Authored by the expert who managed and guided the team behind the Indonesia Property Pack
Yes, the analysis of Bali's property market is included in our pack
Bali's rental yields in 2025 range from 10% to 20% for villas in prime areas like Canggu and Seminyak, making it one of Southeast Asia's most attractive property investment destinations.
The island's property market has experienced significant growth post-COVID, with villa rental yields consistently outperforming apartments and guesthouses. Digital nomads, tourists, and expatriates drive strong year-round demand across different property types and locations.
If you want to go deeper, you can check our pack of documents related to the real estate market in Indonesia, based on reliable facts and data, not opinions or rumors.
Bali rental yields range from 4% to 20% depending on property type and location, with villas in Canggu and Seminyak offering the highest returns.
Short-term vacation rentals generate superior yields compared to long-term leases, but require higher management costs and vacancy risk consideration.
| Property Type | Location | Gross Rental Yield | Typical Purchase Price | Monthly Rental Income |
|---|---|---|---|---|
| 2-3 Bedroom Villa | Canggu/Seminyak | 10-15% | $200,000-$400,000 | $3,000-$6,000 |
| 2-3 Bedroom Villa | Uluwatu | 9-10% | $180,000+ | $2,500-$5,000 |
| 2-3 Bedroom Villa | Ubud | 6-8% | $150,000+ | $1,500-$3,000 |
| Studio/1-Bedroom Apt | All Areas | 4-8% | $70,000-$180,000 | $500-$1,200 |
| Guesthouse | Various | 4-7% | $120,000+ | $1,000-$2,500 |
| Premium Beachfront Villa | Seminyak/Uluwatu | 15-20% | $500,000+ | $8,000-$12,000 |
Fact-checked and reviewed by our local expert
Daniel Rouquette 🇫🇷
CEO & Co-Founder at Villa Finder
What are the current rental yields for different property types in Bali?
As of September 2025, Bali's rental market delivers strong returns across different property categories.
Villas generate the highest rental yields, ranging from 7% to 15% in prime tourist areas like Canggu and Seminyak. Premium beachfront villas can achieve yields up to 20%, particularly those with direct beach access or exceptional amenities.
Apartments and studios offer more modest returns, typically yielding 4% to 8% annually. These properties face limited high-demand locations compared to villas, which constrains their rental potential. However, well-located studios in digital nomad hotspots can reach the higher end of this range.
Guesthouses and homestays average 4% to 7% annual yields, with most properties concentrated in Ubud and northern Bali regions. These properties often serve budget-conscious travelers and longer-term guests seeking authentic cultural experiences.
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How do rental yields differ across popular Bali locations?
Location significantly impacts rental performance across Bali's diverse neighborhoods.
Canggu delivers exceptional yields of 8% to 15% for 2-3 bedroom villas, with properties priced between $200,000 and $400,000 generating $3,000 to $6,000 monthly during high season. The area's surfing culture and digital nomad community ensure consistent year-round demand.
Seminyak matches Canggu's performance with 9% to 15% yields for similar villa types. The upscale beach club scene and luxury shopping attract high-spending tourists willing to pay premium rates for sophisticated accommodations.
Uluwatu offers solid returns of 9% to 10% for villas starting at $180,000, generating $2,500 to $5,000 monthly. The dramatic clifftop setting and world-class surf breaks appeal to affluent travelers seeking exclusive experiences.
Ubud provides lower but stable yields of 4% to 8% for villas priced from $150,000, with monthly rental income of $1,500 to $3,000. The cultural and wellness focus attracts longer-term guests, resulting in better occupancy consistency but lower daily rates.
What rental yields can I expect based on property size?
Property size directly correlates with rental yield potential in Bali's market.
Studios and one-bedroom units typically yield 6% to 10%, appealing primarily to digital nomads and solo travelers seeking longer-term accommodations. These properties face limited luxury positioning opportunities, constraining premium pricing potential.
Two to three-bedroom villas achieve the highest yields of 8% to 15%, perfectly suited for families, friend groups, and couples seeking privacy with resort-style amenities. This category enjoys the strongest demand across all traveler segments.
Large villas with four to six bedrooms can reach yields up to 20% in premium locations like Seminyak and Uluwatu. These properties command daily rates approaching $600 to $1,200 during high season, targeting affluent groups celebrating special occasions or corporate retreats.
The sweet spot for yield optimization appears to be 2-3 bedroom villas, which balance broad market appeal with premium positioning opportunities while maintaining manageable operational complexity.
How do total purchase costs affect actual rental yields?
Understanding total acquisition costs is crucial for accurate yield calculations in Bali.
| Cost Component | Percentage of Purchase Price | Description |
|---|---|---|
| Notary Fees | 1-2.5% | Legal documentation and transfer processing |
| BPHTB Tax | 5% | Acquisition duty on property transfers |
| Annual PBB Tax | <0.5% | 20% of NJOP × 0.5% yearly land and building tax |
| Legal Due Diligence | 0.5-1% | Property title verification and legal checks |
| Agent Commission | 2-5% | Real estate brokerage fees |
| Property Survey | 0.2-0.5% | Technical inspection and valuation |
These upfront costs typically add 8% to 13% to the property purchase price, effectively reducing your first-year yield by this amount. For example, a villa purchased for $250,000 with $25,000 in closing costs creates a true investment base of $275,000, lowering calculated yields accordingly.
Foreign buyers should budget an additional $20,000 to $40,000 for legal structuring through Indonesian entities, further impacting initial yield calculations.
What ongoing expenses should I factor into yield calculations?
Operational costs significantly impact net rental yields in Bali's property market.
Property management for short-term rentals consumes 15% to 20% of gross rental income, covering guest communication, cleaning, maintenance coordination, and booking platform management. Professional management becomes essential for maximizing occupancy and maintaining property standards.
Marketing and platform commissions add another 4% to 9% of revenue through Airbnb, Booking.com, and other vacation rental platforms. These fees are unavoidable for reaching international travelers but vary based on booking channel mix.
Annual maintenance costs range from 1% to 3% of property value, including pool maintenance, garden care, furniture replacement, and repairs. Tropical climate and heavy usage accelerate wear requiring proactive upkeep.
Income tax applies at 15% of net rental income for foreign property owners after allowable deductions for management and maintenance expenses. Proper documentation of expenses helps minimize tax liability.
Leasehold extension costs become significant for properties approaching lease renewal, potentially requiring $250,000 to $500,000 for prime locations after 20-30 years.
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How do financing options impact net yields for foreign investors?
Mortgage financing can enhance returns but comes with specific requirements for foreign buyers.
Down payment requirements typically range from 30% to 50% of property value for foreign investors. Local Indonesian banks generally require higher deposits and proof of Indonesian residency status (KITAS) before approving loans.
Interest rates vary significantly between local and international financing options. Indonesian banks charge 8% to 12% annually, while international lenders may offer rates starting at 2.99% plus Euribor, though with stricter qualification criteria.
A practical example illustrates the impact: purchasing a $250,000 villa with 40% down ($100,000) and financing $150,000 at 10% interest creates annual debt service of approximately $15,000. If the property generates $30,000 gross rental income, financing reduces cash-on-cash returns but increases leverage for portfolio expansion.
Foreign buyers must maintain Indonesian residency and demonstrate sufficient income to qualify for local financing, making cash purchases more common despite lower leveraged returns.
What's the difference between short-term and long-term rental returns?
Rental strategy choice significantly impacts both yields and operational requirements.
Short-term holiday rentals generate 8% to 15% gross yields in prime areas, with exceptional properties in Seminyak achieving 12% to 20% through optimized pricing and high occupancy. These rentals capture peak season premiums and benefit from strong tourist demand.
Long-term leases provide 6% to 10% gross yields with lower operational complexity and reduced vacancy risk. Monthly tenants, particularly digital nomads and expatriates, offer income stability but limit pricing flexibility during peak tourist seasons.
Short-term rentals require intensive management including guest communication, frequent cleaning, maintenance coordination, and marketing across multiple platforms. Management costs typically consume 20% to 25% of gross income.
Long-term rentals involve minimal ongoing management but generate lower yields due to competitive local rental rates and limited seasonal pricing adjustments. Tenant turnover costs remain low compared to daily guest turnover.
The optimal strategy often involves seasonal flexibility, offering short-term rentals during peak tourist months (June-August, December-January) and securing longer-term tenants during quieter periods.
Can you provide specific rental income examples for different property types?
Real-world examples demonstrate potential returns across Bali's property categories.
A 2-bedroom villa in Canggu purchased for $250,000 generates daily rental rates of $150 to $250 during peak season. With 75% average occupancy (274 nights annually), gross annual revenue reaches $41,000 to $68,500. After management costs (20%) and taxes (15%), net yields range from 8% to 11%.
A studio apartment in Ubud costing $70,000 commands monthly rentals of $500 to $700, producing $6,000 to $8,400 annual revenue. Lower management requirements and stable occupancy result in net yields of 7% to 10%.
A guesthouse in Lovina with 8 rooms purchased for $140,000 can generate $2,500 monthly revenue at full occupancy. Seasonal fluctuations and operational complexity typically produce net yields of 7% to 9%.
Premium beachfront villas in Seminyak costing $500,000 achieve daily rates of $400 to $800, generating $120,000 to $200,000 gross annual revenue with proper management. Net yields can reach 15% to 20% for exceptional properties with strong branding and marketing.
What types of tenants drive rental demand in Bali?
Bali's diverse renter profiles create year-round demand across different property types.
- International tourists seeking 1-2 week stays in luxury villas near beaches, clubs, and restaurants. They drive premium rates during peak seasons and prefer Seminyak, Canggu, and Uluwatu locations.
- Digital nomads requiring 1-6 month accommodations with reliable wifi, workspace areas, and proximity to co-working communities. Canggu and Berawa attract this demographic with modern amenities and entrepreneurial atmosphere.
- Expatriate professionals seeking long-term leases (6-12 months) in quieter areas like Ubud and Sanur. They prioritize lifestyle amenities over tourist attractions and provide stable rental income.
- Wellness tourists booking 2-4 week stays for yoga retreats, detox programs, and spiritual journeys. Ubud properties with natural settings and holistic amenities serve this growing market.
- Traveling families requiring larger villas with 3+ bedrooms, pools, and child-friendly amenities. They typically book during school holidays and justify premium pricing for suitable properties.
Understanding these profiles helps optimize property features, marketing strategies, and pricing models for maximum yield generation.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Indonesia versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.
What are typical vacancy rates and how do they affect yields?
Vacancy rates vary significantly by location and property type across Bali.
Prime tourist areas including Canggu and Seminyak maintain 75% to 85% occupancy rates year-round, with well-managed properties reaching 90% during peak periods. These areas benefit from consistent international arrivals and strong repeat visitor rates.
Secondary locations like Ubud and Uluwatu achieve 65% to 80% occupancy, with seasonal variations affecting performance. Ubud experiences stronger demand during cooler months, while Uluwatu peaks during surf seasons.
Remote coastal areas and northern Bali locations struggle with 40% to 55% occupancy due to limited tourist infrastructure and accessibility challenges. Properties in these areas require significantly lower purchase prices to achieve acceptable yields.
Apartments typically maintain lower occupancy than villas due to limited differentiation and increased competition from hotels. However, apartment occupancy remains more stable throughout the year compared to seasonal villa fluctuations.
Each 10% occupancy increase translates to approximately 1-2% higher annual yield, making location selection and property management quality crucial for investment success.
What are the best property choices for maximizing rental yields?
Strategic property selection can significantly optimize rental returns in Bali's competitive market.
Two to three-bedroom villas in Canggu, Seminyak, and Uluwatu consistently deliver the highest yields of 10% to 15% with strong appreciation potential. These properties appeal to the broadest renter demographic while maintaining premium positioning.
Modern apartments in Canggu and Berawa serve the growing digital nomad market with yields of 8% to 12%. Smaller investment requirements and easier management make these properties suitable for first-time investors.
Emerging growth areas including Pererenan, Bingin, and Nyanyi offer lower entry prices with solid yield potential as infrastructure develops. Early investors in these locations benefit from rapid appreciation alongside rental income.
Boutique villa complexes with 3-5 units provide economies of scale for management while maintaining individual property appeal. Shared amenities and professional management reduce per-unit operational costs.
Properties with unique features like beachfront access, rice field views, or architectural distinction command premium rates and higher occupancy, justifying higher purchase prices through superior yields.
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How have rental yields changed over time and what's the outlook?
Bali's rental market has experienced significant evolution over the past five years.
In 2020, average villa yields ranged from 8% to 12% before COVID-19 disrupted tourism. Property prices have since increased 50% in prime areas, compressing yields somewhat while boosting capital appreciation prospects.
One year ago in 2024, yields improved to 10% to 12% for prime properties as occupancy rates rebounded and international travel resumed. Strong demand recovery drove both higher rental rates and property values.
Currently in 2025, gross yields reach 10% to 20% in the best locations with occupancy maintaining strong levels. Annual price growth of 7% to 12% continues alongside rental income growth, creating attractive total returns.
Looking ahead, yields should stabilize at 10% to 15% for well-managed villas over the next 12 months as new supply moderates price growth while robust demand continues. Digital nomad trends and improved infrastructure support sustained performance.
Five-year forecasts suggest continued strong yields with moderate appreciation as development slows and regulatory frameworks mature. The digital nomad ecosystem appears permanent, supporting long-term rental demand.
Ten-year projections indicate potential regulatory changes affecting short-term rentals, possible taxation increases, and infrastructure improvements that could reshape market dynamics. Yields may moderate to 8% to 12% as the market matures.
Compared to regional competitors, Bali's yields of 10% to 15% significantly outperform Phuket and Koh Samui at 5% to 8%, while Jakarta apartments yield only 3.7% to 6.2%, confirming Bali's position as Indonesia's premier rental investment destination.
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Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Bali's rental market offers exceptional opportunities for informed investors willing to understand local dynamics and operational requirements.
The combination of strong yields, growing tourism, and expanding digital nomad communities creates a compelling investment environment for those choosing the right properties in optimal locations.
Sources
- Invest Land Bali - Market Trends and Predictions
- iLot Property Bali - High Property Returns Factors
- BambooRoutes - Bali Rental Yield Analysis
- Bali Home Immo - Property Investment Profitability
- BambooRoutes - Bali Property Market Trends
- Global Property Guide - Indonesia Price History
- BambooRoutes - Average House Price Bali
- Airbtics - Annual Airbnb Revenue in Bali
- The Bali Homes - Real Estate Opportunities Guide
- DSG Pay - Buying Property Guide for Foreigners