Bali Real Estate: Opportunities for Foreigners Amid Tourism Boom

As Bali continues to attract an increasing number of international visitors, the island’s tourism outlook remains incredibly promising. This surge in tourism fuels growing interest in Bali real estate, especially among foreign investors. Rising demand shows strong potential for property investment, with many buyers tapping into the accommodation market for high rental returns.

Foreign Demand Fuels Bali Real Estate Property Growth

In 2024, Bali welcomed approximately 5.2 million foreign tourists, marking a 24.5 percent increase compared to the previous year. This surge fueled a sharp rise in real estate activity. Property prices in high-demand areas rose by up to 50 percent, according to Liputan6. Foreign buyer demand also grew 14 percent during the same period. Developers observed that distinctive designs boost property value. Homes blending Scandinavian and Balinese styles sell for 7 to 15 percent more.

Strong Investment Potential and Rental Yields

Data from REID (realinfo.id) shows a steady 7% annual increase in Bali property prices over the past five years, with some areas outperforming that average. These trends position Bali among Asia’s most attractive markets for property investors.

Rental yields on the island remain among the highest in Indonesia, supported by sustained demand for vacation rentals and long-stay accommodations. Many investors aim to recoup their initial investment within six years thanks to occupancy rates and pricing trends in key areas.

Why Foreign Investors Are Targeting Bali

Foreign investors are increasingly drawn to the island due to several factors: government support like Golden Visa initiatives, improvements in infrastructure, and Bali’s global reputation as a tourism destination. As noted, Bali now functions as a melting pot where local residents mingle with international newcomers, united by shared preferences in lifestyle and design.

Prime Investment Zones

Property experts say Bali’s south coast areas Uluwatu, Ungasan and Nyanyi offer top accessibility, tourism appeal and growth potential. Developers cite proximity to the airport, high occupancy rates and emerging lifestyle hubs like Nuanu Creative City as key advantages.

Industry sources explain that Bali’s real estate market has transformed: foreign buyers prefer designs that merge minimalism with tropical comfort. One observer remarked, “This design combines functionality and beauty, emphasizing high-quality workmanship.”

Legal Considerations for Foreign Buyers

Foreigners cannot directly hold freehold titles under Indonesian law. Instead, they typically acquire property via leasehold agreements or by setting up a PT PMA (foreign-owned company), which holds an HGB (Hak Guna Bangunan) title, allowing ownership of buildings for extended terms. Expert guidelines emphasize the importance of legal compliance and professional assistance when structuring these arrangements.

With tourism continuing to thrive and evolving property trends, Bali offers compelling opportunities for foreigners seeking investment in housing, villas, and rental accommodations. By focusing on high-demand zones and navigating legal frameworks responsibly, investors can position themselves to benefit from both income and capital appreciation.

Sources: investor.id, liputan6.com
Featured Image by velvetocean (iStock)

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Andrzej Barski

Director of Seven Stones Indonesia

Andrzej is Co-owner/ Founder and Director of Seven Stones Indonesia. He was born in the UK to Polish parents and has been living in Indonesia for more than 33-years. He is a skilled writer, trainer and marketer with a deep understanding of Indonesia and its many cultures after spending many years travelling across the archipelago from North Sumatra to Irian Jaya.

His experience covers Marketing, Branding, Advertising, Publishing, Real Estate and Training for 5-Star Hotels and Resorts in Bali and Jakarta, which has given him a passion for the customer experience. He’s a published author and a regular contributor to local and regional publications. His interests include conservation, eco-conscious initiatives, spirituality and motorcycles. Andrzej speaks English and Indonesian.

Terje H. Nilsen

Director of Seven Stones Indonesia

Terje is from Norway and has been living in Indonesia for over 20-years. He first came to Indonesia as a child and after earning his degree in Business Administration from the University of Agder in Norway, he moved to Indonesia in 1993, where he has worked in leading positions in education and the fitness/ wellness industries all over Indonesia including Jakarta, Banjarmasin, Medan and Bali.

He was Co-owner and CEO of the Paradise Property Group for 10-years and led the company to great success. He is now Co-owner/ Founder and Director of Seven Stones Indonesia offering market entry services for foreign investors, legal advice, sourcing of investments and in particular real estate investments. He has a soft spot for eco-friendly and socially sustainable projects and investments, while his personal business strengths are in property law, tourism trends, macroeconomics, Indonesian government and regulations. His personal interests are in sport, adventure, history and spiritual experiences.

Terje’s leadership, drive and knowledge are recognised across many industries and his unrivalled network of high level contacts in government and business spans the globe. He believes you do good and do well but always in that order. Terje speaks English, Indonesian and Norwegian.

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CFO of Seven Stones Indonesia, Jakarta

Ridwan is one of Indonesia’s top executives with a long and illustrious career in the financial world. He holds several professional certifications including being a Certified Business Valuer (CBV) issued by the Australian Academy of Finance and Management; Broker-Dealer Representative (WPPE); and The Directorship Certification for Directors and Commissioners, issued by the Indonesian Institute of Commissioners and Directors.

His experience includes being the Managing Director at one of the top investment banking groups in the region, the Recapital Group, the CFO at State-owned enterprises in fishery industry and the CEO at Tanri Abeng & Son Holding. He’s also been an Independent Commissioner in several Financial Service companies and on the Audit and Risk Committee at Bank BTPN Tbk, Berau Coal Energy Tbk, Aetra Air Jakarta as well as working for Citibank, Bank Mandiri and HSBC. His last position was as CFO at PT Citra Putra Mandiri – OSO Group.

Ridwan has won a number of prestigious awards including the Best CFO Awards 2019 (Institute of Certified Management Accountant Australia-Indonesia); Asia Pacific Young Business Leader awarded by Asia 21 Network New York USA (Tokyo 2008); UK Alumni Business Awards 2008 awarded by the British Council; and The Most Inspiring Human Resources Practitioners’ version of Human Capital Magazine 2010.

He’s a member of the Board of Trustees of the Alumni Association of the Faculty of Law, Trisakti University, Co-Founder of the Paramadina Public Policy Institute and actively writes books, publications and articles in the mass media. He co-authored “Korupsi Mengorupsi Indonesia” in 2009, which helps those with an interest in understanding governance in Indonesia and the critical issue of corruption. Ridwan speaks Indonesian and English.

Per Fredrik Ecker

Managing Director of Seven Stones Indonesia, Jakarta

Per is the Managing Director of the Seven Stones Indonesia (SSI) Jakarta office and has more than 25-years’ experience in Indonesia, China, and Western Europe. He previously worked in senior management positions with Q-Free ASA, Siemens AG, and other companies in the telecom sector. Over the last six years, he has been the Chairman of the Indonesia-Norway Business Council (INBC) and recently become elected to be on the board of EuroCham Indonesia.

His most recent experience is within Intelligent Transport Solutions (ITS), Telecom, and other sectors within the Indonesian market. He is today through his position in SSI and by representing Norway Connect, promoting Nordic and European companies that would like to explore business opportunities in the Indonesian market. He’s also playing an active role to help create the Nordic House concept in Jakarta that will provide an excellent platform for Nordic companies entering Indonesia, where they’ll find a community that can offer support with trusted information and affordable services to enter this market.