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We at Bukit Vista – have been managing properties in Bali for 100+ property owners with 10+ years of experience and have gathered extensive data about the rental property market in Bali. From our findings, the Bali property market has undergone significant changes since 2019, with various factors influencing its growth and development.
Is the Bali Real Estate Market Facing a Bubble?
As the Bali property market continues to thrive, potential challenges loom. The rising competition in short-term rental hints at a possible real estate bubble. Could these evolving market conditions lead to significant disruptions for property owners and investors? The answer isn’t clear-cut, but the implications are worth exploring further.
Bukit Vista collects hundreds of property database
As you can see in the graph below, Bukit Vista has demonstrated remarkable strength in maintaining steady revenue growth since 2020, despite the challenges faced during the pandemic. From a sharp decline in 2020, our revenue bounced back and continued to grow consistently through 2021, 2022, and 2023. For 2024, although the year is not yet complete, we have already achieved 77.58% of the revenue generated in 2023, highlighting our ongoing momentum and solidifying our position in the Bali property market.
Bukit Vista's Yearly Revenue Growth 2018 - 2024 from Partners
Source: Bukit Vista 2024
A brief update in the last few years
From 2009 – 2019, the Bali property market was experiencing a period of strong growth, driven by an increase in tourism and foreign investment. The island’s popularity as a tourist destination, combined with its tropical climate and beautiful beaches, had made it a desirable location for both vacation homes and long-term investments. Property prices were on the rise, particularly in popular areas such as Seminyak, Canggu, and Ubud.
In 2024, Bali’s property market is showing promising growth, driven by strong tourism recovery and increasing demand for high-end real estate. The island welcomed 5.37 million international tourists in 2023, recovering to 88% of its pre-pandemic levels, and is expected to attract up to 6 million foreign visitors in 2024. This growth is boosting interest in upscale villas and sustainable developments, particularly in popular regions like Seminyak, Canggu, and Ubud, where property values are rising. The positive economic outlook is further supported by Bali’s 3.60% GDP growth in 2023.
Number of foreign tourist arrivals to Bali
Foreign Tourist Visits to Bali in 2024
Source: BPS 2024
By 2024, Bali’s property market has shown substantial recovery, supported by a steady rise in foreign tourist arrivals. The first seven months alone saw a significant increase from 429,537 in January to 628,985 in July. This resurgence in tourism has contributed to renewed confidence among property investors and a stabilization of Bali property market prices. Areas like Seminyak, Canggu, and Uluwatu are benefiting from this growth, attracting more high-value real estate developments aimed at accommodating the growing number of international visitors.
As of July 2024, Bali welcomed a cumulative total of approximately 3,687,567 foreign tourists, reflecting a strong recovery trend throughout the year. This figure indicates that by mid-2024, Bali has already achieved over 76% of the total 4,817,098 foreign tourist arrivals recorded in 2023, as reported by BPS Bali (Badan Pusat Statistik Provinsi Bali). If the current growth continues, 2024 is likely to significantly surpass the previous year’s figures, highlighting the resurgence of Bali as a top international destination. For detailed insights, you can refer to the official BPS Bali tourism report.
The ongoing growth of Bali’s property market is driven by the island’s enduring popularity as a tourist destination, competitive property prices compared to other popular tourist spots, and a rising number of foreign investors keen to purchase properties. Consequently, Bali has seen a steady increase in property prices post-pandemic.
Commercial property price index in Denpasar, Bali
Consumer Price Index (CPI) in Denpasar, Bali (2023 - Q3 2024)
Source: BPS Denpasar 2024
The graph now illustrates the Consumer Price Index (CPI) trend in Denpasar, Bali, from the first quarter of 2023 to the third quarter of 2024. During this period, the index showed a steady increase, starting at 102.5 points in Q1 2023 and reaching 107.64 points by Q3 2024. This trend indicates a gradual but consistent rise in the cost of goods and services in Denpasar, reflecting ongoing inflationary pressures and increased demand within the local Bali property market.
As economic activity revived and tourism continued to recover,, driven by foreign tourists and investors attracted to Bali’s competitive prices and investment opportunities. Consequently, the Bali real estate market is poised for sustained growth, indicating a promising future for both commercial and residential property investments on the island.
So what's next for 2025 Bali Property market
In 2024, the Bali property market witnessed a steady increase in foreign tourist arrivals, which serves as a crucial indicator for the property and villa rental market. The upward trend in tourism can be seen through several months, such as May 2024, which recorded 544,601 foreign visitors, marking an 8.23% increase from the previous month. Similarly, July 2024 registered 625,665 foreign tourists, reflecting a strong 20.11% month-on-month growth. Australians have consistently dominated Bali’s tourist market, representing nearly 25% of the foreign tourist segment across multiple months.
The island’s popularity as a tourist destination, combined with its tropical climate and beautiful beaches, is expected to continue driving the Bali property market. With the increasing number of tourists visiting the island, the demand for vacation rentals is likely to remain high, particularly in popular tourist areas such as Seminyak, Canggu, and Ubud.
Bukit Vista data of guest origins nationality
The increasing number of foreign investors looking to purchase properties on Bali is also expected to continue driving the property market. Many of these investors are probably coming from Australia, who are drawn to Bali’s tropical climate and the island’s reputation as a safe and stable destination for property investment. This will likely lead to an increase in property prices in the coming year, particularly in popular areas such as Seminyak, Canggu, and Ubud.
A more relaxed foreign ownership law could mean higher foreign investors in Bali property market
Another factor that could impact the Bali property market in 2024 is the recent changes in Indonesian property law, which allows for more relaxed laws regarding foreign ownership of property. This is expected to attract more foreign investors to the island, further driving the property market. And the government’s efforts to attract foreign investment and promote economic growth driven by Indonesia’s strong economic performance and rising middle class, which has created a growing demand for housing and commercial property.
Foreign nationals now have the option of owning apartment units under GR 18/2021’s right of ownership over stacking unit’s land titles (Hak Milik Atas Satuan Rumah Susun, HMSRS).
Furthermore, foreigners are permitted to own both apartment units and landed homes constructed on property with HP or HGB titles. Additionally, foreigners can posses the legal authority to construct, own, and invest in Bali real estate market through Hak Guna Bangunan, PT PMA registration, and freehold ownership (HGB).
Bali property market Area set for growth
These areas of Seminyak, Canggu, Ubud, and Nusa Dua are considered to be the best places for the property market in Bali, based on a heatmap derived from the number of guests reviewing each area. The data highlights high engagement in these regions, showcasing strong tourist interest. Each area has its own unique characteristics and offers different opportunities for property investment, making it important to research and understand which area suits your investment needs and goals the best.
Furthermore, from our partners data it was found that guesthouse and villa types has some of the highest booking revenue for a rental property.
Interested to know more about the property market, we have 10+ years of experience in the rental property market in Bali and managing properties in this island. Feel free to contact us for all your property investment questions in Bali.