Bali Hotel Demand Contracts as Commercial Properties Flood Marketplaces

Kuta — Commercial-property demand in Bali contracted 5,50 percent year on year in the second quarter of 2026, according to Bank Indonesia’s Bali property survey, as hotel demand fell 9,71 percent and commercial-property prices declined 4,99 percent.

The change comes as the market faces both weaker demand and expanding supply. The contraction was narrower than the 9,27 percent decline recorded in the first quarter, while commercial-property prices improved from a 5,85 percent contraction in that period. Bank Indonesia reported that commercial-property supply grew 4,39 percent year on year in the second quarter, including a 2,35 percent increase in hotel supply.

Why Bali’s property figures matter to visitors and foreign residents

For foreign residents and visitors, the figures describe a market in which hotel accommodation is under pressure even as more commercial properties are offered for sale or lease. The survey recorded the hotel segment as one of the areas with falling demand, while the reported price decline indicates weaker market conditions for commercial assets.

The figures concern Bali’s commercial-property market, rather than a general measure of household housing costs. Bank Indonesia is Indonesia’s central bank and publishes the survey as an indicator of commercial-property price and demand developments. The report cited by NusaBali also said hotel prices fell 5,25 percent year on year in the second quarter.

The survey’s figures do not state that every hotel or every area of Bali experienced the same movement. They describe the provincewide commercial-property indicators for the second quarter of 2026, including demand, prices and supply across the reported segments.

Sources

• NusaBali — Bali news report
• STAR-NEWS.ID — Indonesian economic news report
• investindonesia.co.id
• clubproperty.com
• villa-tax.operium.store