PwC, The Bali Sun, The Agency Bali, Mordor Intelligence
10) Eco-tourists flock to Bali for its diverse wildlife and nature reserves, making it ideal for unique stays
Bali's rich wildlife and nature reserves are a magnet for eco-tourists looking for unique experiences.
In recent years, there's been a surge in eco-friendly accommodations across the island. These places offer comfort with a green twist, featuring solar energy systems, water-saving technologies, and organic gardens. This trend is a hit among eco-tourists who want to enjoy their stay without leaving a heavy footprint on the environment.
The local government and communities are all in on promoting eco-tourism. They've rolled out initiatives like the Regenerative Bali Program, which aims to restore ecosystems and boost biodiversity. This not only safeguards the environment but also offers visitors one-of-a-kind experiences. The program is a collaborative effort, with eco-tourism operators and locals working hand in hand to ensure tourism benefits both nature and the community.
For those interested in sustainable travel, Bali is a top choice. The island's commitment to conservation and eco-friendly practices makes it a standout destination. Visitors can explore lush landscapes and vibrant wildlife, knowing their presence supports local conservation efforts.
Eco-tourism in Bali isn't just about staying in green lodges; it's about engaging with the environment in a meaningful way. From guided tours in nature reserves to participating in local conservation projects, there's plenty to do for the environmentally conscious traveler.
With its stunning biodiversity and dedicated conservation efforts, Bali offers a unique blend of relaxation and responsible tourism. It's a place where you can unwind and make a positive impact at the same time.
Sources: Now Bali, What's New Indonesia, Expedia
12) Bali’s diverse expat community boosts demand for international-standard homes
Bali is becoming a hotspot for expatriates, with over 4.2 million residents expected in 2024, including around 30,000 expats.
This diverse group is drawn to Bali for its vibrant culture and stunning landscapes, making it a magnet for digital nomads, entrepreneurs, and professionals seeking a unique lifestyle.
The demand for international-standard housing is booming, as expatriates prefer luxury villas and apartments that offer high-end living experiences.
Developments like the Exclusive Villa Collection provide amenities that often surpass those of 5-star resorts, reflecting Bali's growing appeal as a residential destination.
These luxury properties cater to expats with resort-style amenities such as restaurants, gyms, and spas, aligning with their lifestyle preferences.
Investing in Bali's real estate is attractive due to the profitability of rental properties catering to the expatriate community.
Sources: Statista, Mazari Villas, Enterprise League, World Population Review
13) Bali’s booming film industry means production crews are always looking for temporary housing
Bali's film industry is booming, drawing in more production crews who need places to stay.
In 2023, cinema admissions in Indonesia surged, with local films grabbing a big chunk of the market. This uptick highlights a growing interest in filming in Bali, as local productions gain steam.
The Indonesian government has made it a breeze for film crews to work in Bali by streamlining the permit process. Companies like Bali Fixer are on hand to help foreign crews with permits and visas, making it easier to set up shop. This hassle-free access is a big draw for film projects eyeing Bali as their backdrop.
The short-term rental market in Bali is thriving, thanks to the rise in tourism and film productions. Areas like Canggu and Seminyak are hotspots, offering a steady market for luxury villas and boutique accommodations. These spots are perfect for film crews needing temporary digs during shoots.
With Bali's growing film industry, production crews are flocking to the island, and they need places to stay. The combination of a streamlined permit process and a booming rental market makes Bali an attractive option for filmmakers.
Sources: IMDB, Bali Fixer, Bukit Vista
14) Bali’s location makes it a convenient travel hub for Southeast Asia
Bali is a fantastic travel hub in Southeast Asia.
With six major international airlines planning to expand their routes to Bali in 2024, including those from South Korea, Taiwan, Russia, and Uzbekistan, travelers will have more options to explore the region. This expansion means you can easily fly into Bali and then head off to other exciting destinations nearby.
AirAsia is also making things easier by introducing a direct service between Bali and Phuket, Thailand, three times a week. This is part of a bigger plan to boost connectivity between Bali and other Southeast Asian hotspots, making it perfect for those who love multi-destination trips.
Flights from Bali to other Southeast Asian countries are frequent, with an average of eight flights a day to Thailand. This high level of connectivity means you can effortlessly hop from Bali to other popular places in the region, making your travel plans super flexible.
Imagine planning a trip where you can start in Bali, enjoy its beautiful beaches, and then easily fly to another Southeast Asian gem. The convenience of Bali's location and its growing flight options make it a top choice for travelers looking to explore multiple destinations.
Whether you're a seasoned traveler or planning your first big adventure, Bali's strategic position in Southeast Asia offers a gateway to a world of experiences. It's not just about Bali; it's about the endless possibilities that start from there.
Sources: The Bali Sun, Travel and Tour World, The Bali Sun
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.
15) Bali is known for being safe, making it ideal for family-friendly accommodations
Bali's reputation as a safe destination makes it a top choice for families looking for a vacation spot.
In 2024, Bali experienced a 22.18% increase in foreign tourists, indicating that more families are choosing the island for its secure and family-friendly environment. This surge is a testament to Bali's appeal, especially for those traveling with children.
Bali's commitment to safety is evident in measures like mandatory helmet use and safety briefings for vehicle rentals. These initiatives create a reassuring atmosphere for families, making them feel more comfortable about their travel plans.
International travel advisories often highlight Bali's safety, which adds to its allure as a family-friendly destination. This positive reputation is further supported by glowing reviews on platforms like TripAdvisor and Google Reviews.
Accommodations such as the Westin Nusa Dua are frequently praised for their kids' activities and facilities, reinforcing Bali's image as a welcoming place for families. The island's hotels and resorts are expanding their child-friendly amenities, including kids' clubs and playgrounds.
Sources: Bali Management Villas, World of Travels with Kids, Travala Blog
16) Bali’s surfing culture attracts many tourists, making it easy to rent out your property
Bali is a paradise for surfers, drawing in over 5 million international visitors in 2023.
Thanks to its consistent waves and lively surf scene, Bali has become a top spot for surf enthusiasts worldwide. The island's reputation as a surfing haven is a big reason for the surge in tourism. With the global surfing tourism market on the rise, Bali is riding the wave of popularity.
From 2024 to 2030, the international surfing tourism market is expected to grow by 7.3% annually. This trend underscores the growing interest in surfing hotspots like Bali, which snagged a significant slice of the global market in 2023. The island's appeal is undeniable, with its perfect blend of surf culture and natural beauty.
Events like the Rip Curl Cup Padang Padang are a huge draw, pulling in both surfers and fans. These competitions not only boost Bali's fame but also bring in more tourists eager to experience the thrill of the waves. The island is well-equipped to meet this demand, with numerous surf schools and camps offering lessons for all skill levels.
For those looking to invest in property, Bali's thriving surf culture ensures a steady stream of surf tourists in need of accommodation. The island's vibrant surf scene is a magnet for visitors, making it a promising location for property investment. With the surfing tourism market set to grow, Bali's allure is only going to increase.
Sources: Bali Management, Global Gallivanting, Pacific Longboarder
17) Health-conscious travelers love Bali for its spiritual and wellness focus, making it ideal for extended stays
Bali is a hotspot for health-conscious travelers seeking longer stays.
Imagine waking up to the sound of waves and starting your day with yoga at one of Bali's many retreats. The island is buzzing with wellness retreats and yoga centers, blending modern comforts with traditional practices. Whether you're after a spiritual journey or a fitness challenge, Bali has something tailored just for you.
Globally, the wellness tourism market is on fire, and Bali is riding this wave. The market is expected to skyrocket from $821.75 billion in 2022 to $2.1 trillion by 2023. This boom mirrors a growing awareness of health and wellness, drawing tourists to Bali's peaceful vibes and wellness options.
Every year, over 15 million tourists flock to Bali, many lured by its tranquil environment and wellness offerings. The island's serene landscapes and holistic health experiences are a major pull for those looking to recharge and rejuvenate.
Social media is a game-changer in promoting Bali as a wellness haven. Platforms like Instagram and Facebook are flooded with testimonials and stunning images that highlight the island's holistic health experiences. These posts often underline the spiritual and health perks of a Bali stay, cementing its status as a wellness hub.
For those considering a property investment, Bali's focus on wellness is a key attraction. The island's reputation as a wellness destination is not just a trend; it's a lifestyle that continues to draw health-conscious travelers from around the globe.
Sources: The Agency Bali, Taylor & Francis Online, The Broke Backpacker
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18) Bali’s affordable luxury makes it a top choice for budget-savvy travelers
Bali is a hotspot for affordable luxury, drawing in budget-savvy travelers from around the globe.
With more budget airlines offering cheap flights, getting to Bali has never been easier or more affordable. Once there, travelers find a range of luxury accommodations priced between $70 and $350 a night, allowing them to indulge in high-end experiences without breaking the bank.
Travel blogs and vlogs are buzzing about Bali's affordable luxury, often spotlighting gems like The Griya Villa and Spas, where private infinity pools come at surprisingly reasonable rates. These online platforms paint a vivid picture of what a luxurious yet budget-friendly stay in Bali looks like.
Social media influencers are also in on the action, sharing their experiences of Bali's luxurious yet affordable accommodations. Their posts highlight how Bali's cost of living is lower than many other luxury destinations, making it a top choice for those wanting to enjoy luxury without the hefty price tag.
In Bali, you can savor the finer things in life without the usual luxury price. The island's reputation for affordable luxury is not just a myth; it's a reality that many travelers have experienced firsthand. From stunning villas to exquisite dining, Bali offers a taste of luxury that fits within a budget.
Whether it's the allure of a private villa or the charm of a boutique hotel, Bali's affordable luxury options are endless. The island continues to captivate those who seek a lavish experience without the lavish expense, proving that luxury doesn't always have to come with a high price.
Sources: Bali Exception, Jetstar, Viceroy Bali, Young Adventuress
While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility.