Why invest in Bali? Is buying property here still worth it?
Many foreigners are exploring Bali as their next big investment. Some, however, hesitate—thinking the island is now “overrated” or “too crowded.”
The truth? Not at all.
Bali’s demand for accommodations keeps growing, and the island continues to offer opportunities you won’t easily find elsewhere.
In this guide, we’ll walk you through the key reasons why Bali still stands out as one of the smartest places to invest in property. Let’s dive in.
Key Takeaways
- Strong Growth & Tourism: Bali’s economy grew 5.52% in 2025, and tourism hit 7.75M visitors in 2024, driving high demand for rentals and property.
- High ROI & Stability: Investors can earn 7–18% rental yields with many recovering costs in just 6 years, supported by steady occupancy and government-backed tourism.
- Affordable & Accessible: Property prices in Bali remain lower than regional hubs like Singapore or Hong Kong, with diverse options and policies that make it easier for foreigners to invest.
1. Bali Economic Growth
Source: PlanetWare
Bali has experienced remarkable economic growth over the years, making it an attractive destination for investors.
Bali’s economy is strong and growing fast.
Overall, Bali’s economy grew by 5.52% in the first quarter of 2025 compared to the same period last year.
With Indonesia ranked among the world’s fastest-growing economies, Bali is at the heart of this boom.
Read More: Protecting Your Bali Investment from Sudden Rule Changes: 3 Proven Ways
2. Bali Tourism Performance
Bali tourism is breaking records. From January to July 2024, Bali welcomed 7.75 million international visitors.
The demand for accommodations comes not only from international visitors but also from domestic travelers.
For example, here is the number of domestic visitors to Bali by month in 2023:
Source: Bali Satu Data – The Number of Domestic Tourists Visit to Bali
This steady rise in travelers boosts property demand and makes investing even more attractive.
3. Bali Investment Returns
Bali’s property market offers rental yields of 7% to 18% annually, compared to the global average of 5%.
Thanks to high occupancy and strong growth, many Bali investors recover their initial investment in just 6 years.
4. Ease of Doing Business
The Indonesian government has simplified bureaucratic processes, reduced red tape, and introduced investor-friendly policies.
For instance, the Online Single Submission (OSS) system, introduced in 2018, streamlines the process of obtaining permits and licenses.
This initiative has significantly cut down the time and effort needed to set up a business in Bali, creating a favorable environment for investors.
5. Attractions and Cultural Hotspots
Source: PlanetWare
Bali, known as the “Island of the Gods,” blends rich culture with stunning nature.
From thousands of temples and festivals to beaches like Kuta and Seminyak, plus Ubud’s rice fields and Monkey Forest, it attracts both luxury travelers and backpackers—opening diverse property investment opportunities.
Read More: 6 Smart Strategies to Boost ROI on Your Bali Investment Properties
6. Accommodate Foreign Inventors
The government has made it easier for foreigners to invest in Bali property through tax breaks and visa programs.
Policies introduced by President Joko Widodo aim to boost housing and protect the economy against global uncertainty.
For example, VAT on home purchases up to Rp 2 billion ($126,000) was waived until June 2024. After that, buyers received a 50% discount for the rest of the year.
Additionally, the Golden Visa program offers special benefits for foreign investors, further supporting property investment in Bali.
7. Stable Returns and Lower Risk
Thanks to Bali’s strong tourism and high occupancy rates, demand for rentals remains constant. Even in off-seasons, digital nomads and long-term visitors keep rentals in demand.
Property values in popular areas like Canggu and Uluwatu have steadily increased, driven by expats and tourism.
With Bali’s tropical climate, villas can earn from short-term stays during peak season and long-term leases in slower months.
8. Government Support for Tourism
Source: Klook Travel
The Indonesian government actively supports Bali’s tourism sector.
Campaigns like “Wonderful Indonesia” promote Bali’s attractions to global audiences, increasing both domestic and international visitors.
The government also protects Bali’s natural and cultural assets through national parks and marine reserves, ensuring sustainable tourism.
These efforts create long-term opportunities for eco-friendly and tourism-related property investments.
9. Affordable Prices and Diverse Options
Bali’s property prices are much lower than in cities like Singapore or Hong Kong, making it attractive for investors seeking affordability.
The average apartment price in Bali is around $283,381, ranking it among the world’s lowest compared to major cities.
This affordability opens up opportunities for both individuals and businesses, with options ranging from budget apartments to luxury villas.
Popular areas like Seminyak and Uluwatu cater to different budgets, offering diverse investment opportunities.
Bali Investment Opportunity
- Property: Bali has a dynamic real estate market, especially in popular areas like Canggu, Uluwatu, Ubud, and Seminyak.
- Tourism: Bali’s strong tourism industry drives high demand for accommodations, restaurants, and other tourism-related businesses.
- Business: Various sectors such as F&B (Food & Beverage), lifestyle ventures, and health-related businesses also show great potential in Bali.
Best Time to Invest in Bali
So, when is the right time to invest in Bali? Honestly, now is one of the best times.
In 2025, property values are expected to climb even higher, especially in areas like Canggu, Seminyak, and Uluwatu. Planned airport expansions and new road networks are also opening opportunities in Sanur, North Bali, and East Bali.
At the same time, the growing demand for eco-friendly and wellness-focused businesses is attracting more international buyers.
Here’s the real deal: if you wait, prices will only keep rising. Investing now lets you lock in better deals and enjoy both capital growth and steady rental income.
Tips to Invest in Bali
- Do Your Research: Study the property market, identify areas that best fit your investment goals, and evaluate the expected returns.
- Find a Trusted Property Agent: Work with an experienced, reputable agent to guide you through the buying process and ensure property legality.
- Consider Legal Aspects: Understand the rules and regulations around property ownership for foreign investors in Indonesia.
- Plan Your Finances Carefully: Calculate all related costs, including purchase price, renovation (if needed), maintenance, and taxes.
FAQ
1. What is the most profitable business in Bali?
The tourism and hospitality industry is typically the most lucrative in Bali, with real estate also being a highly profitable sector.
2. Why should you invest in Indonesia?
Indonesia’s economy has shown stable growth, averaging above 5% annually in recent years.
Despite global challenges like the COVID-19 pandemic, the country still managed to attract foreign investment of IDR 223 trillion in 2021, marking a 3.7% rise compared to the previous year.
3. Can you live off $1000 a month in Bali?
Yes, living in Bali on $1000 a month is possible if you keep your lifestyle simple and manage your expenses wisely.
4. How to make money in Bali as a foreigner?
Foreigners looking to work in Bali often find roles with international companies, teaching English, or within the tourism sector.
Conclusion: Grab Your Bali Investment Opportunity Now
Bali isn’t just a beautiful place to visit—it’s also one of the smartest places to invest right now.
By acting today, you can lock in better deals, benefit from rising property values, and enjoy steady rental income.
Still, with so many options available, it can be tough to know which one gives you the best value for your money. That’s where an experienced real estate agent makes all the difference.
At Bali Villa Realty by Ilot Property, our expert team helps you review your investment opportunities and create a personalized plan tailored to your goals.
If that’s what you’re looking for, book a free consultation with one of our senior advisors today—just click the link below.
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