What are the current trends in Bali property market?

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

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BAMBOOROUTES

A team specialized in real estate investing in APAC countries (Japan, Thailand, Indonesia, Australia, etc.).

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Indonesia. If you'd like to learn more about us, you can check our presentation page.

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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's happening with property prices in Bali right now?

Property prices in Bali are climbing steadily, with construction costs for medium-class properties currently ranging from $350 to $500 per square meter.

For high-end builds, you're looking at $600 to $950+ per square meter as of June 2025. These figures represent actual construction costs, while completed properties in prime areas like Canggu, Seminyak, and Uluwatu often sell for considerably more due to land value and location premiums.

Over the past 12 months, Bali property prices have increased by 7-12% on average, with some hotspots experiencing even steeper appreciation. Seminyak and Canggu have seen particularly strong growth, driven by continued demand from digital nomads and luxury tourists. The residential property price index in Denpasar specifically rose by 1.76% year-on-year in Q3 2024, showing steady urban growth.

This upward trend shows no signs of slowing as we reach mid-2025, with transaction volumes surging 33.9% quarter-on-quarter in early 2025. Small house sales jumped an impressive 84%, indicating particularly strong demand in the more affordable segments of the market.

It's something we analyze in depth in our Indonesia property pack.

How do rental returns compare across Bali's popular areas?

Seminyak leads the pack with the highest rental yields in Bali, delivering impressive returns of 15-20% gross annually for well-positioned properties.

The area's luxury focus and premium rental rates make it particularly attractive for investors targeting high-end tourists. Occupancy rates in Seminyak typically range from 75-85%, ensuring consistent income streams throughout the year.

Canggu offers slightly lower yields but compensates with the highest occupancy rates at 80-90%, thanks to its massive popularity among digital nomads and surfers. Ubud maintains strong performance with 12-15% yields, attracting wellness enthusiasts and those seeking longer stays in a cultural setting.

Uluwatu represents an emerging opportunity with yields of 10-15% and growing popularity among the surf and luxury markets. These yields position Bali among the highest-performing rental markets in Southeast Asia.

Which Bali locations will see the strongest price growth?

Canggu and Seminyak will continue their dominance as Bali's fastest-appreciating areas through 2028, driven by ongoing infrastructure upgrades and sustained demand from digital nomads.

These established hotspots benefit from mature amenities, proven rental markets, and continuous development that keeps attracting both tourists and long-term residents. The digital nomad influx shows no signs of slowing, ensuring robust capital appreciation in these zones.

Uluwatu and the broader Bukit Peninsula represent the next wave of growth, with luxury developments transforming this once-remote area into a premium destination. Improved road access and increasing international interest are accelerating development, making this region particularly attractive for investors seeking higher capital gains over the next three years.

Emerging areas like Pererenan, Umalas, Jimbaran, and Sanur offer exceptional growth potential for early investors. These neighborhoods benefit from spillover demand from saturated markets, new infrastructure projects, and lifestyle-driven interest from expats seeking quieter alternatives to bustling Canggu and Seminyak.

North and East Bali present longer-term opportunities, with major infrastructure projects expected to unlock value in these less-developed regions. As road networks improve and accessibility increases, these areas could see significant appreciation by 2028.

What property types are investors buying, and why?

Villas dominate Bali's property market, accounting for the majority of investor interest and delivering the highest rental yields of 8-15% or more.

Modern villas with private pools, contemporary Balinese design, and Instagram-worthy aesthetics are particularly sought after. These properties command premium rental rates and attract consistent bookings from tourists and digital nomads seeking privacy and luxury. The flexibility to use villas for both short-term rentals and personal use makes them especially appealing to foreign investors.

Apartments and condominiums are gaining traction as new regulations make foreign ownership more accessible. While historically less popular than villas, apartments offer lower entry prices and easier maintenance, making them attractive to first-time investors. However, rental yields and resale potential for apartments are still developing compared to the established villa market.

Land investment remains attractive for long-term players, especially in up-and-coming areas where prices haven't peaked. Investors typically purchase land in emerging neighborhoods like Pererenan or North Bali, banking on future appreciation as infrastructure improves. However, land investment requires careful navigation of zoning laws and ownership structures.

The demand clearly favors villas, particularly 2-3 bedroom properties priced between $250,000-$500,000, which offer the optimal balance of affordability, rental potential, and resale value.

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How do beachfront, rice field, and urban properties compare?

Beachfront properties command the highest prices and strongest demand in Bali's market, with premium locations in Seminyak, Uluwatu, and Canggu leading the charge.

These properties typically sell for 30-50% more than comparable inland villas and maintain the strongest rental and resale potential. Beachfront villas benefit from limited supply, strict coastal development regulations, and perpetual demand from luxury tourists willing to pay premium rates for ocean views and beach access.

Rice field view properties occupy the middle tier, offering a uniquely Balinese aesthetic that appeals to wellness tourists and those seeking tranquility. Properties overlooking rice terraces in Ubud and parts of Canggu typically price 15-25% below beachfront but above urban locations. These properties attract consistent rental demand, particularly from guests prioritizing wellness, yoga retreats, and authentic cultural experiences.

Urban properties in Denpasar and Kuta offer the most affordable entry points but generate more modest returns. While transaction volumes are higher due to local demand and lower prices, appreciation rates typically lag behind tourist-focused areas by 3-5% annually. Urban properties work best for investors targeting long-term local rentals or those seeking stable, lower-risk investments.

The clear winner for investment returns remains beachfront property, though rice field views offer compelling value for investors who can't stretch to oceanfront prices.

Is Bali's property market heating up or cooling down?

Bali's property market is definitively heating up in 2025, with transaction volumes surging 33.9% quarter-on-quarter and small house sales skyrocketing by 84%.

This dramatic increase in activity reflects pent-up demand from international buyers returning post-pandemic and new investors attracted by Bali's lifestyle and rental yields. Notaries and real estate agents report their busiest period since before 2020, with multiple offers becoming common on well-priced properties.

Properties are selling faster than last year, particularly compact 1-2 bedroom villas priced under $250,000. These smaller units typically spend less than 30 days on the market in popular areas, compared to 45-60 days in 2024. The increased velocity indicates strong buyer confidence and competitive market conditions.

Off-plan development starts have exploded by 180% year-on-year, signaling developer confidence in continued demand. This construction boom is particularly concentrated in Canggu, Seminyak, and Uluwatu, where land is becoming increasingly scarce and expensive.

Market indicators all point to an accelerating market rather than a cooling one, though the surge in new supply may eventually moderate price growth in heavily developed areas.

What new rules affect foreign property buyers in Bali?

Foreign buyers still cannot directly own freehold land in Bali, but 2025 regulations have streamlined alternative ownership structures that make investment more accessible.

The most significant change allows foreigners to own apartments under specific strata titles, opening up the condominium market to international investors. Additionally, the PT PMA (foreign-owned company) structure has been simplified, reducing bureaucratic hurdles and making it easier for foreigners to hold property through an Indonesian company.

Leasehold remains the most popular option for foreign investors, typically offering 25-30 year terms with extension options. Right-to-use (Hak Pakai) permits have also been clarified, allowing foreigners to hold property for up to 80 years total through extensions. These structures provide sufficient security for most investors while complying with Indonesian law.

New regional regulations focus on zoning, land use, and coastal protection, with stricter controls on nominee arrangements. The government is cracking down on illegal nominee structures where Indonesians hold property on behalf of foreigners, making it crucial to use legitimate ownership structures.

Tax obligations for rental income have been clarified, with foreign property owners now required to register for tax purposes and pay appropriate income taxes on rental revenues. Working with qualified legal professionals is more important than ever to ensure compliance.

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 upcoming developments impact the market?

The massive 180% year-on-year surge in off-plan developments will fundamentally reshape Bali's property landscape over the next 18 months.

This unprecedented construction boom is concentrated in Canggu, Seminyak, and Uluwatu, where developers are racing to meet demand from international buyers. While increased supply typically moderates price growth, continued tourism growth and expat inflows should absorb much of this new inventory, particularly for well-designed properties in prime locations.

Major infrastructure projects currently underway will significantly impact property values in emerging areas. New roads connecting North Bali to the south, port upgrades, and improved public transit systems are expected to unlock value in previously inaccessible regions. Properties near these infrastructure improvements could see appreciation of 15-25% as accessibility improves.

The development pipeline includes several large-scale mixed-use projects combining residential, retail, and hospitality components. These integrated developments will create new neighborhood centers, potentially shifting demand patterns and creating micro-markets with their own price dynamics.

Investors should monitor construction progress carefully, as delays are common in Bali. Off-plan buyers can secure significant discounts of 20-30% compared to completed properties, but must factor in construction risks and potential timeline extensions.

Which budget range offers the best investment returns?

Properties under $250,000 currently deliver the optimal combination of strong returns and high liquidity in Bali's market.

These compact villas and apartments generate rental yields of 7-10% while maintaining the fastest resale times. One-bedroom villas in this range particularly appeal to digital nomads and couples, ensuring consistent rental demand and occupancy rates above 80% in popular areas.

The $250,000-$500,000 range represents the sweet spot for most investors, offering 2-3 bedroom villas that appeal to families and groups. These properties achieve yields of 10-12% in established areas while maintaining reasonable liquidity for future resale.

Luxury properties over $500,000 can generate spectacular yields of 12-20% in premium beachfront locations, but require longer holding periods and face a smaller buyer pool when reselling. These investments work best for patient investors with larger capital reserves.

This data is comprehensively covered in our Indonesia property pack.

What's the smartest strategy for different investment goals?

Your investment strategy in Bali should align precisely with your intended use, as each approach requires different property characteristics and locations.

For living in Bali yourself, focus on Ubud, Sanur, or quieter parts of Canggu where you'll find established communities, quality schools, and daily amenities. These areas offer a better quality of life with less tourist congestion while maintaining good rental potential for times you're away. Look for properties with proper living spaces, storage, and parking rather than just Instagram appeal.

If maximizing rental income is your goal, target tourist hotspots like central Canggu, Seminyak, and Uluwatu. Choose villas with features that photograph well: private pools, outdoor bathrooms, and contemporary Balinese design. Properties within walking distance of beaches, cafes, and nightlife command premium rates and maintain occupancy above 80%.

For resale in 3-5 years, invest in emerging areas with new infrastructure like Pererenan, Jimbaran, or North Bali. Buy off-plan in these locations to secure 20-30% discounts, or purchase land if you can navigate the legal requirements. These areas offer the highest appreciation potential as they transition from local neighborhoods to expat enclaves.

Avoid the common mistake of choosing a property that tries to serve all purposes – each strategy requires different compromises and property features.

When should you buy to get the best deals?

The rainy season from November to March consistently offers the best buying opportunities in Bali, with motivated sellers and less competition from other buyers.

During these quieter months, properties typically sell for 5-10% less than peak season prices, and sellers are more willing to negotiate on terms. International buyers often avoid traveling during the rain, creating a buyer's market with more inventory and fewer bidding wars.

For rental income optimization, properties purchased and prepared during the off-season can launch just in time for high season (June-August and December-January). This timing allows you to capture maximum rental rates immediately, with some villas achieving 90%+ occupancy during these peak periods.

The rental calendar in Bali is remarkably consistent, with year-round demand in top tourist areas. However, understanding seasonal patterns helps maximize revenue: peak season commands rates 30-50% higher than low season, while shoulder months (April-May, September-November) maintain steady 70-80% occupancy at moderate prices.

Avoid purchasing during Chinese New Year and major Western holidays when competition from investors is highest and sellers hold firm on pricing.

What economic factors will shape Bali's property future?

Indonesia's massive infrastructure investment program will be the primary driver of Bali property values through 2028, with billions allocated to transportation, utilities, and tourism facilities.

These projects include the expansion of Ngurah Rai International Airport, new toll roads connecting North and South Bali, and upgraded ports for cruise ships. Each infrastructure improvement directly correlates with property appreciation in affected areas, historically driving values up 15-25% within two years of completion.

The digital nomad phenomenon represents a structural shift rather than a temporary trend, with Indonesia's new digital nomad visa attracting high-income remote workers. This demographic typically spends $2,000-5,000 monthly on accommodation, creating sustained demand for quality rentals and driving investment in co-working spaces and lifestyle amenities.

Global economic factors will continue influencing Bali's market, particularly interest rates and currency fluctuations. The Indonesian Rupiah's stability against major currencies affects foreign purchasing power, while global interest rates impact financing costs. A 1% change in global rates typically translates to 5-10% price movements in Bali's property market within 12-18 months.

Tourism recovery has exceeded pre-pandemic levels, with arrivals growing 15-20% annually. This growth trajectory should continue supporting property values, though any global economic downturn could temporarily slow appreciation 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. BukitVista - Bali Construction Pricing 2025
2. Indonesia Contractors - Cost of Building a Villa in Bali 2025
3. Coco Development Group - Best Areas in Bali for Buying Villas
4. Bali Exception - Real Estate Prices Guide
5. InvestLandBali - Market Trends and Predictions
6. Mercury Estate - Luxury Real Estate Growth
7. Statista - Indonesia Property Price Index
8. Exotiq Property - Investment Comparison
9. Coco Development - Buyer's Guide 2025
10. The Bali Sun - Major Development Projects