RealEstat.id (Jakarta) – Bali has long been a dream destination for travelers, and its real estate market has emerged as a profitable venture for investors.
The island’s stunning natural landscapes, rich cultural heritage, and robust tourism industry make it an attractive location for both personal retreats and investment opportunities.
Recent reports indicate significant growth in the property sector, driven by tourism recovery, infrastructure development, and increasing interest from domestic and international investors.
Bali’s property market has undergone notable changes since 2019, with a resurgence post-pandemic fueled by tourism recovery. In 2024, the island welcomed 6.3 million foreign visitors, up 19.5% year-on-year and surpassing pre-pandemic levels.
Property prices in Bali continue to increase year after year, with expectations of doubling in 3 to 5 years, driven by infrastructure improvements and economic growth.
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Meanwhile, the Consumer Price Index (CPI) in Denpasar, Bali, showed steady growth from 102.5 points in Q1 2023 to 107.64 points in Q3 2024, reflecting a stable economic environment.
It seems likely that Bali offers attractive rental yields, particularly in tourist-centric areas. Villas in popular locations can generate gross rental yields between 7–15%, driven by short-term vacation rentals and the growing presence of digital nomads, who account for 20% of the long-term rental market.
Badung Regency is the centre of Bali tourism. Badung has the most tourist destinations and the most complete tourist accommodation compared to other regencies/cities on the Island of the Gods.
Badung Regency in Bali is also known as a prospective area for investment, especially in the property sector. In 2021, Badung ranked first in terms of property demand index, followed by Denpasar, Gianyar, Jimbaran and Tabanan.
This area is also part of the development of the Bali Metropolitan Area (Sarbagita), which includes Denpasar, Badung, Gianyar, and Tabanan.
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Research conducted by Rumah123 revealed that there was a spike in demand for property by foreign nationals (WNA) in Badung Regency, Bali, reaching 92.1 percent in 2023.
The significant growth in demand for property by foreign investors was followed by other cities such as Denpasar (81.3 percent), Surabaya (49.6 percent), and North Jakarta (46 percent).
Areas such as Munggu and Seseh in Badung regency starting to gain popularity both among property investors and those who want to live in Bali.
Those areas offer a pristine environment with vast rice fields, It is ideal for early investors looking to capitalize on future development, with strong potential for appreciation as tourism expands.
“It is not surprising that the Munggu area in Badung Regency has emerged as the next hot spot for those who want to live or invest in property in Bali,” said Shanny Poijes, Managing Director of CORE Concept Living.
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“Munggu, Pererenan, and Canggu are all part of Badung Regency, a key tourism hub in Bali. Canggu is well-established, known for its vibrant nightlife, digital nomad community, and high property prices.”
“Pererenan, adjacent to Canggu, is emerging as a trendy yet quieter alternative, with growing cafes and resorts. Munggu is one of the last areas in South Bali where you can live in peace, and still get to places like Ubud, Pererenan, Cemagi or even venture into Tabanan without losing hours in traffic.”
The proximity of Munggu is 1–3 km from Pererenan, 5–8 km from Canggu, and this positioning makes it an attractive option for both residence and investment, especially in 2025, as Bali’s tourism and real estate markets continue to grow,” Shanny Poijes added.
As an emerging area, Munggu has significant room for capital appreciation, especially with infrastructure improvements like better roads, enhanced telecommunications (e.g., Starlink launched May 19, 2024, by Elon Musk), and planned airport expansions (e.g., a new international airport in North Bali, estimated at £2.4 billion, to accommodate 20 million passengers annually according to The Irish Sun.
Rental yields in Munggu are estimated at 8–12%, driven by its proximity to tourist hotspots like Canggu and Pererenan.
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Bali’s tourism recovery, with 6.3 million foreign visitors in 2024 (up 19.5% year-on-year, VnExpress), and the influx of digital nomads (20% of long-term rental market, NomadList) ensure consistent demand.
This is similar to Canggu’s yields (7–15%) and Pererenan’s (10–11% for new developments), but Munggu’s lower purchase prices could lead to higher percentage returns.
Shanny explained, lower entry costs and higher growth potential also becoming the major indicator here. However, the biggest benefit of Munggu is that you can actually move around and enjoy quality daily life as the major factor.”
“There are opportunities for savvy investors to profit from scarcity-induced growth in both land values and rental income. If the past has taught us anything about property value, it’s this: everyday convenience always wins,” he added.
CORE Concept Living is the creation of Swedish founders Shanny Poijes and Victoria Fernandez—a powerhouse duo whose collective experience spans two decades, two continents, and the intersection of European real estate, interior design, and boutique hospitality.
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Their Scandinavian rigor meets the Balinese soul to craft residential sanctuaries that redefine island living. CORE isn’t just about building homes. It’s about building legacies where families thrive, friendships grow organically, and long-term value builds quietly in the background.
“Second most important factor here is Tranquillity and Lifestyle.”
“Munggu’s serene environment, characterized by black-sand beaches, rice fields, and cultural sites like Garuda Wisnu Kencana Cultural Park, offers a peaceful retreat. It’s ideal for families, retirees, or individuals seeking a quieter lifestyle.”
“Unlike the overdeveloped tourist areas, Munggu still breathes with Balinese life, yet is plugged into the future thanks to new infrastructure, and international school access.”
“For families relocating to Bali, Munggu is a logistical win. Multiple international schools are within 10–20 minutes. You don’t just move to a village, you gain a smart base with global connectivity, local charm, and room to grow.”
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“Munggu is one of the few areas left in South Bali where having a car makes sense. No more rerouting or re-timing your day around bottlenecks.”
“Please don’t forget, Munggu’s Green belt zoning supports sustainable developments, appealing to eco-conscious buyers/renters, with potential rental yields of 8–12%.”
“If we can conclude, why Munggu is the next hot spot for both residence and investment, because it’s the best choice for those prioritizing affordability, peace, and a traditional Balinese lifestyle, ideal for families, retirees, or those seeking a quiet retreat with access to nearby amenities (1–3 km to Pererenan, 5–8 km to Canggu). Its lower living costs and serene environment outweigh its less developed infrastructure for these residents.”
Munggu stands out for property investment due to its lower entry costs, high capital appreciation potential in an emerging market, and alignment with eco-friendly trends.
Its proximity to Pererenan and Canggu ensures rental demand (projected 6.5 million tourists in 2025), while lower competition and infrastructure improvements (e.g., airport expansions) boost long-term value. Rental yields of 8–12% are achievable, especially for sustainable projects,” Shanny concluded.
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