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Rate of Housing Inflation Impacting Bali Residents and Tourist Accommodation
Popular
Dec 10, 2024

Ni Made Fitri Apriyani, a Balinese local working in housekeeping, shared her frustrations about how owning a home in Bali has become a distant dream. Earning IDR 3-5 million monthly, her income barely covers basic needs, religious obligations, and family support. Buying land in her desired area of Batubalan in Gianyar Regency is unattainable, with land prices now reaching IDR 300 million (USD 18,000) for just 100 square meters.

According to Realinfo, Bali’s property prices have risen by an average of 7% annually over the past five years. In high-demand areas like Canggu, Uluwatu, and Ubud, the growth is even steeper. For example, Denpasar saw property prices increase by 15.1% in the last year alone—significantly outpacing the inflation rate.

Hospitality workers like Gede, who lives in Denpasar, find even renting a home within a reasonable distance of work increasingly difficult. He shared his experience of struggling to afford down payments or monthly installments as property prices in the area surge past IDR 1 billion for a modest 100-square-meter house.

This property boom isn’t only affecting locals. Tourists are also feeling the effects of rising costs in Bali. Budget travelers can still find affordable accommodation by opting for locally owned homestays or guesthouses, which tend to offer lower rates than luxury resorts. However, the overall trend suggests a shift toward higher costs as developers look to recoup their investments.

For those staying long-term, renting directly from local owners can be a more economical option compared to big real estate agencies. Platforms like local Facebook groups often list reasonably priced rentals from Balinese property owners.

Tourists can also expect more promotions from resorts and hotels vying for their business, especially as competition grows in the wake of increasing tourism demand. Deals encouraging longer stays or package promotions are likely to become more prevalent in the coming years.

While property development accelerates, creating high costs for locals and visitors alike, the heart of Bali’s charm remains accessible. Tourists who prioritize supporting locally owned businesses can contribute to the island’s sustainability while enjoying authentic experiences.

Despite rising costs, Bali remains a unique and captivating destination. By adapting to the changing landscape and making thoughtful choices, both locals and tourists can navigate this era of rapid growth and transformation.

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