Buying property in Bali remains a key consideration for investors entering 2026, as market conditions show resilience despite economic and environmental pressures. Property developers in Bali continue to move forward with new projects, particularly in the Sarbagita area covering Denpasar, Badung, Gianyar, and Tabanan. While challenges such as infrastructure strain and global uncertainty persist, recent data and industry insights suggest the market remains stable rather than speculative.
Bank Indonesia data and local developer sentiment indicate that the property sector has entered a phase of adjustment. Instead of rapid price increases, the market now emphasizes realistic valuations, steady demand, and selective buyer interest. This environment has helped sustain confidence among both developers and investors, especially those targeting long-term value.
Buying Property in Bali Supported by Stable Prices
Residential property prices in Indonesia’s primary market continued to grow at a controlled pace toward the end of 2025. Bank Indonesia recorded year-on-year growth of 0.83 percent in the Residential Property Price Index during the fourth quarter of 2025. This figure remained almost unchanged from the previous quarter, reflecting stable pricing conditions rather than overheating demand.
This limited price growth signals a market that has adjusted to post-pandemic conditions and higher financing costs. Instead of aggressive price corrections, developers have aligned pricing with purchasing power. As a result, buyers benefit from predictability, while investors gain clearer benchmarks for valuation and returns. Stable prices also support transaction activity by reducing speculative behavior.
Sales Recovery Signals Renewed Market Confidence
Although prices grew modestly, residential property sales showed a stronger rebound. Bank Indonesia reported that primary market sales expanded by 7.83 percent year-on-year in the fourth quarter of 2025. This performance marked a clear turnaround from the previous quarter, which still recorded a contraction.
Demand is concentrated mainly in small and mid-sized housing units. These segments align closely with end-user needs and practical investment strategies. Meanwhile, sales of large residential units continued to face pressure, reflecting cautious spending among high-end buyers. Overall, the rebound in sales indicates improving confidence, supported by stable prices and clearer market expectations.
Buying Property in Bali Still Concentrated in Sarbagita
Local developers continue to prioritize Sarbagita as Bali’s most attractive property corridor. The area benefits from established infrastructure, access to commercial centers, and consistent market demand. According to Real Estate Indonesia (REI) Bali, project absorption throughout 2025 remained positive across various price segments.
Ananta Wijaya, a member of REI Bali, highlighted that commercial and residential projects continued to perform well. “In 2025, demand for commercial property was relatively good. Projects developed by REI Bali members were absorbed quite well, with prices ranging from IDR 300 million to above IDR 5 billion, depending on market segmentation,” he said.
He also noted that properties priced below IDR 1 billion remain the most popular due to broad market demand. At the same time, Bali still offers diverse products, including high-end villas, which generally dominate the upper segment with prices above IDR 2 billion.
Financing Trends Show Cautious Developers and Buyers
Financing patterns further underline the market’s cautious but stable character. Bank Indonesia’s survey showed that developers relied heavily on internal funding, which accounted for more than 80 percent of residential property development financing. This approach reflects risk awareness amid fluctuating interest rates and uncertain global conditions.
From the buyer’s perspective, mortgage financing continues to play a central role. Home purchase loans accounted for nearly 71 percent of primary market transactions. This reliance demonstrates the continued importance of banking support in sustaining demand, especially for end-users and mid-range investors.
What This Means for Property Investors in 2026
Looking ahead, Bali’s property market enters 2026 with measured optimism. Demand remains present, although it shows signs of slowing at the start of the year. Ananta Wijaya emphasized that it remains too early to draw firm conclusions. “We are still at the start of 2026. Hopefully, the market will become more dynamic by mid-year. Many factors influence this, including infrastructure development, global geopolitical conditions, and consumer purchasing power,” he explained.
For investors, buying property in Bali now requires realistic expectations, careful location selection, and a focus on long-term fundamentals rather than short-term gains.
Are you interested in exploring Bali’s real estate business? Contact Seven Stones Indonesia today to assist you in every step of your property transaction. Our team provides expert guidance from the first consultation to the final handover, ensuring every detail is handled with transparency and legal compliance. Get in touch with us today to find the right property for your Bali investment.
Source: nusabali.com, pasardana.id, stabilitas.id
Image: Maslovmax / Getty Images
