The end of «grey» rentals in Bali: how the real estate market is changing in 2026

The Bali real estate market has been growing very quickly over the past few years. Buying a villa and renting it out through Airbnb seemed like a simple passive income model.
But in 2026, the market started to move into a new phase.
The main change — increased control over short-term rentals and facilities operating through Airbnb, Booking and other OTA platforms.
It is important to understand: Airbnb is not banned in Indonesia.
The market is simply becoming more professional, transparent and structured.
And in my opinion, this is rather a positive signal for the investor.

What exactly is changing in the Bali market

Today, authorities are increasing their control over:

• by licensing;
• tax transparency;
• business registration;
• zoning and the purpose of the land;
• object management model.

Particular attention is paid to:

• NIB registrations;
• the OSS structure;
• correct KBLI;
• legal rental model;
• links between the object and OTA platforms.

In fact, the market is gradually moving away from the model:
«I bought a villa and rent it out as soon as possible»
towards a professional investment model with full management.

Why it's important for an investor

Bali used to be a very chaotic market:

• thousands of private villas;
• dumping;
• unstable service;
• opaque management;
• heavy reliance on the season.

Today this is no longer enough.
It is not enough for an investor to simply buy a property in Bali with a beautiful view and the promised ROI.
The main question is now different:
how legal and professional the facility will operate.

How regulation affects profitability

When the market becomes more regulated, some facilities begin to lose competitiveness:

• someone doesn’t comply;
• some of the villas go on long-term lease;
• some projects lose stable load through OTA.

As a result, demand is concentrated around:

• licensed projects;
• managed residences;
• professionally managed villas;
• projects with transparent rental structure.

For an investor, this means:

• more stable loading;
• more predictable income;
• reduced chaotic competition;
• the growth in the value of professional management.

Why a beautiful ROI doesn't mean anything anymore

One of the main mistakes of investors — is to look only at the promised return.
For example, two projects may promise:

• 12–15% ROI.

But in one case it is gross revenue, and in the other — net income after all expenses.
The difference can be huge.
That is why it is important to understand today:

• who manages the facility;
• how the rental pool works;
• which commissions are withheld;
• how reporting works;
• is there a reserve fund;
• who controls OTA accounts.

Why the market is moving towards managed projects

In practice, Bali is gradually moving towards a managed investments model.
It looks like this:

• the investor buys the property;
• the operator takes over;
• rental and marketing work centrally;
• OTA sales are conducted by a professional team.

But the presence of a management company in itself does not guarantee anything.
It is important to understand:

• how the operating model works;
• how transparent is the return;
• how profits are distributed;
• how sustainable the developer is.

What is important to check before buying property in Bali

Today, a rental property — is already a full-fledged investment product.
Before buying property abroad, it is important for the investor to check:

• is NIB;
• whether the object corresponds to zoning;
• who is responsible for management;
• how the tax model works;
• what expenses are withheld;
• how the income is distributed;
• are there any transparent financial statements;
• what happens when an object is resold.

If there are no clear answers to these questions — the investor’s risks increase significantly.

Why Bali market is getting stronger

At first glance, regulation may seem to complicate the market.
But such stages have been passed through before:

• Dubai;
• Thailand;
• Vietnam.

At first the market grows chaotically. Then regulation appears. After that:

• weak players leave;
• dumping reduced;
• professional projects are being strengthened;
• quality of management is increasing.

It is at this point that the market becomes more mature and resilient for long-term investors.

Why investors keep buying property in Bali

Despite the changes, Bali remains one of the strongest markets in Southeast Asia.
The region is supported by:

• high tourist traffic;
• international demand;
• limited number of quality facilities;
• rising construction costs;
• infrastructure development.

But in 2026, it is no longer the one who simply bought a villa in Bali who wins.
The investor who wins is

• chose the correct legal structure;
• logged into managed project;
• understands the real income model;
• invests in professionally managed real estate.

Main conclusion

Bali's market is not getting any worse.
He becomes more professional.
And for investors who view real estate as a full-fledged investment asset, this is rather a good sign.
Because today, not only do they play a key role:

• location;
• design;
• beautiful renders.

A:

• legal structure;
• management;
• transparency;
• licensing;
• sustainability of the project.

What to see next

👉 View full video analysis of the Bali market on YouTube
👉 Study managed projects and investment sites in Bali
👉 Receive an individual selection for your budget and investment strategy from experts