Guide to Bali Real Estate Market in 2025
From 2009 to 2019, Bali’s real estate market experienced a significant boom, driven by a surge in tourism and foreign investments. The island’s popularity as a tourist destination, combined with its tropical climate and stunning beaches, made it an attractive place both for holidays and for long-term investments. Property prices rose particularly fast in popular areas such as Seminyak, Canggu, and Ubud.
However, the COVID-19 pandemic that began in late 2019 had a considerable impact on the island’s tourism sector and real estate market. Travel restrictions and lockdowns introduced to curb the virus’s spread led to a drop in property prices and a slowdown in market growth. Many developers and investors hesitated to proceed with their plans, and some were even forced to halt projects.
Number of Foreign Tourists Arriving in Bali
Source: Statista
In 2020, Bali’s real estate market experienced a sharp downturn due to the pandemic, resulting in a significant decline in property transactions and prices. As the pandemic became more controlled in some countries and travel restrictions were gradually lifted, the real estate market began to show signs of recovery. In 2021, there was a noticeable market rebound: buyers, particularly from Asia, returned to capitalize on relatively affordable prices and Bali’s reputation as a safe, stable place for real estate investment.
This revival continued into 2022–2024, as evidenced by the growing number of foreign tourist arrivals. By March 2024, foreign arrivals reached roughly 1.34 million, indicating a positive trend in tourism recovery. The restoration of tourism led to a marked increase in property transactions and a stabilization of prices.
Bali’s enduring real estate growth can be attributed to the island’s continued popularity as a travel destination, its competitively priced properties compared to other popular tourist locations, and a rise in the number of foreign investors eager to purchase real estate. As a result, Bali has seen a steady post-pandemic upswing in property prices.
Commercial Property Price Index in Denpasar, Bali
(Bali property market)
Price indexes for commercial properties, also called House Price Indexes (HPI), measure how rapidly residential property prices (apartments, single-family homes, terrace houses, etc.) purchased by households change over time. The chart shows the commercial property price index in Denpasar (Bali, Indonesia) from Q1 2020 to Q3 2023: a sharp decline at the onset of the pandemic, stabilization at around 65 points throughout 2021, followed by a significant increase that started in Q2 2022 and reached about 111 points by Q3 2023. This growth signals a robust recovery and the rising potential of Bali’s real estate market.
As travel restrictions eased and tourism rebounded, demand for real estate surged, fueled by foreign tourists and investors drawn by Bali’s competitive prices and investment opportunities. Consequently, the island’s property market is poised for sustained growth, pointing to a bright future for both commercial and residential real estate investments.
What Lies Ahead for Bali’s Real Estate Market in 2024
It is challenging to predict precisely how Bali’s real estate market will perform in 2024, as it may be influenced by factors such as fears of a global recession, political developments, and worldwide travel restrictions. Nevertheless, based on current trends and forecasts, it is expected that Bali’s real estate market will continue to grow in the coming year.
The island’s popularity as a tourist destination—combined with its tropical climate and beautiful beaches—is likely to keep driving the real estate market forward. As more visitors flock to the island, the demand for vacation rentals is expected to remain high, especially in well-known tourist areas such as Seminyak, Canggu, and Ubud.
Bukit Vista Guest Origin Data by Nationality
A further increase in foreign investors looking to purchase property in Bali is also anticipated to boost the real estate market. Many of these investors hail from Asia—particularly China and Singapore—and are attracted by Bali’s tropical climate and its reputation as a safe, stable place for property investment. This will likely push property prices higher next year, especially in popular areas like Seminyak, Canggu, and Ubud.
A More Flexible Foreign Ownership Law Could Mean More Foreign Investors in Bali’s Real Estate Market
Another factor that may shape Bali’s real estate market in 2024 is recent changes in Indonesian property legislation, making it easier for foreigners to own property. This is expected to draw more international investors to the island, further invigorating the real estate sector. Government efforts to attract foreign investments and stimulate economic growth, coupled with Indonesia’s strong economic performance and a growing middle class, are creating sustained demand for both residential and commercial properties.
Under Government Regulation (GR) 18/2021 on Ownership of Landed Houses (Hak Milik Atas Satuan Rumah Susun, HMSRS), foreign nationals can now legally own apartments.
Furthermore, foreigners are permitted to own both apartments and houses built on land with HP or HGB rights. They may also obtain the legal right to build, own, and invest in Bali’s real estate market through Hak Guna Bangunan, PT PMA registration, and Hak Guna Bangunan (HGB) freehold arrangements.
