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 property market? Curious about the emerging trends that could shape your investment decisions by 2025? Want to know which areas are set to boom and what factors are driving these changes?
We will lay down recent insights, providing you with a clear picture of the future landscape. Ici no guesswork, we rely only on solid data to guide your property investment journey.
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) Investors will flock to North Bali for affordable real estate options
North Bali is becoming a hotspot for investors seeking more affordable property options.
With property prices skyrocketing in South Bali, especially in areas like Seminyak and Canggu, investors are now turning their attention to North Bali. These southern areas have become less accessible for budget-conscious buyers, prompting a shift towards the north.
Infrastructure development is another big draw. The upcoming Gilimanuk-Mengwi Toll Road and the proposed North Bali Airport are set to dramatically improve accessibility. These projects are expected to boost tourism and economic activities, making North Bali a more attractive investment destination.
The Indonesian government is also playing a role by promoting tourism in North Bali. Initiatives like the toll road connecting North and South Bali aim to unlock the region's untapped potential. This increased connectivity is likely to draw more tourists and investors alike.
Foreign investors are showing growing interest in North Bali, where land prices are significantly lower than in hotspots like Canggu or Seminyak. This makes it an appealing option for those looking to enter Bali’s property market without high upfront costs. Real estate market reports indicate higher growth rates in North Bali, with expected annual appreciation rates of 10–15%, which is attractive for investors seeking long-term gains.
Sources: Synergy Pro, Travel and Tour World, Bukit Vista
2) Affordable housing prices will stay stable with minor increases
Demand for affordable housing in Bali is rising, attracting both locals and expats.
Thanks to the Indonesian government's push for affordable homes, millions of housing units are planned annually, including many subsidized options. This effort keeps the market steady, ensuring a reliable supply of affordable homes.
With Indonesia's economy on solid ground, property prices in Bali's affordable segment remain stable. A strong job market and consistent economic conditions keep the demand for housing steady.
Historical trends show that affordable housing prices in Bali have seen minimal fluctuations. This is due to strategic planning by developers and increased infrastructure investment, making these areas more accessible and appealing.
Surveys indicate a strong preference for affordable housing, with many actively seeking such options. This demand is crucial for maintaining stable prices in the market.
Rental yields in the affordable sector are consistent, suggesting these properties are not only in demand but also provide a stable income for investors. This is key to keeping property prices stable over time.
Sources: BaliPod, BaliPod Forum, Real Wealth, ILA Global Consulting
Everything you need to know is included in our Real Estate Pack for Bali
3) Online property platforms simplify buying for international investors in Bali
Online property platforms are revolutionizing how international investors buy property in Bali.
In 2023, Bali saw a surge in foreign tourists, with numbers climbing over a million, which in turn boosted property transactions significantly. This influx of visitors is expected to continue into 2024, creating a stable and attractive property market for investors.
The demand from international buyers grew rapidly in 2023, and it's only expected to pick up speed in 2024. This is largely thanks to policy changes that have simplified online transactions, making it easier for investors to purchase property from afar.
Technology has been a game-changer in this shift. With virtual reality, potential buyers can now take virtual tours of properties, allowing them to assess spaces without the need to travel. This innovation has made the process more convenient and appealing.
Blockchain technology has also played a crucial role by ensuring secure and transparent transactions. This reduces the risk of fraud and errors, making the buying process smoother for international investors.
These technological advancements have made online platforms the go-to choice for many, offering a streamlined and efficient way to invest in Bali's property market. Investors are finding these platforms not just convenient, but essential in navigating the real estate landscape.
Sources: The Bali Sun, Bali Exception, Tech Bullion
4) Chinese investors will strongly renew their interest in Bali's real estate market
Chinese investors are likely to show renewed interest in Bali's real estate market for several reasons.
First off, Bali is becoming a hotspot for Chinese tourists. In 2023, 707,000 Chinese tourists visited Bali, and the Ministry of Tourism is aiming to boost this number to 1.5 million in 2024. This surge in visitors often sparks interest in local real estate, as tourists look to invest in vacation homes or rental properties.
Traveling to Bali has never been easier for Chinese tourists, thanks to an increase in direct flights. Ngurah Rai Airport has teamed up with 13 airlines to offer direct routes from China to Indonesia, making Bali more accessible for both tourists and potential investors. This convenience is a big draw for those considering property investments.
China's growing middle class is also playing a role. With more disposable income, these investors are eager to diversify their portfolios internationally. Bali's real estate market is particularly appealing, offering a mix of luxury and affordability. The Indonesian government is sweetening the deal with various incentives to attract foreign property investment, which could further entice Chinese investors.
Moreover, Bali's real estate market is booming, driven by foreign investment and tourism growth. This trend is catching the eye of Chinese investors who are keen to capitalize on the island's rising property values. The combination of a thriving tourism sector and a robust real estate market makes Bali an attractive option for those looking to invest abroad.
With these factors in play, it's no wonder that Chinese investors are setting their sights on Bali. The island offers a unique blend of cultural allure, economic opportunity, and investment potential, making it a prime destination for those looking to expand their real estate portfolios.
Sources: Social Expat, The Bali Sun, Bali Management Villas
5) Mid-range property prices will rise steadily with new developments completing
Mid-range property prices in Bali are set to grow moderately as new developments wrap up.
In hotspots like Canggu, Ubud, and Uluwatu, there's a buzz of construction activity. These areas are magnets for expatriates and digital nomads, who are on the lookout for practical living and working spaces. The influx of these groups is driving demand, making these regions particularly appealing for property investment.
The government is rolling out incentives to attract foreign investment in real estate, making it easier for international buyers to own a slice of paradise. This has sparked more interest in mid-range properties, as investors eye a market that's both stable and appreciating. Property values in Bali have been climbing steadily, with a 7% annual increase over the past five years, showcasing a reliable growth trend.
Bali's booming tourism industry is another factor pushing up rental yields. As international arrivals are expected to bounce back to pre-pandemic levels by 2025, the demand for short-term rentals is on the rise. This surge in tourism is a boon for mid-range property prices, as more visitors mean more potential renters.
Infrastructure is getting a facelift too, with better roads and public transport making properties more accessible. These improvements not only enhance the appeal of living in these areas but also make them more desirable for potential buyers. Accessibility is a key factor in property attractiveness, and Bali is ticking that box.
Sources: Ilot Property Bali, Oxo Living, Bali Coconut Living
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6) Bali property prices will stabilize after rapid growth
Bali's property market is showing signs of stabilizing after a period of rapid growth.
One reason for this is the slowing pace of property price increases. While prices are still going up, they're not climbing as fast as before, hinting at a more balanced market. This is good news for potential buyers who might have been worried about skyrocketing costs.
New developments are popping up all over, thanks to projects like the Gilimanuk to Denpasar toll road, which is making it easier to get around. This improved accessibility is expected to attract more buyers, helping to balance out supply and demand, which is key to keeping prices steady.
The government is also stepping in with regulations to curb property speculation, aiming to prevent market bubbles. These measures, along with a stable local economy reflected in Bali's GDP growth of 3.60% in 2023, are creating a more sustainable market environment.
Buyers are becoming more cautious, partly due to affordability concerns, which could lead to more selective purchasing. This shift, along with decreased foreign investment due to global uncertainties, might help balance the market by reducing the influx of new buyers.
Rental yields are stabilizing or even decreasing, suggesting that rental income isn't keeping pace with property prices. This could be a sign of market stabilization, as sellers adjust prices in response to increased competition. Changes in tourism patterns are also affecting property demand, with the recent surge in visitors expected to level off.
Sources: ILA Global Consulting, Exotiq Property, Bukit Vista
7) Seminyak rental yields will stabilize with market maturity
In Seminyak, property prices have surged in 2023 and 2024, with costs now between $5,000 and $5,500 per square meter.
Looking ahead, experts predict another 5% to 10% increase in property prices by 2025. As prices climb, rental yields tend to stabilize because higher entry costs lead to more strategic investments.
The Seminyak market is buzzing with rental properties, creating a competitive scene for landlords. This competition often results in stabilized rental yields as landlords tweak their pricing to attract tenants.
In mature markets, like Seminyak, increased competition among landlords helps balance rental income, ensuring that rental yields remain steady despite the influx of properties.
Recent government regulations have made it easier for international investors to buy property in Bali. These changes are designed to ensure fair practices, contributing to a more stable rental market.
As the market matures, these regulations help maintain a level playing field, further stabilizing rental yields, making Seminyak an attractive option for savvy investors.
Sources: Oxoliving, Bali Coconut Living, Propnex
8) Canggu rental yields will rise as the area gains popularity with long-term renters
Rental yields in Canggu are on the rise as the area gains popularity with long-term renters.
In January 2024, occupancy rates for one-bedroom accommodations hit 83.24%, showing strong demand for short-term rentals. This trend hints at a spillover into the long-term market. Foreign tourists are also staying longer, especially in February, March, and December 2024, which suggests a shift towards extended stays. This change in behavior could mean more people opting for long-term rentals, boosting rental yields.
Property values in Canggu have jumped by 10-15% since last year, reflecting increased investment and demand. This rise attracts more investors and long-term renters. The average rental yield for vacation properties can reach up to 15%, which is higher than in other areas, highlighting Canggu's potential for profitable returns.
New developments surged by 54% in 2023, showing confidence in Canggu’s future as a tourist hotspot. This expansion suggests a growing demand for long-term rentals. Bali's tourism is steadily recovering, with international arrivals expected to hit pre-pandemic levels by 2025, leading to higher demand for both short-term and long-term rentals.
Sources: Oxo Living, Better Place, PropNex
Everything you need to know is included in our Property Pack for Bali
9) Ubud rental yields will drop as demand moves to other areas
Ubud's property prices have been climbing, making it tougher for renters to afford living there.
As Ubud becomes pricier, fewer people can afford to rent, which means demand is dropping. Meanwhile, places like Canggu and Seminyak are buzzing with new developments. These areas are not just growing; they're offering fresh properties that are pulling renters away from Ubud.
Take Seminyak, for instance. It's not just about new buildings; Seminyak is earning more per property listing than Ubud, showing its strong market appeal. This shift is significant because it highlights where renters are choosing to spend their money.
Infrastructure is another game-changer. Canggu and Seminyak are seeing improvements that make them more attractive to both tourists and locals. Better roads and facilities mean these areas are becoming more livable and appealing, drawing attention away from Ubud.
There's also a growing digital nomad scene in Canggu and Seminyak. These communities are vibrant and offer a lifestyle that many find appealing. Digital nomads are flocking to these areas, preferring them over Ubud for their work-life balance.
With all these changes, it's clear that Ubud might see a dip in rental yields as demand shifts. Renters are looking for more value, and they're finding it in these up-and-coming areas.
Sources: ILA Global Consulting, The Bali Sun, Best Bali Villas, Bali Management Villas
10) Sanur rental yields will rise as retiree interest grows
Sanur is gaining popularity among retirees, which is expected to slightly boost rental yields.
In recent years, there's been a noticeable uptick in property interest from retirees in Sanur. This is partly because Bali is now a top retirement spot in Asia, drawing those looking for a peaceful place to settle. The real estate market in Bali is on the rise, with a projected annual growth rate of 5.82% from 2023 to 2028, driven by demand for luxury homes like high-end townhouses and beachfront properties.
Sanur offers a tranquil, family-friendly environment, making it perfect for retirees who want a relaxed lifestyle. The area boasts modern healthcare facilities, shopping centers, and diverse dining options, all contributing to a comfortable retirement. These amenities are part of why Sanur is becoming a hot spot for retirees, which is likely to lead to higher rental yields.
Retirees are particularly drawn to Sanur's serene atmosphere and the promise of a laid-back lifestyle. The combination of beautiful beaches and a welcoming community makes it an attractive choice. As more retirees choose Sanur, the demand for rental properties is expected to rise, nudging rental yields upward.
Insider knowledge suggests that Sanur's real estate market is poised for growth due to its appeal to retirees. The area's charm and amenities are key factors in this trend. With more retirees eyeing Sanur, property owners might see a slight increase in rental income.
For those considering investing in Sanur, the growing retiree interest is a promising sign. The area's blend of tranquility and modern conveniences makes it a desirable location. As this trend continues, rental yields are likely to experience a modest boost.
Sources: The Bali Sun, Anta Group, Bali Kit
11) Demand for properties with wellness amenities in Bali will surge due to the wellness and health trend
The demand for properties with wellness amenities is on the rise.
In recent years, the global wellness tourism market has been booming, with projections indicating it could surpass $1 trillion by 2024. This surge is driven by a growing interest in wellness-focused travel and living, with an impressive annual growth rate of 16.6% expected over the next five years. People are increasingly seeking destinations that offer a blend of relaxation and health benefits.
Take Bali, for instance. This island paradise has seen a noticeable uptick in luxury wellness resorts. These places aren't just about pampering; they offer comprehensive health and relaxation programs that mix modern amenities with traditional wellness practices. It's no wonder Bali is becoming a hotspot for those looking to rejuvenate both body and mind.
On a broader scale, the wellness real estate market is also experiencing significant growth. From 2019 to 2023, it expanded from $225.2 billion to $438.2 billion. This trend is expected to continue, with a projected annual growth rate of 15.8% from 2023 to 2028. More and more people are looking for homes that support a healthy lifestyle, which is driving this demand.
Investing in properties with wellness amenities isn't just about luxury; it's about meeting a growing consumer preference for health-focused living environments. As people become more health-conscious, they're seeking homes that offer features like yoga studios, meditation gardens, and spa facilities.
For those considering buying property, this trend towards wellness and health is something to keep an eye on. It's not just about owning a home; it's about investing in a lifestyle that prioritizes well-being.
Sources: Global Wellness Institute, The Agency Bali, Global Wellness Institute
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12) Remote work surge will boost long-term rentals in popular Bali areas
Remote work has surged in recent years, especially in 2023 and 2024.
By August 2024, 22.8% of US employees were working remotely at least part-time, which means over 35 million people. This isn't just a US trend; globally, 91% of employees prefer remote work in some capacity.
With remote work on the rise, places like Bali are becoming hotspots for digital nomads. Local real estate agents in Bali have noticed a growing demand for long-term rentals as more remote workers flock to the island. The cost of living for a digital nomad in Bali is around $1,500 to $2,000 a month, indicating a need for stable housing.
Bali has seen a 40% increase in digital nomads compared to 2023. This is partly due to the Indonesian government's digital nomad visa, which makes it easier for remote workers to live and work there legally. The island's charm is boosted by its beautiful beaches, rich culture, and over 150 coworking spaces catering to freelancers and entrepreneurs.
These coworking spaces are not just offices; they are vibrant communities where remote workers can connect and collaborate. The combination of affordable living, a supportive community, and a stunning environment makes Bali a top choice for those seeking a balance between work and leisure.
Sources: Backlinko, Body Factory Property, We Are Synergy Pro
13) Aging population boosts demand for accessible senior-friendly housing
Life expectancy in Indonesia has climbed to over 71 years, meaning people are living longer and their housing needs are evolving.
In Bali, retirees are flocking to the island, attracted by its warm climate and laid-back lifestyle. This trend is creating a surge in demand for homes with accessibility and safety features tailored to older adults.
Communities like Hovi Assisted Saba in Bali are popping up, focusing on providing comprehensive care for seniors. These places are designed to offer services like assisted living and dementia care, meeting the unique needs of the elderly.
The Indonesian government is stepping up with programs to support the aging population, including promoting age-friendly infrastructure. This shows a strong commitment to developing senior-friendly housing that meets the needs of older adults.
For those considering buying property in Indonesia, especially in Bali, it's worth noting this shift towards senior-friendly living. The growing demand for accessible housing is shaping the real estate market, making it a potentially lucrative investment.
As the population ages, the need for homes that cater to seniors will only increase, making now a strategic time to invest in properties that offer these features. Investing in senior-friendly housing could be a smart move as the demand continues to rise.
Sources: Database Earth, Hovi Care, ANTARA News
14) Canggu demand will skyrocket as it becomes a top digital nomad hub
The Canggu area is becoming a hotspot for digital nomads, drawing in more remote workers than ever before.
In 2024, Bali saw a significant rise in digital nomads, with a 40% increase compared to the previous year. This boom is largely thanks to Indonesia's new digital nomad visa, which makes it easier for remote workers to settle in Bali for extended periods. Canggu, in particular, is benefiting from this influx.
Canggu is now a major hub for coworking spaces, boasting over 150 such spaces across Bali as of 2024. These aren't just places to work; they're vibrant communities where freelancers and entrepreneurs can connect. The area’s high-speed internet and improved infrastructure make it even more appealing for those looking to work remotely.
The demand for short-term rentals in Canggu is on the rise, reflecting its growing popularity. The area offers a range of accommodations, from luxury villas to budget-friendly guesthouses, catering to diverse needs and budgets. This variety makes it an attractive option for digital nomads seeking both comfort and affordability.
Local businesses are thriving due to the influx of digital nomads. Cafes with free Wi-Fi and coworking spaces are popping up everywhere, enhancing Canggu's reputation as a digital nomad haven. This boom in local enterprises is a testament to the area's growing appeal.
With its vibrant community and supportive infrastructure, Canggu is set to continue its rise as a digital nomad destination. The combination of work-friendly amenities and a welcoming atmosphere makes it a top choice for remote workers.
Sources: Love and Road, Body Factory Property
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15) Luxury property prices in Bali will keep rising due to limited supply and high demand
Luxury property prices in Bali are climbing, and this trend is set to continue.
From 2023 to 2024, the price index for luxury properties surged, driven by a strong demand from international buyers. In 2024 alone, there was a 14% increase in property purchase applications, highlighting the island's appeal. Bali's allure lies in its stunning beachfronts and scenic spots, which are in short supply. These prime locations are highly coveted, and government regulations have restricted new developments, making them even rarer.
Luxury villas with private pools and modern amenities are particularly popular, leading to high occupancy rates in luxury rentals. This popularity translates into higher rental incomes, which in turn pushes property prices up. Affluent expatriates and retirees are drawn to Bali, seeing it as a luxury lifestyle and investment hub. This influx of interest keeps the demand robust.
With limited new developments, the existing luxury properties become even more valuable. The scarcity of prime real estate, combined with the island's natural beauty and lifestyle appeal, ensures that prices will keep rising. For those considering buying property in Bali, understanding these dynamics is crucial.
Sources: Bali Exception Market Insight, Bali Exception News, Tranio, Hospitable
16) Denpasar's central location drives strong demand for affordable housing
Denpasar is becoming a hotspot for affordable housing due to its strategic location and growing population.
With a population expected to hit 1,075,240 by 2024, Denpasar is seeing more people moving in, naturally boosting the demand for homes. This growth is part of a larger trend, as Bali's urban areas are expanding rapidly, with a 1.9379% growth rate in 2023. People are flocking to cities like Denpasar, drawn by its central position and improved infrastructure.
Denpasar's appeal is further enhanced by government projects like the Gilimanuk-Medewi Toll Road, which makes getting around easier and faster. This connectivity is a big draw for those looking to settle in a place that offers both convenience and opportunity. The city's central location means residents have quick access to amenities, jobs, and services, making it a top choice for homebuyers.
Surveys consistently show that people prefer living in central areas for better access to everything they need. Denpasar fits this bill perfectly, offering a lifestyle that combines convenience with quality. The city is also seeing a boom in educational and healthcare facilities, which not only supports its growing population but also makes it a more attractive place to live.
These developments are not just about numbers; they reflect a real shift in how people are choosing to live. As Denpasar continues to grow, its demand for housing is likely to keep rising, driven by its central location and the lifestyle it offers. The city's ongoing expansion in infrastructure and services is a key factor in this trend.
Sources: World Population Review, The Bali Sun, Trading Economics
17) New roads will greatly enhance access to previously unreachable areas in Bali
The Indonesian government is pouring US$25.5 billion into infrastructure by 2025, focusing heavily on road projects.
In Bali, the spotlight is on the Jagat Kerthi Bali Toll Road, a major project connecting Gilimanuk and Mengwi. This 96-kilometer stretch is on the national strategic projects list, aiming to boost connectivity across the island by 2025. Imagine cutting down your travel time significantly, making it a breeze to explore different parts of Bali.
Once the Gilimanuk-Mengwi toll road wraps up in 2024, expect to zip from Gilimanuk to Mengwi in just an hour. This means quick access to the western ferry port, easing traffic jams during busy times. It's all part of a bigger plan to enhance connectivity and accessibility nationwide.
These road projects are not just about convenience; they open up previously hard-to-reach areas, making them more accessible for potential property buyers. With improved roads, you can explore hidden gems and invest in places that were once off the beaten path.
For those eyeing property in Bali, these developments mean more than just shorter travel times. They represent a chance to tap into new opportunities in areas that are now within easy reach. The improved infrastructure could also lead to a rise in property values, making it a smart investment move.
So, if you're considering buying property in Bali, keep an eye on these infrastructure projects. They could be the key to unlocking new potential in the region, offering both convenience and investment opportunities.
Sources: Antara News, The Bali Sun, Mongabay
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.