is bali’s property market really booming in 2026 — or is it just hype?

Bali’s property market looks strong on the surface — tourism is up, investors are returning, and new villas are launching weekly. But is it truly booming, or is the market becoming oversupplied and riskier than it seems?

In this article, you’ll learn what the real data says about tourism, property growth, ROI expectations, oversupply concerns, and what smart investors should actually focus on in 2026. If you’re considering investing in Bali, read this before making a decision.

Tourism Is Strong — But That’s Only Part of the Story

Tourism has recovered significantly. Bali recorded over 6.3 million international visitors in 2024, and 2025 continued to show strong momentum, with more than 7 million combined air and sea arrivals.

• Hotel occupancy and wellness-related accommodation demand remain solid.

• On paper, this supports the investment narrative.

• However, tourism growth alone does not guarantee strong property returns.

Residential and Commercial Property Growth Is Uneven

According to Bank Indonesia (Q3 2025), residential property growth nationwide remained positive, with Bali performing slightly above the national average. But growth across segments has not been equal:

Tourism-linked assets such as hotels are performing better. Meanwhile, serviced apartments are facing pressure due to softer demand and increasing supply. This tells us one thing clearly: not every property type is benefiting equally.

The ROI Reality: 15–20% Returns?

Many agents still promote projected returns of 15–20% annually with occupancy rates of 60–80%. But actual performance depends heavily on:

• Location quality

• Build and design differentiation

• Professional management

• Cost structure

Most advertised returns are gross ROI. Once you deduct management fees, staff, maintenance, taxes, platform commissions, insurance, and marketing, net returns can look very different. Additionally, Indonesian law requires foreign investors operating rental properties to use a PT PMA structure, adding compliance and administrative costs.

The “Empty Villa” Narrative

Social media has amplified the image of empty villas across areas like Canggu. There is truth behind it. Airbnb-style listings grew significantly year-on-year, while booking values declined — indicating supply is rising faster than demand in some zones.

Many off-plan projects launched simultaneously, often with similar design concepts, increasing competition and price pressure. This does not mean Bali is collapsing — it means the market is maturing and becoming more selective.

Regulatory Tightening: The End of the Grey Market

Since late 2025, Indonesia has increased immigration checks, licensing scrutiny, and enforcement of zoning compliance. Short-term rentals are under closer review, especially those operating without proper commercial permits. For serious investors, this is not negative; it removes unfair competition and pushes the market toward professionalism.

So, Is Bali Booming?

Yes — but selectively. The "build anything and rent it" era is ending. In 2026, investors who focus on prime micro-locations, legal transparency, unique architecture, and realistic net projections can still achieve solid returns. Speculative, generic, and poorly structured projects will struggle.

What Smart Investors Should Do in 2026

Before committing capital:

• Verify building permits (PBG / SLF)

• Confirm zoning allows commercial rental use

• Calculate net ROI, not gross

• Factor in tax and compliance costs

• Use a proper PT PMA structure

Secure Your Investment with Kibarer Property

Bali is no longer an "easy money" market—it is a professional one. To succeed in 2026, you need more than just a beautiful design; you need bulletproof legal structures and localized expertise.

Kibarer Property specializes in navigating Bali's evolving landscape. From securing high-yield off-plan opportunities to establishing your PT PMA with full transparency, we ensure your investment is built on a foundation of fact, not hype.

Don't risk your capital on generic projections. Contact the experts at Kibarer Property today for a realistic assessment of the 2026 market.

Inquire with Kibarer Property