Bali Real Estate Market Analysis in 2024. Trends and forecasts for 2025
28 October 2024
In 2024, the real estate market in Bali continues to show steady growth despite global economic fluctuations. This tropical island attracts the attention of foreign investors eager to take advantage of its unique atmosphere and growing tourist influx.
Let’s examine the key trends affecting the market and forecasts for 2025.
- Growing Interest in Short-Term Rentals
With the recovery of international tourism following the pandemic, demand for short-term rentals has significantly increased. According to local real estate agencies, the rental yield from villas and apartments in popular tourist areas such as Seminyak and Canggu ranges from 10% to 15% per year.
This makes the short-term rental market particularly appealing to investors looking to quickly recoup their investments.
- Commercial Real Estate and New Business Opportunities
Bali is also attracting the attention of entrepreneurs, especially in the coworking and office space for digital nomads. This segment helps stimulate the island's economy and opens new opportunities for investors in commercial real estate. Trends in 2024 indicate high interest from businesspeople in Europe and Australia, as well as an increase in the number of remote workers seeking long-term rental housing.
- Real Estate Prices: Growth and Forecasts
In 2024, average real estate prices in Bali increased by 5-10% compared to the previous year, driven by high demand and limited supply.
Notable growth is particularly evident in areas with developing infrastructure, such as Ubud and Nusa Dua. Prices are expected to continue rising in 2025, although at a more moderate pace, due to new construction projects and improved transport accessibility.
- Sustainable Development and Eco-Homes
With the growing interest in sustainability and ecology, the popularity of eco-homes and sustainable residential complexes is on the rise. Investors are increasingly seeking properties built using eco-friendly materials and technologies that reduce environmental impact. This trend not only reflects changing buyer preferences but also aligns with global trends towards ecology and sustainability.
- Attracting Foreign Investors
Starting in 2024, Bali is actively working to improve the business climate for foreign investors, including simplifying the visa and work permit processes. This is expected to lead to an increase in foreign real estate buyers in the coming years. Consequently, new projects aimed at meeting the demand from overseas clients may emerge in the market.
- Impact of Global Economic Factors
Despite local success, the real estate market in Bali is subject to the influence of global economic factors such as inflation and changes in international politics. In 2024, there has been a rise in prices for construction materials and services, which may lead to increased costs for new real estate projects.
This trend is expected to continue into 2025, affecting the overall affordability of housing for local residents and investors.
Investments in real estate in Balii offer unique advantages, including the potential for high returns, a stable flow of tourists, improved conditions for foreign investors, and high demand for rentals. Considering the current market changes and a favorable climate for long-term growth, purchasing property here remains an attractive strategy for those looking to diversify their portfolio and achieve sustainable income in the future.
