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Everything you need to know about investing in Bali

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bali-real-estate-market-2026

Bali Real Estate Market in 2026: An Investor’s Perspective

What is happening in the Bali property market today?

After the rapid growth of 2022–2024, many investors are asking whether Bali property investment in 2026 still represents a reasonable decision.

Bali Real Estate Market 2026

Global economic and geopolitical uncertainty is encouraging buyers to assess risks more carefully and take a more selective approach to property. At the same time, the Bali real estate market continues to benefit from several strong internal drivers:

  • high international tourist arrivals;
  • demand for short-term and long-term rentals;
  • infrastructure development in popular locations;
  • continued interest from international buyers;
  • the launch of new off-plan property developments.

Bali continues to attract buyers looking for overseas property that can combine capital preservation, personal use and potential rental income.

The main question is therefore no longer simply whether to buy property in Bali, but rather which location, price point and property type may offer the strongest potential in 2026.

Bali Real Estate Market 2026: Key Figures and Trends

Despite concerns about possible overheating, the Bali property market continues to benefit from factors that support demand for both property purchases and rentals.

However, the market is becoming more selective. Well-positioned developments in strong locations continue to attract buyers, while projects without a distinctive concept or professional management face greater competition.

Bali Property Market 2026

Tourism Continues to Support Rental Demand

Tourism remains one of the main drivers of the Bali real estate market. International arrivals directly affect demand for short-term rental villas, apartments and serviced residences.

According to Statistics Indonesia’s Bali office, more than 2 million international tourists arrived directly in Bali between January and April 2026.

Monthly figures may fluctuate, but the overall level of tourism remains high. This continues to support demand for quality rental accommodation, particularly in areas with established infrastructure, beaches, restaurants, tourist attractions and convenient transport access.

Investors should consider not only total visitor numbers but also the type of demand in each location. Some areas are dominated by short-term holiday rentals, while others attract longer stays, families, remote workers or wellness-focused travellers.

Occupancy Depends on Location and Property Quality

There is no single occupancy figure that can be applied equally to every villa, apartment, hotel or serviced residence in Bali.

Performance depends on several factors:

  • location;
  • property format;
  • seasonality in the specific area;
  • construction and interior quality;
  • nightly or monthly rental rates;
  • guest reviews;
  • marketing;
  • the quality of property management.

Well-located and professionally managed properties may maintain consistent demand throughout much of the year. However, high occupancy alone does not guarantee strong net returns.

Investors should also account for operating costs, booking-platform fees, management charges, maintenance, taxes, repairs and possible vacancy periods.

Bali Property Prices in 2026

After a period of rapid growth, Bali property prices have become more uneven across locations and segments. Quality properties in high-demand areas may continue to appreciate, while markets with a large supply of similar projects are likely to experience slower growth.

According to industry market reports, the median price of villas in Bali is estimated at approximately $256,000–299,000. The value of an individual villa can vary significantly depending on location, size, number of bedrooms, construction quality, ownership structure and the remaining leasehold term.

Apartments generally offer a lower entry point. Compact units and selected off-plan apartments may start at approximately $100,000, while larger and premium residences in Canggu, Berawa and Pererenan are priced considerably higher.

For this reason, an island-wide average should not be used as the only benchmark. Investors should compare properties within the same segment and assess:

  • the specific location;
  • construction stage;
  • unit size and layout;
  • remaining leasehold term;
  • legal structure of the transaction;
  • development quality;
  • realistic rental demand;
  • competition from nearby projects.

Bali Property Market 2026: Which Phase Has the Market Entered?

Following the reopening of international borders, Bali experienced one of the most active periods of property market growth in recent years.

Bali Real Estate 2026

This growth was supported by several factors:

  • the recovery of international tourism;
  • the return of overseas buyers;
  • growing demand for investment property;
  • the launch of numerous new off-plan developments;
  • Bali’s popularity as a place to live and work remotely.

During 2025–2026, the market began moving away from broad-based rapid growth toward a more mature and selective model.

This stage can be described as a consolidation phase. Buyers are increasingly looking beyond projected returns in sales presentations and evaluating the actual fundamentals of each project.

When assessing an off-plan project, it is important to consider not only the location and projected yield, but also which Bali property developer is responsible for delivering it. The developer’s experience, reputation and construction standards can directly influence project quality, liquidity and long-term investment performance.

The following factors are becoming increasingly important:

  • construction quality;
  • legal transparency;
  • developer track record;
  • project concept;
  • location;
  • professional management;
  • the realism of the financial model.

In previous years, many properties increased in value as the overall market expanded. Today, investment performance depends more heavily on selecting the right project.

The Bali Real Estate Market Cannot Be Viewed as One Market

One of the main conclusions for 2026 is that the Bali property market should not be treated as a single, uniform market.

Off Plan Property Investment Bali

Some of the island’s most established and actively developing property locations include:

  • Canggu and Berawa;
  • Pererenan and Mengwi;
  • Uluwatu and other parts of the Bukit Peninsula;
  • Seminyak;
  • Ubud.

These areas differ not only in price, but also in target audience, rental format, infrastructure, traffic conditions and development potential.

Canggu and Berawa have a high concentration of restaurants, beach clubs, services and tourism infrastructure. Uluwatu is developing as a beach and premium destination. Ubud is more closely associated with nature, culture, wellness tourism and longer-term stays.

Even neighbouring locations may differ significantly in terms of:

  • tourist demand;
  • density of development;
  • access to infrastructure;
  • traffic conditions;
  • land prices;
  • rental rates;
  • competition;
  • potential capital appreciation.

As a result, the strategy of simply buying any property in Bali is becoming less relevant. Investors increasingly need to select a specific location, property type and clearly defined investment strategy.

Bali Property Investment in 2026

Bali property investment in 2026 requires more detailed analysis than it did several years ago.

The growing number of new developments is increasing competition. To maintain occupancy, some owners must work more actively on pricing, service, marketing and management quality.

High occupancy does not always produce the highest profit. Two properties in the same location may deliver very different results because of differences in product quality, positioning and management.

Investors should pay particular attention to:

  • architecture and design;
  • construction quality;
  • functional layouts;
  • the exact position within the area;
  • service standards;
  • market positioning;
  • management and marketing;
  • the project’s ability to stand out from competitors.

While returns were previously supported by broad market growth, they now depend increasingly on property quality, entry price and management efficiency.

Which Properties Are Likely to Perform Best in 2026?

The most resilient projects are likely to be those offering more than square metres alone. Buyers and tenants increasingly expect a complete product designed for comfortable living or profitable rental use.

Bali Property Investment 2026

Projects may have an advantage when they offer:

  • a clear and relevant concept;
  • high construction standards;
  • well-designed layouts;
  • professional management;
  • useful internal infrastructure;
  • a convenient location;
  • distinctive architecture;
  • reliable services for residents and guests.

Properties without a clear competitive advantage may face longer sales periods, pressure on rental rates and higher marketing costs.

Which Bali Areas Are Most Relevant to Investors?

In 2026, investors should assess not only Bali as a whole but also the characteristics of each specific area.

Canggu and Berawa

Canggu and Berawa remain among Bali’s most recognised property locations due to established infrastructure, restaurants, beach clubs, an international community and consistent rental demand.

At the same time, the volume of new supply is high, while traffic and competition continue to increase. Projects with a strong concept, good construction quality and professional management are therefore more likely to stand out.

Pererenan and Mengwi

Pererenan and other parts of Mengwi attract buyers who want to remain close to Canggu while considering a quieter environment and further infrastructure development.

In these locations, investors should evaluate the immediate surroundings, road access, future construction density and distance from key amenities.

Uluwatu and the Bukit Peninsula

Uluwatu and neighbouring areas of the Bukit Peninsula continue to develop as beach and premium destinations.

The area attracts visitors through its beaches, views, surfing, new restaurants, hotels and high-end developments.

When considering property in this area, buyers should examine road access, infrastructure, land characteristics and the actual distance to beaches.

Seminyak

Seminyak remains a mature and well-known tourism destination with established infrastructure and consistent demand.

It may appeal to investors who prefer an established market, although the potential for rapid price growth may be lower than in newer developing locations.

Ubud

Ubud remains one of Bali’s most recognised destinations for buyers focused on nature, culture, wellness, privacy and longer stays.

Private villas, boutique properties, retreat developments and homes suitable for medium-term or long-term rental are particularly relevant in this area.

The Ubud market differs from Canggu and Uluwatu. Demand is more dependent on the exact location, road access, views, privacy, surrounding development and the quality of the natural environment.

Bali Real Estate Forecast: Growth, Stability or Overheating?

The Bali real estate market is no longer growing at the same pace across every segment and location.

However, it would also be inaccurate to describe the entire market as overheated or to suggest that buyer interest is disappearing.

The market is more likely entering a mature phase. This is no longer a period in which almost every property can appreciate simply because overall demand is rising.

Bali Real Estate 2026

In 2026, investment outcomes depend more heavily on the quality of the purchase decision. Buyers considering a villa, apartment or off-plan property for rental income should not rely only on general market forecasts.

The following factors are becoming increasingly important:

  • the district and exact location;
  • the legal structure of the transaction;
  • the remaining leasehold term;
  • project quality;
  • developer reputation;
  • the management company;
  • real rental demand;
  • local competition;
  • entry price;
  • future resale potential.

The most likely scenario is not uniform growth or decline across the entire island, but a further division between stronger and weaker projects.

Well-designed properties in high-demand locations may continue to attract buyers and retain capital growth potential. Overpriced, poorly managed or undifferentiated projects may experience stronger competition and slower sales.

Is Bali Property Still a Good Investment in 2026?

Bali remains an attractive destination for property investment, but the approach to purchasing has become more selective.

In 2026, the market no longer guarantees easy returns for every property. However, quality projects in carefully selected locations may remain attractive because of:

  • high international tourist arrivals;
  • demand for different rental formats;
  • continued infrastructure development;
  • interest from overseas buyers;
  • a limited number of genuinely high-quality projects.

The main conclusion for investors is straightforward: in 2026, successful property investment in Bali depends on selecting a specific location, a quality project, a credible developer and a clear management strategy rather than relying only on the popularity of the island.

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Top Areas in Bali for Real Estate Investment

When choosing real estate in Bali, it's important to consider not only the type of property but also its location. The island has several areas particularly attractive to investors, thanks to steady rental demand, developed infrastructure, and unique charm. Here are the top areas in Bali for profitable investments.

  1. Canggu: Hub for Digital Nomads and Tourists
    Canggu is one of the most popular areas for real estate investment. With well-developed infrastructure, numerous cafes, restaurants, coworking spaces, sports facilities, and easy beach access, Canggu is highly attractive to renters, including digital nomads and long-term tourists. The area’s popularity among foreign renters ensures stable income potential.

  2. Seminyak: High-Yield Luxury Area
    Seminyak is renowned for luxury villas, high-end restaurants, boutiques, and nightlife. This elite area offers high returns from short-term rentals. It’s perfect for investors targeting tourists who seek premium accommodations in the heart of activity and are willing to pay for comfort and proximity to top establishments.

  3. Ubud: Bali’s Spiritual Center
    Ubud attracts those seeking tranquility, nature, and spiritual practices. It’s popular among visitors attending retreats, yoga centers, and eco-friendly resorts. Investing in Ubud suits long-term rentals, especially among foreign renters looking for rejuvenation and spiritual growth. The scenic landscapes and traditional Balinese culture add value for those seeking a unique experience.Om Apartments Bali 17

  4. Nusa Dua: Family-Friendly Resort Area
    Nusa Dua is a resort area with numerous hotels, beaches, and family-oriented activities. Property here is popular among family tourists on short stays. This peaceful area, known for safety and well-developed infrastructure, is ideal for short-term rentals. Investors focused on family vacations will find steady demand for housing here.

  5. Jimbaran: Blend of Tradition and Modernity
    Jimbaran is famous for its beaches and seafood restaurants. It offers both luxury villas and more budget-friendly properties, making it popular among tourists who prefer a relaxing atmosphere. Jimbaran provides stable rental income due to its mix of local culture and modern amenities. Its proximity to the airport and popular tourist spots makes it a solid choice for investment.

  6. Sanur: Ideal for Long-Term Living
    Sanur is considered ideal for long-term residence. With beaches that have calm waters, it’s attractive to families and expats seeking permanent accommodation. Sanur provides stable rental income, as it appeals to long-term renters like retirees and families with children who value tranquility and well-developed infrastructure.

Choosing the right area in Bali for investment depends on the investor’s goals and preferred tenant type. If you're looking for the perfect location for investment, our managers can help you find the best options tailored to your preferences and suggest the most profitable properties for steady income and capital growth.

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Real Estate Market Trends in Bali in 2024

Bali's real estate market continues to attract global investors, and several key trends are shaping its growth in 2024, potentially impacting investment returns. Here are the main trends to keep an eye on.

  1. Growing Demand for Apartments and Compact Housing
    In 2024, demand for apartments in Bali continues to rise, especially in popular areas like Canggu. Compact and functional living spaces close to beaches and infrastructure are in demand both for rentals and purchases, providing convenient options for a wide range of tenants.

  2. Increase in Remote Workers and Digital Nomads
    Bali remains a popular destination for digital nomads, and this trend is only strengthening. Remote workers prefer areas with well-developed infrastructure, coworking spaces, and other amenities for work. This segment fuels demand for long-term rentals, especially apartments in convenient locations.

  3. Eco-Friendly and Sustainable Projects
    With a growing interest in eco-friendly living, Bali sees an increase in projects focused on sustainability. These projects emphasize renewable energy sources, eco-friendly materials, and modern technologies to reduce environmental impact. Such properties are especially attractive to foreigners committed to a sustainable lifestyle.Real Estate Investments in Apartments Bali 7

  4. Popularity of Short-Term Rentals
    Tourism in Bali remains strong, sustaining demand for short-term rentals. Many investors purchase properties specifically to rent to tourists, which generates high income, particularly during peak seasons. However, short-term rentals require active management, making property management services highly sought after.

  5. Rising Property Prices
    Property prices continue to rise in 2024, particularly in high-demand areas. Areas like Canggu, with its growing infrastructure, are becoming increasingly attractive, and property values are on the rise. This trend makes Bali real estate a valuable asset for long-term investment and capital appreciation.

  6. Increase in Mixed-Use Projects
    Projects that combine residential, commercial, and recreational spaces are becoming more common in Bali. These complexes appeal to tenants who value access to amenities and services within one area, increasing rental potential and profitability for such developments.

These trends define Bali's real estate market development in 2024, creating favorable conditions for investors looking for promising and sustainable investments.

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Apartments in Bali — A Stable Source of Income

Investing in apartments in Bali is becoming increasingly popular among foreign investors seeking a steady income. The island has high rental demand, especially among tourists, expats, and digital nomads. Apartments offer stable returns, supported by a consistent rental stream and attractive yield.

  1. Why are apartments in Bali considered a reliable source of income?
    High demand for housing from tourists and foreign tenants ensures consistent occupancy for apartments. Developed areas like Canggu attract renters with proximity to beaches, restaurants, cafes, and coworking spaces.

  2. What returns do Bali apartments offer?
    The average rental yield for apartments is around 10-15% per year. Premium properties may have even higher yields, especially in high-demand areas. Investment payback is usually achieved within 5-10 years, depending on property type and rental terms.

  3. Which types of rental are most profitable?
    Bali offers two main types of rental: short-term and long-term. Short-term rentals bring in more income from tourists but require active management. Long-term rentals provide a stable income stream, ideal for investors looking for passive income.Real Estate Investments in Apartments Bali 11

  4. What drives the popularity of apartments for rent?
    Well-developed infrastructure and proximity to beaches are key factors for renters. In areas like Canggu, demand remains high thanks to nearby restaurants, gyms, cafes, and other amenities. This attracts tourists and expats, maintaining high rental demand.

  5. How can apartments provide passive income?
    Many investors choose property management companies that handle everything from tenant acquisition to maintenance and cleaning. This setup allows for passive income without the need for constant supervision.

  6. What costs should be considered for renting out apartments?
    Key expenses include utilities like electricity, water, and internet, as well as management fees if a property management company is used. Management costs typically account for 20-30% of rental income.

  7. What are the growth prospects for returns?
    In popular areas like Canggu, both rental rates and property values continue to rise, opening up opportunities for higher rental income and property appreciation.

Apartments in Bali offer a unique combination of stable income and growth potential, making them one of the most profitable investment options in real estate.

 

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10 Key Questions About Investing in Bali

Canggu is one of the most popular areas in Bali for apartment investments, and it’s easy to see why. This neighborhood attracts both tourists and digital nomads, ensuring stable demand for rentals. If you’re considering investing in Bali apartments, here are answers to key questions that will help you navigate the market.

  1. Why is Canggu considered a promising area for apartment investment?
    Canggu combines everything needed for comfortable living and relaxation: proximity to the ocean, a variety of restaurants, cafes, sports and cultural venues, as well as coworking spaces for remote work. This steady demand makes Canggu especially appealing for investors focused on rental income.

  2. What types of income can be earned from apartment investments?
    Investors can earn income through two main ways:

    • Resale after construction: purchasing at the development stage and reselling a completed property can yield up to 30% profit.

    • Rental: renting out apartments, especially premium units, can achieve payback in 5-7 years, while mid-range properties typically break even in 7-10 years with an average return of around 15% per year.

  3. Why is there high demand for apartments?
    Canggu is popular among tourists and expats due to its unique atmosphere and developed infrastructure. Many visitors stay long-term, sustaining high rental demand even with limited property supply.

  4. What factors affect investment profitability?
    Profitability depends on several factors:

    • Location: apartments in Canggu are highly attractive due to infrastructure and proximity to the beach.

    • Quality and design: modern complexes with amenities like pools, gyms, and coworking spaces attract tenants and enable higher rental yields.

    • Service and promotion: professional management and effective marketing increase rental potential.

  5. What is the payback period?

    • Resale after construction: can yield up to 30% profit within a year.

    • Rental: offers an 11-15% annual income, with an average payback period of 7-10 years.

Real Estate Investments in Apartments Bali 14

6. What taxes should be considered for purchase and rental?
In Indonesia, the sales tax on property is 11% of the transaction amount. For rentals, a 10% income tax is typically paid by the landlord.

  1. What are the main costs of maintaining apartments?
    Key expenses include:

    • Utilities (water, electricity, internet): about $100-150 per month for a two-bedroom apartment.

    • Management: if hiring a property management company, their services typically cost 20-30% of rental income.

  2. What forms of ownership are available?
    In Indonesia, two main types of property rights are available:

    • Leasehold — commonly used by foreign investors, allowing property ownership for 30 to 80 years.

    • Freehold — available only to Indonesian citizens and legal entities.

  3. What are the risks of investing in apartments in Bali?
    Key risks include legal aspects, demand fluctuations, and potential legislative changes. However, choosing a reputable developer and a reliable management partner helps mitigate these risks.

  4. How to complete an apartment purchase?
    The purchase process involves notarization and government registration. Notary fees are about 1% of the property value. For purchases under a legal entity, additional registration with government bodies is required.

These answers will help you understand the process of investing in Bali apartments, especially in Canggu, where strong infrastructure and high demand create favorable conditions for investors.

 

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Why is Bali Called the Island of the Gods?

Bali is not only a popular vacation destination but also a place with profound spiritual traditions that attract people from all over the world. Its unique energy and atmosphere permeate every part of life on the island, from ancient temples to modern retreats. This is why Bali is called the Island of the Gods, a place where culture, nature, and spirituality intertwine harmoniously.

Real Estate Investments in Apartments Bali 73

  1. Spiritual Culture and Traditions
    Bali is known for its rich spiritual culture, which is carefully preserved by its residents. Temples, shrines, and daily offerings can be found throughout the island, symbolizing reverence for the gods. These rituals create a serene and harmonious atmosphere, immersing both locals and visitors in a world of spirituality. Each temple and ceremony reflects Balinese philosophy, focused on maintaining balance and harmony with the universe.

  2. Scenic Natural Landscapes
    Bali’s natural beauty is truly breathtaking: lush rice terraces, powerful volcanoes, dense jungles, and pristine white beaches create an inspiring backdrop for introspection and relaxation. Locals believe that Bali’s nature holds healing powers, and the island’s unique landscapes provide an ideal setting for meditation and personal renewal. Many find strength and energy in the natural beauty, using it as a source for reflection and rejuvenation.

  3. A Community of Like-Minded Individuals
    Bali also attracts people from around the world united by a desire for self-discovery and spiritual growth. The island is home to yoga centers, retreats, and events focused on physical and mental well-being. Bali draws in those who seek harmony and a break from the hustle, offering a space for mindfulness and self-exploration. Local festivals and cultural events enhance this atmosphere, establishing Bali as a center for those seeking meaning and personal development.

Bali is not just a place for relaxation but a setting where each visitor can find something special, inspired by the island’s culture and nature. Contact our managers to learn more about investment opportunities in Bali and find the perfect property for living or renting on this remarkable island.

 

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What to Choose: Apartment, Villa, or Townhouse in Bali?

The real estate options in Bali range from apartments to villas and townhouses. Each property type offers unique advantages and is suited to different investment goals. Let’s examine what sets each option apart to help you make the best choice.

1. Apartments: Compact and Convenient

Apartments are ideal for investors focused on steady rental income. They are compact, easy to rent out long-term, and in demand in areas with strong infrastructure like Canggu. Apartments also require less maintenance since they’re typically managed by a property management company, reducing upkeep costs.

2. Villas: More Space and Privacy

Villas are popular among tourists seeking comfort and seclusion. These properties often feature private pools and gardens, making them attractive for short-term rentals. However, villas require more upkeep due to their size and landscaping needs, leading to higher maintenance costs than apartments.

Real Estate Investments in Apartments Bali 13

3. Townhouses: A Balance Between Convenience and Privacy

Townhouses offer a middle ground, providing more space than apartments but requiring less maintenance than villas. They can appeal to renters looking for a balance between privacy and convenience, offering unique layouts and multiple floors.

Choosing between an apartment, villa, and townhouse depends on your investment goals. If reducing maintenance costs and ensuring steady income are priorities, apartments are an excellent choice. For those seeking more privacy and willing to invest in property upkeep, a villa may be ideal. Townhouses suit those looking to balance comfort with privacy.

Contact our managers for a free consultation and help in finding the perfect property in Bali.

 

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How Can a Foreigner Buy Property in Bali?

Foreign investors increasingly see Bali as an attractive place to invest in real estate. However, the buying process may differ from standard procedures due to local legal restrictions. In this guide, we’ll cover the main steps that will help a foreigner successfully purchase property in Bali.

1. Understanding Legal Restrictions

In Bali, foreigners cannot own land directly. Instead, they have access to two forms of ownership: long-term leasehold and right to use. Leasehold allows foreigners to own property for up to 80 years, which is convenient for rental and long-term investments.

2. Choosing Property Type and Location

Depending on investment goals, you can choose a villa, townhouse, or apartment. Location is also important. For example, Canggu is a popular area among tourists and expats, where apartments are in high demand, providing a stable rental income.

3. Conducting Legal Due Diligence

Before purchasing, it is essential to ensure the property’s legal status is clear. Working with a trusted developer and lawyer helps avoid risks and ensures proper transaction documentation. Legal due diligence includes reviewing ownership rights, construction permits, and other necessary documents.

4. Signing a Long-Term Lease Agreement

For a foreigner to buy property in Bali, a long-term lease agreement (leasehold) needs to be signed, usually through a notary. This lease can be set for 25-30 years with an option to extend, giving the owner full usage rights, including renting and reselling.

Real Estate Investments in Apartments Bali 21

5. Finalizing and Paying Taxes

The notary fee for drafting the lease agreement is about 1% of the property value. Taxes include an 11% sales tax and a 10% rental income tax, paid by the landlord. These expenses should be considered in the investment plan.

6. Property Maintenance and Management

Many foreign investors choose to use a property management company to handle maintenance. This is convenient for those planning to rent the property remotely. Property managers in Bali handle technical maintenance, cleaning, and tenant relations.

7. Benefits of Leasehold for Foreigners

Leasehold in Bali is a reliable way for foreigners to own property with minimal risks. This form of ownership is easy to arrange, doesn’t require complex legal structures, and allows access to rental income. It’s especially convenient for those planning to rent out apartments in high-demand areas like Canggu.

For more information, feel free to contact our managers — they will provide a free consultation and help you find the most profitable properties for investment in Bali.

 

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