Bali’s property market showed strong activity in 2025, driven by tourism recovery and heightened investor interest.
Property prices continued to rise, particularly in commercial sectors such as hotels, offices, and retail, while villas and short-term rental properties remained highly sought after by both local and foreign buyers.
The steady return of national and international visitors has boosted rental yields and investor confidence.
Prime Markets and Yields
Canggu and Berawa remain the island’s most sought-after areas for short-term rentals
and lifestyle buyers, with expected gross annual rental yields of 10–15% in 2026.
Uluwatu, Bingin, and Bukit continue to attract high-end buyers for luxury cliff-top and
ocean-view villas, offering yields of 12–17%. Seminyak and Petitenget maintain stable
demand, with rental returns around 8–12%, while Ubud’s cultural and wellness focus
draws longer-stay guests, also yielding 8–12%.
Emerging Areas
Emerging locations such as Tabanan, Pererenan, Kedungu, and North/East Bali are gaining attention for affordable entry points and strong appreciation potential. Investors in these zones can expect yields of 10–16% or higher, benefiting from lower purchase prices and growth opportunities.
Market Trends and Outlook
Looking ahead to 2026, price growth in established markets is forecast at 5–10%, with higher potential in emerging subregions. Villas remain the most profitable asset type, and many investors are adopting blended rental strategies, combining short-term bookings during peak periods with medium-term stays to maximise returns.
Sustainable and boutique developments that cater to eco-conscious and lifestyle-oriented buyers are likely to take precedence as market sophistication increases.
Bali’s combination of tourism strength, improving infrastructure, and diverse investment appeal keeps the market outlook positive, with prime areas leading rental returns and emerging regions offering compelling opportunities for capital growth.
