The rapid development across Bali has sparked significant discussions in 2024. As a resident visiting family in this beautiful island, I’ve felt the tension firsthand. The moratorium slated to halt the construction of new tourist accommodations in Bali’s busiest areas has prompted local voices to express their concerns about how this surge in housing inflation affects both residents and tourists.
The Personal Struggles of Local Residents
When I spoke with Ni Made Fitri Apriyani, a local housekeeper, I was struck by her story. She dreams of owning a home in her birth province but feels it’s an unreachable goal. Her income, around IDR 3-5 million, is primarily spent on basic living expenses and supporting her family. She remarked, “Buying land or a house seems very far away,” especially when religious ceremonies and other obligations arise.
Aspirations Dwindling in the Face of Inflation
Apriyani’s aspirations mirror the sentiments of many locals as property prices soar. For instance, she is eyeing land in Batubalan, near Ubud, but the asking price is about IDR 300 million ($18,000) for just 100 square meters—far beyond her grasp. At 32 years old, she’s realizing that both domestic and foreign investments are driving prices up.
Rising Property Prices: A Reality Check
According to Realinfo, a property data provider, average property prices in Bali have surged by 7% annually over the last five years, closely tied to the increasing demand fueled by infrastructure development. In high-demand areas like Canggu and Ubud, the growth is even steeper, as Gede, a hospitality worker from Denpasar, shared with me. He lamented that even his dreams of renting a property within a reasonable distance from work are dwindling.
It’s interesting to note that the average price for a modest 100-square-meter house in Denpasar has hit IDR 1 billion. Gede noted, “Even if I manage to save for a down payment, the ongoing costs will still be hard to meet.”
Global Perspectives: Shared Experiences
Ali, who moved from West Java to Ubud a decade ago, is also feeling the pressure. Although he secured his dream home, he’s been approached multiple times by foreigners interested in buying it, which highlights the growing trend where local residents are at risk of losing their homes to external investors.
This phenomenon isn’t unique to Bali; cities like Barcelona, Venice, and Lisbon suffer from similar inflations, pushing locals out as tourism demand skyrockets.
The Future of Tourism in Bali
This rising cost of accommodation is prompting local authorities to introduce a ban on new tourism developments in Bali’s most popular resorts. The change aims to maintain a balance between visitors and residents, but it presents new challenges for tourists. As property developers face rising land costs, those expenses ultimately trickle down to tourists through increased accommodation rates. So, what does this mean for those looking to explore Bali?
How Tourists Can Adapt
While it may seem that affordable vacations in Bali are fading away, not all hope is lost. Budget-conscious travelers can opt for locally owned homestays, guesthouses, and villas that promise a more authentic experience at lower prices compared to luxury hotels. As the tourism market remains competitive, many resorts and hotels are likely to ramp up promotions in 2025 to attract visitors.
Long-term visitors, whether on a digital nomad journey, sabbatical, or retirement, should also consider renting directly from Balinese property owners to find better deals than those offered by larger real estate agencies. Local Facebook communities frequently advertise such rentals.
As Bali evolves, being informed and adaptable can help both residents and tourists navigate this changing landscape together.
