Market & tourism · Bali

PHRI Bali explains why so many villas are up for sale

Bali's hotel and restaurant association says many villas and hotels are on the market. Among the reasons it cites are permit problems for properties in green zones and tighter checks on online platforms.

News of Published in DOMA News: 2 min read

Key points

  • Properties checked had 60-75% occupancy, so they are still trading
  • Some sellers cannot legalise villas built in green zones
  • PHRI wants simpler permits and a moratorium on new construction

What PHRI found

PHRI Bali and the tourism office gathered spot data in the field and found many villas and hotels listed for sale. The article does not give an exact number.

PHRI Bali vice chair I Gusti Ngurah Rai Suryawijaya said the properties they checked run at 60 to 75% occupancy. In his view, that means they are operating normally.

Why owners are selling

PHRI lists several reasons. Shareholders may decide to exit, or owners want to test the market value of the asset.

Another group has permit problems. Some villas were built on jalur hijau, or green zone land, where building is not allowed. In some cases foreigners lease land from local owners and build in protected areas. Tighter enforcement on properties sold through Airbnb and other online platforms is also a factor.

What the industry wants

According to detikBali, PHRI is asking the government to help owners of villas that are already built to obtain permits. They would need to update their designs, align documents with the RDTR (detailed zoning plan) and register for an NPWPD (regional taxpayer number).

The association also wants a study of the island's carrying capacity and a possible 3 to 5 year moratorium on new construction. PHRI argues that unchecked growth leads to price wars and hurts revenue, wages and tax income. These are proposals only, not government decisions.

For buyers, this means strong occupancy in a seller's report says nothing about whether the property is legal. The first questions are why the villa is being sold and whether it holds a full set of permits.

What it means for investors

The properties for sale include both healthy villas and ones that cannot be rented legally. Before buying, check the plot's zone under the RDTR, the PBG and the tax registration, not just reported occupancy. We check the zoning before any deal, because a villa in a green zone may be impossible to legalise.

Open the ROI calculator

Q&A

Can a villa built in a green zone be legalised?

There is no such mechanism yet. PHRI is only asking the government to ease permits for existing buildings, and no decision has been made.

Source
Bali Post, published September 30, 2026, language: Indonesian
Also checked: detikBali

Prepared by the DOMA editorial team from public reports, with the original source linked above. This is a news review, not legal or tax advice. Not a public offer.

We'll match a villa to your brief

Tell us your budget and goal and we'll send a shortlist with prices, floor plans and a yield calculation. No pushy calls.