Bali stands out once again in 2025, securing the 2nd place in the global ranking of Tripadvisor’s Travellers’ Choice Awards, just behind London. This recognition strengthens Bali’s position as a must-visit destination on the world tourism stage. But beyond this tourism success, the island is also becoming a land of opportunities for real estate investors.
A Direct Impact on the Real Estate Sector
Tourism, a key driver of Bali’s economy, continues to experience strong growth. In 2024, Bali welcomed over 6.3 million international visitors, a 17% increase compared to 2023. This tourism boom has a direct impact on the real estate sector, creating sustained demand for high-quality properties. Furthermore, Bali represents nearly 55% of the regional GDP, highlighting its central role in the Indonesian economy. This dynamism not only attracts travelers but also investors seeking solid returns.
A Diverse Offering to Attract All Profiles
Bali is not just a tourist destination; it’s a place to live, work, and invest. With varied zones like Nusa Dua for families, Canggu for young travelers, and Sanur for retirees, Bali caters to a wide range of needs and profiles. The real estate market reflects this diversity. For example, in Canggu, there has been a real explosion of new villas, with over 1,200 new properties built between 2021 and 2024. In Uluwatu, the price per square meter has increased by more than 18% on average since 2022, illustrating the attractiveness of these areas for investors seeking high-value properties.
Does this geographical diversity create an opportunity for investors to choose a specific niche, or could the island see a homogenization of its real estate projects in the coming years?
The Real Estate Market: Growth Driven by Tourism
Bali is experiencing significant growth in real estate, with net rental returns ranging from 8% to 12% in popular areas like Seminyak and Canggu. Villas for short-term rental have occupancy rates exceeding 70% year-round, with peaks nearing 90% during the high season.
Real estate investors also benefit from high resale periods, particularly for well-located villas or small hotel properties. In 2024, the average selling price of villas in Canggu increased by 14.5%, and the number of real estate projects including hotel services has doubled since 2022. The convergence between real estate and hospitality continues to strengthen, offering long-term profitability opportunities for investors.
With such returns, is it possible that real estate investment in Bali will become a benchmark for foreign investors in the region?
Favorable Legal Framework for Foreign Investment
Indonesia, and Bali in particular, continues to facilitate foreign real estate investment through legal structures like PMA (Penanaman Modal Asing), which allow international investors to legally buy, manage, and resell properties. This legal framework, combined with a stable tax system, makes Bali an ideal destination for medium and long-term real estate projects.
A Thriving Tourist Destination
Bali’s tourism sector shows no signs of slowing down. In 2025, the island is ranked among the world’s most popular destinations, and its appeal remains strong despite global economic fluctuations. International tourists, particularly from Australia, China, India, the United States, and Europe, continue to choose Bali for its landscapes, diverse offerings, and competitive prices.
Tourism in Bali, constantly evolving, is a key factor in the value of real estate. As the island continually reinvents itself, investors can expect significant appreciation potential in the coming years, driven by stable tourist demand and regional economic growth.
Bali positions itself as a true real estate investment hub, supported by continuous tourism growth and high demand for new properties. Whether for rental villa projects or hotel developments, the island offers unique opportunities for investors seeking long-term returns and value appreciation.
The dynamism of the real estate market, combined with attractive returns, makes Bali a strategic choice for investors who can expect high profitability while participating in the expansion of a growing destination.
Are real estate projects in Bali expected to keep growing, or will demand stabilize the market in the coming years?
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