DENPASAR, DEWATA.NEWS – Bali’s residential property market showed solid performance in the fourth quarter of 2025, with sales continuing to grow positively, according to the latest survey by Bank Indonesia (BI) Bali Province.
Data from BI indicate that the Residential Property Price Index (IHPR) increased by 1.06 percent year-on-year (yoy) in the fourth quarter of 2025. The figure was slightly lower than the 1.08 percent (yoy) growth recorded in the third quarter.
Head of BI Bali Representative Office, Erwin Soeriadimadja, said the growth was supported by price increases across all residential property categories.
“Prices of small houses (≤36 square meters) rose by 1.57 percent year-on-year, medium-sized houses (36–70 square meters) by 1.12 percent, and large houses (>70 square meters) by 0.82 percent,” he said in Denpasar on Thursday (February 26).
The increase in property prices was largely driven by rising production costs.
“Most respondents stated that higher prices of building materials and labor wages were the main contributors to the increase in housing unit prices,” Erwin explained.
Despite the upward price trend, developers identified several factors that continue to constrain primary property sales in Bali. These include mortgage interest rates (KPR), limited land availability, taxation, and relatively high down payment requirements.
In terms of project financing, the majority of development funding comes from developers’ own capital, accounting for 55.9 percent. The remainder is sourced from bank loans, customer funds, and financing from non-bank financial institutions.
On the consumer side, mortgage schemes remain the dominant financing method, representing 62.4 percent of total home purchase financing.
For prospective buyers, including expatriates eligible to purchase property under applicable regulations, the data indicate a stable but gradually rising residential property market in Bali toward the end of 2025.