Tourism and Real Estate Demand
Tourism drives Bali’s economy and significantly impacts the real estate market. As one of the world’s most popular travel destinations, Bali attracts millions of visitors annually. This creates a consistent demand for short-term rental properties, especially in tourist-heavy areas like Seminyak, Canggu, and Ubud. Many investors leverage platforms like Airbnb to generate substantial income from vacation rentals.
Example: A well-located villa in Seminyak can generate $200–$500 per night during peak season.

Bali’s Global Appeal
Bali is renowned for its stunning natural beauty, cultural richness, and affordability. With direct international flights from Europe, Asia, and Australia, the island is easily accessible to a global audience. This boosts the demand for both vacation homes and long-term rentals, making Bali a lucrative market for property investors.

Steady Real Estate Growth
The Indonesian real estate market, including Bali, is projected to grow from $72.11 billion in 2024 to $105.73 billion by 2029 at a CAGR of 7.95%. Factors driving this growth include urbanization, rising disposable incomes, and increasing demand for housing. Bali’s property values are expected to climb steadily, particularly in areas undergoing infrastructure development.

Residential Properties

• Villas

A top choice for short-term rentals, especially those with private pools and modern amenities. Villas in Seminyak, Canggu, and Ubud offer significant rental income potential, often exceeding $50,000 annually.

• Apartments

Ideal for smaller investments and easier management. Popular in urban and tourist areas like Kuta and Nusa Dua.


Commercial Properties

• Hotels and Guesthouses

High demand from tourists makes hospitality a profitable venture. Boutique hotels and resorts are particularly lucrative in areas like Uluwatu and Seminyak.

• Restaurants and Cafés

Growing popularity among tourists and digital nomads ensures consistent foot traffic.

• Co-Working Spaces

A rising trend driven by Bali’s increasing population of remote workers and digital nomads.


Land Investments

• Raw Land

A high-potential asset for future development, particularly in areas like Uluwatu and Sanur, where land prices are rising.

• Building Projects

Construction of villas, hotels, or commercial complexes offers high returns, especially in tourist-heavy zones.

Ownership Restrictions for Foreigners
Foreigners cannot directly own land in Indonesia but can invest through:

1. Long-Term Lease (Hak Pakai): Allows foreign investors to lease land for up to 30 years, with extensions of 20–30 years.
2. PT PMA (Foreign-Owned Company): Enables land or property ownership via a registered company, ideal for large-scale projects.

Taxation and Operational Costs

• Rental Income Tax: Around 11% of gross rental income for foreign investors.
• Land Tax (PBB): Based on the property’s size and value.
• Additional Costs: Maintenance, insurance, management fees, and marketing expenses for rentals.

Investor KITAS (Temporary Residency Permit)
Foreign investors can apply for a KITAS (temporary residency permit) by making significant investments in Indonesian real estate or businesses. This status is renewable and can lead to permanent residency (KITAP) after five years.