Bali 2025: Real Estate Riding the Wave of Growth

Bali, the island of the gods, continues to attract millions of tourists, and this is directly reflected in its dynamically developing real estate market. 2024 showed impressive growth in the residential sector, attracting investment from all over the world.

More than 6.3 million travelers visited the island, and forecasts for 2025 are even more optimistic - at least 6.5 million guests are expected. What does the Bali real estate market have in store for you in the near future? Let's look at the key trends.

The growth of tourism inevitably leads to an increase in demand for housing. According to our forecasts, in 2025, rental prices in Bali will increase by 18%, and the average occupancy rate of short-term rental properties will reach an impressive 75-80%. A particular boom is expected in popular tourist areas: Canggu, Ubud and Seminyak, where renting will become an even more profitable investment.

But it is not only renting that is experiencing a rise. The cost per square meter of housing in Bali in 2025, according to our estimates, will increase by 10-12%. If such growth rates are maintained, the island's real estate market will increase by $20 billion in the next four years! High rental yields will become a powerful catalyst for this growth, attracting both private investors and large development companies.

More and more investors and tourists are paying attention to the environmental friendliness of projects. In 2025, "green" technologies aimed at reducing the negative impact on the environment will be in increased demand.

Projects using renewable energy sources, water conservation systems and environmentally friendly building materials will become more attractive and, accordingly, more expensive.

The procedure for obtaining visas and work permits in Bali is expected to be simplified. This will significantly improve the investment climate, attracting more foreign capital and contributing to the emergence of new real estate. Simpler and more transparent rules of the game will accelerate the development of the market and attract new players.

Infrastructure development: new opportunities

Infrastructure projects in Bali will continue to develop rapidly. In 2025, a large-scale Paramount theme park is planned to open, which will attract additional tourist flow and increase demand for housing. Also, the construction of the Mengwi-Gilimanuk highway, improving the transport accessibility of the island, will be in full swing. All this will contribute to the growth of real estate prices in the surrounding areas.

Tax factor: VAT increase

The increase in VAT to 12% will inevitably affect the real estate market. Construction and investment costs will increase, which will certainly affect the cost of housing and strengthen the upward trend in prices. Investors need to take this factor into account when planning their budget.

The Bali real estate market in 2025 promises to be extremely dynamic. The growth of tourism, improved infrastructure, simplification of business procedures and increased interest in environmentally friendly projects - all this contributes to a steady increase in housing prices. Investing in real estate in Bali remains attractive, but it is necessary to carefully analyze the market and take into account all factors, including tax legislation. Bali is an island of opportunities, but also an island with a high level of competition.