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Bali's property market is experiencing dramatic growth in 2025, with villa prices jumping 50% in popular areas like Canggu and Seminyak. Rental yields can reach 8-15% for well-positioned villas, but foreign ownership restrictions and varying appreciation rates across different regions require careful consideration before investing.
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.
Bali property prices vary dramatically by location, with prime beachside areas commanding $300,000-$1,000,000 for villas while inland areas like Ubud start from $200,000.
Short-term rental yields in tourist hotspots can reach 8-15%, significantly outperforming long-term rentals at 4-8%, though foreign ownership is limited to leasehold arrangements.
| Area | Villa Price Range | Rental Yield | Growth Trend |
|---|---|---|---|
| Canggu/Seminyak | $300,000 - $1,000,000 | 8-15% | High appreciation |
| Uluwatu | $180,000+ | 9-10% | Strong growth |
| Ubud | $200,000 - $600,000 | 4-8% | Moderate growth |
| Sanur/Nusa Dua | $150,000 - $400,000 | 5-9% | Steady appreciation |
| Tabanan | $100,000 - $300,000 | 4-7% | Slower growth |
| North Bali (Lovina) | $120,000+ | 4-7% | Limited appreciation |
| Amed | $120,000+ | 4-7% | Stagnating |
Fact-checked and reviewed by our local expert
Daniel Rouquette 🇫🇷
CEO & Co-Founder at Villa Finder
How much does property cost in Bali right now by area and property type?
As of September 2025, Bali property prices show dramatic variations across different regions and property types.
Villa prices in prime beachside areas like Canggu and Seminyak range from $300,000 to $1,000,000 for mid-sized properties, with luxury villas exceeding $1 million. Ubud offers more affordable villa options between $200,000 and $600,000, while Sanur and Nusa Dua properties typically cost $150,000 to $400,000.
Entry-level villas with 1-2 bedrooms start from $100,000 to $300,000 depending on location. In developing areas like Tabanan, villa prices range from $100,000 to $300,000, offering better value for money.
Land prices per square meter vary significantly: prime locations in Canggu, Seminyak, and Uluwatu command $1,000 to $2,000 per sqm, while developing areas like Ubud and Pererenan cost $300 to $800 per sqm.
Apartments and studios in popular areas like Canggu and Seminyak cost between $70,000 and $180,000, with Ubud apartments starting from $60,000.
What's the difference in short-term vs medium-term vs long-term price growth across Bali?
Bali's property market has experienced explosive short-term growth, with average villa prices jumping from $321,000 to $484,000 in just one year - a remarkable 50% increase.
Medium-term price appreciation over the past 5 years has averaged 7% annually across most areas, though hotspot locations like Canggu and Seminyak have significantly outperformed this average. These prime beachside areas have seen compound annual growth rates exceeding 10-15%.
Long-term trends over 10+ years show consistent appreciation in established beachside areas, with properties in Canggu, Seminyak, and Uluwatu delivering strong compounded returns. However, outlying rural regions and northern coastal areas have lagged behind the overall market performance.
The acceleration in price growth reflects increased international attention, limited land availability in prime areas, and growing tourism and digital nomad populations choosing Bali as their base.
It's something we develop in our Indonesia property pack.
Which areas in Bali are showing the fastest appreciation, and which ones are stagnating?
The fastest appreciating areas in Bali are concentrated in the southern peninsula and popular beach towns.
Canggu leads the appreciation race, particularly the Berawa and Pererenan sub-areas, which have seen property values double in some cases over the past two years. Uluwatu Peninsula continues showing strong growth, driven by luxury villa developments and stunning clifftop locations.
Seminyak remains a consistent high-performer, though price growth has moderated slightly due to already elevated values. The area attracts premium buyers and generates strong rental income, supporting continued appreciation.
Areas showing moderate or slower growth include Ubud, which appeals more to lifestyle buyers seeking tranquility rather than investment returns. The central location offers cultural immersion but limited rental yield potential compared to beach areas.
Stagnating regions include Amed on the east coast and northern areas like Lovina, where tourism infrastructure remains underdeveloped and foreign buyer interest is minimal.
What are the rental yields in the main areas, broken down by property type?
| Area | Property Type | Gross Yield Range | Typical Price Range |
|---|---|---|---|
| Canggu/Seminyak | 2-3 Bedroom Villa | 8-15% | $200,000 - $400,000 |
| Canggu/Seminyak | Apartment/Studio | 10-12% | $70,000 - $180,000 |
| Uluwatu | 2-3 Bedroom Villa | 9-10% | $180,000+ |
| Ubud | 2-3 Bedroom Villa | 4-8% | $150,000+ |
| Ubud | Apartment | 6-9% | $60,000+ |
| Amed/Lovina | 2-3 Bedroom Villa | 4-7% | $120,000+ |
| Sanur/Nusa Dua | Apartment | 6-8% | $80,000 - $150,000 |
How does short-term rental performance compare to long-term rental income?
Short-term rentals consistently outperform long-term rental arrangements in Bali's tourist-driven market.
Short-term rentals through platforms like Airbnb and Villa Finder can achieve gross yields of 8-15% in prime areas, particularly for well-managed villas in Canggu, Seminyak, and Uluwatu. These properties benefit from high tourist demand and premium daily rates during peak seasons.
Long-term rental yields typically range from 4-8%, offering more stability but significantly lower returns. Long-term tenants in Bali are often expatriates or digital nomads seeking 6-12 month agreements, providing consistent income but limited upside potential.
Operating costs for short-term rentals are higher, including management fees (10-20% of rental income), frequent cleaning, utilities, and marketing expenses. These costs typically reduce gross yields by 2-5 percentage points.
Seasonal variations significantly impact short-term rental performance, with July-August and December-January commanding premium rates, while April-May and September-November see reduced occupancy and lower daily rates.
What are the typical entry budgets for apartments, villas, and land plots in different regions?
Entry budgets vary dramatically across Bali's diverse regions and property types.
Apartments offer the lowest entry point, with studios in prime areas like Canggu and Seminyak starting from $70,000. One-bedroom apartments typically cost $90,000-$120,000, while two-bedroom units range from $140,000-$180,000 in these popular locations.
Villa investments require significantly higher capital, with entry-level 1-2 bedroom villas starting from $100,000-$150,000 in less central areas like Tabanan or northern Bali. Prime beachside locations demand $200,000-$400,000 for quality 2-3 bedroom villas with good rental potential.
Land purchases offer flexibility for custom development, with plots starting from $30,000-$100,000 in developing or rural areas. Prime beachside land costs $1,000-$2,000 per square meter, meaning a standard 500-1000 sqm plot requires $500,000-$2,000,000.
Additional costs include legal fees (1-2.5% of purchase price), furnishing ($10,000-$50,000 for rental-ready properties), and initial setup expenses for utilities and permits.
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How much ongoing maintenance, tax, and legal costs should you expect each year?
Annual ownership costs in Bali include several mandatory and optional expenses that significantly impact investment returns.
Property tax (PBB) ranges from 0.2% to 0.5% of the government-assessed land and building value, typically resulting in annual payments of $300-$800 for mid-sized villas. Luxury properties may face additional luxury tax of 10-20% of the assessed value.
Property management for rental properties costs 10-20% of gross rental income, covering guest services, maintenance, cleaning, and marketing. Self-managed properties still require cleaning services, utilities, and periodic maintenance.
Insurance costs range from $500-$2,000 annually depending on property value and coverage level. Comprehensive coverage including natural disaster protection is recommended given Bali's tropical climate and seismic activity.
Legal compliance costs include business registration for rental operations, regular permit renewals, and tax filings. Short-term rental operations require business entity registration and local licensing, with tax obligations of 10% through licensed operators or 20% for direct private rentals.
How easy is it to resell property in Bali, and what's the average resale timeline?
Property liquidity in Bali varies significantly by location, property type, and market conditions.
Popular tourist areas like Canggu, Seminyak, and Uluwatu typically see properties sell within 3-12 months when priced appropriately. Turn-key furnished villas and well-located apartments in these areas attract the most buyer interest.
Rural properties, vacation homes in remote locations, or properties in northern and eastern Bali may take 1-2 years to sell. These areas have limited buyer pools and less developed infrastructure.
Factors affecting resale speed include property condition, legal structure clarity, proximity to beaches or tourist attractions, and whether the property generates rental income. Branded residences and properties with established rental track records sell faster.
Foreign ownership restrictions impact resale values, particularly for leasehold properties where remaining lease terms affect buyer willingness to pay premium prices. Properties with shorter remaining lease terms may face significant value discounts.
It's something we develop in our Indonesia property pack.
Which areas attract the most buyers for living versus renting out versus reselling?
Different areas of Bali attract distinct buyer profiles based on their investment and lifestyle objectives.
Living-focused buyers gravitate toward Ubud, Sanur, and Jimbaran for their quieter, family-oriented environments. These areas offer cultural immersion, established expat communities, and proximity to international schools and healthcare facilities.
Rental investment buyers concentrate on Canggu, Seminyak, Berawa, and Uluwatu due to strong tourist and digital nomad demand. These beachside locations generate consistent short-term rental income and maintain high occupancy rates throughout the year.
Resale-focused investors target Canggu and Seminyak for property flipping opportunities, capitalizing on rapid appreciation and strong buyer demand. Developing areas like Umalas and parts of Bukit Peninsula offer potential for value-add renovations and quick resales.
Budget-conscious buyers explore North Bali and Amed for lower entry costs and potential long-term value appreciation, though these areas offer limited rental income potential and slower resale markets.
Mixed-use buyers often choose Pererenan and outer Canggu areas, balancing lifestyle appeal with rental income potential and reasonable purchase prices.
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.
What government rules or foreign ownership restrictions could impact your investment horizon?
Foreign property ownership in Indonesia operates under strict legal frameworks that significantly impact investment strategies.
Foreigners cannot own freehold ("Hak Milik") title to Indonesian land or property. All foreign ownership must occur through alternative legal structures with specific limitations and requirements.
Leasehold arrangements are the most common option, typically offering 25-31 year initial terms with renewal possibilities. However, lease renewals are not guaranteed and depend on landowner agreement and changing regulations.
"Hak Pakai" (right-to-use) permits are available under certain conditions, primarily for personal occupation rather than investment purposes. These rights typically last 25 years with potential extensions.
PT PMA (foreign-owned company) structures allow property ownership but require minimum capital investment of approximately $700,000 and ongoing compliance obligations including annual reporting and tax filings.
Short-term rental regulations require business entity registration and local licensing. Tax obligations include 10% when operating through licensed management companies or 20% for direct private rental arrangements.
Zoning restrictions limit where properties can be built or legally operated as rentals, making due diligence essential before purchase.
If you want to buy now, what's the best positioning by budget, property type, and location?
Optimal property positioning in Bali depends on budget constraints, investment objectives, and risk tolerance.
High-growth strategy buyers with $400,000+ budgets should focus on Canggu, Pererenan, and Uluwatu for short-term rentals and capital appreciation. These areas offer the strongest combination of rental yields (8-15%) and price growth potential.
Entry-level investors with $100,000-$300,000 should consider Ubud, Tabanan, or northern coastal areas for lower acquisition costs and moderate long-term appreciation potential. These areas suit buy-and-hold strategies rather than immediate rental income.
Mid-market investors ($200,000-$400,000) should target managed apartments or 2-3 bedroom villas in tourist corridors, focusing on turn-key properties with established rental management and proven income streams.
Lifestyle buyers prioritizing personal use should focus on Ubud and Sanur for cultural immersion and family-friendly environments, accepting lower rental yields in exchange for livability factors.
Rental-focused investors should secure well-managed villas or apartments in proven tourist areas, prioritizing properties with strong booking histories and professional management arrangements.
It's something we develop in our Indonesia property pack.
Based on all these factors, in what scenarios does buying in Bali make financial sense today?
Buying property in Bali makes financial sense under specific conditions and investor profiles as of September 2025.
The investment becomes attractive when buyers have clear legal structures in place, whether through leasehold arrangements or PT PMA company formation, with full understanding of the associated restrictions and renewal risks.
Short-term rental investors in prime areas can achieve 8-15% gross yields, making purchases financially viable when combined with property appreciation. However, this requires professional management, consistent marketing, and adequate reserves for maintenance and vacancy periods.
Long-term holding periods of at least 5-8 years are essential to maximize capital appreciation and absorb upfront costs including legal fees, taxes, and furnishing expenses. Shorter holding periods rarely generate positive returns after transaction costs.
Low leverage approaches work best since refinancing options are limited for foreign buyers. Cash purchases or minimal borrowing reduce financial risk and improve investment returns.
Adequate financial buffers are crucial for annual taxes, maintenance costs, management fees, and potential occupancy gaps. Properties require 15-25% of purchase price in additional capital for setup and first-year operations.
Buying makes most sense for lifestyle-rental hybrid buyers who can personally use the property while generating rental income during absence periods, maximizing both personal enjoyment and financial returns.
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.
Bali's property market in 2025 presents compelling opportunities for informed investors willing to navigate foreign ownership restrictions and focus on high-demand tourist areas.
Success requires careful area selection, proper legal structuring, adequate capital reserves, and realistic expectations about yields, holding periods, and market risks.
Sources
- Bali Villa Realty - Cost of Property in Bali
- ORA Properties - Top 10 Areas to Buy Villas
- BambooRoutes - Bali Rental Yield Analysis
- SAS Bali - 2025 Real Estate Trends
- Exotiq Property - Bali Investment Analysis
- Neginski - Legal Options for Foreign Buyers
- Ilot Property Bali - Foreign Property Ownership
- Invest Land Bali - 2025 Market Trends
- Anta Group - Bali Property Investment Guide
- Mercury Estate - Property Costs and ROI