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
This article gives you everything you need to understand the current state of the residential real estate market in Bali in 2026.
We constantly update this blog post with fresh data on housing prices in Bali so you can make informed decisions.
Whether you are looking to buy a villa in Canggu, invest in land in Uluwatu, or find a rental property in Ubud, we cover all the key trends.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Bali.
How's the real estate market going in Bali in 2026?
What's the average days-on-market in Bali in 2026?
As of early 2026, the estimated average days-on-market for residential properties in Bali sits around 95 days, which means most homes take about three months to sell when priced realistically.
The realistic range for days-on-market in Bali spans from about 60 days in prime villa corridors like Canggu, Berawa, and Seminyak to 150 days or more in less liquid areas like North Bali or inland Ubud fringe zones.
Compared to one or two years ago, days-on-market in Bali has actually improved slightly because the market has shifted from a speculative frenzy toward more realistic pricing, meaning sellers who price correctly now move their properties faster than during the oversupply period of 2024 and 2025.
Are properties selling above or below asking in Bali in 2026?
As of early 2026, the estimated average sale-to-asking price ratio for residential properties in Bali is around 94%, meaning buyers typically negotiate about 6% off the initial asking price.
Most properties in Bali (roughly 75 to 80%) sell at or below asking price, while only a small percentage of turnkey villas in prime locations with proven rental track records occasionally sell at full ask or with minimal discount, though we estimate this happens in fewer than 15% of transactions.
The neighborhoods most likely to see minimal negotiation or occasional above-asking sales in Bali are prime Canggu (especially Berawa and Pererenan), parts of Uluwatu near premium beaches like Suluban and Bingin, and select Seminyak streets where walkability and legal documentation are both strong.
By the way, you will find much more detailed data in our property pack covering the real estate market in Bali.
What kinds of residential properties can I realistically buy in Bali?
What property types dominate in Bali right now?
The estimated breakdown of residential property types available for sale in Bali in 2026 is roughly 60% villas (standalone, typically 1 to 4 bedrooms), 20% land plots for custom builds, and 20% split between villa-apartment hybrids, serviced units, and traditional houses.
Villas represent the largest share of the Bali residential market by a significant margin because they map directly to short-term rental demand from tourists and long-stay demand from digital nomads.
Villas became so prevalent in Bali because the island's tourism economy rewards properties that can generate nightly rental income, and the global remote-work trend post-COVID accelerated demand for comfortable, private, rentable homes in lifestyle locations like Canggu, Ubud, and Uluwatu.
If you want to know more, you should read our dedicated analyses:
- How much should you pay for a house in Bali?
- How much should you pay for a villa in Bali?
- How much should you pay for lands in Bali?
Are new builds widely available in Bali right now?
The estimated share of new-build properties among all residential listings in Bali in 2026 is substantial, likely between 35% and 45%, reflecting several years of active villa development especially in South Bali corridors.
As of early 2026, the neighborhoods in Bali with the highest concentration of new-build developments are Pererenan, Seseh, Cemagi, Tumbak Bayuh (all spillovers from central Canggu), plus Uluwatu, Pecatu, and Bingin in the Bukit Peninsula, where developers have targeted the surf and lifestyle tourism segment.
Which neighborhoods are improving fastest in Bali in 2026?
Which areas in Bali are gentrifying in 2026?
As of early 2026, the top neighborhoods in Bali showing the clearest signs of gentrification are Pererenan, Seseh, Tumbak Bayuh, Kedungu (toward Tanah Lot), and parts of the Uluwatu and Bingin corridor on the Bukit Peninsula.
The visible changes indicating gentrification in these Bali areas include new specialty coffee shops, wellness studios, padel courts, coworking spaces, higher-end boutique hotels, and international restaurants replacing local warungs, all catering to a wealthier, often foreign, long-stay population.
The estimated price appreciation in these gentrifying Bali neighborhoods over the past two to three years has been roughly 25% to 50% for land and finished villas, with areas like Pererenan and Seseh seeing some of the strongest growth as Canggu reached saturation.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Bali.
Where are infrastructure projects boosting demand in Bali in 2026?
As of early 2026, the top areas in Bali where major infrastructure projects are boosting housing demand are the South Bali corridor from Ngurah Rai Airport through Kuta, Seminyak, Berawa, and Cemagi, plus the southern Bukit Peninsula around Jimbaran and Nusa Dua.
The specific infrastructure projects driving demand in Bali include the Bali Urban Subway (a $20 billion underground rail project connecting the airport to Cemagi and Nusa Dua), the planned Jimbaran Underpass to ease Bukit Peninsula access, and the ongoing development of Benoa Harbor as a regional cruise tourism hub.
The estimated timeline for completion of these major Bali projects is 2028 for the first phase of the Bali Urban Subway (Airport to Cemagi line), 2031 for the second phase (Airport to Nusa Dua), and 2026 to 2027 for the Jimbaran Underpass construction start.
The typical price impact on nearby Bali properties tends to be 10% to 20% upon project announcement and an additional 15% to 30% once construction is visibly underway or completed, though this varies significantly by proximity to stations and access points.
What do locals and insiders say the market feels like in Bali?
Do people think homes are overpriced in Bali in 2026?
As of early 2026, the general sentiment among locals and market insiders in Bali is split: many long-time residents and Indonesians believe villa prices in hotspots like Canggu are overpriced relative to local incomes, while foreign investors often argue prices remain reasonable compared to lifestyle markets like Portugal, Thailand, or Mexico.
The evidence locals typically cite when arguing homes are overpriced in Bali includes the disconnect between local wages (often under $500 per month) and villa prices that start at $150,000 and can exceed $1 million in prime areas, plus the visible oversupply of similar "Instagram villas" competing for the same rental guests.
Those who believe Bali prices are fair point to strong tourism demand (over 6 million foreign visitors in 2025), proven rental yields of 7% to 12% for well-managed villas, and the global nature of Bali's buyer pool, which means prices reflect international purchasing power rather than local salaries.
The price-to-income ratio in Bali for locals is extremely high, often exceeding 30x annual household income for a modest villa, which is far above Indonesia's national average and explains why most Balinese residents cannot afford the properties marketed to foreigners and investors.
What are common buyer mistakes people regret in Bali right now?
The most frequently cited buyer mistake in Bali is treating leasehold property as if it were freehold, meaning buyers fail to properly account for lease extension costs, reversion clauses, and the difficulty of selling a property with only a few years left on its lease.
The second most common mistake buyers regret in Bali is purchasing a villa with weak legal or permit documentation, such as unclear land title chains, incorrect zoning for commercial use, or missing building permits, which can create serious problems when trying to operate rentals or resell later.
If you want to go deeper, you can check our list of risks and pitfalls people face when buying property in Bali.
It's because of these mistakes that we have decided to build our pack covering the property buying process in Bali.
How easy is it for foreigners to buy in Bali in 2026?
Do foreigners face extra challenges in Bali right now?
The overall difficulty level for foreigners buying property in Bali is moderate to high compared to local buyers, primarily because foreigners cannot own freehold land (Hak Milik) and must navigate alternative ownership structures like leasehold or Hak Pakai (right to use) arrangements.
The specific legal restrictions for foreign buyers in Bali include a minimum price threshold (around IDR 5 billion, roughly $300,000) for foreign ownership pathways, limits on which property types qualify for Hak Pakai, and the requirement that the buyer holds a valid Indonesian visa or residency permit.
The practical challenges foreigners most commonly encounter in Bali include finding reliable legal counsel who understands both Indonesian land law and foreign buyer structures, verifying whether a property's zoning permits rental operations (Pondok Wisata license), and managing transactions remotely when sellers or notaries operate primarily in Indonesian.
We will tell you more in our blog article about foreigner property ownership in Bali.
Do banks lend to foreigners in Bali in 2026?
As of early 2026, mortgage financing for foreign buyers in Bali is limited and selective, with most Indonesian banks preferring borrowers who have strong local documentation, stable rupiah income, and clear residency status, which means the majority of foreign purchases end up being cash transactions or developer financing arrangements.
The typical loan-to-value ratios foreign buyers can expect in Bali, when financing is available, range from 50% to 70%, with interest rates between 8% and 12% depending on the bank, the borrower's profile, and whether the loan is denominated in rupiah or a foreign currency.
The documentation banks typically demand from foreign applicants in Bali includes proof of income (often requiring audited financials or employment contracts), a valid KITAS or investor visa, Indonesian tax identification (NPWP), and sometimes a local guarantor or additional collateral beyond the property itself.
How risky is buying in Bali compared to other nearby markets?
Is Bali more volatile than nearby places in 2026?
As of early 2026, Bali's price volatility is higher at the neighborhood level than broader Indonesian cities like Jakarta or Surabaya, but Indonesia as a whole has historically shown lower housing price swings than regional peers like Thailand or the Philippines.
Over the past decade, Bali has experienced significant price swings tied to tourism cycles: rapid appreciation from 2015 to 2019, a sharp slowdown during COVID (2020 to 2021), a speculative surge in 2022 to 2023, and a correction in oversupplied villa segments in 2024 to 2025, which is more volatile than Jakarta's steadier residential market.
If you want to go into more details, we also have a blog article detailing the updated housing prices in Bali.
Is Bali resilient during downturns historically?
Bali's historical resilience during economic downturns is mixed: prime lifestyle properties in scarce locations tend to recover relatively quickly because of sustained global demand, while generic villa stock in oversupplied areas can remain depressed for extended periods.
During the COVID-19 downturn (2020 to 2021), Bali property prices dropped by an estimated 15% to 30% depending on location and property type, with recovery taking roughly two to three years for most segments and full recovery for prime assets only arriving in late 2023 or 2024.
The property types and neighborhoods in Bali that have historically held value best during downturns are beachfront or beach-proximate villas in Seminyak, Canggu (Berawa), and Uluwatu, plus unique hillside properties with views in Ubud, essentially anything with scarcity, strong legal documentation, and proven rental demand.
How strong is rental demand behind the scenes in Bali in 2026?
Is long-term rental demand growing in Bali in 2026?
As of early 2026, the growth trend for long-term rental demand in Bali is positive but concentrated in specific livability corridors, driven by digital nomads, remote workers, and expats seeking 3 to 12 month stays rather than short tourist visits.
The tenant demographics driving long-term rental demand in Bali are primarily working-age professionals (25 to 45) from Australia, Europe, and increasingly India and Southeast Asia, many of whom work remotely and seek furnished villas or apartments with reliable internet, gyms, and walkable access to cafes and coworking spaces.
The neighborhoods in Bali with the strongest long-term rental demand in 2026 are Umalas (quiet but near Canggu amenities), Sanur (family-friendly and calmer), parts of Tumbak Bayuh, and select Ubud areas with good connectivity, all offering the daily-life conveniences long-stay tenants prioritize.
You might want to check our latest analysis about rental yields in Bali.
Is short-term rental demand growing in Bali in 2026?
The regulatory changes currently affecting short-term rental operations in Bali include the enforcement of Pondok Wisata (tourist accommodation) licensing, the introduction of the foreign tourist levy (IDR 150,000 per visitor), and periodic local government reviews of unlicensed villa operations, all of which signal that Bali is actively managing its tourism ecosystem rather than allowing unrestricted growth.
As of early 2026, the growth trend for short-term rental demand in Bali remains positive overall, with international arrivals exceeding 6.3 million for the first eleven months of 2025 (up about 12% year-on-year), though competition among rental properties has also increased significantly.
The current estimated average occupancy rate for short-term rentals in Bali is around 55% to 65% island-wide, with prime locations like central Canggu, Seminyak, and Uluwatu achieving 70% or higher during peak season, while less desirable villas may struggle to reach 50%.
The guest demographics driving short-term rental demand in Bali in 2026 are primarily Australian leisure tourists (about 23% of arrivals), followed by visitors from India, China, the UK, and South Korea, with digital nomads booking longer stays and families seeking private villa experiences over hotels.
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Bali.
What are the realistic short-term and long-term projections for Bali in 2026?
What's the 12-month outlook for demand in Bali in 2026?
As of early 2026, the 12-month demand outlook for residential property in Bali is steady to positive, supported by continued strong tourism arrivals, a stable policy rate environment from Bank Indonesia, and the visibility of major infrastructure projects moving forward.
The key economic and political factors most likely to influence Bali demand over the next 12 months include global travel patterns (especially from Australia and China), the Indonesian rupiah exchange rate, any changes to foreign ownership regulations, and whether new construction continues to add supply faster than demand can absorb it.
The forecasted price movement for Bali residential property over the next 12 months is roughly 3% to 7% appreciation in prime corridors with limited supply, flat to slightly negative in oversupplied generic villa segments, and potentially stronger gains (8% to 12%) in emerging neighborhoods benefiting from infrastructure announcements.
By the way, we also have an update regarding price forecasts in Indonesia.
What's the 3 to 5 year outlook for housing in Bali in 2026?
As of early 2026, the 3 to 5 year outlook for housing prices and demand in Bali is cautiously positive, with the potential for meaningful appreciation if the Bali Urban Subway project progresses on schedule and tourism continues to diversify toward higher-value visitors.
The major development projects expected to shape Bali over the next 3 to 5 years include the completion of the first two Bali Urban Subway lines (Airport to Cemagi by 2028, Airport to Nusa Dua by 2031), the expansion of Benoa Harbor as a cruise tourism hub, and continued villa and hospitality development in emerging corridors like Pererenan, Seseh, and Kedungu.
The single biggest uncertainty that could alter the 3 to 5 year outlook for Bali is whether the provincial government tightens regulations on villa development and short-term rental licensing, which could either protect asset values by limiting supply or create execution risk for buyers planning rental operations.
Are demographics or other trends pushing prices up in Bali in 2026?
As of early 2026, demographic trends are having a meaningful upward impact on Bali housing prices, primarily because the island's buyer pool extends far beyond local household formation to include global investors, remote workers, and lifestyle migrants.
The specific demographic shifts affecting Bali prices include sustained migration of digital nomads and remote workers (many staying 3 to 12 months), growing interest from Indian and Southeast Asian visitors, and an increasing number of retirees and semi-retirees from Australia and Europe seeking long-term bases.
The non-demographic trends also pushing Bali prices include the global remote-work shift (making tropical lifestyle locations more attractive), investment flows seeking rental yields in alternative destinations outside expensive Western markets, and the "premium tourism" strategy signaled by infrastructure investments and the tourist levy.
These demographic and trend-driven price pressures in Bali are expected to continue for at least the next 5 to 10 years, assuming tourism infrastructure improves and the island maintains its appeal as a lifestyle destination, though the pace of appreciation will depend heavily on supply management and regulatory stability.
What scenario would cause a downturn in Bali in 2026?
As of early 2026, the most likely scenario that could trigger a housing downturn in Bali would be a two-hit combination: first, a significant tourism slowdown (from regional recession, flight capacity disruption, or regulatory friction), and second, continued oversupply of generic villas that cannot differentiate on location or quality.
The early warning signs that such a downturn is beginning in Bali would include a sustained drop in BPS-reported monthly foreign arrivals, falling hotel and villa occupancy rates, rising days-on-market beyond 120 days for prime properties, and visible price cuts or distressed sales in previously strong neighborhoods like central Canggu.
Based on historical patterns, a potential downturn in Bali could realistically result in price declines of 15% to 30% for commodity villa stock in oversupplied areas, while prime assets in scarce locations might only see 5% to 15% drops before stabilizing, with recovery typically taking two to four years depending on how quickly tourism rebounds.
What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Bali, we always rely on the strongest methodology we can and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why it's authoritative | How we used it |
|---|---|---|
| BPS Bali (Statistics Indonesia, Bali Province) | It's Bali's official statistics agency, providing the closest thing to ground truth for tourism volumes and hotel occupancy. | We used it to anchor how strong tourism demand is going into early 2026. We also used its hotel occupancy numbers as a reality check against short-term rental performance claims. |
| Bank Indonesia SHPR (Residential Property Price Survey) | It's the central bank's official, method-based survey of primary residential prices across Indonesian cities. | We used it to frame Indonesia-wide price momentum so we don't mistake Bali headlines for the whole country. We also used it to benchmark Bali's performance versus the slower-moving national primary market. |
| AirDNA | AirDNA is the best-known commercial dataset for short-term rental supply, occupancy, and nightly rates, and it's transparent about what it tracks. | We used it to estimate short-term rental occupancy and nightly rates in a consistent way. We also used it to complement official hotel occupancy stats, which don't cover private villas. |
| Pinhome Research | Pinhome is a large Indonesian housing platform with a published methodology and bank partnerships. | We used it to understand supply and demand direction and how infrastructure announcements correlate with inventory shifts in Bali. We also used it to support neighborhood-level signals when official transaction data is limited. |
| Antara News | Antara is Indonesia's state news agency, typically the cleanest source for official project statements and government announcements. | We used it to identify which corridors are most likely to see accessibility-driven demand uplift over time. We also used it to separate real projects with timelines from speculative infrastructure rumors. |
| ATR/BPN Kepmen 1241/2022 | It's the actual ministerial decision document that sets the minimum price thresholds by province for foreign buyers, including Bali. | We used it to state the hard minimum price constraint that filters what foreigners can buy legally. We also used it to explain why many foreign purchases end up as leasehold structures instead of Hak Pakai ownership. |
| Bank Indonesia LTV Regulation (PADG 19/2023) | It's the binding central-bank rulebook for how Indonesian banks can structure property lending risk. | We used it to explain why banks can be generous or strict on down payments depending on policy settings. We also used it to frame why foreigners often face tighter practical lending even when rules allow lending in principle. |
| BIS Residential Property Price Statistics | The Bank for International Settlements is the standard international source for comparable cross-country property price series. | We used it to discuss volatility and downturn behavior relative to nearby markets using a consistent framework. We also used it to avoid "Bali is unique" claims that ignore broader regional cycle dynamics. |
| Knight Frank Global House Price Index | It's a widely cited global index with a clear methodology and consistent quarterly updates. | We used it to compare regional price momentum and cycle position, even when local Bali transaction data is patchy. We also used it as a sanity check on whether 2026 is a global tailwind or headwind environment. |
| Bali Province Regulation on Foreign Tourist Levy | It's an official provincial regulation hosted on a government regulations portal. | We used it to show Bali is actively managing tourism externalities rather than ignoring them. We also used it as a proxy for regulatory tightening risk that can affect short-term rental operations and new supply. |
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