Bali remains Indonesia’s most internationally recognized destination and continues to play a central role in the worlds’s tourism-driven real estate market. Entering 2026, the island benefits from a combination of sustained visitor demand, major public infrastructure investment, and broader macroeconomic tailwinds supporting Indonesia’s long-term growth trajectory.
This article provides a data-driven overview of the Bali real estate environment as of 2026, with a focus on tourism trends, infrastructure development, and structural demand factors relevant to property investors and long-term buyers.
Tourism Performance and Demand Drivers
Tourism remains the primary demand engine for Bali’s residential and villa real estate market.
Following a strong post-pandemic recovery, Bali surpassed pre-2020 international visitor levels. Full-year arrivals exceeded 6 million foreign visitors in 2024, and 2025 continued this upward trajectory. By late 2025, year-to-date international arrivals had already crossed the 5 million mark, with official projections placing full-year 2025 arrivals at approximately 6.5 million.
For 2026, Indonesian tourism authorities expect continued growth supported by expanded flight capacity, improved infrastructure, and sustained demand from Australia, Europe, and the Middle East. This sustained inflow underpins rental demand, occupancy rates, and investor interest across Bali’s established villa zones.
Public Infrastructure Investment in Bali (2026 Onward)
Indonesia’s central government has committed significant capital to infrastructure development in Bali starting in 2026, aimed primarily at addressing congestion and improving regional accessibility.
A confirmed allocation of approximately IDR 1.5 trillion has been announced for major projects, including:
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Singaraja–Mengwitani Bypass, improving access between South Bali and North Bali
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Jimbaran Underpass, easing congestion near the airport and Nusa Dua corridor
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Replacement of the Lembongan–Ceningan Bridge, enabling vehicle traffic and heavier loads
These projects represent one of the largest infrastructure pushes in Bali in recent years. Improved connectivity tends to expand viable residential zones, reduce travel friction, and support development beyond already saturated areas.
In parallel, national-level projects such as the planned North Bali airport and renewed discussions around rail-based transport systems in South Bali continue to signal long-term government commitment to the island’s development, even if timelines extend beyond 2026
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Real Estate Market Dynamics
Bali’s residential property market remains characterized by limited land availability in prime zones and strong demand for lifestyle and rental-oriented assets.
Recent market data indicates:
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Annual price growth in popular villa locations generally ranging between 7–15%, depending on area and project quality
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Gross rental yields commonly reported between 12–15% for well-located villas, particularly in short-term rental markets
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Continued investor preference for off-plan and near-completion projects offering staged payments and upside potential
While exact performance varies by micro-location and execution quality, the broader trend remains supportive of both yield-driven and long-term capital appreciation strategies.
Foreign Buyer Demand and Market Structure
Foreign buyers continue to represent a substantial share of Bali’s villa demand, particularly in lifestyle-oriented zones. Typical buyer profiles include Australians, Europeans, and increasingly East Asian and Middle Eastern buyers seeking a combination of personal use and rental income.
Despite this demand, Bali’s brokerage landscape remains fragmented. Many market participants operate informally, while a limited number of established agencies serve international buyers with consistent documentation, compliance, and transaction support. This structural fragmentation continues to shape buyer behavior and emphasizes the importance of execution quality and local partnerships.
Indonesia’s Long-Term Economic Context
Beyond Bali, Indonesia’s broader macroeconomic outlook reinforces long-term confidence in the country’s real estate fundamentals.
Indonesia is the world’s fourth-most populous country and maintains steady GDP growth supported by domestic consumption, infrastructure investment, and industrial development. Long-term forecasts from international institutions project Indonesia to become one of the world’s largest economies by mid-century.
This strategic direction has attracted global attention. Prominent investors, including Ray Dalio, have publicly engaged with Indonesian policymakers on economic transformation and long-term development planning, underscoring international confidence in the country’s trajectory.
Outlook for 2026 and Beyond
Entering 2026, Bali’s real estate market is supported by three reinforcing pillars:
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Sustained tourism growth, driving rental and lifestyle demand
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Government-backed infrastructure investment, improving accessibility and livability
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Strong national macro fundamentals, positioning Indonesia for long-term economic expansion
While short-term cycles and local variations remain, the underlying structural drivers suggest continued relevance of Bali as a key lifestyle and investment market within Southeast Asia.
Sources & References
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Statistics Indonesia (BPS) – International Visitor Arrivals
https://www.bps.go.id
(Search: Foreign Visitor Arrivals to Bali Province / Jumlah Wisatawan Mancanegara ke Bali) -
Bali Provincial Government – Tourism Office
https://disparda.baliprov.go.id
(Tourism targets, visitor statistics, and development strategy updates) -
Antara News – Infrastructure & Public Investment (2025–2026)
https://www.antaranews.com
Example coverage:
https://www.antaranews.com/berita/
(Search: Bali infrastructure, IDR 1.5 trillion, 2026) -
Ministry of Public Works and Housing (PUPR), Republic of Indonesia
https://www.pu.go.id
(National and regional infrastructure projects including roads, underpasses, and transport planning) -
Indonesia Ministry of Tourism and Creative Economy
https://www.kemenparekraf.go.id
(Tourism recovery data, forward-looking tourism strategy) -
World Bank – Indonesia Economic Outlook
https://www.worldbank.org/en/country/indonesia
(Long-term economic growth projections and macroeconomic context) -
PwC – The Long View: How Will the Global Economic Order Change by 2050?
https://www.pwc.com/gx/en/issues/economy/the-world-in-2050.html
(Indonesia projected among the world’s largest economies by 2050) -
Forbes – Emerging Market Growth & Indonesia Outlook
https://www.forbes.com
(Search: Indonesia economy 2050 / Indonesia emerging markets) -
McKinsey Global Institute – Southeast Asia & Indonesia Reports
https://www.mckinsey.com/mgi
(Long-term growth, infrastructure, and urbanization trends) -
Reuters – Indonesia Economic Policy & Advisory Coverage
https://www.reuters.com
(Coverage of international advisors and macroeconomic reforms)