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 do the latest numbers reveal about Bali’s real estate market? Are property prices on the rise, or are they stabilizing? Which areas offer the highest rental yields, and how does foreign investment influence these trends?
We’re constantly asked these questions because we’re deeply involved in this market. Through our work with developers, real estate agents, and clients who invest in Bali, we’ve gained firsthand insights into these trends. Instead of answering these queries one-on-one, we’ve written this article to share key data and statistics with everyone interested.
Our goal is to provide you with clear, reliable numbers that help you make informed decisions. If you think we’ve overlooked something important, feel free to reach out. Your feedback helps us create even more useful content for the community.
Fact-checked and reviewed by our local expert
Daniel Rouquette 🇫🇷
CEO & Co-Founder at Villa Finder
1) Bali’s property tax rates are among Southeast Asia’s lowest, averaging 0.1-0.2% of property value annually
Buying property in Bali comes with some of the lowest property tax rates in Southeast Asia.
Thanks to the Land and Building Tax, or PBB, property owners enjoy rates that average between 0.1% and 0.2% of the property's value annually. This tax is calculated based on the assessed value of your property, and the local government sets the exact rate, which usually falls between 0.1% and 0.3%.
When you purchase a property, you'll encounter the Transfer Tax, known as BPHTB, which is 5% of the taxable object value. This tax is only paid once when the property changes hands, so it doesn't impact your annual tax obligations.
For newly built properties, there's also a Value-Added Tax, or PPN, which is 10% of the selling price. Like the Transfer Tax, this is a one-time payment and doesn't affect your yearly property tax rate.
These additional taxes, while important, don't alter the fact that Bali's annual property tax remains low due to the PBB rate. This makes owning property in Bali financially attractive.
Sources: Bali Exception, Exotiq Property, ILA Global Consulting
2) Beachfront properties in Bali are typically 20-30% more expensive than inland properties
Beachfront properties in Bali are typically priced 20-30% higher than similar inland properties.
This price difference is largely due to the potential for property value appreciation. Coastal properties are in high demand, especially among tourists who are captivated by the stunning ocean views and the unique experience of beachfront living. This demand means that more people are willing to pay a premium for these prime locations.
Another key factor is the limited availability of beachfront properties. There are simply fewer coastal properties compared to those inland, and they tend to sell or lease quickly. This scarcity, combined with high demand, naturally leads to higher prices. In areas like Uluwatu, for instance, land prices are significantly higher due to the luxury amenities and the appeal of beachfront views.
Strict zoning regulations in Bali also play a role, contributing to the scarcity of oceanfront properties and making them even more desirable and expensive. Some reports suggest that land prices for beachfront properties can be up to 15 times higher than those inland, further emphasizing the cost difference.
In Uluwatu, the allure of luxury amenities and breathtaking views makes beachfront properties particularly sought after. This demand, coupled with limited availability, drives up prices significantly. The combination of these factors means that beachfront properties are a hot commodity in Bali's real estate market.
For those considering a property purchase in Bali, understanding these dynamics is crucial. The high demand and limited supply of beachfront properties mean that they are not only more expensive but also a potentially lucrative investment. Investors are often drawn to the potential for significant returns on these properties.
Sources: Bali Properties, Best Bali Villas, PP Bali, YouTube
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.
3) Building an average villa in Bali takes 12-18 months from start to finish
Building a villa in Bali is an exciting journey with several key stages.
First, you need to buy the land, which can take 1 to 3 months. This step is crucial as it sets the foundation for everything that follows.
Next, the design and planning phase kicks in, lasting 1 to 2 months. This is where your vision for the villa starts to take shape, and any necessary revisions can extend this period.
Then comes the actual construction, the longest phase, typically taking 3 to 6 months. This is where the villa begins to physically manifest, with all the structural work being done.
After construction, the finishing touches are added, taking another 1 to 2 months. This includes all the details that make the villa unique and livable.
Finally, there's the final inspection and handover, which wraps up the process in about a month. This ensures everything is up to standard before the villa is officially completed.
Sources: Bukit Vista, Emporio Architect
4) Foreign leasehold agreements in Bali typically last 25-30 years
In Bali, foreigners typically secure property through leasehold agreements lasting 25-30 years due to Indonesian laws that restrict outright land ownership by non-citizens.
This lease term is a common practice, offering a standard duration with potential for renewal. It strikes a balance, giving foreigners long-term investment security while allowing landowners future flexibility.
Foreigners can also set up a foreign-owned company or obtain a 'right to use' title, both of which align with the 25-30 year lease period. These methods comply with local regulations, making property ownership in Bali feasible for international buyers.
Such arrangements are practical solutions, ensuring that foreign investors can enjoy property benefits without breaching Indonesian laws. The leasehold system is well-established, providing a reliable framework for property transactions.
For those considering property in Bali, understanding these options is crucial. The 25-30 year leasehold agreements are a norm, offering a structured way to invest in this beautiful region.
Sources: Harcourts Purba Bali, Pertama Property, All You Are
5) Over 60% of foreign buyers in Bali favor villas over apartments
In Bali, over 60% of foreign property buyers prefer villas to apartments.
Villas are especially popular in areas like Seminyak, Canggu, Ubud, and Nusa Dua, where excellent infrastructure and beach access make them a top choice. These spots offer a unique atmosphere that draws both tourists and investors, making villas a smart investment.
The potential rental income from villas is another big attraction. Depending on factors like location and season, rental income can range from $20,000 to $50,000 annually. This makes owning a villa not just a place to stay but a lucrative investment.
Investment conditions in Bali are quite favorable for foreigners. You can lease land for up to 30 years with renewal options, and the rental income tax is just 10%. This ease of purchase and low tax rate make investing in villas more appealing compared to other countries.
For those considering property in Bali, villas offer a blend of lifestyle and financial benefits. The combination of high demand and attractive investment conditions makes them a compelling choice.
Sources: Villa Bali Sale, 99.co Indonesia, World Estate Homes
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6) Around 25% of residential real estate deals in Bali are cash transactions
In Bali, about 25% of residential real estate transactions are made with cash, especially by foreign investors.
Foreign buyers often choose to pay in cash because local banks don't offer them mortgage options. This makes cash transactions a practical solution for those looking to invest in Bali's property market.
While many locals purchase homes through Kredit Pemilikan Rumah (KPR) schemes, cash transactions still hold a significant share of the market. This is particularly true for international buyers who find it easier to bypass the complexities of securing a mortgage.
In 2023 and 2024, the trend of cash payments among foreign investors became more pronounced. Without access to local financing, these investors rely heavily on cash to secure their property deals.
Despite the dominance of KPR schemes among local buyers, cash remains a key player in the real estate landscape, driven by the needs of international investors.
Sources: Detik, Bali Villa Realty, Bali Bisnis
7) Around 40% of expat-owned properties in Bali are managed by local companies
In Bali, the real estate market is booming thanks to tourism.
Many expatriates are buying properties here, but managing them can be tricky. Local property management companies, like Bukit Vista and Bali Management Villas, offer essential services tailored for foreigners. They know the ins and outs of local regulations, cultural nuances, and market trends, which is crucial for those unfamiliar with Bali's unique market.
These companies have over a decade of experience, providing full property management services. This includes everything from maintenance to marketing and guest relations. Their expertise is a vital resource for expatriate and absentee owners who need help managing their properties effectively.
Interestingly, about 40% of expat-owned properties in Bali are managed by these local companies. This shows how much expatriates rely on local expertise to keep their investments running smoothly.
For those considering buying property in Bali, understanding the role of these management companies is key. They not only handle the day-to-day operations but also ensure that properties are well-maintained and marketed to attract tenants or buyers.
So, if you're thinking about investing in Bali's real estate, partnering with a local property management company could be a smart move. They offer the local knowledge and experience needed to navigate this vibrant market.
Sources: Bukit Vista, Bukit Vista, Bali Management Villas
8) In 2024, luxury villas in Bali earned an average monthly rental income of $4,000-$8,000
In 2024, luxury villas in Bali generated an average monthly rental income between $4,000 and $8,000.
Location was a major factor in these rental prices. Villas in prime spots like Seminyak and Uluwatu fetched higher rates due to their proximity to stunning beaches and lively tourist attractions. These areas are magnets for vacationers, making them highly sought after.
The amenities offered by these villas also played a crucial role. Properties with private pools and luxurious furnishings attracted renters willing to pay more for a premium experience. Upscale features made these villas stand out in the competitive market.
Bali's property market was on the rise, thanks to a booming tourism industry. This growth supported higher rental yields, making it a lucrative time for property owners. The demand for high-end accommodations was strong, driving up rental values.
Investors found Bali appealing due to its vibrant tourism scene. The island's popularity ensured a steady stream of visitors, which in turn boosted the rental market. This trend was particularly evident in areas known for their luxury offerings.
Sources: World Estate, Bali Coconut Living, Oxo Living
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Indonesia. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
9) In 2024, about 30% of new residential developments in Bali featured eco-friendly elements like solar panels and rainwater harvesting
In 2024, Bali's real estate market saw a 30% increase in eco-friendly residential developments.
This shift was fueled by a growing awareness of environmental issues among both developers and buyers. Many developers began seeking green building certifications like LEED and GBCI, which helped them demonstrate their commitment to energy efficiency and sustainable practices. These certifications became a key selling point for new properties.
Renewable energy systems, such as solar panels and rainwater harvesting, became more common in new developments. These features not only reduced reliance on non-renewable resources but also offered lower utility costs, making them attractive to potential homeowners.
For instance, solar panels are now a popular choice, allowing homeowners to cut down on electricity bills significantly. Rainwater harvesting systems are also being integrated, providing a sustainable water source and reducing the strain on local water supplies.
These eco-friendly features are not just about saving money; they also contribute to a healthier living environment. Homeowners are increasingly interested in properties that offer long-term sustainability benefits, aligning with global trends towards greener living.
As a result, Bali's real estate market is becoming a leader in sustainable development, attracting buyers who value both luxury and environmental responsibility. This trend is expected to continue as more people recognize the importance of sustainable living in preserving Bali's natural beauty.
Sources: The Agency Bali, Harcourts Purba Bali, Bali Home Immo
10) Properties near Bali's international airport increased in price by 10-15% over the past two years
Properties near Bali's international airport have seen a 10-15% price increase in the past two years.
This surge is largely due to major upgrades at Ngurah Rai International Airport, Bali's main gateway. The airport now boasts a new terminal, additional runways, and improved amenities, all designed to handle more passengers and enhance the travel experience. These improvements have made the area more appealing to both travelers and investors, driving up property values.
As the airport expands, it's expected to boost tourism, making nearby areas like Jimbaran and Tuban more attractive. People are eager to invest in these locations because they foresee a surge in tourism and the benefits it brings. The convenience of being close to the airport is a significant draw for potential buyers.
Meanwhile, the development of a new international airport in North Bali is also influencing property trends. Although it's in a different part of the island, this new airport underscores the growing interest in Bali as a whole. This interest indirectly supports the property market near the existing airport, as the overall increase in tourism and infrastructure improvements across the island contribute to rising property values.
Investors are particularly interested in areas with easy access to the airport, anticipating that the influx of tourists will continue to drive demand. The strategic location of these properties offers a unique advantage, making them a hot commodity in the real estate market.
With Bali's ongoing development and the promise of increased tourism, property values near the airport are expected to remain strong. The combination of improved infrastructure and strategic location makes these areas a wise investment choice for those looking to capitalize on Bali's growing appeal.
Sources: The Agency Bali, Mio and Partners
11) Properties within a 10-minute walk to the beach have a 15-20% price premium
Properties within a 10-minute walk to the beach often command a 15-20% price premium.
In Bali, areas like Kuta and Jimbaran are perfect examples of this trend. Imagine a villa in Jimbaran, just a 2-minute stroll from the beach, listed at Rp 2.74 billion. Compare this to similar villas in less desirable spots, and you'll see how being close to the beach can significantly boost property value.
New developments are popping up near the beach, like a 2-bedroom apartment priced at Rp 1.080 billion, showing the high demand for beachside living. Even land plots, such as a 4,200 square meter plot in Kuta with a sunset view, are priced at a premium, underscoring the importance of location.
People are willing to pay more for the lifestyle that comes with living near the beach. The convenience of a quick walk to the shore, the sound of the waves, and the fresh sea breeze are all part of the package that justifies the higher price.
In these areas, the market is competitive, and properties don't stay listed for long. Buyers are eager to invest in these prime locations, knowing that the value is likely to increase over time.
Sources: Rumah123 (Properties), Mitula Properti, Rumah123 (Tanah Dijual)
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12) A three-bedroom villa in Ubud costs around $300,000-$400,000
The average price for a three-bedroom villa in Ubud is around $300,000-$400,000.
Ubud's charm lies in its cultural richness and natural beauty, making it a sought-after location. While it's not as pricey as Seminyak, known for its vibrant scene, Ubud still commands a premium due to its unique appeal.
Property size and bedroom count are key. A three-bedroom villa is popular among buyers, and prices can shift based on specific locations within Ubud and the amenities available. For instance, a similar villa in Umalas might cost about $375,000, fitting well within the Ubud range.
These elements together explain why the average price of a three-bedroom villa in Ubud is consistently within this range.
For those considering a purchase, understanding these factors can help in making an informed decision. Ubud offers a balance of affordability and exclusivity, appealing to many potential buyers.
Whether you're drawn to Ubud for its serene landscapes or its cultural vibrancy, the real estate market reflects these unique qualities, making it a compelling choice for property investment.
Sources: Bali Villa Realty, Booking.com, Nomad Capitalist
13) Luxury villas in Seminyak average $3,000-$4,000 per square meter
In Seminyak, the average price per square meter for a luxury villa is around $3,000-$4,000.
In Bali, especially in sought-after spots like Seminyak, property prices vary greatly depending on location and type. For instance, a luxury villa might cost anywhere from $300,000 to $1,000,000 if it's mid-sized. This means that the overall expense of these properties is quite high, which naturally leads to a higher price per square meter.
Land in high-demand areas like Seminyak is priced between $1,000 and $2,000 per square meter. This hefty land cost alone suggests that when you factor in the construction and luxury features of a villa, the price per square meter rises significantly.
Take, for example, a luxury villa in Canggu, which costs about USD 840,000 for a 3-bedroom villa with a swimming pool. While this doesn't directly translate to a price per square meter, it underscores the high costs associated with luxury properties in Bali.
These figures highlight that luxury villas in Bali are a significant investment, especially in prime locations like Seminyak. The combination of land prices and the cost of luxury amenities contributes to the overall expense.
Understanding these factors can help potential buyers grasp why the price per square meter is so high in these desirable areas.
Sources: Bali Villa Realty, Exotiq Property
14) Long-term residential leases in Bali offer rental yields of 6-8% annually
In Bali, the average rental yield for long-term residential leases is between 6-8% annually.
Location plays a big role in these yields. In Seminyak, known for its luxury villas, yields can reach 8% or more, especially during peak tourist seasons. This area attracts those looking for high-end experiences, which boosts rental income.
Meanwhile, Canggu is a favorite among younger digital nomads and surfers. This area is a hotspot for long-term rentals, offering steady returns due to its diverse tenant base. The mix of tenants in different areas helps maintain the overall rental yield range.
Market conditions are also crucial. In 2024, Bali saw a 22.18% increase in foreign visitors from January to July, totaling 3.6 million. This surge in tourism has increased occupancy rates, especially in popular and newly developed villas.
Such high occupancy rates further support the rental yield figures. The influx of tourists has made properties in prime locations more attractive, ensuring that rental yields remain strong.
Sources: Bali Villa Realty, Bukit Vista, OXO Living
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.
15) Short-term rentals in Bali offer an average ROI of 8-12% annually
Investing in Bali's short-term rental properties offers an enticing average ROI of 8-12% annually.
Location is a game-changer. In hotspots like Seminyak, properties can see ROIs around 9% thanks to the constant influx of tourists and digital nomads. This demand keeps the rental market vibrant and competitive.
Quality and management are equally vital. Properties that are well-maintained and marketed effectively tend to attract more guests. In bustling areas such as Canggu, occupancy rates can soar past 90%, which significantly enhances rental income.
The real estate market in Bali is diverse, offering a spectrum of ROI possibilities. While some properties might yield a conservative 5-10% ROI, others can reach as high as 15-18% annually, fueled by the island's thriving tourism industry.
These variations highlight the importance of strategic decisions in property management and location selection. Choosing the right spot and maintaining high standards can make a substantial difference in your returns.
Sources: Villa-Bali.com, Bali Exception, Ilot Property Bali, Bali Villa Realty
16) Demand for properties with co-working spaces rose by 18% in 2024
The demand for properties with co-working spaces in Bali increased by 18% in 2024, driven by the rise in remote work trends.
In 2023, as more people embraced remote work, their home needs shifted. They sought homes that could easily support home offices and had fast internet, making Bali an attractive option. The island's appeal grew as it offered the perfect blend of work and leisure.
Infrastructure development in Bali also played a significant role. In 2023, new highways, airport expansions, and improved public transportation were underway, enhancing the island's accessibility. This improved connectivity made Bali more appealing to both investors and remote workers.
The trend towards experiential living further fueled this demand. In 2023, people increasingly sought unique lifestyle experiences, such as wellness retreats and eco-tourism. Bali, known for its immersive experiences, naturally aligned with this trend, boosting the demand for properties that offered both living and working spaces.
As Bali became more accessible and offered unique experiences, it attracted a diverse group of remote workers and investors. The island's ability to provide a balance of work and lifestyle made it a top choice for those seeking a change from traditional work environments.
Sources: Soland World, Synergy Pro
17) Bali's luxury villa rentals grew by 12% in 2024 due to high tourism demand
The luxury villa rental market in Bali saw a 12% growth in 2024, thanks to booming tourism.
People are craving unique stays, and high-end properties like luxury villas are in demand. This shift is partly because travelers want personalized experiences, making these properties more appealing. Plus, the trend towards eco-friendly living has made sustainable luxury villas a hot commodity.
New hotspots are emerging in Bali, adding to the market's allure. While places like Seminyak and Canggu remain popular, interest is growing in less developed areas like the Bukit Peninsula and North Bali. These regions promise high returns as infrastructure improves, making them attractive for investment.
As these areas develop, the potential for high returns on investment increases, drawing more attention to the luxury villa market. The combination of unique accommodations and eco-friendly features is a winning formula for buyers.
With tourism on the rise, the demand for luxury villas is expected to continue growing. The market's expansion is fueled by travelers seeking both comfort and sustainability in their accommodations.
Sources: Bali Exception
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18) Newly built villas in Bali cost between $250,000 and $500,000, varying by location and size
In Bali, newly built villas are priced between $250,000 and $500,000, largely depending on their location and size.
Take Seminyak, for instance, where a two-bedroom villa can cost around $430,000. This area is known for its luxury and high demand. On the other hand, Canggu, a favorite among digital nomads, offers villas starting at $248,000 for a finished two-bedroom. These examples show how location significantly affects villa prices.
Size also plays a big role in pricing. In Umalas, a six-bedroom villa might set you back about $2,500,000. Meanwhile, a smaller three-bedroom villa in the same area could be priced at approximately $375,000. Clearly, larger properties come with a heftier price tag.
So, if you're considering buying a villa in Bali, think about what matters most to you. Is it the bustling vibe of Seminyak or the laid-back atmosphere of Canggu? And how much space do you really need? These factors will guide your decision.
Remember, the market is diverse, and there's something for everyone. Whether you're looking for a cozy retreat or a spacious family home, Bali has options that cater to different tastes and budgets.
Sources: Bali Villa Realty, Tiket.com, Lamudi.co.id
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.