Impact of Digital Nomads on the Indonesian Rental Market

Published on May 3, 2026 and written by Cyril Jarnias

With the rise of remote work, Indonesia, particularly Bali, has become a sought-after destination for digital nomads, drawn by its idyllic landscapes and affordable cost of living.

This growing community, made up of freelancers and digital professionals, has a significant impact on the local rental market, where demand and housing prices have increased considerably.

While some see this development as an economic opportunity, others worry about the effects on local residents, who face rising rents and a scarcity of affordable housing.

This phenomenon raises questions about the balance between economic development and preserving housing for locals.

Challenges for Digital Nomads in Indonesia

Digital nomads in Indonesia, and especially in Bali, face several major challenges that impact their daily experience and integration into the local economy.

Variable Internet Connectivity

• Despite technological advances, the quality of the internet connection remains uneven depending on the region.
• Unexpected power outages or fluctuating speeds are common outside major tourist centers.
• Some coworking spaces offer a good connection, but in villages or on certain islands, working effectively can become difficult.
• Example: A freelancer reports having to change cafes three times in one day to find a stable connection.

Visa and Regulatory Issues

Challenge	Description	Example/Testimonial
Limited Duration	Tourist visas do not always allow for extended stays.	“I had to do a border run every two months to stay legally.”
Costly Visas	Fees for obtaining or renewing a visa can be high and unpredictable.	“The cost of the visa adds to my already tight budget…”
Unclear Regulations	The legal status of remote work sometimes remains ambiguous with local authorities.	Workers have reported being questioned during random checks.

Language Barrier

• While English is common in tourist areas (Canggu, Seminyak), it is less prevalent elsewhere.
• Communicating with local landlords or handling administrative tasks often requires some basic Indonesian.
• Testimonial: “Even after six months here, I still struggle with Bahasa Indonesia at the local market!”

Necessary Cultural Adaptations

1. Respecting the strong Balinese religious dimension (daily offerings, local festivals).
2. Adapting one’s pace to local hours (e.g., mandatory break during Nyepi Day when everything shuts down).
3. Understanding the different relationship with time (“jam karet” – literally “rubber time”) which affects punctuality and organization.

Real-life example: A digital nomad explains missing an important meeting because the entire island was paralyzed by an unexpected religious ceremony.

Difficulties with Community Integration

• Expat communities are very close-knit but sometimes closed to newcomers.
• Integrating with Indonesians takes time; some feel a form of social isolation outside the circle of other foreigners.

Example: Several accounts mention that “despite the apparent friendliness,” there are few real opportunities to form deep bonds with locals outside a professional context.

Influence on Perception and Contribution to the Local Rental Market

Local Perception

• The increase in the number of digital nomads sometimes leads to rejection (“local pushback”), especially given the real estate inflation caused by this new demand.
• Some locals see these newcomers as responsible for the surge in rents in certain areas (e.g., Canggu, where some pay over €5,000/month for their villa).

Concrete Effects on the Rental Market

• Notable price increases in sought-after neighborhoods; increased difficulty for local residents to find housing near their workplace.
• Rapid development of premium rental offerings exclusively for foreigners: villas equipped with high-speed WiFi, included services, etc.

Testimonial: A Balinese landlord explains that he only rents his properties long-term to expats because they pay “twice as much as his former Indonesian clients.”

Summary List of Main Challenges

• Uneven internet connectivity
• Administrative complexity related to visas
• Persistent language barrier
• Constant need for cultural adaptation
• Real difficulty in building lasting ties with the local community

The Rise of Coliving for Digital Nomads

Coliving is a modern housing model where residents have private spaces (bedroom, sometimes bathroom) while sharing common areas such as kitchens, lounges, coworking spaces, and leisure facilities. This concept encourages community living, exchange, and collaboration among people with diverse profiles – particularly popular with digital nomads for its flexibility, “all-inclusive” aspect, and immediate access to an international community sharing similar interests.

Why Does Coliving Attract Digital Nomads?

• Rental flexibility (short-term or renewable leases)
• Environment conducive to professional networking
• Close-knit community facilitating social integration
• Spaces adapted for remote work (integrated coworking)
• Included services (cleaning, fast wifi, social events)

Development of Coliving in Indonesia

Region	Features	Examples/Observed Phenomena
Bali	High concentration of digital nomads; abundant offering of dedicated spaces with sea or rice field views; numerous community events and professional workshops.	Canggu & Ubud have become international coliving hubs with rapid growth since 2021.
Jakarta	Urban offering focused on young Indonesian professionals & expats; integration in central neighborhoods close to economic hubs.	Colivings designed to mix locals and foreigners in a cosmopolitan setting.

Impact on the Local Rental Market

Observed Effects:

• Local increase in rental prices in areas highly demanded by digital nomads (especially Bali).
• Relative reduction in availability for local residents seeking long-term rentals.
• Increased segmentation between high-end offerings for foreigners/digital nomads and the traditional local market.

Potential Consequences:

• Increase in the average cost of housing in certain tourist neighborhoods.
• Real estate pressure pushing some residents to move to the outskirts.

Response to Specific Needs of Digital Nomads

1. Connectivity : Guaranteed high-speed wifi everywhere.
2. Community : Regularly organized activities (professional workshops, yoga, themed evenings…).
3. Flexibility : Weekly or monthly rentals without long-term commitment.
4. Comfort & included services : Regular cleaning, well-appointed spaces.

Recent Statistics / Case Studies

Some illustrative figures:

• Since 2021, the number of coliving spaces in Bali has doubled according to several specialized platforms.
• One platform lists over 50 officially labeled “colivings for remote workers” just in Bali in 2025.

Case Study:

A space like Outpost Canggu regularly shows an occupancy rate above 85%, offering over a hundred equipped rooms and several integrated coworking spaces.

Future Perspectives

With the expected explosion in the global number of digital nomads (+30%/year estimated until 2030), Indonesia should see the emergence of more hybrid offerings mixing premium flexible accommodation and advanced professional services:

• Geographic diversification towards Lombok or Sumatra thanks to Bali’s success
• Possible regulatory adaptation in response to tensions on residential housing
• Likely emergence of specialized ecosystems based on professional sectors (tech/startup vs. creatives)

The phenomenon is expected to intensify, provided that international attractiveness and preservation of the local residential fabric can be reconciled.

The Impact of Digital Nomads on the Indonesian Rental Market

The massive influx of digital nomads into Indonesia, particularly in Bali and Jakarta, exerts a significant influence on the local rental market.

Evolution of Rental Prices in Areas with High Digital Nomad Concentration:

Zone	Recent Rent Increase
Denpasar (Bali)	+15% in one year
Uluwatu, Canggu, Ubud (Bali)	Increase well above 15%; some rents multiplied
Badung (Bali)	+92.1% foreign demand since 2022

• Foreign demand has exploded in neighborhoods popular with digital nomads. In Badung (Bali), foreign real estate demand jumped 92.1% between 2022 and 2024. In Denpasar: +81.3%. In North Jakarta: +46%.
• Landlords are sharply increasing their prices in response to the growing number of expats willing to pay high rates for access to modern villas or apartments.

Effects on Housing Availability for Local Residents:

• The scarcity of affordable rental housing is marked in tourist and urban areas.
• The average monthly salary of a Balinese person (~IDR 2.4 million) makes it difficult to access the new rental rates being charged.
• Many residents are forced either to move away from tourist or urban centers or to accept a default shared accommodation.

Response from Real Estate Developers:

List of main observed adaptations:

• Increased development of compact units: Sales of one- and two-bedroom apartments and villas increased by 37% and 12% respectively, while those for three bedrooms decreased (-16%). Nearly half of the new small-format stock was sold “off-plan.”
• Adapted flexible offering: Multiplication of flexible “leasehold” leases (77.7% of the market), including hotel management to attract an international mobile clientele.
• Community villas/co-living spaces: Rapid emergence of all-inclusive offerings (fast wifi, common/private spaces).

Government Measures Aimed at Regulating the Impact:

Main interventions recorded:

1. Recent but regulated easing regarding real estate purchase/leasing by foreigners to attract certain profiles while protecting local land.
2. Reinforced controls on visa compliance – many digital nomads working with a standard tourist visa.
3. Discussions around potential capping or additional taxation to limit real estate speculation linked to seasonal rentals.

Predictable Long-Term Impacts on the Indonesian Rental Market:

The sustained increase in international flow risks:

• Anchoring a high or even rising level of rents in certain key areas;
• Fostering geographic specialization with a reinforced coexistence between very expensive international hubs and peripheries accessible only to locals;
• Encouraging more foreign private investment, sometimes to the detriment of local accessibility.

To remember:

The dynamic driven by digital nomads is structurally reshaping the Indonesian real estate market towards more high-end flexibility… but also accentuating social tensions and inequalities in housing.

The Importance of High-Speed Wifi for Digital Nomads

A high-speed wifi connection is a fundamental pillar for the productivity and flexibility of digital nomads in Indonesia, especially in destinations like Bali, Jakarta, or Yogyakarta. A fast and reliable connection allows for participation in video conferences without interruptions, sending large files instantly, and working effectively from anywhere. For example, Sophia, a digital entrepreneur in Bali, explains that thanks to an international eSIM and secure portable wifi in coworking spaces or even on the beach, she can manage her business without interruption or stress related to connectivity.

Concrete Examples of Use:

• International video conferences without latency
• Real-time collaborative project management
• Professional video streaming (YouTube/live)
• Increased security via VPN when working on public networks

Regional Comparison:

Region	Wifi Quality	Coworking Infrastructure	Accessibility
Bali	Excellent (urban areas)	Numerous modern spaces	High
Jakarta	Very good	Multiple options	Very high
Yogyakarta	Good in city center	Growing offering	Medium
Rural areas/remote islands	Poor/intermittent	Rare	Low

This disparity means that digital nomads mostly favor urban hubs where high-speed wifi is guaranteed. In Bali, for example, the rental market has adapted with an explosion of offerings integrating very fast internet; some neighborhoods have seen their rents rise by over 40% in three years due to the combined effect of international remote work and specific digital needs.

Network Quality Directly Influences Housing Choice:

• Homes advertising “fiber optic/ultra-fast wifi” are rented faster.
• Seasonal rentals offering mobile modems or pocket wifi are becoming standard.
• Landlords are investing in network improvements to attract this clientele.

This dynamic is transforming the local economy:

• Significant increase in rental income for equipped landlords
• Economic shift with the emergence of an ecosystem around coworking and digital services

Private initiatives like the massive deployment of equipped coworking spaces (fiber optic/dedicated Wi-Fi), instant international eSIM offers, or easy pocket WiFi rental actively contribute to strengthening this digital attractiveness for mobile workers.

However, some rural areas remain underdeveloped in this regard: frequent lack of stable internet or limited speed make these regions much less attractive despite their natural or cultural potential. This still limits their tourism development among digital nomads who absolutely require technical stability above all other criteria.

From a local professional perspective:

“Good internet connectivity not only boosts our real estate market but also attracts an international population whose purchasing power supports local restaurants, independent shops, and a whole indirect economy,” testify several Balinese real estate agents.

To remember:

The quality of wifi now directly conditions Indonesia’s residential AND economic attractiveness for mobile workers – it is a major strategic lever recognized by all local actors involved.