Is Now the Time to Invest in Bali?

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The Bali real estate market has seen remarkable growth in 2024, driven by tourism recovery, digital nomad influx, and infrastructure progress. For investors, Bali remains a land of immense potential. But what does the future hold for 2025? In this guide, we’ll break down the trends, challenges, and opportunities shaping the property market in Bali's real estate market.

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If you’re wondering “Is now the time to invest in paradise?” – the answer lies within this comprehensive exploration of the profitable real estate market in 2025. The increasing interest from both domestic and international buyers sees no fall!

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Read our article: "Why Bali is Becoming the Top Choice for Diversifying Investments"

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Bali Real Estate Market in 2024: An Overview

• Steady Growth: Property prices in Bali have been increasing at an average rate of 7% per year over the past five years, with some areas experiencing higher increases.
• Rental Yields: Villas in tourist hotspots offer gross rental yields between 7-15%, driven by short-term vacation rentals.
• Digital Nomads: Long-term stays by remote workers have spiked, increasing demand for furnished villas and apartments.
• Tourism Spike: Bali, Indonesia's iconic holiday island, welcomed 6.3 million foreign visitors between January and December last year, up 19.5% year-on-year and surpassing pre-pandemic levels. (VnExpress)

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Factors That Drove the 2024 Real Estate Market

1. Tourism Recovery

With over 6.3 million international visitors recorded in 2024, up from 4.5 million in 2023, Bali's tourism industry has rebounded strongly since the pandemic. (VnExpress). This surge fuels the demand for vacation rentals and hospitality investments. The Indonesian Ministry of Tourism and Creative Economy has set ambitious targets, with optimism for continued growth in 2025.

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2. Influx of Digital Nomads

Thanks to remote work being more accessible than ever, Bali remains one of the top global destinations for nomads, thanks to its affordable lifestyle and supportive infrastructure. Areas like Canggu and Ubud are seeing a rise in long-term rental agreements and co-living spaces. Digital nomads now make up 20% of Bali's long-term rental market, reflecting the rising demand for furnished accommodations in popular areas (NomadList).

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3. Sustainable Development Trends

Leading eco-conscious investments are on the rise. Sustainable eco-friendly villas with eco-friendly designs, sustainable materials, and renewable energy solutions are gaining popularity among both real estate investors and renters. A lot of new developments in 2024 incorporate sustainable features. Investors and developers are increasingly prioritizing environmental responsibility, which is expected to continue shaping the market in the coming years.

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4. Rise of the Digital Economy

Google Projects 13 percent Growth in Indonesia’s Digital Economy. Indonesia is poised to lead Southeast Asia's digital economy, with projections indicating a Gross Merchandise Value (GMV) of $90 billion in 2024—a 13% increase from the previous year. This growth positions Indonesia as the region's largest digital economy. (Invest Indonesia)

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5. Infrastructure Projects in Bali

Infrastructure improvements, such as new roads and planned airport expansions will eventually imrove accessibility to less developed areas of Bali. The significant projects include the expansion of Ngurah Rai International Airport expansions to accommodate increasing tourism, as well as new road networks that improve connectivity across the island. In addition, the government has announced plans for a new international airport. This promises a continued rise in property investment transactions.

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Property Prices are Expected to Rise in 2025

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Continued Growth in Bali's Real Estate Market

Bali's real estate market is set to rise  in 2025, driven by tourism growth, rising foreign investment, and Bali's increasing appeal as a tropical getaway for nomads and expats. Experts predict a price growth in real estate market property prices, particularly in hotspots like Seminyak and Canggu (Own Property Abroad). The limited availability of land for new developments in popular areas of Bali is expected to maintain upward pressure on property prices. Also, the demand for luxury real estate has been increasing, particularly in tourist locations across Bali.

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Tourist rental accommodation demand is expected to continue growing, leading to further increases in rental prices.

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Increasing Demand from Remote Workers and Expats

The growing number of online workers and expats is significantly boosting demand for both short-term and long-term rentals in Bali's real estate market.

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As more individuals embrace remote work opportunities, Bali's appeal as a tropical getaway with good internet connectivity and a vibrant community of digital nomads continues to rise. This shift has led to an increased demand for furnished accommodations catering to remote workers' needs, such as co-living spaces and villas equipped with high-speed internet.

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Adding to Bali's allure for remote workers, Elon Musk, the CEO of SpaceX, launched Starlink in Bali, Indonesia on May 19, 2024. This development has significantly enhanced internet connectivity across the island, making it an even more attractive destination for digital nomads and expats seeking reliable and fast internet for their remote work needs.

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Strategic Investment Opportunities

For real estate investors, this is a prime opportunity to capitalize on rising demand. By staying informed about market trends, and property ownership regulations and focusing on high-demand areas, therefore foreign investments and strategic decisions can bring significant returns.

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Short-term villa rentals can yield high returns during peak tourist seasons, while long-term residential properties in family-friendly areas like Sanur offer stable returns and a growing expat community. Eco-friendly properties, featuring renewable energy sources, are also gaining popularity among international buyers.

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Read our blog article: "Top Strategies for Maximizing ROI in Bali's Real Estate Market"

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Market Trends to Watch Out for in 2025

1. Rise of Emerging Hotspots

• New airport in North Bali: Plans for a new international airport have been announced to alleviate pressure on the existing Ngurah Rai International Airport. The project, estimated at £2.4 billion, aims to accommodate 20 million passengers annually and is expected to boost tourism in less-visited northern areas like Lovina Beach. (The Irish Sun)
• Sanur: Known for its tranquil, family-friendly atmosphere, Sanur is attracting retirees and investors seeking stable, long-term rental returns. The area has seen a notable increase in demand for rental properties, with a significant portion of inquiries coming from international retirees looking for serene living environments and reliable rental yields.
• East Bali: Rich in culture and natural beauty, the region is emerging as a destination for boutique resorts, wellness retreats, and adventure tourism, appealing to investors and travelers seeking unique experiences.
• Tumbak Bayuh: Located near Canggu, it offers a peaceful environment, while being close to popular amenities. Has strong ROI potential and appeals to digital nomads and long-term renters seeking a quieter lifestyle with proximity to popular areas like Canggu.

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2. Sustainable and Smart Living

Eco-friendly homes featuring solar energy systems, rainwater harvesting, and smart home technology are becoming increasingly popular. Investors are focusing on properties that meet sustainability standards to attract environmentally conscious travelers and renters.

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3. Luxury Wellness Real Estate

The wellness tourism sector in Bali is experiencing significant growth, driven by increasing demand for holistic travel experiences, wellness retreats, and health-focused accommodations. Properties that incorporate spas, yoga shalas, meditation areas, and holistic health amenities are in high demand in the real estate market, particularly in areas like Ubud, Uluwatu, and North of Bali.

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4. Flexible Ownership Models

Innovative ownership structures, such as fractional ownership, co-investment platforms, and extended leasehold agreements, are making Bali's property market more accessible to foreign investors, offering diverse investment opportunities.

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However, understanding property ownership laws and rights is crucial for foreign investors in Bali and requires careful planning.

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Read our article: "How to Buy Property in Bali as a Foreigner: Step-by-Step Guide by Investland Bali"

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5. Emergence of Futuristic Developments

Innovative projects are transforming Bali's real estate landscape by integrating education, art, nature, health, and lifestyle into cohesive communities. These developments emphasize environmental sustainability and feature advanced technologies, including AI systems for daily operations, attracting international interest and setting new standards for integrated living spaces in Bali.

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These trends indicate a shift towards more regulated and innovative real estate developments in Bali, focusing on sustainability and holistic living experiences.

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Investland Bali Developments Ready in 2025

Amari Villas

Located in the serene Padonan area of Canggu, Amari Villas offer a modern tropical living experience. These 2-bedroom villas feature spacious interiors, rooftop terraces, and private pools, making them ideal for investors seeking high rental yields in a prime location.

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Temple Heights

Situated in the heart of Canggu, Temple Heights is a luxurious riverside development of 1-2 bedroom loft-villas designed for modern living. With options for private plunge pools or bathtubs, these fully furnished villas are a turnkey solution for investors looking for immediate returns.

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Upcoming Real Estate Projects in Uluwatu and Sanur

Investland Bali is also expanding into Uluwatu and Sanur – two areas poised for significant growth in 2025. Stay tuned for more details, our plans in other regions, and more exciting developments that combine luxury, sustainability, and strategic locations.

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We´re happy to announce that 2024 ended with a big win for us! On the 27th of December 2024, we bought an ocean view - near the promenade of 3200 square meters of land in Sanur. 

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At the beginning of January 2025, we sold the first 2 land plots with a building permit to a client for whom we now started building the first villas. 

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Read our article “Building a New Life in Bali: A Case Study of Diana’s Villa Project” &  “How to buy a property in Bali?” by ILA Global Consulting

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Find your place in Bali's real estate market

Real estate prices in Bali keep rising and highlighting the island's appeal as a prime investment location. Do not miss out on the exceptional opportunities of the booming market.

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We invite you to invest in our development projects or contact us and we will build you an exclusive custom villa in any area that speaks to you. We promise, that Bali continues to be one of the best real estate markets to invest in right now.

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Schedule a FREE call with us now to explore properties remotely and discuss your unique wants and needs! Bali´s real estate industry waits for you!

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Contact us: info@investlandbali.com

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