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
Are you considering investing in Bali's real estate market? Curious about the trends that will shape property values in 2025? Wondering if now is the right time to buy a villa or beachfront property?
We will lay down recent insights, providing you with a clear picture of Bali's real estate future. Here, no guesswork; we rely only on solid data to guide your investment decisions.
Actually, we know this market inside and out. We keep tabs on it regularly, and all our discoveries are reflected in the most recent version of the Indonesia Property Pack
1) New visa options will simplify foreign investment in Bali's real estate market
New visa options are making it easier for foreigners to buy property in Bali.
In 2023, there was an 85% surge in foreign interest in Bali's property market, with a whopping $764 million invested, mostly in construction. Popular spots like Badung Regency saw a 92% jump in international property inquiries compared to the previous year, showing just how hot the market is getting.
The Golden Visa program is a real game-changer. By mid-2024, it had already attracted over half a billion USD in investments, with each application averaging $1.2 million. This program offers long-term residence permits for five to ten years, making Bali even more appealing for those looking to settle down and invest in the local real estate scene.
The Indonesian government is also doing its part by relaxing property ownership rules, which has been a hit with foreign buyers. Real estate agencies are buzzing with inquiries from foreigners eager to buy in Bali, proving the island's real estate market is a hot ticket. The Oxo The Residences project, for example, has been flooded with Expressions of Interest since April 2023, surpassing their targets and expectations, especially for luxury villas.
With these new visa options and relaxed regulations, Bali is becoming a top choice for international property investors. The island's charm, combined with these incentives, is drawing in more long-term foreign residents, further boosting the real estate market.
For those eyeing a slice of paradise, Bali's property market is ripe with opportunity, thanks to these strategic changes. The combination of government initiatives and the island's allure is creating a perfect storm for investment.
Sources: Space Coast Daily, IMI Daily, Oxo Living
2) Foreign investors will drive demand for eco-friendly properties in Bali
Foreign investors are increasingly drawn to eco-friendly properties, and this trend is expected to continue growing.
The global green property market is on a roll, having expanded from £260 billion in 2015 to over £400 billion by 2023. Projections suggest it could hit £940 billion by 2028, showing a clear upward trajectory in the value and demand for sustainable real estate. This surge is not just about numbers; it's about a shift in priorities towards sustainability.
Meanwhile, the market for sustainable construction materials is booming. In 2023, it was valued at USD 276.2 billion, and it's expected to grow at a compound annual growth rate of over 11.8% from 2024 to 2032. By 2032, it could reach USD 734.9 billion, indicating a strong foundation for the development of eco-friendly properties. This makes them more attractive to investors who are keen on sustainability.
Take Bali, for instance. There's a noticeable shift towards sustainability in its real estate market. Developers are increasingly focusing on eco-friendly properties, catering to a growing segment of the market that values sustainable lifestyles. Properties with LEED and GBCI certifications are gaining popularity for their environmentally friendly features and long-term cost savings, making them appealing to foreign investors.
In Bali, eco-friendly properties are not just a trend; they're becoming a lifestyle choice. Developers are tapping into this demand by offering properties that align with sustainable living values. This shift is not only about environmental benefits but also about meeting the expectations of a new generation of buyers.
Foreign investors are taking note of these changes. They're drawn to the potential for long-term savings and the appeal of sustainable living. This growing interest is driving demand in the eco-friendly property market, making it a niche worth watching.
Sources: Beech Holdings, Global Market Insights, The Agency Bali
Everything you need to know is included in our Property Investment Pack for Bali
3) Rents in Seminyak and Canggu will rise as demand for short-term rentals stays strong
Bali's tourism boom is back, with over 5 million international visitors in 2023.
This surge, a 144.61% increase from the previous year, is expected to keep climbing, potentially reaching 6 million tourists in 2024. With so many visitors, the demand for short-term rentals in hotspots like Seminyak and Canggu is naturally on the rise.
Short-term rental properties in Bali are doing well, with an average occupancy rate of 66% throughout the year. During the busy months of July and August 2023, this rate peaks at 89%, showing that these accommodations are in high demand.
Airbnb listings in Bali have also seen a jump, increasing by 24.62% from the previous year. There are now over 33,000 active listings available from July 2023 to May 2024, with Seminyak and Canggu being particularly popular among tourists.
These areas are not just popular; they are buzzing with activity and interest. Seminyak and Canggu attract high engagement from tourists looking for short-term stays, making them prime spots for property investment.
With the consistent influx of tourists and the high demand for rentals, rents in Seminyak and Canggu are likely to keep rising. This trend is driven by the strong demand for short-term accommodations, especially in these sought-after areas.
Sources: Bali Management Villas, Hospitable, Bukit Vista
4) Rental yields in Bali will rise in tourist hotspots as short-term rental demand grows
Bali's tourism is booming, with over 5 million international visitors in 2023.
This surge in tourists has naturally led to a higher demand for short-term rentals, as visitors seek comfortable places to stay. During peak seasons like July and August 2023, occupancy rates soared to 89%, showing how popular these rentals have become.
Thanks to Bali's inviting tropical climate, the demand for short-term rentals remains strong throughout the year. This consistent interest suggests that rental yields are set to rise as more tourists choose these accommodations.
Moreover, the average daily rates (ADR) for these rentals have been climbing. In 2023 and 2024, ADRs hit up to $103 during peak months, indicating that tourists are willing to pay more for their stays. This willingness to spend more is a key factor in boosting rental yields.
The increase in Airbnb and other short-term rental listings is a clear sign of this trend. Property owners are eager to capitalize on the growing demand, adding more options for tourists and driving up competition.
Sources: Bali Management Villas, Hospitable
5) Budget rental prices will drop as more options become available
Bali's budget rental market is expanding rapidly with new properties popping up everywhere.
The Indonesian government is on a mission to boost affordable housing, aiming to deliver millions of units each year, including budget rentals. This means more choices for renters as new properties hit the market.
As these fresh options become available, existing budget rentals are seeing higher vacancy rates. When landlords face empty units, they often drop prices to attract tenants, a typical move when supply exceeds demand.
To make things even more interesting, the government has rolled out incentives like VAT exemptions to encourage developers to build more budget properties. This has led to an increase in available rentals, making it easier for renters to find a place.
Short-term rental listings have surged by over 24% from mid-2023 to mid-2024, adding to the competition among landlords. This fierce competition usually results in price adjustments as landlords strive to make their properties stand out.
With all these changes, it's a good time to explore the rental market in Bali, where more options and competitive prices are becoming the norm.
Sources: Hospitable, Antara News, Norada Real Estate, Bali Coconut Living, Expat Indonesia
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6) Luxury properties will see higher rental yields from strong demand by wealthy tourists and expatriates
Luxury properties in Bali are poised for a rental yield boost thanks to high demand from affluent tourists and expatriates.
In July 2024, Bali saw a remarkable influx of 625,665 foreign tourists, a significant jump from previous months. This surge, with an average growth rate of 48.95% for foreign tourists in 2024, highlights the island's appeal as a premium destination. With more visitors seeking upscale accommodations, luxury rentals are in high demand.
Adding to this, Bali's expatriate community is growing. By March 2023, there were 3,600 expatriates living on the island, hailing from places like Russia, the USA, and the UK. These individuals often prefer high-end living spaces, further fueling the need for luxury properties.
Rental values for residential properties in Bali are projected to rise by 15-20% in 2024, with occupancy rates averaging between 65-80%. This trend is a clear indicator of the lucrative opportunities in the luxury rental market.
For those considering investing in Bali's property market, the combination of a booming tourist industry and a growing expatriate population makes luxury real estate a promising venture. The demand for premium accommodations is not just a trend; it's a thriving market.
Sources: Anta Group, Bali Management Villas, Natadesa
7) Bali luxury real estate prices will rise significantly due to limited supply and high demand
The luxury real estate market in Bali is seeing a significant price increase due to limited supply and high demand.
In 2024, the price index for luxury properties in Bali jumped by 12.46%, showing just how hot the market is. This isn't just a blip; the total revenue from luxury property sales hit $142 million in June 2024, which is a 33% growth from earlier months. It's clear that people are eager to invest in Bali's high-end real estate.
What's driving this demand? Well, high-net-worth individuals from places like Japan, South Korea, Australia, and Europe are all eyeing Bali. Even within Indonesia, folks from Jakarta, Surabaya, and Medan are actively looking for luxury homes. This mix of foreign and domestic interest is a big reason why the market is so hot right now.
On the flip side, there's just not enough prime beachfront and hillside properties to go around. This scarcity is keeping prices high because demand is outstripping supply. Foreign investors are pouring in, with foreign investment in housing and related sectors reaching US$178.14 billion in Q1/2024. This influx is only adding fuel to the fire in the luxury market.
So, if you're thinking about buying a luxury property in Bali, know that the market is competitive. The limited availability of prime spots means prices are likely to keep climbing. It's a seller's market, and the demand isn't slowing down anytime soon.
Sources: Bali Exception, Oxo Living, Oxo Living, Bali Price Forecasts
8) Foreign buyers will face stricter regulations making it harder to buy property in Bali
Foreigners face challenges when buying property in Bali due to Indonesia's cautious stance on foreign ownership.
In 2023, foreigners couldn't directly own freehold land in Indonesia, including Bali. They could only engage in leasehold arrangements or use a foreign-owned company with a Right to Use certificate. This means if you're looking to buy, you'll need to navigate these specific conditions.
There's a growing concern that foreign ownership might drive up local housing prices, making it harder for Indonesians to afford homes. To address this, national laws limit foreign ownership to leasehold arrangements, which are shorter than freehold titles and don't allow for mortgage financing. This strategy is designed to keep housing accessible for locals.
Indonesia's property laws are heavily influenced by nationalist sentiment, aiming to protect local interests. This sentiment might lead to stricter regulations on foreign ownership as the government tries to balance economic growth with social stability. Experts often predict regulatory changes in response to market pressures, which could mean more hurdles for foreign buyers.
For those considering a purchase, it's crucial to understand that regulatory shifts are common in the Indonesian property market. These shifts are often driven by the need to maintain a balance between welcoming foreign investment and safeguarding local interests.
As the government continues to evaluate the impact of foreign ownership, potential buyers should be prepared for possible changes in property laws that could affect their investment plans.
Sources: Bali Exception, EU Reporter, Enterprise League
Everything you need to know is included in our Real Estate Pack for Bali
9) Remote work will increase demand for properties with dedicated home office spaces
The rise of remote work is reshaping what people want in a home.
With 28% of employees worldwide working remotely in 2023, up from 20% in 2020, the shift is clear. By 2024, a whopping 91% of employees want to work fully or almost completely remotely. This change in work culture is driving a new trend in home buying.
People are now on the lookout for homes with dedicated office spaces. The global home office furniture market hit USD 15 billion in 2023 and is set to grow, showing just how much people need functional workspaces at home. In Colorado, for instance, 37% of residents worked from home in 2023, making homes with office spaces highly sought after.
In the U.S., nearly 60% of the workforce is working remotely at least part-time in 2024. This has led to a boom in real estate listings that highlight home office features, flexible floor plans, and extra rooms. Real estate agents and media are buzzing about this trend, pointing out how crucial home office capabilities have become in choosing a property.
Sources: Neat, Splashtop, Global Market Insights, The McLemore Group
10) Wellness and holistic living will boost demand for properties with nature access and wellness facilities
In Bali, wellness tourism is booming.
Back in 2023, the island saw over 4 million foreign visitors, many of whom were drawn to its wellness-focused experiences. This trend didn't slow down in 2024, with a 15.3% jump in tourist arrivals in the last quarter compared to the previous year. People are flocking to Bali for its luxury wellness resorts and holistic centers, which offer a mix of modern comforts and traditional practices. This surge in interest is pushing up demand for properties that cater to wellness enthusiasts.
Consumer surveys reveal a growing preference for homes with wellness amenities, which is no surprise given the island's offerings. Bali's real estate market is evolving, with many new wellness retreats incorporating sustainable practices like organic farming and energy-efficient designs. These features align with government initiatives promoting sustainable tourism, making properties with nature access highly desirable.
For those considering buying property in Bali, it's worth noting that the trend towards wellness and holistic living is a major driver. The island's unique blend of natural beauty and wellness facilities is attracting buyers from around the world. As more people prioritize health and sustainability, properties that offer these elements are becoming increasingly sought after.
Insider knowledge suggests that investing in Bali's wellness real estate could be a smart move. The demand for eco-friendly and wellness-oriented properties is on the rise, and this trend shows no signs of slowing down. With the government's support for sustainable tourism, properties that offer access to nature and wellness facilities are likely to see continued interest.
Whether you're looking for a personal retreat or an investment opportunity, Bali's wellness real estate market offers plenty of options. The island's commitment to sustainability and wellness makes it an attractive destination for those seeking a healthier lifestyle. As the trend towards holistic living grows, properties in Bali with these features are becoming more valuable.
Sources: Bali Tourism Statistics 2023, The Growing Appeal of Bali's Wellness Retreats, The Future of Green Tourism in Bali
11) Luxury rental prices in Bali will significantly increase due to high international visitor demand
Bali is seeing a boom in international tourism, with over 5 million visitors in 2023.
This surge has made luxury rental properties in areas like Seminyak, Canggu, and Uluwatu incredibly popular. These spots are now hotbeds for luxury villas and resorts, thanks to the thriving tourism scene. In June 2024, short-term rental revenues jumped by 33%, showing just how strong the demand is.
Visitors aren't just coming in droves; they're also spending more, which is pushing up the demand for luxury rentals. As tourism bounces back to pre-pandemic levels, this trend is likely to stick around. The influx of digital nomads, who are choosing Bali for its lifestyle, is also boosting demand for long-term luxury rentals.
These digital nomads are not just passing through; they're settling in, which means higher occupancy rates and rising rental prices. The combination of tourists and long-term residents is creating a perfect storm for the luxury rental market.
With Bali's appeal as a top destination, the luxury rental market is thriving. The island's unique blend of culture, nature, and modern amenities makes it a magnet for international visitors. This is why luxury rental properties are seeing such a significant increase in rent prices.
Sources: Bali Management Villas, Oxo Living
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12) Bali's airport expansion will boost property demand by improving accessibility in nearby areas
The expansion of Bali's airport is set to significantly improve accessibility.
In 2023, I Gusti Ngurah Rai Airport saw over 21 million passenger movements, a remarkable 71% jump from the previous year. This surge highlights Bali's growing appeal as a hotspot for both tourists and investors. With more people flocking to the island, areas like Jimbaran and Tuban, which are close to the airport, are expected to see a rise in property values. People often prefer to live or invest near transportation hubs for the convenience they offer.
The airport's expansion includes new terminals and runways, which will enhance connectivity with international destinations. This means more tourists and investors can easily reach Bali, further boosting property demand in nearby areas. Real estate agents are already noticing increased inquiries in these regions, signaling growing interest.
Historically, properties near airports tend to increase in value due to the convenience they offer. This trend is likely to continue as Bali becomes more accessible. The expansion is not just about handling more flights; it's about making Bali a more attractive place to live and invest.
Local insiders suggest that the improved airport facilities will make Bali a more competitive destination in Southeast Asia. This could lead to a ripple effect, where increased tourism and investment drive up property prices even further.
As Bali's airport becomes a major hub, the surrounding areas are poised for growth. This is a golden opportunity for those looking to invest in property, as the demand is expected to rise alongside the island's accessibility.
Sources: PwC, The Agency Bali, Aviation Benefits
13) New public transportation will boost suburban property appeal by making commutes easier
From 2023 to 2025, Bali has seen a big boost in public transportation investment, thanks to the Indonesian government and international partners like Australia.
One of the standout projects is the Sarbagita Electric Bus Rapid Transit (e-BRT), which aims to make public transport more accessible and eco-friendly. By 2024, electric buses with dedicated routes are expected to enhance public transport availability on the island, offering a reliable alternative to private vehicles.
These electric buses come with smart technology, ensuring commuters have reliable travel times and accurate arrival information. This makes public transport not just a viable option, but an attractive one for daily travel.
In 2024, surveys showed a noticeable shift in commuter preferences, with more people opting for public transport over private cars. This change is largely due to the introduction of smart mobility solutions, which have made commuting more convenient and efficient.
Experts and media outlets are buzzing about how these improved commuting options could spark increased interest in suburban properties. With easier access to the city, living in the suburbs becomes a more appealing choice for many.
New public transportation initiatives are set to make commuting a breeze, boosting the appeal of suburban living and potentially driving up property demand in those areas.
Sources: The Bali Sun, Australian Embassy, Modeshift
14) Virtual reality property tours will streamline purchasing for international buyers in Bali
Virtual reality property tours are now a staple for international buyers, especially in hotspots like Bali.
Thanks to the global rise of VR technology, real estate agencies are increasingly using VR to showcase properties. In Bali, companies like HomeAway have revolutionized the market with their virtual tours, which have been a hit. Property managers have noticed a big jump in bookings and company visibility, as these immersive 360° tours let buyers explore properties in a more interactive and engaging way.
Buyers' expectations have evolved, with 67% of home buyers now wanting a virtual tour when checking out a listing. This is particularly true for younger buyers, who are more inclined to schedule a showing if a virtual tour is available. The shift towards digital solutions in real estate, sped up by the COVID-19 pandemic, has made virtual tours essential for those purchasing properties from afar.
In Bali, the appeal of virtual tours is undeniable. They offer a unique opportunity to experience the island's stunning properties without the need for travel. This is a game-changer for international buyers who can now make informed decisions from the comfort of their homes. The convenience and immersive experience of VR tours are reshaping how properties are bought and sold.
As the market for AR and VR is expected to hit $80 billion by 2025, it's clear that virtual reality is here to stay in real estate. This growth means more agencies will adopt VR, making it a standard part of the property buying process. The ability to virtually walk through a property is not just a novelty; it's becoming a necessity.
For those looking to invest in Bali, virtual tours offer a practical solution. They provide a comprehensive view of properties, allowing buyers to explore every nook and cranny without setting foot on the island. This technology is not just about convenience; it's about making smarter, more informed decisions in the property market.
Sources: PhotoUp, HospitalityNet, LandVault
This article gives you valuable insights, but remember, it’s not and will never be investment advice. We pull data from a range of sources to provide you with the most accurate picture possible, yet we can’t guarantee complete accuracy. Markets are difficult to predict. Make sure to do your own research and consult a professional before making any financial moves. Any risks or losses are your own responsibility.