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
The Bali property market is experiencing unprecedented growth in 2025, with prime tourist zones seeing substantial price increases and strong rental demand.
Property prices have surged 10-20% in the past year alone, driven by tourism recovery and digital nomad influx. Villas and apartments remain in highest demand, particularly for short-term rental investments in areas like Canggu and Seminyak where gross yields can reach 15%.
If you want to go deeper, you can check our pack of documents related to the real estate market in Indonesia, based on reliable facts and data, not opinions or rumors.
The Bali property market in September 2025 shows strong momentum with prices rising 10-20% annually across prime tourist zones.
Investor budgets range from $120,000 for entry-level properties to over $2 million for luxury oceanfront villas, with short-term rental yields of 8-15% in top locations.
| Area | Average Price/m² | Rental Yield | Best For |
|---|---|---|---|
| Canggu | $2,000-$4,000 | 8-15% | Short-term rental |
| Seminyak | $2,000-$4,000 | 8-15% | Tourism/luxury |
| Uluwatu | $2,000-$3,500 | 9-10% | High-end tourism |
| Ubud | $1,200-$2,500 | 4-8% | Wellness/expat |
| Sanur | $1,500-$2,800 | 5-9% | Long-term rental |
| Seseh/Pererenan | $300-$800 | 10-14% | Emerging markets |
| North Bali | $200-$600 | 12-16% | Value investment |
Fact-checked and reviewed by our local expert
Daniel Rouquette 🇫🇷
CEO & Co-Founder at Villa Finder
What's the average price per square meter right now across Bali?
As of September 2025, property prices per square meter in Bali vary dramatically based on location and proximity to tourist hotspots.
Prime tourist zones like Seminyak, Canggu, and Uluwatu command between $2,000-$4,000 per square meter for apartments and modern developments. Villas in these areas average $380,000 in Canggu and exceed $500,000 in Uluwatu and Ubud.
Developing areas such as Ubud's outskirts and emerging zones like Seseh start from $300 per square meter, making them attractive entry points for investors seeking long-term appreciation. The overall Bali average ranges from $350-$950 per square meter across all property types and locations.
North Bali and less developed inland regions offer the most affordable options at $200-$600 per square meter, though infrastructure and accessibility remain limited compared to southern coastal areas.
How have prices moved in the past 12 months compared to the last 3 to 5 years?
The Bali property market has accelerated significantly in recent months, with prices rising 10-20% in the past year alone.
This represents a sharp acceleration from the longer-term trend, where prices increased by an annual average of 7-12% over the past five years. Land prices in southern Bali have surged 50% since 2019, indicating sustained demand pressure in prime locations.
Transaction volumes provide additional evidence of market momentum, with a 33.9% quarter-on-quarter increase in 2025. This surge reflects both tourism recovery post-pandemic and the growing digital nomad population choosing Bali as a base.
The current price trajectory suggests the market is in an acceleration phase rather than gradual growth, driven by supply constraints in desirable areas and increasing international demand.
Which areas are seeing the fastest short-term growth and which are more stable for the long run?
Short-term growth hotspots are concentrated in the tourism and digital nomad corridor of southern and western Bali.
Canggu, Berawa, Pererenan, and Seminyak lead in rapid appreciation, driven by tourism recovery and remote work trends. Uluwatu is emerging as a high-growth luxury destination, attracting premium developments and affluent buyers seeking cliff-top locations.
For long-term stability and consistent appreciation, Ubud and Sanur offer more predictable returns due to their established expatriate communities and cultural tourism appeal. These areas benefit from steady rental demand and lower volatility compared to beach destinations.
North Bali and less developed inland regions provide stability with moderate appreciation rates, though they lack the rapid growth potential of tourist-focused areas. These locations appeal to investors seeking affordability and gradual value increases over decades rather than years.
What types of properties—villas, apartments, land plots—are in highest demand right now?
Villas dominate demand in the Bali property market, particularly compact 1-2 bedroom designs suitable for short-term rentals and digital nomad living.
Apartments are increasingly popular in developed areas where land scarcity drives vertical development, especially in Seminyak and central Canggu. Modern apartment complexes with resort-style amenities attract both investors and residents seeking maintenance-free ownership.
Off-plan projects in emerging areas like Seseh and Pererenan are seeing strong investor interest, offering 20-30% discounts but requiring careful due diligence on developer reliability and completion timelines.
Land plots in southern Bali remain sought after for future development, though building permits and zoning regulations require local expertise. Raw land appeals to investors with longer investment horizons and development capabilities.
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How do rental yields compare across different areas like Canggu, Uluwatu, Ubud, and Seminyak?
| Area | Gross Rental Yield | Property Focus | Peak Season |
|---|---|---|---|
| Canggu | 8-15% | Surf villas, modern apartments | May-September |
| Seminyak | 8-15% | Luxury villas, boutique properties | June-August |
| Uluwatu | 9-10% | Cliff-top villas, luxury resorts | April-October |
| Ubud | 4-8% | Wellness retreats, jungle villas | June-August, December |
| Sanur | 5-9% | Family villas, beachfront | July-September |
| North Bali | 12-16% | Budget villas, local market | July-September |
What's the current average occupancy rate for short-term rentals versus long-term leases?
Short-term rental occupancy in Bali averages 64% annually, with significant seasonal variations that can reach 80-90% during peak periods.
August represents the most profitable month for short-term rentals, coinciding with European summer holidays and optimal weather conditions. Peak season occupancy in prime areas like Canggu and Seminyak can exceed 90% for well-positioned properties.
Long-term rental demand has declined in 2025 due to changing digital nomad patterns and return-to-office trends among remote professionals. This shift has reduced occupancy rates for traditional monthly rentals, particularly in areas previously popular with long-term visitors.
The trend favors flexible short-term rental strategies over traditional long-term leases, with property owners adapting their offerings to capture both weekend tourists and medium-term stays of 1-3 months.
How much supply is in the pipeline in key hotspots, and will it impact pricing?
Off-plan developments in Bali surged 180% year-on-year in 2025, concentrated heavily in Canggu, Seminyak, and Uluwatu.
This supply increase is expected to moderate price growth in the most developed hotspots over the next 12-18 months, particularly affecting finished properties competing with new developments. However, infrastructure improvements will boost values in previously less accessible regions.
The impact varies by location and property type, with luxury villa developments facing less supply pressure than mid-market apartments. Investors should factor construction delays and market absorption rates when considering off-plan purchases.
Supply pipeline risks are highest for generic apartment projects in saturated areas, while unique villas in emerging locations maintain stronger pricing power despite increased development activity.
What budgets are investors typically working with today, and what can you realistically get at different price ranges?
Entry-level investment in Bali begins at $120,000-$200,000 for 1-bedroom villas or apartments in Canggu, Ubud, or emerging areas like Pererenan.
| Budget Range | Property Type | Location Options | Expected Features |
|---|---|---|---|
| $120,000-$200,000 | 1BR villa/apartment | Canggu, Ubud, Pererenan | Basic pool, modern design |
| $240,000-$400,000 | 2BR villa | Seminyak, central Canggu | Prime location, full amenities |
| $400,000-$600,000 | 3BR villa | Uluwatu, premium Seminyak | Ocean views, luxury finishes |
| $650,000-$1,200,000 | Luxury villa | Cliff-top Uluwatu, beachfront | Multiple pools, staff quarters |
| $1,200,000-$2,000,000 | Premium estate | Oceanfront, exclusive locations | Multiple buildings, private beach |
| $2,000,000+ | Ultra-luxury | Exclusive compounds | Resort-level amenities |
Off-plan buyers can secure 20-30% discounts on these prices but must carefully assess developer reliability and completion risks before committing funds.
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.
Where are foreign buyers focusing their purchases, and where are locals investing more?
Foreign buyers concentrate their investments in established tourist zones, particularly Canggu, Seminyak, and Uluwatu, where they favor turnkey villas and apartments suitable for short-term rental income.
International investors prioritize properties that combine personal use potential with rental income, often seeking 1-2 bedroom villas in prime locations with professional property management services available. They typically use PT PMA structures to maximize ownership rights despite foreign investment restrictions.
Local Indonesian investors focus on less developed, affordable regions where they can acquire land for long-term appreciation. They often target areas with planned infrastructure improvements or emerging tourism potential, particularly in North Bali and inland locations.
The geographic separation reflects different investment strategies, with foreigners seeking immediate rental returns and locals banking on long-term development and appreciation in currently undervalued areas.
What are the main risks and regulations to consider if you want to buy now?
Title clarity represents the primary risk in Bali property investment, with complications arising from unclear freehold versus leasehold arrangements and proper land certification.
1. **Foreign ownership restrictions** requiring legal entity structures (PT PMA) with associated compliance costs and renewal requirements2. **Off-plan developer risks** including construction delays, quality issues, and potential project abandonment in the current development boom3. **Tax obligations** including BPHTB (5%) and PPH (2.5%) on purchases, plus ongoing property taxes and rental income reporting4. **Building permit complexities** with strict local regulations and potential changes affecting development rights5. **Regulatory uncertainty** around short-term rental policies and potential tourism-related restrictionsLegal fees typically range 1-2.5% of purchase price, and buyers should engage local legal counsel with experience in foreign property ownership structures. Due diligence becomes critical given the rapid market growth and increased development activity.
It's something we develop in our Indonesia property pack.
Which strategies—living, renting out, or reselling—make the most sense in today's market?
Short-term rental in tourist hotspots currently delivers the highest return on investment, with properties in Canggu, Seminyak, and Uluwatu achieving 8-15% gross yields and strong occupancy rates.
Long-term lease strategies work better in expatriate-focused areas like Sanur and Jimbaran, though yields are declining as digital nomad patterns shift. These locations offer more stability but lower returns compared to tourism-focused short-term rentals.
Land banking remains viable in emerging areas like Seseh and Kedungu, though this strategy requires longer investment horizons and may take years to monetize through development or resale.
Mixed-use rental strategies that serve both short-term tourists and medium-term visitors (1-3 months) provide risk mitigation and steady income flow. This approach works particularly well for 2-3 bedroom villas that can accommodate different guest types throughout the year.
If you had to choose one area and one property type today, where would you position yourself for the next 3 to 5 years?
A compact 1-2 bedroom villa in Canggu represents the optimal balance of liquidity, yield potential, and appreciation prospects for the next 3-5 years.
Canggu offers the best combination of established tourism infrastructure, digital nomad appeal, and continued development potential. The area maintains strong rental demand across both short-term and medium-term markets while providing good resale liquidity.
Alternative positioning in Uluwatu for luxury-focused investors or Seseh for value-oriented buyers offers upside potential as tourism patterns evolve toward wellness and eco-friendly properties. These emerging areas provide higher risk but potentially greater rewards.
Property selection should prioritize modern design, efficient layouts, and professional management capability to maximize rental performance in Bali's competitive short-term rental market.
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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.
The Bali property market in 2025 presents compelling opportunities for investors with proper research and local expertise.
Success requires understanding location-specific dynamics, regulatory requirements, and current market trends that favor short-term rental strategies in tourist zones.
Sources
- Bali Villa Realty - Cost of Property in Bali
- BambooRoutes - Bali Price Forecasts
- BambooRoutes - Bali Rental Yield
- BambooRoutes - Average Price House Bali
- Bukit Vista - Bali Rental Market Decline 2025
- BambooRoutes - Bali Property Market Trends
- Excel Bali - Property Market Expectations 2025
- Independent Australia - Bali Property Price Changes