The commercial property market in Bali continues to show strong growth, with rental prices climbing across various sectors. Data from Bank Indonesia (BI) reveals that Bali’s commercial property price index reached 122.13 in the fourth quarter of 2024, reflecting an 8.46 percent year-on-year (yoy) increase from 112.61 in the same period the previous year.
According to Erwin Soeriadimadja, Head of BI’s Bali Representative Office, the price surge of commercial property in Bali was largely driven by rising rental costs for retail properties and apartments.
“Retail property rents grew by 14.70 percent year-on-year, while apartment rentals increased by 8.03 percent,” he stated in a written report on Saturday, March 1, 2025. Additionally, the hotel and office rental markets also experienced growth, with rates rising by 8.36 percent yoy and 5.06 percent yoy, respectively.
A major factor contributing to the upward trend in property prices is the rising demand. BI’s survey indicated a 4.18 percent yoy increase in the property demand index for Q4 2024. Erwin highlighted that demand for retail rentals saw the most significant jump, soaring by 38.68 percent yoy, while office space rentals followed with a 23.94 percent yoy rise.
The property market’s expansion aligns with Bali’s economic performance. Data from Statistics Indonesia (BPS) showed that the island’s real estate sector posted a 2.42 percent yoy growth in regional gross domestic product (GRDP) during Q4 2024.
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Despite strong demand, property supply growth remained moderate. BI recorded a 2.32 percent yoy increase in the commercial property supply index, lower than the 3.08 percent yoy rise in the previous quarter. “Supply growth was primarily seen in apartment and retail property categories,” Erwin explained.
To sustain property sector development, BI Bali is focusing on measures to ensure quality growth. “We are strengthening macroprudential policies to encourage bank lending and financing while also reinforcing macroprudential liquidity incentives (KLM),” Erwin stated. He emphasized that accurate monitoring of property prices, supply, and demand remains a priority in supporting a balanced and stable real estate market in Bali.
