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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.
Bukit Vista collects hundreds of property database
As you can see in the graph below based on our own properties data, just in the last 3 years alone have seen significant change on the rental property market here in Bali. With declining rental revenues during the pandemic to an exponential growth following it much has changed in Bali property market.
Yearly Revenue Year on Year Growth from our Partners
A brief update in the last few years
From 2009 – 2019, the property market in Bali 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.
However, the COVID-19 pandemic, which began in late 2019, had a significant impact on the island’s tourism industry and property market. The travel restrictions and lockdowns implemented to control the spread of the virus led to a decrease in property prices and a slowdown in the market. Many property developers and investors were hesitant to proceed with their plans, and some even had to put their projects on hold.
Number of foreign tourist arrivals to Bali
In 2020, Bali property market experienced a sharp decline due to the pandemic, leading to a significant drop in property transactions and a decrease in property prices. As the pandemic began to be controlled in some countries and travel restrictions were gradually lifted, the property market started to show signs of recovery. In 2021, there was a notable resurgence in the market, with buyers, particularly from Asia, returning to take advantage of the relatively affordable prices and Bali’s reputation as a safe and stable destination for property investment.
The recovery continued into 2022 and 2023, as evidenced by the increasing number of foreign tourist arrivals. By March 2023, foreign tourist arrivals had reached approximately 1.03 million, indicating a positive trend in tourism recovery. This rebound in tourism contributed to a significant increase in property transactions and a stabilization of property prices.Â
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
The graph illustrates the commercial property price index in Denpasar, Bali, Indonesia, from the first quarter of 2020 to the third quarter of 2023, showing a sharp decline at the onset of the pandemic, stabilizing around 65 points throughout 2021, and then a significant rebound beginning in the second quarter of 2022, reaching approximately 111 points by the third quarter of 2023. This resurgence highlights the robust recovery and burgeoning potential in the Bali property market.Â
As travel restrictions eased and tourism revived, the demand for properties surged, 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 2024 Bali Property market
It’s difficult to predict exactly how the Bali property market will look in 2024 as it can be affected by factors such as the fear of global recession, and the political situation of travel restrictions around the world. However, based on current trends and projections, the Bali property market is expected to continue its growth in the coming year.
The island’s popularity as a tourist destination, combined with its tropical climate and beautiful beaches, is expected to continue driving the property market in Bali. 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
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
You can interact with the graph by changing the year on the menu at the top left bar
These areas of Seminyak, Canggu, Ubud, and Nusa Dua are considered to be the best places for property market in Bali during 2022. 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.