Price and Transaction Dynamics

In the first quarter of 2025, residential real estate prices in the primary market increased by 1.07%. Over the past 7 years, the growth was 14.5%. The number of transactions with houses increased by 33.9%, in the small house segment – by 84%.

The main source of financing is the developers’ own funds (77%). Mortgage rates decreased to 7.43%.

Market constraints:

• Increase in prices for building materials – +19.87%.
• Increase in mortgage rates – +15.3%.
• Difficulties in obtaining permits – +14.79%.

Tourism sector and demand for real estate

In 2024, the monthly flow of tourists to Bali was 400,000-600,000 people.

Average expenses of a Russian tourist:

• Total travel expenses — USD 2,113 (13.7 nights).
• Average daily expenses — USD 154.
• Airbnb rentals — USD 92/day.

Hotel sector indicators:

• Room occupancy — 75%.
• Average revenue per room (RevPAR) — USD 115 (+14%).
• Russians’ interest in purchasing real estate has grown by 36%.

Investment proposals

Project profitability varies between 10–18%:

• Villas in Canggu and Berawa — from USD 115,000, profitability 10–11%.
• Villas in Ubud — from USD 147,000 to USD 350,000, profitability up to 18%.

Conclusion

The Indonesian real estate market, particularly Bali, in 2025 is characterized by rising prices, an increase in the number of transactions and the recovery of tourist flow. The main factors influencing the development of the market are the cost of building materials, mortgage rates and administrative procedures. The return on investment in the residential and tourist real estate segment remains at 10-18%.