Bali is no longer just a dream destination: it is a property market that is becoming more structured. Tourism is reaching unprecedented levels, but the authorities have also tightened the rules. Here is what you need to know before investing.
Quick answer
- Around 6.95 million direct international arrivals in 2025, close to +10% year on year (BPS Bali).
- The compliance of the accommodation and of its operator must be checked before letting.
- Several districts restrict new tourist construction on agricultural land.
- Compliant projects gain in relative value; the others put capital at risk.
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Ask my question on WhatsApp1. Record tourist numbers
According to the provincial statistics office (BPS Bali), the island welcomed around 6.95 million direct international arrivals in 2025, up nearly 10% on 2024. Bali has thus exceeded its pre-pandemic level.
The main source markets are Australia (nearly one visitor in four), India and China, followed by South Korea, the United Kingdom, France (around 280,000 visitors) and the United States. This diversity matters: Australian school holidays, the European summer and Asian holidays do not fall at the same times.
2. Why private villas appeal
A large share of travellers do not stay in hotels. Couples, families, groups of friends and remote workers look for villas with a private pool, a kitchen and space. This is the segment targeted by most of the projects offered to investors.
A word of caution, though: supply has increased sharply in the best-known areas. Demand exists, but so does competition. The exact location, the quality of management and price positioning make the difference.
3. What changes in 2026
Mandatory registration of rentals. In its press release of 26 May 2026, the Ministry of Tourism describes tighter controls and a future automatic verification system with the platforms. The required authorisations, the removal measures and the announced roll-out timetable need to be kept distinct. Details in our article on the Airbnb rental rules in Bali.
Building restrictions. The authorities have restricted new tourist construction on agricultural land in several districts, including Tabanan, Karangasem, Buleleng, Jembrana, Bangli and Klungkung. These measures are based on administrative instructions and may change. For an off-plan project, zoning and a permit already obtained become central.
Real enforcement. In 2025, illegal buildings were demolished on the beachfront in the Uluwatu area. A non-compliant property is not just an administrative risk: it is a risk to your capital.
4. What this means for you
These changes do not close the market, they sort it. Well-located projects with a clean title, suitable zoning and clear licences are becoming rarer and therefore more valuable. The others risk losing access to the platforms.
The questions to ask before investing
- Is the plot in a tourist zone?
- Has the building permit already been issued?
- Who will hold the rental licence, and from what date?
- What data are the occupancy and nightly-rate assumptions based on?
- What is the total cost, including fees and taxes?
Frequently asked questions
Is it the right time to invest in Bali?
Tourist demand is strong, but regulation is tightening. The right time depends above all on the legal quality and the location of the project you choose.
Which countries send the most tourists to Bali?
In 2025: Australia, India and China, followed by South Korea, the United Kingdom, France and the United States (BPS Bali).
Do the building restrictions apply to the whole island?
No. They mainly target agricultural land in certain districts. Each plot must be checked case by case.
Sources
Official sources checked on 4 October 2026
Mago Kitaev, licensed real estate broker in Dubai (RERA, BRN 82528), based in Business Bay. A former project manager in banking and IT, he has been advising French-speaking investors since 2024. See his background
This article is for information purposes and was updated on 28 September 2026. It does not constitute legal, tax or financial advice. Indonesian regulations change frequently: have every project checked by an independent PPAT notary and an independent lawyer.