The rise in real estate prices in Bali is due to foreign investments and tourism.

real estateonBaliThe demand for villas, apartments, commercial buildings and land on the island from international investors, expats and landowners. Demand for villas, apartments, commercial buildings and land on the island from international investors, expats anddevelopersleads to explosive price growth. A study conducted by Indonesian real estate company Rumah123 shows that there is an unprecedented increase in demand forreal estateby foreign nationals, especially in Badung district.

Bali regions

Bali is governed by nine regencies: Badung, Denpasar, Tabanan, Gianyar, Bangli, Buleleng, Klungkung, Karangasem and Jembrana. The Badung region is.housefor the highest concentration of tourist attractions, resorts and amenities. It includes resorts such as Kuta, Legian, Seminyak,ChanguJimbaran, Uluwatu and Nusa Dua.

Demand growth

Rumah123 reported that international demand for real estate and land in the Badung region increased by 92%.

Other areas also showed significant growth, including Denpasar, where interest increased by 81%, followed by Surabaya in Java with a 49% increase, and North Jakarta with a 46% increase.

• 2023:Demand growth was faster than that in 2022. Market growth is expected to accelerate in 2024.
• Investors:Foreigners from Singapore,U.S.Australia, Malaysia, Japan and Australia.

Criticism and protests

However, more and more people in Bali are opposing and criticizing this huge real estate boom. Leaders, including former deputy governor Chok Ase, are calling for a serious spatial planning assessment as soon as possible and for strict adherence to existing real estate development laws.

• The risk of economic collapse:Resorts like Changgu could face hotel overcrowding and economic collapse.
• Activists:Local groups such as Stop Uluwatu Destruction protest against the destruction of nature and local culture.

This area, now called Uluwatu in the tourism sector, encompasses the Pechatu area, which is located on the southwestern part of the Bukit Peninsula. For decades, this part of the Bukit Peninsula was completely ignored by tourists and was only visited by intrepid surfers who made the journey to experience the ultra challenging Uluwatu wavepool.

Video of activists

A recently released video by the group Stop Uluwatu Destruction illustrates the conflicts facing the island as a whole as tourism development booms.

• Problem:The construction of a major resort is causing concern among locals
• Locals:Expressing concerns about preserving theirhousesand sacred sites