How the real estate market in Bali is changing — and what it means for the responsible investor

The island of Bali is undergoing a major transformation in the real estate market. The government of Badung District has officially announced the demolition of 40 residential complexes due to violations of building and land regulations. In total, more than 100 properties are under investigation, including private villas, boutique hotels and apartments. 

The reason for the harsh reaction is systemic violations: lack of permits, construction on protected land, and neglect of the designated area. The Bali authorities state: “This is not a warning, it is action. We are protecting the law and the public interest.” 

What does this mean for investors?

This wave of inspections signals a change in the rules of the game. The market is divided into two parts:
- risky objects with legal uncertainty;
- and a new generation of development, where the emphasis is on transparency, compliance and long-term profitability. 

One example of this approach is the PGD Aparthotel in Changgu District, a project that was created in full compliance with local legislation from the very beginning. The developer, Premier Global Development, chose a more complicated but legally safe path: land under long-term lease, clear zoning for a hotel, and all permits in place.

“We have deliberately chosen the legal way. Yes, it is more expensive and time-consuming, but it is safer for investors,” comments Bogdan Matuschak, CEO of PGD Aparthotel.

Who will manage the facility?

PGD Aparthotel will be operated by Ribas Hotels Group, an international hotel operator with 11 years of experience and a portfolio of 56 properties in Bali, Ukraine, Poland and Moldova. Ribas Hotels Group takes over the full management cycle: from launch to daily operations, ensuring stable profitability without involving the owner in routine processes. 

Apart-hotels as a response to market challenges

Amid the new realities, investors are beginning to value not only the location or design, but also the legal stability of the project. Apart-hotels like PGD are a symbiosis of private ownership and professional hotel management. This not only protects against risks but also allows you to make money on a stable business model. 

The situation in Bali demonstrates that we can no longer afford to bend the rules in the development sector. Today’s trend is not just to build beautifully, but to build correctly. This is exactly what Ribas Hotels Group focuses on, working with partners who choose legality, transparency and long-term results.