






{"id":41370,"date":"2025-02-18T15:14:18","date_gmt":"2025-02-18T08:14:18","guid":{"rendered":"https:\/\/www.asiapropertyawards.com\/?p=41370"},"modified":"2025-04-01T20:56:26","modified_gmt":"2025-04-01T13:56:26","slug":"bali-leads-the-charge-in-indonesias-rental-boom-while-other-regions-struggle-to-keep-pace","status":"publish","type":"post","link":"https:\/\/www.asiapropertyawards.com\/en\/bali-leads-the-charge-in-indonesias-rental-boom-while-other-regions-struggle-to-keep-pace\/","title":{"rendered":"Bali leads the charge in Indonesia&#8217;s rental boom while other regions struggle to keep pace"},"content":{"rendered":"<p>Bali\u2019s formula of culture-rich island bliss is sending its rental market soaring, but other parts of Indonesia are faring less successfully<\/p>\n<figure id=\"attachment_41375\" aria-describedby=\"caption-attachment-41375\" style=\"width: 1000px\" class=\"wp-caption alignnone\"><img decoding=\"async\" class=\"wp-image-41375 size-full\" src=\"https:\/\/www.asiapropertyawards.com\/wp-content\/uploads\/2025\/02\/shutterstock-2396508689-67b5955171f1a.webp\" alt=\"\" width=\"1000\" height=\"563\" srcset=\"https:\/\/www.asiapropertyawards.com\/wp-content\/uploads\/2025\/02\/shutterstock-2396508689-67b5955171f1a.webp 1000w, https:\/\/www.asiapropertyawards.com\/wp-content\/uploads\/2025\/02\/shutterstock-2396508689-67b5955171f1a-400x225.webp 400w, https:\/\/www.asiapropertyawards.com\/wp-content\/uploads\/2025\/02\/shutterstock-2396508689-67b5955171f1a-600x338.webp 600w, https:\/\/www.asiapropertyawards.com\/wp-content\/uploads\/2025\/02\/shutterstock-2396508689-67b5955171f1a-768x432.webp 768w\" sizes=\"(max-width: 1000px) 100vw, 1000px\" \/><figcaption id=\"caption-attachment-41375\" class=\"wp-caption-text\">Jakarta\u2019s market has slowed with lukewarm demand from buyers stalling the introduction of new inventory. leolintang\/Shutterstock<\/figcaption><\/figure>\n<p>Barely a week passes without a grinning influencer uploading a video extolling Bali\u2019s virtue, complete with sweeping shots of luxury villas and artfully arranged acai bowls.<\/p>\n<p>Indonesia\u2019s most famous tourist destination has become social media gold, drawing anyone eager for online fame or a quick buck\u2014many of whom are only too happy to sell you a home.<\/p>\n<p>Yet, beneath the gloss and self-promotion, Bali\u2019s housing market is genuinely booming. While Jakarta and other major cities struggled to attract residential buyers, Bali emerged as one of Indonesia\u2019s brightest real estate hotspots last year.<\/p>\n<p>In 2024, Bali welcomed 6.3 million foreign visitors, surpassing pre-pandemic levels, according to official data. This surge has spurred significant gains in the island\u2019s property market, notes Bagus Adikusumo, a senior director at Colliers Indonesia.<\/p>\n<blockquote><p>Bali\u2019s picturesque landscapes, coupled with a relatively low cost of living compared to Western countries, have made it an attractive hub for expatriates<\/p><\/blockquote>\n<p>\u201cThe property market is very active in Bali right now. Residential sectors, including villas, apartments, and landed houses, are performing exceptionally well,\u201d he says. Adikusumo highlights the high sales levels achieved by new villa developments during their launch stages.<\/p>\n<p>Bali\u2019s appeal extends to digital nomads and Western renters who have traded expensive lifestyles at home for their slice of affordable paradise. Long a favourite destination for Australian tourists, many are now opting for permanent stays.<\/p>\n<figure id=\"attachment_41373\" aria-describedby=\"caption-attachment-41373\" style=\"width: 1000px\" class=\"wp-caption alignnone\"><img decoding=\"async\" class=\"size-full wp-image-41373\" src=\"https:\/\/www.asiapropertyawards.com\/wp-content\/uploads\/2025\/02\/shutterstock-2347603593-67b5954f6a9d8.webp\" alt=\"\" width=\"1000\" height=\"667\" srcset=\"https:\/\/www.asiapropertyawards.com\/wp-content\/uploads\/2025\/02\/shutterstock-2347603593-67b5954f6a9d8.webp 1000w, https:\/\/www.asiapropertyawards.com\/wp-content\/uploads\/2025\/02\/shutterstock-2347603593-67b5954f6a9d8-400x267.webp 400w, https:\/\/www.asiapropertyawards.com\/wp-content\/uploads\/2025\/02\/shutterstock-2347603593-67b5954f6a9d8-600x400.webp 600w, https:\/\/www.asiapropertyawards.com\/wp-content\/uploads\/2025\/02\/shutterstock-2347603593-67b5954f6a9d8-768x512.webp 768w\" sizes=\"(max-width: 1000px) 100vw, 1000px\" \/><figcaption id=\"caption-attachment-41373\" class=\"wp-caption-text\">The demand for real estate in Bali is driven by a sense of lifestyle and freedom that many international buyers seek. LilyRosePhotos\/Shutterstock<\/figcaption><\/figure>\n<p>\u201cAnyone who\u2019s rented in Australia knows it\u2019s like the Hunger Games right now,\u201d quips one expatriate. \u201cLandlords can charge what they want and delay repairs indefinitely. As a tenant, you might as well tattoo \u2018license to rip me off\u2019 on your forehead.\u201d<\/p>\n<p>The demand for real estate in Bali is also driven by a sense of lifestyle and freedom that many international buyers seek. Bali\u2019s picturesque landscapes, coupled with a relatively low cost of living compared to Western countries, have made it an attractive hub for expatriates.<\/p>\n<p>Remote workers, in particular, have been drawn to the island\u2019s thriving co-working spaces and vibrant social scene. This influx of residents has created a ripple effect on local businesses, from cafes and boutiques to wellness retreats, further boosting the island\u2019s economy.<\/p>\n<p>Bali\u2019s real estate appetite sharply contrasts with the lukewarm demand in Jakarta and Surabaya, especially for apartments. In Jakarta, no new apartments were completed during the third quarter of last year, keeping supply at 226,815 units. While 400 additional units were expected by the fourth quarter, increasing the annual supply by just 2.5 percent, the figure remained low. Some apartments were even priced below IDR1 billion (USD62,000), but this failed to significantly boost sales.<\/p>\n<p>\u201cDevelopers are pulling back from building apartments because sales are below target,\u201d says Ferry Salanto, head of research at Colliers Indonesia. \u201cLarge developers are focusing on landed housing, which carries lower risk.\u201d<\/p>\n<figure id=\"attachment_41371\" aria-describedby=\"caption-attachment-41371\" style=\"width: 1000px\" class=\"wp-caption alignnone\"><img decoding=\"async\" class=\"size-full wp-image-41371\" src=\"https:\/\/www.asiapropertyawards.com\/wp-content\/uploads\/2025\/02\/shutterstock-745398841-67b5954fb2381.webp\" alt=\"\" width=\"1000\" height=\"665\" srcset=\"https:\/\/www.asiapropertyawards.com\/wp-content\/uploads\/2025\/02\/shutterstock-745398841-67b5954fb2381.webp 1000w, https:\/\/www.asiapropertyawards.com\/wp-content\/uploads\/2025\/02\/shutterstock-745398841-67b5954fb2381-400x266.webp 400w, https:\/\/www.asiapropertyawards.com\/wp-content\/uploads\/2025\/02\/shutterstock-745398841-67b5954fb2381-600x399.webp 600w, https:\/\/www.asiapropertyawards.com\/wp-content\/uploads\/2025\/02\/shutterstock-745398841-67b5954fb2381-768x511.webp 768w\" sizes=\"(max-width: 1000px) 100vw, 1000px\" \/><figcaption id=\"caption-attachment-41371\" class=\"wp-caption-text\">In some ways, Bali has become a victim of its own success, with traffic congestion a major problem on the island\u2019s narrow roads. Imagentle\/Shutterstock<\/figcaption><\/figure>\n<p>A similar trend emerged in Surabaya, where no new launches or completions occurred in the first half of last year due to construction delays. Projects were instead pushed to the second half of 2024.<\/p>\n<p>To stoke property demand, Indonesia\u2019s government has relied on tax breaks. While these initially bolstered sales in major cities after their 2021 introduction, their impact has since waned.<\/p>\n<p>\u201cOur findings show the VAT waiver benefits the landed housing market more than apartments. However, the effect isn\u2019t as strong as when the waiver was first introduced,\u201d says Adikusumo.<\/p>\n<p>Looking ahead, JLL\u2019s senior director for Indonesia, Vivin Harsanto, predicts that landed residential properties will remain strong, as they are still the preferred choice. For apartments, she points to key factors like strategic locations, reputable developers, and unique selling points as critical to success.<\/p>\n<p>As for Bali, Adikusumo believes it will continue to outperform. \u201cThe residential market will plateau in major cities like Jakarta and Surabaya, but Bali\u2019s property market will keep flourishing. Tourism expansion is driving foreign investment and pushing property prices higher.\u201d<\/p>\n<p>Land prices in Bali could rise by 10-15 percent annually, with sought-after areas like Canggu, Jimbaran, and Kuta seeing increases of up to 17 percent per year. Adikusumo predicts a return on investment of 12-18 percent within three years for properties in these areas.<\/p>\n<figure id=\"attachment_41377\" aria-describedby=\"caption-attachment-41377\" style=\"width: 1000px\" class=\"wp-caption alignnone\"><img decoding=\"async\" class=\"size-full wp-image-41377\" src=\"https:\/\/www.asiapropertyawards.com\/wp-content\/uploads\/2025\/02\/shutterstock-2474005447-67b59551e3315.webp\" alt=\"\" width=\"1000\" height=\"610\" srcset=\"https:\/\/www.asiapropertyawards.com\/wp-content\/uploads\/2025\/02\/shutterstock-2474005447-67b59551e3315.webp 1000w, https:\/\/www.asiapropertyawards.com\/wp-content\/uploads\/2025\/02\/shutterstock-2474005447-67b59551e3315-400x244.webp 400w, https:\/\/www.asiapropertyawards.com\/wp-content\/uploads\/2025\/02\/shutterstock-2474005447-67b59551e3315-600x366.webp 600w, https:\/\/www.asiapropertyawards.com\/wp-content\/uploads\/2025\/02\/shutterstock-2474005447-67b59551e3315-768x468.webp 768w\" sizes=\"(max-width: 1000px) 100vw, 1000px\" \/><figcaption id=\"caption-attachment-41377\" class=\"wp-caption-text\">To stoke property demand, Indonesia\u2019s government has relied on tax breaks. monticello\/Shutterstock<\/figcaption><\/figure>\n<p>Bali\u2019s upcoming subway system\u2014the first phase of which is slated for completion in 2028\u2014is also expected to boost residential demand, particularly for landed properties, while creating new market opportunities.<\/p>\n<p>However, ensuring sustainable growth requires addressing rogue operators and influencers. Last year, travel blogger Alex Ubin\u2019s clip showcasing a luxurious three-storey villa in Canggu\u2014priced at just over USD400,000\u2014sparked controversy. Critics pointed out that the villa was a leasehold, highlighting Indonesia\u2019s law prohibiting foreigners from directly owning land.<\/p>\n<p>Concerns over scams prompted Tourism Minister Sandiaga Uno to announce a crackdown on developers violating construction and business permits.<\/p>\n<p>While Bali thrives, it\u2019s essential to note the challenges facing its infrastructure. As tourism booms, the strain on roads, water resources, and waste management systems is becoming increasingly apparent. Local authorities have introduced measures to address these issues, such as encouraging eco-friendly practices among businesses and launching community-driven cleanup initiatives. Still, critics argue that more robust policies are needed to balance growth with sustainability.<\/p>\n<figure id=\"attachment_41379\" aria-describedby=\"caption-attachment-41379\" style=\"width: 1000px\" class=\"wp-caption alignnone\"><img decoding=\"async\" class=\"size-full wp-image-41379\" src=\"https:\/\/www.asiapropertyawards.com\/wp-content\/uploads\/2025\/02\/shutterstock-2493576853-67b595536cd88.webp\" alt=\"\" width=\"1000\" height=\"750\" srcset=\"https:\/\/www.asiapropertyawards.com\/wp-content\/uploads\/2025\/02\/shutterstock-2493576853-67b595536cd88.webp 1000w, https:\/\/www.asiapropertyawards.com\/wp-content\/uploads\/2025\/02\/shutterstock-2493576853-67b595536cd88-400x300.webp 400w, https:\/\/www.asiapropertyawards.com\/wp-content\/uploads\/2025\/02\/shutterstock-2493576853-67b595536cd88-600x450.webp 600w, https:\/\/www.asiapropertyawards.com\/wp-content\/uploads\/2025\/02\/shutterstock-2493576853-67b595536cd88-768x576.webp 768w\" sizes=\"(max-width: 1000px) 100vw, 1000px\" \/><figcaption id=\"caption-attachment-41379\" class=\"wp-caption-text\">Nusantara\u2014set to become the country\u2019s administrative hub\u2014welcomed its first visitors in September. haristyo.try\/Shutterstock<\/figcaption><\/figure>\n<p>Moreover, the island\u2019s reliance on foreign investment presents both opportunities and risks. While foreign buyers bring significant capital into Bali\u2019s economy, they also contribute to rising property prices, potentially making it harder for residents to afford housing. Policymakers are exploring ways to regulate foreign ownership more effectively, aiming to strike a balance between attracting investment and preserving affordability for locals.<\/p>\n<p>The broader impact of Bali\u2019s property boom is also felt in Indonesia\u2019s neighbouring regions. Areas like Lombok and the Gili Islands are witnessing increased interest as buyers seek alternatives to Bali\u2019s escalating prices. These regions, while less developed, offer similar natural beauty and a slower pace of life, positioning them as attractive options for both tourists and investors. As infrastructure in these areas improves, they may emerge as significant players in Indonesia\u2019s real estate landscape.<\/p>\n<p>With Bali aiming to attract 6.5 million foreign visitors in 2025, the promise of paradise will undoubtedly lure many. Whether this enthusiasm will extend to other key property markets in Indonesia remains uncertain.<\/p>\n<p><em>T<\/em><em>his article was originally published on\u00a0<a href=\"https:\/\/www.asiarealestatesummit.com\/newsroom\/\" target=\"_blank\" rel=\"noopener\">asiarealestatesummit.com<\/a>. Write to our editors at\u00a0<a href=\"mailto:propertyreport@propertyguru.com\" target=\"_blank\" rel=\"nofollow noopener\">propertyreport@propertyguru.com<\/a>.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The rental market is soaring in Bali due to its rich cultural heritage and island charm, while other regions of Indonesia are experiencing less success<\/p>\n","protected":false},"author":9,"featured_media":41375,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[97,92],"tags":[231,154,638,900],"class_list":["post-41370","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-magazine","category-news","tag-bali","tag-indonesia","tag-real-estate","tag-rental","news_country-indonesia","news_author-george-styllis"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.3 - 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