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
Bali's property market is experiencing unprecedented growth in 2025.
Property prices have surged significantly across the island, with apartments averaging $3,400 per square meter and houses at $2,000 per square meter. Prime areas like Canggu, Seminyak, and Berawa are leading this growth with annual increases of 10-20%, driven by strong tourism recovery and increasing demand from digital nomads and international investors.
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Bali's property market shows robust growth with average apartment prices at $3,400/sqm and houses at $2,000/sqm as of September 2025.
Short-term rental demand is driving investment activity, with prime areas experiencing 10-20% annual price increases and villa yields reaching 12-20%.
| Property Type | Average Price per sqm | Annual Growth Rate | Rental Yield Range |
|---|---|---|---|
| Apartments | $3,400 | 10-15% | 8-12% |
| Houses/Villas | $2,000 | 15-20% | 12-20% |
| Prime Areas (Canggu/Seminyak) | $4,500-5,500 | 20-25% | 15-25% |
| Emerging Areas (Tabanan) | $1,500-2,500 | 30-40% | 10-18% |
| North/East Bali | $1,200-2,000 | 25-35% | 8-15% |
| Uluwatu Peninsula | $3,000-4,200 | 18-22% | 12-18% |
| Ubud Area | $2,200-3,200 | 12-18% | 10-16% |
Fact-checked and reviewed by our local expert
Daniel Rouquette 🇫🇷
CEO & Co-Founder at Villa Finder
What's the current average property price per square meter in Bali, and how does it compare to last year?
As of September 2025, the average property price per square meter in Bali stands at $3,400 for apartments and $2,000 for houses.
These figures represent a dramatic increase from early 2024, when villa prices averaged around $321,000 and have now risen to $484,000. This translates to annual growth rates of 10-20% across most property categories.
Prime areas like Canggu, Seminyak, and Berawa are driving this surge, with some premium locations seeing price per square meter reach $4,500-5,500. The growth has been particularly pronounced in the villa segment, where foreign investor demand and tourism recovery have created intense competition for limited inventory.
Compared to regional markets, Bali's price appreciation outpaces most Southeast Asian destinations, reflecting the island's unique position as both a lifestyle destination and investment hotspot.
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Which areas of Bali are seeing the fastest growth in property values right now?
Tabanan, Pererenan, and Uluwatu are experiencing the fastest property value growth in Bali as of September 2025.
Tabanan leads with growth rates of 30-40% annually, as investors discover this emerging area that offers properties 30-50% below prime zone prices while maintaining strong development potential. Pererenan, situated between Canggu and Tanah Lot, benefits from spillover demand as Canggu becomes saturated.
Uluwatu Peninsula continues its upward trajectory with 18-22% annual growth, driven by luxury villa developments and its reputation as a premium clifftop destination. North and East Bali regions are also showing impressive growth of 25-35%, as infrastructure improvements make these areas more accessible to international buyers.
Traditional hotspots like Canggu and Seminyak, while still growing at 15-20% annually, are approaching price ceilings that may moderate future growth.
How is the demand for short-term rentals versus long-term rentals trending in Bali?
Short-term rental demand is significantly outpacing long-term rental demand in Bali's current market cycle.
The short-term rental sector, primarily through platforms like Airbnb, continues experiencing robust growth driven by tourism recovery and the sustained digital nomad presence. Properties in tourist zones are achieving occupancy rates of 75-85% during peak seasons, with many villa owners reporting year-round bookings.
In contrast, long-term rental demand is declining as remote work policies tighten globally and digital nomads become more budget-conscious. Many property owners are converting long-term rental units to short-term offerings to capitalize on higher yields and tourism demand.
This trend is reshaping the rental landscape, with investors increasingly focusing on properties suitable for vacation rentals rather than traditional residential leasing.
What's the current average rental yield in Bali for villas and apartments separately?
Villas in prime tourist zones deliver rental yields of 12-20% annually, while apartments typically yield 8-12%.
| Property Type | Location Category | Annual Rental Yield |
|---|---|---|
| Villas | Prime Tourist Zones | 15-25% |
| Villas | Secondary Areas | 12-18% |
| Villas | Emerging Zones | 10-15% |
| Apartments | Central Locations | 10-14% |
| Apartments | Tourist Areas | 8-12% |
| Apartments | Local Neighborhoods | 6-10% |
| Luxury Properties | Premium Locations | 18-30% |
The higher villa yields reflect Bali's position as a luxury vacation destination, where guests pay premium rates for private accommodations with pools and garden spaces. Location remains the primary factor determining yield potential, with beachfront and rice field view properties commanding the highest returns.
How many new property developments are being launched in Bali this year, and in which zones?
Development activity in Bali has intensified significantly in 2025, with the majority of new launches concentrated in emerging growth zones.
Tabanan leads new development activity, hosting approximately 40% of new project launches due to available land and lower entry costs. Canggu and surrounding areas account for 25% of developments, though these focus more on high-end boutique projects due to land scarcity.
Uluwatu and the broader peninsula represent 20% of new launches, with developers targeting the luxury villa segment. North and East Bali regions collectively account for 15% of activity, as improved infrastructure makes these areas viable for development.
The exact number of developments varies quarterly, but industry reports indicate over 200 significant projects in various stages of planning and construction across the island.
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What government regulations or restrictions on foreign ownership are most relevant in 2025?
The most relevant regulations for foreign property ownership in Bali center around the prohibition of direct freehold ownership by non-Indonesian citizens.
Foreigners can acquire property through leasehold agreements (typically 25-30 years with extension options) or by establishing a PT PMA (Foreign Investment Company). Recent government scrutiny has focused on villa licensing requirements and proper zoning compliance, with increased enforcement affecting some unlicensed properties.
New regulations in 2025 have tightened oversight of nominee arrangements, making the PT PMA structure more attractive for serious investors. The government has also introduced stricter requirements for short-term rental licenses, impacting property investment strategies focused on vacation rentals.
Property acquisition costs include a 5% BPHTB (land and building acquisition tax) and 2.5% PPH (income tax), plus legal and notary fees of 1-2.5% of property value.
How is infrastructure development, like new roads or airports, expected to impact property prices?
Infrastructure improvements are creating significant upward pressure on property prices across previously underserved areas of Bali.
Airport expansion projects and improved road connectivity are particularly benefiting North and East Bali, where property values have increased 25-35% as accessibility improves. New highway connections between Denpasar and emerging areas like Tabanan are reducing travel times and increasing investor interest.
The planned second airport and upgraded port facilities are expected to drive further appreciation in currently underdeveloped regions. Areas within 30 minutes of improved infrastructure typically see immediate price impacts of 15-25% as development potential becomes apparent.
These infrastructure investments are also reducing the premium previously commanded by established areas, as buyers gain access to larger properties at lower prices in newly connected zones.
What's the current occupancy rate for Airbnb and similar platforms across Bali's main regions?
Airbnb occupancy rates across Bali's main regions average 75-85% during peak tourist seasons and 50-60% during quieter periods as of September 2025.
- Seminyak/Oberoi: 80-90% peak season, 60-70% off-season
- Canggu: 75-85% peak season, 55-65% off-season
- Ubud: 70-80% peak season, 50-60% off-season
- Uluwatu: 75-85% peak season, 45-55% off-season
- Sanur: 65-75% peak season, 45-55% off-season
- Nusa Dua: 70-80% peak season, 40-50% off-season
- Emerging Areas (Tabanan/North Bali): 50-70% peak season, 30-40% off-season
Peak seasons typically include July-August, December-January, and major holiday periods, while April-June and September-November represent slower booking periods. Properties with unique features like infinity pools, rice field views, or beachfront access consistently achieve occupancy rates 10-15% above area averages.
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.
How are interest rates and financing options affecting local and foreign buyers?
High local mortgage rates and limited foreign financing options are pushing most international buyers toward cash purchases or company-structured acquisitions.
Indonesian mortgage rates remain elevated at 8-12% annually, making financing expensive even for local buyers. Foreign buyers face additional restrictions, with most Indonesian banks requiring substantial down payments (50-70%) and offering limited loan terms.
This financing environment favors cash buyers and has contributed to the PT PMA structure's popularity, where companies can secure better financing terms than individuals. Recent global interest rate trends have also reduced foreign buyer purchasing power, though Bali's strong fundamentals continue attracting investment.
The tight credit market has actually benefited serious investors by reducing speculative buying pressure and creating opportunities for well-capitalized buyers to negotiate better deals.
What are the main risks investors should be aware of in Bali's property market right now?
The primary risks facing Bali property investors include regulatory changes, overdevelopment concerns, and environmental challenges.
- Regulatory shifts: Potential tightening of foreign ownership rules and stricter licensing requirements
- Overdevelopment: Saturation in prime areas reducing rental yield potential and property uniqueness
- Environmental issues: Water scarcity, waste management problems, and climate change impacts
- Economic volatility: Tourism dependency making the market vulnerable to global economic downturns
- Infrastructure strain: Traffic congestion and utility limitations in popular areas
- Currency risk: IDR fluctuations affecting investment returns for foreign buyers
- Property management costs: Higher than expected maintenance and operational expenses
Investors should also consider liquidity challenges, as selling properties can take longer than in more established markets, and the concentrated nature of demand in specific zones creates vulnerability to local market shifts.
How do property taxes and transaction costs in Bali compare with nearby markets like Thailand or Vietnam?
Bali's property taxes and transaction costs are comparable to Vietnam but higher than Thailand's more foreign investor-friendly structure.
| Market | Property Tax | Transaction Costs | Foreign Ownership Notes |
|---|---|---|---|
| Bali | 5% BPHTB, 2.5% PPH | 1-2.5% legal/notary | Leasehold or PT PMA required |
| Thailand | ~2% total | 2-3% total | Condo ownership allowed, limited land ownership |
| Vietnam | 2-4% total | 1-2% total | Very limited foreign ownership options |
| Philippines | 1-3% total | 2-4% total | Condo ownership with restrictions |
| Malaysia | 0.5-2% annually | 3-4% total | Foreign ownership with minimum thresholds |
While Bali's upfront costs are higher, the island's rental yield potential often compensates for increased transaction expenses. Thailand offers more straightforward foreign ownership options, making it attractive for buyers seeking simpler structures, though Bali's appreciation potential may justify the additional complexity.
What's the outlook for property values in Bali over the next 3 to 5 years, based on expert forecasts?
Expert forecasts project continued property value growth in Bali over the next 3-5 years, with annual increases of 7-10% expected across most segments.
This growth will be primarily driven by sustained tourism demand, limited land availability, and ongoing infrastructure development. Prime areas may see more moderate growth as they approach price ceilings, while emerging zones are expected to deliver higher appreciation rates of 10-15% annually.
Several factors support this positive outlook, including Bali's growing reputation as a digital nomad hub, continued international investment interest, and government initiatives to improve connectivity and amenities. However, potential regulatory tightening and environmental concerns may moderate gains in certain sectors.
The luxury villa segment is expected to outperform apartments, with beachfront and unique-view properties maintaining premium valuations. Experts anticipate that supply constraints will continue supporting price growth, particularly in established areas where development land is becoming scarce.
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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.
Bali's property market outlook remains highly favorable for investors seeking both capital appreciation and rental income opportunities.
The combination of strong tourism fundamentals, limited supply, and ongoing infrastructure development creates a compelling investment environment, though investors should carefully consider regulatory requirements and market entry strategies.
Sources
- Bali Villa Realty - Cost of Property in Bali
- Invest Land Bali - Market Trends and Predictions 2025
- BambooRoutes - Bali Real Estate Market Trends
- Bukit Vista - Bali Rental Market Analysis 2025
- BambooRoutes - Average House Prices in Bali
- Excel Bali - Property Market Expectations 2025
- Villa Bali Sale - Rental Income Analysis 2025
- Bali Exception - Real Estate Price Guide