Beritabali.com reports that the hotel occupancy and commercial space sectors are lagging as demand slows. Analysts from Bank Indonesia report a decline in commercial property price growth in Bali, most noticeable in the hotel and office space sectors.
R. Erwin Soeriadimadja, the Chief of the Bali branch of Bank Indonesia, referencing Bank Indonesia’s Bali Commercial Property Development Index (PPKom) for Q4 2025, says the Index grew 0.68 percent year-on-year (yoy), slower than the previous quarter’s 3.56 percent growth (yoy).
”The slowdown in commercial property prices in Bali reflects business actors’ adjustment to the declining demand, particularly in the hotel and rental office segments,” said Soeriadimadja on Tuesday. 10 February 2026.
On an annual basis, price growth is still supported by office rental growth at 5.93 percent (yoy), retail rental growth at 0.51 percent (yoy), and hotel rental growth at 0.68 percent (yoy). However, examined on a quarterly basis, market conditions have actually weakened. In the fourth quarter of 2025, commercial property prices contracted by 3.16 percent (quarter-to-quarter/qtq).
This decline occurred in line with hotel price corrections aimed at maintaining competitiveness amid declining demand. The Bali Province Commercial Property Demand Index in the fourth quarter of 2025 fell 4.80 percent (yoy), driven by a 5.98 percent (yoy) decline in demand for office rentals and a 6.71 percent (yoy) decline in hotel demand.
According to Erwin, changes in work patterns also impacted the demand for office space. “Our respondents reported a shift in preference from conventional offices to co-working spaces, resulting in a decline in demand for office rentals,” he explained.
”Our respondents have reported a shift in preference from conventional offices to co-working spaces, resulting in a decline in demand for conventional office space,” he explained.
Meanwhile, in the hotel segment, demand fell primarily due to fewer foreign tourists. This was apparently also influenced by the increasing availability of alternative accommodations such as villas, apartments, and daily rental properties. Data from the Bali Provincial Statistics Agency (BPS) also showed a decline in Room Occupancy Rates (TPK) for both star-rated and non-star-rated hotels in November and December 2025.
On the supply side, commercial property in Bali continues to demonstrate some resilience. The Commercial Property Supply Index in the fourth quarter of 2025 grew 0.69 percent (yoy), driven by a 13.07 percent (yoy) increase in the supply of rental apartments and a 0.77 percent (yoy) increase in the supply of hotel rooms. This represents an improvement in Q4 compared to the previous quarter, which contracted by 0.07 percent (yoy).
To maintain market balance and promote healthy growth, Bank Indonesia continues to support property-sector financing through the Macroprudential Liquidity Incentive Policy (MLI).
The development of the commercial property sector in Bali is showing signs of slowing. Bank Indonesia noted a significant decline in commercial property price growth on the Island of the Gods, consistent with weakening demand, particularly in the hotel and office rental segments.
The Head of the Bank Indonesia Bali Representative Office, R. Erwin Soeriadimadja, revealed that this condition is reflected in the results of Bank Indonesia’s Bali Commercial Property Development Index (PPKom). The Bali Province Commercial Property Price Index in the fourth quarter of 2025 grew 0.68 percent year-on-year (yoy), slowing from the previous quarter’s 3.56 percent growth (yoy).
”The slowdown in commercial property prices in Bali reflects business actors’ adjustment to the declining demand, particularly in the hotel and rental office segments,” said R. Erwin Soeriadimadja in a statement issued on Tuesday, 10 February 2026.
Price Growth
On an annual basis, price growth was still supported by the office rental segment at 5.93 percent (yoy), retail rental at 0.51 percent (yoy), and hotels at 0.68 percent (yoy). However, on a quarterly basis, market conditions actually weakened. In the fourth quarter of 2025, commercial property prices contracted by minus 3.16 percent (quarter-to-quarter/qtq).
”The slowdown in commercial property prices in Bali reflects business players’ adjustments to declining demand, particularly in the hotel and office rental segments,” said R. Erwin Soeriadimadja.
This decline occurred in line with hotel price corrections aimed at maintaining competitiveness amid declining demand. The Bali Province Commercial Property Demand Index in the fourth quarter of 2025 fell by 4.80 percent (yoy), driven by a 5.98 percent (yoy) decline in demand for office rentals and a 6.71 percent (yoy) decline in demand for hotel rentals.
According to Erwin, changing work patterns have also impacted the demand for office space.
”Our respondents reported a shift in preference from conventional offices to co-working spaces, resulting in a decline in demand for office rentals,” he explained.
Meanwhile, in the hotel segment, the decline in demand was primarily driven by international tourists. This was driven by the increasing availability of accommodation options, including villas, apartments, and daily-rental properties. Data from the Bali Provincial Statistics Agency (BPS) also showed a decline in Room Occupancy Rates (TPK) for both star-rated and non-star-rated hotels in November and December 2025.
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