What will make life harder or easier for an investor in the Bali property market? Can he expect prices to rise in 2025? Do tourists, programmers, families with children, entrepreneurs, and retirees visit the island? What are their feedback and impressions? Are the laws changing? Before investing, for example, $200,000 to $250,000, it is important to find answers to these questions.
The founder of Legion Real Estate Company – Aleksandr Guliaiev – will help to understand the problems that worry future investors in Bali.
Legion Real Estate sold $30 million worth of properties from developer
Why the property market in Bali attracts investors in 2025
Bali is an island in Indonesia with 320 days of sunshine a year, and this attracts tourists and re-locatees. People are willing to travel 10,000 to 15,000 kilometers across the Indian and Pacific Oceans to reach Bali.
People come here from Australia, China, Great Britain and the USA. Besides the sun, the island offers rice fields and jungles, museums, traditions, as well as surfing, SPA, fitness clubs.
Bali covers 5,600 square kilometers, with only 15% available for development. A significant portion of this land has already been built up. The occupancy rate averages 75-79% throughout the year, indicating a stable demand for rentals.
Founder of Legion Real Estate in Bali
History of Legion Real Estate
Legion Real Estate is one of the largest property agencies in Bali and has helped clients invest $80 million. Aleksandr Guliaiev founded the agency 3.5 years ago. The entrepreneur started with Kyiv, then switched to Turkey, and decided to settle down in Bali.
During his time on the island, he gathered a team of 47 brokers. In addition, the agency co-operates with major developers: Loyo Development, Anta Group, Sunny Development.
The company’s database includes over 500 properties available for investment, with potential rental returns of up to 15%. The trends and forecasts that Legion Real Estate is focused on can be found in this article.
Photo of Aleksandr Guliaiev
Trends in the Bali property market – Legion Real Estate’s opinion
Market Situation
From 2023 to 2024, the number of tourists increased from 4.5 million to 6.3 million. The local government’s target is 6.5 million in 2025.
Demand remains stable due to the year-round tourist season. The island receives about 530,000 tourists per month.
Meanwhile, the tourist area is limited. The scarcity of the property market leads to an increase in prices.
In addition to tourists, Bali is visited by re-locants – ‘digital nomads’ from the IT sector and expats. Both categories are interested in long-term rentals: today the notional ‘programmers’ occupy 20% of the market. Canggu and Ubud districts are suitable, said the founder of Legion Real Estate.
ROI from property on the island Bali
Shifting investment flows
Real estate prices in Bali vary significantly depending on the location and infrastructure development. In the past, developers developed the area of Changgu on the south-west coast.
Over time, the area was densely built up, land became scarce, competition increased, prices rose. As a result, investors and developers shifted their attention to other areas – Ubud and Bukit.
Another trend, according to Legion Real Estate, is the growing demand for two-bedroom and three-bedroom villas.
In addition, infrastructure is being developed to increase rental prices. For this purpose, SPAs, restaurants, cinema halls and recording studios are being built.
Return on investment
‘Profitability in Bali depends on the chosen strategy of the property owner,’ – says the founder of Legion Real Estate, Aleksandr Guliaiev.
If you earn on rent, the average yield is 10-12% or 12-15% per year, depending on the developer. For example, the possible yield of a townhouse for 250-290 thousand dollars. – 14%. At the same time, the average global yield in real estate is 5-8%.
If the owner decided to resell the property, he can get 20-30% profit. There is a third option: several years of rent, and then resale. Earnings in this case depend on the owner’s plans.
Legion Real Estate received an award for the highest number of sales
Environmental friendliness, sustainable development and innovation
Smart homes equipped with solar panels and water collection systems are becoming increasingly popular in Bali. Artificial intelligence systems are being integrated into the projects. These innovations are raising rental prices and properties are generating more profit.
Construction technology, design
Developers prioritize high-quality building materials for both exterior and interior construction. They attract specialists from Ukraine, Romania and other European countries. The advantage of such specialists is more experience and work at a faster pace than local specialists.
There are developers who offer fully equipped units – from curtains on the windows to plumbing. The premises can be rented out immediately and make a profit. This makes the property more expensive, but it is favourable to the investor: he does not waste time on additional work and repairs.
There is a demand for ‘custom projects’ with unique design solutions. In addition, hotel complexes will have SPAs, other recreation and recovery facilities. Due to these two factors, the price of a room increases and the investor’s profit grows.
Legion Real Estate team photo on holiday
Investment attractiveness
In Bali, property is built on land with limited Leasehold ownership. This is a lease of land for 25-99 years. Foreigners cannot become full owners of land in Bali, and long-term leases bypass this restriction. This is attracting more and more investors.
In addition, Legion Real Estate mentioned that the government has introduced special visas for property owners. They can apply for temporary residence permits in Indonesia.
What areas of Bali are now the most promising for investment
- Southeast coast. Bukit – an area where development is just starting, prices are still affordable and will soar in a few years. Premium villas and five-star hotels are being built, meaning prices and rental rates are higher than in neighbouring areas. Property occupancy rates range from 57-80%.
- Centre of the island. Ubud is closer to the centre of Bali. It is a tourist, cultural and religious centre. The property occupancy rate is 65%. People rent for a long time, mainly families with children. Developed infrastructure.
- South and south-west coast. Changu is an active neighbourhood filled with modern restaurants, shops. There are fitness rooms, surf schools, co-working centres. Reviews from surfers and tourists are mostly positive. Berava – also filled with tourists, stable high demand for property. Pererenan – close to Changgu, but quieter. Typical development – villas and premium apartments. One of the most promising areas for investment, said Aleksandr Guliaiev. There are also districts of Sesekh, Chemagi, Umalas – for families with children, for ecotourism.
Aleksandr Guliaiev on promising neighbourhoods in Bali
Legion Real Estate forecasts for the property market in Bali
Legion Real Estate experts believe that the property market in 2025 will grow due to more tourists, expats, digital nomads. The Indonesian government may also play a role.
What investors should expect:
- The property market will grow for another 2-3 years due to increased investment and flow of people;
- there is still demand for villas and other commercial property. Villas are 60% of the demand from commuters;
- Property prices in Bali are expected to increase by 5-10%, a typical trend for rapidly developing markets;
- there could be changes in the regulation of the construction sector. The reason for the risks: the authorities want to control over-development and raise the quality of services.
How to take advantage of these trends when buying property in Bali?
It is important for an investor to understand the trends and forecasts in order to maximise their investment. Aleksandr Guliaiev explained what Legion Real Estate pays attention to.
- First, the buyer should formulate an investment strategy. At the same time, they determine what kind of property they are interested in first of all – for rent or for resale.
- Then they choose the Bali neighbourhood depending on the local market trends. Take into account the long-term or short-term rentals offered by property developers. You also need to know what kind of people they are counting on. Another important factor is the type of project: standard, custom-designed, eco-friendly, or innovative.
- Brokers will help the investor to estimate the profitability. They will take into account the density of development, the presence of infrastructure.
They pay attention to guest reviews. It is also important whether cultural, entertainment centres, co-working spaces are far away.
Photo from Instagram by Aleksandr Guliaiev
Conclusions
Before investing in Bali, it is important for beginners to study the trends of the local market. After that, find developers offering facilities in different parts of the island. There are two dozen tourist areas on the island, so it is difficult to understand all the nuances. To make life easier and reduce risks, you can turn to Legion Real Estate.
Aleksandr Guliaiev’s agency will help an investor choosing where to invest money and get a profit of 10-15% per annum.
