Is the Bali real estate market on the verge of a crash? With headlines swirling about dropping Airbnb rates and declining property prices, many investors and homeowners are understandably anxious. But is a dramatic crash truly on the horizon, or is Bali real estate simply undergoing a transformation? I’m Jason, a Business Journalist at Bukit Vista and let’s break down the current situation, what’s driving these changes, and what it all means for property owners and investors.

What’s Happening in Bali Real Estate?

Bali’s reputation as a tropical paradise has made it a magnet for tourists, digital nomads, and real estate investors. However, 2024 and 2025 have brought some clear shifts:

Tourist Trends Are Changing:

While Bali still attracts millions of visitors, the makeup and preferences of those tourists are different. Ubud, known for its culture and nature, remains popular. In contrast, areas like Canggu, which once saw explosive growth, are now showing signs of waning demand. Feedback from travelers suggests that overcrowding, rising prices, and a loss of authentic charm are turning some visitors away. Many are now seeking quieter, less-developed areas for a more genuine Bali experience.

Shifting Demographics:

There’s also a notable decline in visitors from key markets. Chinese traveler numbers have dropped, and many Russians—who had been a significant presence—are now shifting their attention to destinations like Thailand. This change is leaving gaps in the rental market that aren’t being filled as quickly as before.

For a deeper dive and expert insights, watch the full video on YouTube:

More Properties, Fewer Guests

Perhaps the most pressing issue is the sheer number of new properties entering the market. Construction continues at a rapid pace, especially in popular regions like Canggu. The number of available rooms in Canggu alone has jumped from 3,800 in 2021 to over 5,200 in 2024, with thousands more in the pipeline (from Tugu Hotel). This surge in supply is far outpacing demand, leading to increased competition among property owners and, inevitably, dropping prices.

Even government attempts to slow development—such as moratoriums on new permits—haven’t stopped the building boom. Many projects continue regardless, raising concerns about long-term sustainability.

Are Returns Still Attractive?

For years, Bali real estate investments promised high occupancy rates and impressive returns, with some companies advertising up to 90% occupancy and daily rates near $100. But the reality in 2025 is more sobering. Owners in the Bali real estate market are reporting fewer bookings, longer vacancy periods, and guests negotiating hard for discounts. Achieving 15–20% annual returns is becoming much harder, and those who bought into Bali real estate recently may need to reset their expectations.

Regional Winners and Losers

It’s important to note that not all areas are affected equally. While Canggu and other southern hotspots face oversupply and declining demand, places like Ubud and less-developed northern regions are holding up better. These areas still offer the authentic Bali that many travelers crave, and may present more resilient investment opportunities going forward.

Will Bali Real Estate Crash?

For years, Bali real estate investments promised high occupancy rates and impressive returns, with some companies advertising up to 90% occupancy and daily rates near $100. But the reality in 2025 paints a different picture. Many Bali real estate owners are now reporting fewer bookings, longer vacancy periods, and guests negotiating aggressively for discounts. Achieving 15–20% annual returns in the current Bali real estate landscape is becoming more difficult, and those who entered the market recently may need to reset their expectations.

How Should Investors Respond?

If you’re a property owner or considering investing in Bali, it’s time to update your strategy:

Location Matters: Focus on areas with enduring appeal and less oversupply.
Quality Over Quantity: Unique, well-managed properties will stand out in a crowded market.
Realistic Expectations: Plan for longer vacancy periods and lower nightly rates.
Keeping Updates from Community: Understand the changing preferences of travelers and tailor your offerings accordingly from your trusted community.

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Bali Real Estate Crash? Airbnb & Real Estate Prices Drop!