Earlier this month, Bali was hit by devastating floods following days of intense rainfall. Rivers burst their banks, flash floods swept through neighborhoods, and landslides cut off major roads. Tragically, at least 18 people lost their lives, with many families displaced and hundreds of homes damaged.
For those of us in the property sector, these events serve as a sobering reminder: climate resilience is no longer a secondary consideration—it’s central to Bali’s future as both a tourism destination and an investment hub.
The Immediate Impact
According to official reports, more than 120 neighborhoods across the island were affected, with blocked access roads, washed-out bridges, and temporary disruption to Bali’s airport and utilities. While recovery efforts are already underway, the floods exposed vulnerabilities in infrastructure, waste management, and land use.
For the real estate market, the short-term impact is likely to be localized. Properties in flood-prone areas—particularly near rivers, rice fields, and low-lying coastal zones—will need repairs and may see reduced demand. On the other hand, well-positioned villas and apartments built with modern infrastructure have remained largely unaffected, reinforcing the value of location and build quality.
Key Lessons for Property Owners and Buyers
1. Location & Elevation Drive Value
Investors often look at proximity to beaches or cafes as the top priority. But in the wake of this flooding, elevation and drainage capacity are becoming equally important. Villas built with raised foundations and robust infrastructure will increasingly stand out in the rental and resale market.
2. Regulations Will Tighten
Authorities have already signaled that uncontrolled land conversion—from rice fields to commercial or residential use—has amplified flood risks. We anticipate stricter zoning rules and building requirements ahead. For investors, this means future projects may take longer to permit but will likely be more sustainable long term.
3. Resilience Adds Rental Appeal
Today’s tenants—whether short-term holidaymakers or long-term digital nomads—are sensitive to infrastructure reliability. Properties that offer assurance against flooding, power outages, and road access issues will have a clear competitive edge in the rental market.
4. Insurance is Essential
Flood coverage and comprehensive property insurance, once considered optional by many foreign owners, are now a must. Not only does this protect assets, it also reassures buyers and tenants that the property is properly safeguarded.
Looking Ahead: Bali’s Market Remains Strong
Despite the challenges, Bali’s real estate market remains resilient. International arrivals are on track to surpass 7 million visitors by the end of 2025, keeping demand high for both rental and owned properties.
What’s changing is how investors evaluate properties. Sustainability, infrastructure quality, and climate resilience are becoming just as important as location and design. This shift presents opportunities: properties that already meet these criteria will command stronger premiums, while developers who embrace responsible building practices will attract serious buyers.
