DENPASAR, DEWATA.NEWS – Bank Indonesia (BI) has reported a slowdown in Bali’s commercial property price growth in the fourth quarter of 2025, citing accommodation diversification and shifting office usage patterns as key factors.
Head of Bank Indonesia’s Bali Representative Office, Erwin Soeriadimadja, said in Denpasar on Wednesday that the Commercial Property Price Index in Bali grew by 0.68 percent at the end of 2025.
“Hospitality business operators adjusted prices to remain competitive amid weakening demand,” he said.
Although the index still recorded growth, the figure was significantly lower than the 3.65 percent increase recorded in the third quarter of 2025.
On an annual basis, price developments were supported by growth in rental office space, retail rentals, and hotels. However, demand indicators showed a decline during the same period.
Bank Indonesia noted that the Commercial Property Demand Index in Bali fell by 4.80 percent in the fourth quarter of 2025. The contraction was driven by a 5.98 percent drop in the rental office segment and a 6.71 percent decline in the hotel segment.
According to BI’s analysis, the decline in rental office demand reflects changing work preferences, with more people shifting from traditional office spaces to co-working spaces and shared facilities.
In the hotel segment, the drop in demand was mainly attributed to foreign tourists. BI stated that the availability of alternative accommodation options, including villas, apartments, and private rental properties, has contributed to reduced hotel demand.
The trend aligns with data from Bali’s Central Statistics Agency (BPS), which recorded a decline in room occupancy rates at both star-rated and non-star hotels in November and December 2025.
Despite weaker demand, commercial property supply in Bali remained stable. The Commercial Property Supply Index grew by 0.69 percent in the fourth quarter of 2025.
The increase was supported by a 13.07 percent rise in the rental apartment segment and a 0.77 percent increase in the hotel segment, reversing a previous contraction of 0.07 percent in the prior quarter.
For international investors, property operators, and tourism-related businesses, the data signals a more competitive market environment, particularly in accommodation and office space sectors, as Bali continues to diversify its commercial property landscape.