Bali has long been synonymous with paradise, drawing in tourists, expatriates, and savvy investors alike. But in 2025, the island is witnessing a shift unlike anything before. With tourism rebounding, infrastructure expanding, and digital nomads flooding in, Bali’s real estate market is transforming fast. For anyone looking to ride this wave, understanding the emerging trends and hidden hotspots is crucial. In this article, we’ll dive deep into the key factors shaping Bali’s property landscape and how investors can strategically position themselves for long-term gains.
The Surge in Bali's Real Estate Market
Post-Pandemic Recovery and Tourism Boom
The COVID-19 pandemic may have hit pause on global travel, but Bali's recovery is not just a bounce back—it's a leap forward. As of early 2025, international arrivals have soared past 6 million, bringing life back to the island's tourism-driven economy. And this resurgence is directly fueling real estate activity.
Unlike pre-pandemic times when short-term travelers dominated, today’s visitors are staying longer and spending more. Digital nomads, remote workers, and semi-permanent residents are replacing the typical tourist demographic, leading to a shift in property demand. These new residents want fully equipped homes with strong Wi-Fi, comfortable workspaces, and all the modern amenities.
Developers are answering this call by launching new projects focused on luxury villas, long-term rental homes, and serviced apartments. Popular regions like Canggu, Uluwatu, and Ubud are seeing a boom in both construction and property prices, but the opportunities extend far beyond these hotspots.
The short-term rental market is also thriving thanks to platforms like Airbnb and Vrbo. A well-located, well-managed villa can now earn investors a solid monthly return, with occupancy rates often hitting 80–90% during peak seasons.
Infrastructure Developments Fueling Growth
Infrastructure is the backbone of real estate growth, and Bali is getting a serious upgrade. One of the most talked-about projects is the new Gilimanuk–Mengwi toll road, which connects remote western regions to Bali’s economic hubs, slashing travel time by over 50%.
Add to that the ongoing expansion of Ngurah Rai International Airport, which aims to handle more international flights and accommodate Bali’s growing tourism numbers. The airport’s facelift includes new terminals, enhanced immigration services, and improved public transport connections.
In North Bali, plans for a new international airport are gathering momentum. If completed, it will reshape travel patterns and turn the quieter northern coast into a new hotspot for both tourists and investors.
Beyond transport, Bali is also pushing forward with digital infrastructure. The island is part of Indonesia’s Smart City initiative, with upgrades in high-speed internet, green energy grids, and waste management systems. These advancements not only improve living standards but also add long-term value to properties.
Emerging Investment Hotspots
Tabanan: The Next Big Thing
If you’re looking for the next Canggu, look no further than Tabanan. Nestled just west of Bali’s trendy coastlines, Tabanan combines serene rice fields, volcanic landscapes, and untouched beaches. It’s one of the few areas where you can still find large land plots at reasonable prices.
Tabanan is attracting a wave of wellness resorts, yoga retreats, and eco-villas. Investors love the region’s calm ambiance and potential for high returns as tourists seek more authentic experiences away from crowded hubs. Thanks to recent road improvements, Tabanan is now easily accessible from Denpasar and Canggu, making it an ideal location for both vacationers and long-term renters.
What’s more, zoning laws in Tabanan are favorable to foreign investors, especially those interested in leasehold arrangements. With sustainable development being a local government priority, the area is poised to grow without the risk of overdevelopment.
North Bali: Untapped Potential
For the bold investor willing to go off the beaten path, North Bali is an opportunity goldmine. Towns like Lovina, Singaraja, and Tejakula offer coastal charm, lush mountain views, and significantly lower property prices than their southern counterparts.
The proposed North Bali International Airport could be a game-changer. Once operational, it will open up the entire northern coast to international arrivals, relieving congestion in the south and bringing new visitors to this underexplored paradise.
North Bali is also gaining popularity among wellness travelers and retirees. Eco-resorts, meditation centers, and sustainable farming communities are springing up across the region. For investors, this means high potential for rental income and value appreciation—without the steep price tag of more developed areas.
Sustainable and Eco-Friendly Developments
Green Building Practices and Certifications
Today’s buyers care about more than location—they want homes that reflect their values. That’s why sustainable real estate is no longer optional in Bali; it’s essential. Developers are now incorporating eco-friendly features like solar panels, natural cooling systems, recycled materials, and rainwater harvesting into new builds.
Properties that meet green building certifications such as EDGE and LEED are gaining a competitive edge. These homes not only appeal to eco-conscious tenants but also command higher rental rates and resale prices. The eco-luxury market is growing, and Bali is at its center.
As more travelers and residents seek carbon-neutral living, villas and apartments that embrace sustainability are leading the pack. Investing in green real estate is no longer just ethical—it’s profitable.
Government Incentives for Sustainable Projects
The Indonesian government has recognized the importance of eco-friendly growth and is encouraging it through policy. In 2025, several new initiatives were introduced to promote sustainable development, including tax reductions for green-certified projects and streamlined permits for developers using environmentally friendly designs.
Bali's local authorities are also pushing for more green zones, reforestation efforts, and stricter building codes in ecologically sensitive areas. These efforts protect the island's beauty while making it easier for developers and investors to align with long-term goals.
Foreign investors can benefit from these incentives too. Whether you’re building a small villa or a large resort, adopting sustainable practices could save you thousands in development costs—and pay off through increased tenant demand.
The Digital Nomad Influence
Demand for Remote Work-Friendly Properties
In recent years, the global workforce has undergone a significant transformation. With remote work becoming the norm for millions of professionals worldwide, Bali has become a magnet for digital nomads seeking a work-life balance in paradise. These modern workers aren't just on vacation—they're looking to settle, work efficiently, and immerse themselves in Bali’s vibrant culture.
This shift has created a surge in demand for properties that cater specifically to the needs of remote professionals. We're talking about villas and apartments equipped with high-speed fiber-optic internet, dedicated office spaces, ergonomic furniture, and backup power solutions like solar panels or generators. Properties that offer peaceful surroundings away from noisy tourist areas are also high on the wishlist.
Neighborhoods like Ubud, Pererenan, and parts of Canggu have evolved to meet this demand, now hosting co-working hubs, networking events, and cafes with blazing-fast Wi-Fi. Smart investors are responding by converting traditional homes into tech-friendly workspaces or building entirely new villas tailored to the remote work lifestyle.
And it’s not just solo travelers. Remote families, startup teams, and entrepreneurs are looking for spacious homes with multiple bedrooms, community pools, fitness centers, and proximity to international schools. Properties that offer flexible lease terms—from monthly to yearly—are in especially high demand.
From an ROI perspective, remote-worker-friendly properties have one of the highest occupancy rates on the island. As remote work becomes less of a trend and more of a lifestyle, investing in homes that cater to this market is one of the smartest moves you can make in 2025.
Co-Living Spaces and Long-Term Rentals
Another key trend emerging from the digital nomad wave is the rise of co-living spaces. These aren’t your average hostels or budget accommodations. They are well-designed, community-focused living environments where individuals can rent private rooms while sharing common spaces like kitchens, living rooms, and even pools.
Bali’s co-living boom is driven by digital workers who crave both independence and connection. Startups like Outpost and Dojo have led the charge, offering work-friendly accommodations with built-in networking opportunities. These spaces are now thriving in areas like Canggu and Uluwatu and are expanding into quieter regions like Tabanan and North Bali.
Investors looking to capitalize on this trend should consider building or converting properties into modular co-living units. Features like shared coworking spaces, high-speed internet, regular cleaning services, and curated community events can command premium monthly rates and foster tenant loyalty.
The beauty of co-living lies in its flexibility. Spaces can be booked for days, weeks, or months, making them ideal for the island’s transient yet loyal nomad population. As a result, long-term occupancy rates remain high, and the turnover doesn’t affect profitability thanks to demand consistency.
From a real estate perspective, co-living spaces offer a dynamic investment option with strong returns, high occupancy, and the chance to cater to one of the fastest-growing demographics in Bali.
Legal Landscape for Foreign Investors
Extended Leasehold Durations
Understanding property laws in Bali is crucial for foreign investors. While freehold land is reserved for Indonesian nationals, foreigners can still invest legally through leasehold agreements. In 2025, these regulations have become even more favorable.
Leaseholds, which once commonly lasted 25 to 30 years, can now be extended up to 80 years under clear contractual agreements. This change gives foreign buyers a longer investment horizon and more confidence in the stability of their purchase.
Extended leaseholds make properties more appealing to long-term renters, retirees, and those looking to develop boutique hotels or villa complexes. These leases can be legally registered under a nominee or a PMA (foreign-owned company), offering both flexibility and protection.
For investors, this means you can secure high-value land or properties in prime locations without navigating the complexities of freehold ownership. With proper legal guidance, leasehold investments can be structured to ensure long-term security and profitability.
Easier Processing for Hak Pakai Titles
Another legal development boosting foreign investment in Bali is the simplification of the Hak Pakai (Right to Use) title process. Hak Pakai allows foreign individuals to purchase property in Indonesia under their own name for residential purposes, provided certain residency and usage conditions are met.
Recent reforms in 2025 have reduced bureaucratic red tape and processing times for Hak Pakai titles. This has encouraged more expatriates to purchase homes for personal use, especially in urban and semi-urban areas.
Foreigners can now apply for Hak Pakai with a stay permit (KITAS) or permanent residence (KITAP), and they are no longer restricted to specific zones. This opens up new areas for legal investment and gives buyers greater confidence in the legitimacy of their ownership.
Legal firms in Bali now offer streamlined services to help investors navigate property acquisition through Hak Pakai, PMA, or leasehold structures. With the right legal support, investing in Bali has never been easier or safer.
