Real estate in Bali in 2026: prices, areas, and profitability

The island of Bali has been popular among wealthy citizens from other countries for many years. In 2026, the situation here changed: the real estate market strengthened, offering premium properties in the form of villas, apartments, and hotels for purchase and rental business.

An important factor in its development was the active modernization of the island's infrastructure – the construction of a second airport, the improvement of roads to reduce traffic congestion, and new port infrastructure to relieve highways.

Such changes directly affect real estate: property value, liquidity, rental demand, and the attractiveness of districts for investors.

Legal framework: Leasehold vs. Freehold in 2026

Do you want to buy real estate in Bali, but you are not an Indonesian citizen? It should be noted that foreigners cannot acquire full ownership of land; this privilege is available only to citizens of the country.

Currently, there are two forms of real estate ownership available to investors in Bali: long-term leasehold and freehold.

Leasehold

Leasehold is the long-term use of a plot of land and real estate for 25–30 years with the possibility of extension.

Advantages of leasehold real estate in Bali:

• a large selection of properties in the catalog from which you can buy real estate for long-term ownership;
• a relatively affordable entry threshold;
• the owner of a leasehold property has the right to commercially exploit the property, can lease it out, and receive income.

It is also important to understand the possible risks. It is necessary to agree in advance on the terms of the lease extension, the cost of which may increase over the years.

Freehold

Only a legal entity (in the case of foreigners) can buy freehold property in Bali. It is necessary to register a foreign company in Indonesia (PT PMA), which allows the use of land and real estate under a contract.

Advantages of freehold:

• long-term ownership for up to 80 years according to the scheme: 30 years + extension for 20 years + renewal for 30 years;
• you can conduct commercial activities;
• ample opportunities for investment.

It is worth remembering the disadvantages: it is necessary to comply with the legal nuances of company registration, accounting support, and tax reporting, as well as to comply with the corporate requirements of the current legislation.

Long-term leasehold is popular among investors precisely because its registration is simpler and more straightforward, and the entry price is relatively low.

Before buying real estate, it is important to check the property for legal clarity – the history of the property, the absence of encumbrances and debts, and problems with documents.

Bali District Overview: Prices and ROI

Bali is a promising investment destination, but not all of its regions show equally high results. There are already established popular areas, and there are areas that are still actively developing. According to the ROI (Return on Investment) ratio, the most liquid areas in 2026 are Canggu, Seminyak, and Ubud. Batu Bolong, Pererenan, and Chedigu, where infrastructure is actively developing, show potential for land price growth. The average price per 1 m² of real estate starts from $1,800 and above, depending on the region, market type, property, and quality of infrastructure.

Canggu and Seminyak

Changgu is a large residential area, a true paradise for digital nomads and wealthy entrepreneurs. It has a well-developed infrastructure, locations for surfing, and opportunities for active recreation. These factors attract tourists, which means there is high demand for rentals. There is high competition among rental properties in Canggu, so profitability depends on the marketing strategy used and the quality of management.

Seminyak is a prestigious resort on the island, where many five-star hotels, luxurious beaches, elite restaurants, and boutiques are concentrated, so there is demand for villas year-round.

Every year, new complexes with premium villas are built here, so investors have to provide a high level of service, choose a proven management company, and invest in modern design in order to be a worthy competitor.

The cost in these areas is one of the highest in Bali and depends on the location, area, quality of renovation, and leasehold term. You can buy a villa in Bali at prices starting from $2,500 per 1 m ² and higher in Canggu, and from $3,500 per 1 m² in Seminyak.

The net return on properties in these two areas is 10–13%, and with competent management, it will be higher.

Ubud

It has established itself as the cultural center of the island: yoga and wellness centers, places for retreats and cultural education, rice terraces, and jungles – the area guarantees a stable profit from wellness tourism.

Long-term rentals are in demand here: cozy villas in the jungle with a swimming pool and eco-villas are popular among digital nomads, freelancers, and long-term tenants and bring a stable return. The price for villas starts at $1,800 per 1 m², which is the most affordable on the Bali real estate market, with a yield of up to 10–12% per annum.

Uluwatu (Bukit Peninsula)

Uluwatu is a promising and popular area of Bali, and in 2026, villas here began to be in high demand among business-class investors. The location is attractive due to its panoramic views of the Indian Ocean, steep cliffs, premium surfing segment, and elite beach clubs, which make the demand for real estate for living and renting higher than ever and create conditions for its value to grow in the future. Real estate in this area offers excellent conditions, as many complexes have a swimming pool and spa, private access to beaches, and nearby amenities (shops, cafes, restaurants, and other places for a comfortable life without the need to travel far).

The price per 1 m² starts at $2,300. The annual return on real estate in Uluwatu is 11–14%.

New promising areas: Pererenan and Batu Bolong

Pererenan has a calm resort atmosphere, where there is everything for living and recreation. Many high-quality establishments, places for entertainment and sports, co-working spaces, luxury hotels, restaurants, and local cafes are opening here.

Experienced investors analyze the potential for growth in the value of land and real estate in Pererenan, so they consider the area due to its affordable prices and its prospects. The cost of land here is lower than in the popular area of Canggu, but this gap is steadily narrowing. Batu Bolong has well-maintained, clean beaches, excellent social infrastructure, and places for recreation and education. With a sensible approach, high-quality properties show good occupancy rates when booked.

The beginning of 2026 showed that these two districts are developing steadily, and the price increase will rise to 13%.

Calculation of profitability and hidden costs

To gain a clear understanding of the investment prospects of the districts, let's use the table to examine what income can be expected, how much a property will cost, and who should consider buying real estate.

Is it worth investing in villas in Bali in 2026?

In 2026, investing in villas in Bali is a profitable and promising investment.

The real estate market on the island remains the most attractive among investors due to the large tourist flow and demand for rentals, as well as the opportunity to receive up to 10% per annum in the island's top locations. For long-term investments, it is worth choosing promising areas – Pererenan, Uluwatu, and Canggu. However, one should not forget about the competition due to the oversaturation with new modern projects and the legal nuances of purchasing (Leasehold/Freehold).

Investments will only be profitable with the right location, a well-thought-out strategy, and professional property management.