Bali is one of the global tourist destinations that attracts thousands of tourists every day. More than 6.33 million tourists visited Bali in 2024, exceeding the pre-COVID-19 figure of 6.28 million (Road Genius). Bali’s economy is still heavily dependent on tourism. According to data from the Central Statistics Agency (BPS), tourism accounts for 21.42% of the economy. This has led to an increase in demand for accommodation in tourist areas such as Canggu, Sanur, Ubud, and Kuta, which has resulted in an increase in property values. This increase in property values means that several factors must be carefully considered before investing in Bali and Professional Property valuer and advisor play a crucial role.
Key Factors That Drive Property Value in Tourism Areas
Property values in Bali’s tourism-driven regions are influenced by several factors. Understanding these elements is essential for investors, villa owners, and buyers who want to make informed decisions in a tourism driven market. Moreover, these factors make getting a property valuation report from a professional property valuer crucial for accurate assessment. Below are the four main components that determine value in Bali’s tourism zones.
Location and Accessibility
In tourism-driven markets, location is the strongest driver of property value. Areas such as Canggu, Berawa, Uluwatu, Pererenan, and Ubud continue to experience rapid value growth due to their popularity among international tourists, digital nomads, and long-stay travelers.
How location impacts value:
- Proximity to beaches, surf spots, cafés, restaurants, beach clubs, yoga studios, and coworking spaces increases demand.
- Good access roads and new infrastructure (shortcuts, bypass expansions) can raise land prices dramatically.
- Properties located within walking distance to attractions consistently show higher occupancy and rental performance.
Because price differences between locations can be extremely large, accurate valuation by a professional property valuer can help to determine the exact value of our property.
Zoning
In Bali, the most valuable land is located in tourist and commercial areas. Zoning violations can lead to legal issues, building limitations, and major drops in property value. A professional property valuer verifies zoning legality and ensures valuation reflects both current and future permitted land use.
Rental Income Potential
Rental income is one of the strongest drivers of property value in Bali’s tourism areas. As tourism continues to grow, villas are enjoying higher occupancy and stronger revenue, which directly increases the property value.
2025 Rental Daily Rate
Source: REID 2025 Market Report
2025 YTD Occupancy and Revenue Change
Source: REID 2025 Market Report
Based on the REID market report, In 2025, Bali villa rental performance shows clear improvement: occupancy rose from 47.2% in January to over 64% in July and August, while monthly revenue reached $104M in January and climbed to $140M–$141M during peak months. This consistent growth reflects stronger demand from tourists, long-stay visitors, and digital nomads.
Because rental income has such a significant impact on value, working with a professional property valuer in Bali is essential. A certified valuer uses real rental data and the Income Approach to determine the property’s true market value.
The Importance of Professional Property Value in a Tourism-Driven Market
Highest and Best Use Analysis
Highest and Best Use (HBU) analysis is a key component of Bali property valuation, helping investors understand whether a property is being used in the most profitable and legally compliant way. Through this analysis, professional valuers examine Bali zoning regulations, land-use permissions, market demand, and the surrounding environment to determine the use that will generate the highest property value.
Because HBU determines whether a project should continue, change direction, or be optimized, it forms the foundation for smart decision-making in the Bali real estate market. A professional HBU analysis ensures investors choose the most valuable and sustainable use for their property.
Read also: Highest and Best Use Analysis
Feasibility Study
A feasibility study is essential for evaluating whether a property development in Bali is financially viable, legally compliant, and aligned with market demand. This analysis reviews every key factor in Bali real estate investment.
For villa projects in tourism zoning, a feasibility study helps determine occupancy potential and revenue performance. In residential zones, it guides alternative development strategies.
Working with a professional property valuer in Bali (KJPP) ensures accurate financial projections and market data, helping investors avoid costly mistakes and make confident development decisions.
Asset Valuation for Banking, Investment, and Legal Needs
Asset valuation is essential for obtaining bank loans, supporting investment decisions, and meeting legal or tax requirements. This is particularly important for property investment in Indonesia, especially for property investors looking to expand their business. A professional property appraiser provides accurate and compliant valuations, which are used for mortgages, refinancing, and financial reporting in accordance with Indonesian property valuation standards.
Read also: The Importance of Property Valuation in Bali
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