1. Resilient post-pandemic growth
One reason to invest in Bali property in 2025 is its resilient post-pandemic growth. Bali’s property market, significantly impacted by the pandemic, has shown remarkable resilience and recovery. During the height of COVID-19, property transactions and prices in areas like Denpasar dropped sharply as tourism came to a halt. However, easing travel restrictions and increased vaccination rates have fueled a robust recovery. By the second quarter of 2022, Bali’s property market began to rebound, and by March 2024, foreign tourist arrivals surged to 1.34 million. This resurgence stabilized the market, pushing commercial property prices in Denpasar to 111.62 index points by the end of 2023, nearing pre-pandemic levels.
2. Tourism boost from global events
High tourism propels Bali real estate market trends, especially in increasing property demand. In March 2024, Bali welcomed 1.34 million international tourists, a remarkable recovery from the 51 foreign visitors recorded in 2021. Tourism is the backbone of Bali’s economy and serves as the center of Indonesia’s tourism industry. The island’s economy is primarily service-based, strongly focusing on tourism and hospitality—another reason to invest in Bali property in 2025 to start a hotel or restaurant business for foreigners.
The steady flow of tourists to Bali has sharply increased the demand for accommodations such as villas, apartments, and commercial properties, as reflected in the Bali real estate market trends. Popular destinations like Seminyak, Ubud, and Canggu attract visitors seeking both short-term rentals and extended stays. This rising demand has increased property prices, especially in prime locations near tourist hubs and beaches, making it one of the reasons to invest in Bali property in 2025. With many tourists opting for private villas or apartments over traditional hotels, property owners and investors are capitalizing on this Bali real estate market trend, further boosting property values in these sought-after areas.
3. Competitive property prices
Bali is also ideal for property investment because of its competitive prices compared to its global competitors. Many foreigners prefer to buy property in Bali due to its high capital appreciation and return on investment. The average Bali property ROI falls between 12% and 20% annually. The high Bali property ROI is driven by strong demand from tourism, expatriates, and digital nomads, coupled with relatively low property costs. Below are the median prices in some locations that reflect the reason to invest in Bali property in 2025. You can find property listings and additional information about Bali properties at LandLoom.
| Location | Villa | Land | Apartment | Commercial |
|---|---|---|---|---|
| Canggu | $369,172 | $330,151 | $203,000 | $378,406 |
| Seminyak | $435,716 | $420,2467 | $276,135 | $315,338 |
| Tibubeneng | $328,789 | $302,092 | $350,000 | – |
| Kerobokan | $325,000 | $299,571 | $214,000 | $391,019 |
| Ungasan | $250,000 | $260,798 | $151,640 | – |
4. Improved infrastructure
Bali is undergoing a significant transformation in 2024, with major infrastructure projects poised to reshape the island’s property market. Substantial infrastructure projects, including expanding Ngurah Rai International Airport and introducing a new public transportation network, will benefit the market, increasing property demand in Jimbaran, Tuban, Denpasar, Sanur, and Ubud. These infrastructure developments not only improve accessibility and functionality but also create strategic opportunities for property investors, making it a reason to invest in Bali property in 2025. Enhanced connectivity, rising demand, and the potential for long-term growth make properties near these projects increasingly attractive. As Bali’s real estate landscape evolves, these improvements will have a profound impact, presenting lucrative opportunities for those looking to invest in one of the world’s most popular tourist destinations.
5. Digital nomad visa expansion
Bali has become a prime destination for digital nomads due to its combination of affordable living, beautiful landscapes, and a thriving expat community. Digital nomads can enjoy flexible accommodations, from beachfront villas to co-living spaces, all equipped with reliable Wi-Fi and ideal workspaces, making it a reason to invest in Bali property in 2025. The Indonesian government recognizes the importance of digital nomads and considers more favorable visa policies to make long-term stays easier.
There are two suitable visa options for digital nomads planning to stay in Bali for a few months or longer. The first is the Remote Worker Visa (E33G), designed for foreigners employed by companies outside of Indonesia. This one-year Temporary Stay Permit (KITAS) allows you to live in Indonesia while working remotely for foreign clients or employers. The second option is the C-Type Visa 211A, which is ideal for those staying between 2 to 6 months.
6. High rental yields
One lucrative reason to invest in Bali property in 2025 is the high rental yields. For instance, commercial properties with a median rental price of IDR 162.41 million ($10,232) can generate high annual rental yields of up to 45.4%. Villas in popular tourist spots often have high rental yields in Bali, over 8% annually, with some exceeding 10%, driven by high occupancy rates and strong tourism recovery. Moreover, Airbnb in Bali achieves an average of 237 booked nights annually, with a median occupancy rate of 65% and an average daily rate of IDR 1.51 million ($95.14), resulting in annual revenue of approximately IDR 296 million ($18,648) in 2023. The steady demand and favorable occupancy rate of 65% make Airbnb rentals in Bali a viable and profitable regional investment option.
7. Diversification of Bali’s economy
In the second quarter of 2024, Bali’s economy, measured by Gross Regional Domestic Product (GRDP), reached IDR 74770 billion ($4.71 billion) at current prices and IDR 42240 billion ($2.66 billion) at constant prices. The Indonesian government has been actively promoting various non-tourism sectors in Bali to diversify the economy and reduce its reliance on tourism. The government has been fostering the growth of the digital industry, particularly by onboarding micro, small, and medium enterprises (MSMEs) to digital platforms. Moreover, agribusiness, fishery, and manufacturing sectors are being targeted for growth, mainly through organic farming, the Green Prosperity (GP) Project, and the Regional Action Plan (RAD). Another reason to invest in Bali property in 2025 is the initiative to transform Bali into a hub for innovation, digital activities, and sustainable industries, balancing the economy with a broader range of sectors beyond traditional tourism.
8. Strong government support for foreign investors
Indonesia offers a range of investment incentives designed to attract foreign businesses and support their operations here. These include 100% foreign ownership across most sectors, simplified licensing processes through the Omnibus Law, and various tax incentives. Businesses can benefit from tax allowances, which provide a 30% reduction in corporate income tax (CIT) for eligible investments over six years, and tax holidays, offering full CIT exemptions for up to 25 years for investments in pioneer sectors. The government’s pro-business policies and financial incentives make Indonesia an attractive destination for investments, making it one of the reasons to invest in Bali property in 2025.
9. Sustainable development trends
Sustainable development trends in Bali’s property market are driven by a commitment to eco-friendly construction, renewable energy adoption, and preserving the island’s natural and cultural heritage. Foreigners can find reasons to invest in Bali property in 2025 because of Indonesia’s key initiatives, including promoting green buildings, integrating solar energy, and focusing on low-emission transportation. Moreover, Indonesia’s green economy is a cornerstone of its Golden Indonesia 2045 Vision. Efforts include initiatives like the Green Growth Programme, increasing renewable energy to 70% of the energy mix by 2045, and implementing policies for climate resilience, green financing, and carbon pricing, supported by the newly planned Climate Change Control and Carbon Trading Management Agency.
10. Cultural and lifestyle appeal
Investing in Bali offers a lucrative financial opportunity and access to an exceptional lifestyle characterized by vibrant Balinese culture, breathtaking landscapes, welcoming communities, and exquisite cuisine. One of the reasons to invest in Bali property in 2025 is it allows you to immerse yourself in its unique experiences, making Bali a popular choice among foreigners as a second home or retirement destination.
Looking to invest in Bali property? LandLoom can guide you!
Investing in Bali property in 2025 offers incredible potential, but making the right decisions requires reliable data and insights. LandLoom, our advanced real estate analytics tool, gives you access to comprehensive market trends, property prices, and investment opportunities across Bali. With LandLoom, you can make data-driven decisions for your property investments.
LandLoom is your ultimate tool for navigating Bali’s real estate market. Access detailed analytics, market trends, and property insights to make data-driven investment decisions.
Frequently Asked Questions (FAQs)
Is Bali still a good investment in 2025?
Yes, Bali remains a strong investment option in 2025 due to ongoing infrastructure developments, a thriving tourism sector recovery, and growing interest in digital nomad-friendly real estate. However, diversification into non-tourism sectors is increasingly being encouraged for sustained returns.
What are the top areas to invest in Bali property in 2025?
The top areas to invest in Bali property in 2025 include Seminyak and Canggu, which have a tourism-driven appeal; Uluwatu and Bukit Peninsula, which offer luxury beachfront developments; Ubud, which offers cultural and wellness-focused properties; and emerging locations like Pererenan and Lovina, which provide lower costs and strong growth potential.
How does the digital nomad visa impact the Bali property market?
The digital nomad visa is expected to boost Bali’s property market by increasing demand for long-term rentals and co-living spaces as remote workers and entrepreneurs seek flexible and comfortable accommodations tailored to their lifestyles.
What are the average rental yields for Bali properties in 2025?
Properties offer high rental yields in Bali, with commercial properties yielding up to 45.4% annually and villas in popular tourist areas achieving yields above 8%, often exceeding 10%, driven by strong occupancy rates and robust tourism recovery. Moreover, short-term rentals, like Airbnb, can generate an annual revenue of approximately IDR 296 million ($18,648).
What government policies support foreign investment in Bali real estate?
The government policies supporting foreign investment in Bali real estate include the Omnibus Law, which simplifies licensing and investment processes, provisions for long-term property leases, and regulations allowing foreign ownership of apartments through Hak Pakai (Right to Use) titles. These foreign-friendly policies are the reasons to invest in Bali property in 2025.
Why buy property in Bali in 2025?
Buying property in Bali in 2025 is a compelling opportunity due to strong rental yields exceeding 8% in key areas, a thriving tourism sector, and the island’s reputation as a top destination for lifestyle, investment, and retirement.
