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
What will happen in Bali’s real estate market? Will prices go up or down? Is Ubud still a hotspot for foreign investors? How is Indonesia’s government impacting real estate policies and taxes in 2025?
We’re constantly asked these questions because we’re deeply involved in this market. Through our work with local agents, property developers, and clients who buy properties in Bali, we’ve gained firsthand insights.
That’s why we created this article: to provide clear answers, insightful analysis, and a well-rounded perspective on market predictions and forecasts.
Our goal is simple: to ensure you feel informed and confident about the market without needing to look elsewhere. If you think we missed the mark or could do better, we’d love to hear your thoughts. Feel free to message us with your feedback or comments, and we’ll work hard to improve this content for you.
How this content was created 🔎📝
3) Rents in Seminyak and Canggu will keep rising due to strong demand for short-term rentals
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) Rent prices for budget rentals will drop slightly 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
Make a profitable investment in Bali
Better information leads to better decisions. Save time and money. Download our guide.
6) Luxury rental yields will rise as affluent tourists and expats drive demand
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) Luxury property prices in Bali will rise significantly due to high demand and limited supply
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 strong the demand is for high-end homes. This isn't just a small uptick; the total revenue from luxury property sales hit $142 million in June 2024, which is a 33% growth compared to earlier months. It's clear that people are eager to invest in Bali's luxury real estate.
What's driving this demand? Well, high-net-worth individuals from around the world are showing a lot of interest. Investors from places like Japan, South Korea, Australia, and Europe are keen on buying luxury properties in Bali. But it's not just international buyers; the domestic market is buzzing too. Buyers from big Indonesian cities like Jakarta, Surabaya, and Medan are also actively investing in Bali's luxury real estate.
On the supply side, there's a real scarcity of prime beachfront and hillside properties. This limited availability is expected to keep prices climbing as demand continues to outstrip supply. The influx of foreign investors is substantial, with foreign investment in housing and related sectors reaching US$178.14 billion in the first quarter of 2024. This is further fueling the luxury market.
For those considering a purchase, it's worth noting that Bali's luxury real estate market is not just about the properties themselves. The island's unique blend of culture, natural beauty, and lifestyle is a big draw. This makes owning a piece of Bali not just a financial investment but a lifestyle choice.
As the market continues to heat up, potential buyers should be aware that the competition is fierce. With limited supply and high demand, acting quickly and decisively is key. The luxury segment of the Bali real estate market is poised for continued growth, making it an exciting time for investors.
Sources: Bali Exception, Oxo Living, Oxo Living
8) Stricter regulations will make it harder for foreign buyers to purchase 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
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.
9) Demand for homes with office spaces will grow as remote work becomes more common
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
11) Rent prices for luxury rentals will rise significantly as international visitor demand grows
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
Get fresh and reliable information about the market in Bali
Don't base significant investment decisions on outdated data. Get updated and accurate information with our guide.
12) Property demand near Bali's airport will rise as accessibility improves with the airport expansion
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) Suburban properties will become more attractive as new public transportation makes commuting 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
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.