Bali Hotel & Branded Residences Market Update 2026

Overview

Bali’s real estate market has over seventy hospitality-managed real estate developments actively on sale. Development activity remains heavily concentrated in the Canggu/Berawa area, which accounts for approximately 40% of total supply. Uluwatu represents the second-largest hub at 21%. However, escalating land constraints and rising density in Canggu/Berawa are driving new development toward the northwest coastline, including Seseh, Pererenan, and Nyanyi. This emerging northwest coastline cluster now represents approximately 17% of total supply, including the Nuanu City mixed-use development, which comprises eleven residential projects in the primary market as of February 2026.

The current inventory is characterized by a high concentration of boutique-scale projects. Villa inventory accounts for approximately 18% of total supply, up from 13% in the previous year, reflecting a surge in new villa project launches. The majority of these developments remain small in scale, with approximately 84% comprising fewer than thirty villas.

Ownership Structure

Leasehold structures continue to dominate the market, typically ranging between 25 and 35 years, generally with renewal provisions subject to agreement. These structures have historically catered to foreign investor demand seeking entry-level exposure to Bali’s resort property market.

Notably, ownership structures offered by developers are shifting. Freehold offerings have increased from

12% of total supply in 2025 to approximately 23% in 2026, driven primarily by new project launches in Seseh, Pererenan, and Nyanyi. In contrast, properties in Canggu and Berawa remain predominantly leasehold, while other regions of Bali typically exhibit higher concentrations of freehold inventory, ranging between 36% and 50%.

The expansion of freehold supply is expected to attract a broader segment of domestic Indonesian buyers.

Key Issue

As the historical dominance of small-scale developments has resulted in regulatory gaps, the provincial government is now strengthening its oversight of the real estate rental market. This transition is primarily driven by a mandate requiring all short-term rental accommodations to demonstrate full legal compliance by March 31, 2026. Properties listed on online travel agencies (OTAs) that fail to verify their business registration through the national digital framework face systematic removal from major booking platforms. Rather than imposing restrictions on rental platforms — such as banning certain platforms — this enforcement ensures tax compliance, standardizes safety protocols, and restores competitive parity between traditional hotels and unregistered short-term rentals.

Under the 2026 framework, the barrier to entry for independent foreign investors has increased due to legal restrictions that prevent foreign individuals from directly holding the tourism-specific operating licenses required for short-term rentals. This requirement creates a bottleneck for international buyers, as foreign investors must either establish a PT PMA (Perseroan Terbatas Penanaman Modal Asing – Foreign Investment Company) or rely on the underlying local landowner for legal compliance. Opting for a PT PMA structure entails operational complexity, increased management costs, and a minimum investment of IDR 10 billion.

Outlook

With the pressure from the heightened requirements, a shift in foreign investor demand is projected toward branded residences, which currently account for approximately 10% of the total active supply. Typically integrated within hotel or mixed-use developments, these branded residences offer professionally and legally managed rental structures that provide a transparent investment opportunities alternative to the unregulated, small-scale market. Notably, Raffles Residences Bali is expected to launch in the second quarter of 2026, which will introduce 28 oceanfront villas with unit sizes starting from 502 square meters.

C9 Hotelworks forecasts an increase in resale activity of unlicensed rental villas, with tourists shifting toward traditional hotel accommodations. Looking ahead, co-located hotels and branded residences are expected to emerge to capture this transition.

Key Sections Covered in the Report 

• Hotel & Tourism Market 
  • Tourism Market Overview
  • Hotel Market Performance
  • New Supply
• Real Estate Market 
  • Market Overview
  • Ownership Structure 
  • Key Issue
  • Outlook

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