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Bali's long-term rental market offers gross yields ranging from 6% to 12% across popular areas like Canggu, Seminyak, and Ubud as of September 2025. Premium locations in Canggu and Seminyak deliver the highest returns at 8-12% annually, while emerging areas provide strong growth potential at lower entry costs.
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Canggu and Seminyak lead Bali's rental yield performance with 8-12% gross returns for long-term villa rentals, supported by strong digital nomad demand and premium property values starting at $300,000.
Ubud and Sanur offer more conservative 6-10% yields but attract stable long-term tenants, while emerging areas like Tabanan present compelling value propositions with lower entry costs and growing infrastructure development.
| Area | Average Gross Yield | Villa Purchase Price Range | Monthly Rent (Villa) | Occupancy Rate |
|---|---|---|---|---|
| Canggu | 8-12% | $300,000-$1,000,000+ | IDR 18M-35M+ ($1,150-$2,240) | 75-85% |
| Seminyak | 8-12% | $800,000+ | IDR 20M-40M+ ($1,280-$2,560) | 75-85% |
| Ubud | 6-10% | $200,000-$600,000 | IDR 12M-25M+ ($770-$1,600) | 75-85% |
| Sanur | 6-10% | $150,000-$400,000 | IDR 15M-30M+ ($960-$1,920) | 75-85% |
| Jimbaran/Uluwatu | 8-12% | $500,000+ | IDR 12M-28M+ ($770-$1,790) | 75-85% |
Fact-checked and reviewed by our local expert
Daniel Rouquette 🇫🇷
CEO & Co-Founder at Villa Finder
What are the current gross rental yields for long-term rentals across Bali's main areas?
As of September 2025, Bali's long-term rental market delivers gross yields between 6% and 12% depending on location and property type.
Canggu and Seminyak lead the market with the highest yields at 8-12% annually for villa rentals. These premium coastal areas attract consistent demand from digital nomads and long-term expats willing to pay premium rents for lifestyle and amenities.
Ubud and Sanur offer slightly more conservative returns in the 6-10% range, but these areas provide stable occupancy rates and attract families and professionals seeking quieter environments. The lower yields reflect more affordable property purchase prices in these established residential zones.
Uluwatu and Jimbaran areas also achieve 8-12% yields, particularly for properties with ocean views or cliff-top locations that command premium rental rates from long-term tenants.
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How much does it cost to buy villas and apartments in each major area?
Property purchase prices vary significantly across Bali's rental hotspots, with entry costs ranging from $150,000 to over $1,000,000 for villas.
Canggu villas typically cost $300,000-$1,000,000+, with an average around $380,000 for standard properties, while luxury beachfront villas exceed $1,000,000. Apartments in Canggu are priced at $3,000-$4,500 per square meter.
Seminyak represents the premium end of the market, with luxury villas starting at $800,000 and reaching several million dollars for prime beachfront locations. The high entry costs reflect the area's established reputation and infrastructure.
Ubud offers more accessible pricing at $200,000-$600,000 for villas, with an average around $500,000. Apartments are priced at $2,000-$2,800 per square meter, making it attractive for investors seeking lower entry costs.
Sanur provides the most affordable option among established areas, with villa prices ranging $150,000-$400,000, while Uluwatu and Jimbaran properties start at $500,000 with apartments at $2,500-$3,500 per square meter.
What are the typical monthly rental rates for long-term tenants in key areas?
| Area | Guesthouse/Co-living | Apartment | Villa |
|---|---|---|---|
| Canggu | IDR 4M-12M ($256-$768) | IDR 7M-14M ($448-$896) | IDR 18M-35M+ ($1,152-$2,240) |
| Seminyak | IDR 5M-14M ($320-$896) | IDR 8M-16M ($512-$1,024) | IDR 20M-40M+ ($1,280-$2,560) |
| Ubud | IDR 3M-10M ($192-$640) | IDR 5M-10M ($320-$640) | IDR 12M-25M+ ($768-$1,600) |
| Sanur | IDR 3M-10M ($192-$640) | IDR 7M-13M ($448-$832) | IDR 15M-30M+ ($960-$1,920) |
| Jimbaran | IDR 4M-11M ($256-$704) | IDR 6M-13M ($384-$832) | IDR 12M-28M+ ($768-$1,792) |
These rental rates reflect current market conditions as of September 2025, with villas commanding the highest premiums due to space, privacy, and lifestyle amenities that long-term tenants value.
How high are occupancy rates for long-term rentals in these neighborhoods?
Long-term rental occupancy rates across Bali's main areas consistently range between 75-85%, providing reliable income streams for property investors.
Canggu and Seminyak maintain occupancy rates at the higher end of this range, typically 80-85%, due to strong demand from digital nomads, remote workers, and expat families. The established infrastructure, coworking spaces, and international schools support year-round occupancy.
Ubud achieves similarly strong occupancy rates of 75-85%, attracting long-term tenants seeking wellness lifestyle, yoga retreats, and cultural experiences. The area's appeal to health-conscious professionals and retirees ensures consistent demand.
Sanur and Jimbaran areas also maintain 75-85% occupancy rates, benefiting from their reputation as family-friendly neighborhoods with established expat communities and proximity to international schools.
These occupancy rates compare favorably to short-term rentals, which can reach 80-90% during peak tourist seasons but experience significant seasonal fluctuations that long-term rentals avoid.
What are the typical property management fees and running costs for long-term rentals?
Property management fees for long-term rentals in Bali typically range from 10-20% of gross rental income, with additional running costs of $3,000-$8,000+ annually.
Management companies charge 10-15% for basic services including tenant screening, rent collection, and maintenance coordination. Full-service management including regular inspections, gardening, and pool maintenance costs 15-20% of rental income.
Annual running costs vary by property size and amenities but typically include maintenance ($1,000-$3,000), utilities if included in rent ($800-$2,000), staff costs for larger villas ($1,200-$3,000), and insurance ($200-$500).
Property taxes and building permits add $300-$1,000 annually, while regular pool maintenance for villas costs $600-$1,200 per year. Garden maintenance ranges from $400-$1,000 annually depending on property size.
These costs significantly impact net yields, reducing gross returns by approximately 2-4 percentage points depending on the property type and management intensity required.
How do yields compare between villas, apartments, and guesthouses for long-term rentals?
Villas generate the highest long-term rental yields at 8-12% gross returns, while apartments typically achieve 6-10% and guesthouses offer moderate but stable returns.
Villa investments deliver superior yields due to higher rental rates that long-term tenants pay for privacy, space, and amenities like pools and gardens. Premium villas in Canggu and Seminyak can exceed 12% gross yields when well-located and managed.
Apartments provide more conservative 6-10% yields but require lower maintenance costs and offer easier management for investors. The lower entry costs and reduced operational complexity make apartments attractive for first-time investors in Bali.
Guesthouses and co-living spaces generate moderate yields but benefit from steadier occupancy due to growing demand from digital nomads seeking affordable, flexible accommodation. These properties often achieve 85-90% occupancy rates year-round.
The yield advantage of villas comes with higher capital requirements, increased maintenance complexity, and greater exposure to market fluctuations compared to the more stable apartment and guesthouse segments.
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Which areas attract the most long-term tenants and what type of renters are they?
Canggu, Seminyak, Ubud, and Sanur attract the highest concentration of long-term tenants, primarily digital nomads, expat families, and remote professionals.
Canggu leads in attracting digital nomads and remote workers aged 25-40 who value the surf culture, coworking spaces, and vibrant social scene. The area's modern infrastructure and reliable internet make it ideal for location-independent professionals.
Ubud appeals to wellness-focused professionals, yoga instructors, artists, and health-conscious retirees seeking a cultural and spiritual lifestyle. The area attracts tenants who prioritize wellness retreats, organic dining, and cultural experiences over beach proximity.
Sanur and Jimbaran attract expat families with children due to proximity to international schools, quieter residential environments, and established expat communities. These areas see demand from long-term corporate relocations and retirees.
Seminyak draws affluent professionals and entrepreneurs who prefer luxury amenities, high-end dining, and sophisticated nightlife while maintaining long-term residence for business or lifestyle purposes.
The typical long-term tenant profile includes monthly incomes of $3,000-$8,000+, lease terms of 6-24 months, and willingness to pay premium rents for quality properties with modern amenities.
What property value appreciation can be expected over the next 5-10 years?
Prime areas in Bali have historically delivered 8-15% annual property value appreciation, with emerging areas showing above-average growth potential as infrastructure develops.
Canggu, Seminyak, and Uluwatu are expected to continue their strong appreciation trajectory of 8-12% annually through 2030, driven by limited land supply, increasing tourism infrastructure, and growing expat communities.
Ubud and Sanur may see more moderate 6-10% annual appreciation but offer stability and lower volatility compared to the more tourism-dependent coastal areas. These established areas benefit from steady local and expat demand.
Emerging areas like Tabanan and North/East Bali present the strongest growth potential with possible 12-18% annual appreciation as new infrastructure projects improve accessibility and attract development.
The overall appreciation outlook depends on continued tourism growth, infrastructure investment, and political stability. Currency fluctuations against the USD can significantly impact foreign investor returns, adding both opportunity and risk to the appreciation equation.
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What legal and tax considerations directly impact net yields for foreign investors?
Foreign investors in Bali face significant legal restrictions and tax obligations that can reduce net yields by 3-5 percentage points compared to gross returns.
Foreigners cannot hold freehold property and must use leasehold structures, nominee arrangements, or PT PMA companies for property ownership. Leasehold terms typically run 25-30 years with renewal options, but this adds legal complexity and costs.
Tax obligations include a 5% acquisition tax (BPHTB) on purchase, annual land and building taxes of 0.1-0.3% of assessed value, and income tax of 2.5% on rental income for residents or 10% for non-residents.
VAT at 11% applies to rental income deemed "commercial" rather than residential, potentially affecting properties rented furnished or with additional services. Professional tax advice is essential to structure ownership and operations optimally.
Currency exchange risks can significantly impact returns for foreign investors, as rental income in IDR may fluctuate against home currencies. Legal and accounting costs typically add $2,000-$5,000 annually to operating expenses.
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How do long-term rental yields compare to short-term Airbnb-style rentals?
Short-term Airbnb rentals in Bali can achieve 12-20% gross yields in tourist hotspots, but long-term rentals offer more stability with 6-12% returns and lower operational complexity.
Short-term rental advantages include higher nightly rates during peak seasons, with prime Canggu and Seminyak villas earning $150-$400 per night compared to $38-$85 per night for equivalent long-term rentals.
However, short-term rentals face significant seasonal fluctuations, with occupancy dropping to 40-60% during low season, while long-term rentals maintain consistent 75-85% occupancy year-round.
Operational costs for short-term rentals are substantially higher, including cleaning services ($15-$30 per turnover), guest management, utility spikes, and accelerated furniture replacement that can reduce net yields to 6-10%.
Long-term rentals provide predictable cash flow, lower management requirements, reduced regulatory risk, and minimal tenant turnover costs. The stable income stream makes long-term rentals more suitable for investors seeking passive income rather than active management involvement.
Recent regulatory changes in some Bali areas have restricted short-term rentals, making long-term strategies more attractive for foreign investors seeking regulatory compliance and reduced operational burden.
What infrastructure developments will affect long-term rental demand in Bali?
Major infrastructure projects currently underway will significantly boost long-term rental demand, particularly new bypass roads, hospital expansions, and international school developments.
The Bali Mandara Toll Road extensions and new bypass roads in Canggu, Berawa, and Uluwatu areas are reducing traffic congestion and improving accessibility, making these areas more attractive to long-term residents and supporting rental demand growth.
New international hospitals being developed in Denpasar and Sanur areas will attract expat families and professionals who prioritize healthcare quality, increasing demand for long-term family housing in proximity to these facilities.
International school expansions in Canggu, Sanur, and Ubud areas directly drive long-term rental demand from expat families, with properties within 15 minutes of quality schools commanding premium rents and higher occupancy rates.
Infrastructure improvements in emerging areas like Tabanan and North/East Bali, including new roads, utilities, and communications networks, are opening these regions to development and creating new rental demand as they become more accessible to international residents.
The new Ngurah Rai Airport terminal expansion will increase visitor and resident capacity, supporting overall demand for long-term accommodation across all major areas.
Which areas currently offer the best balance of affordable prices and strong rental demand?
Tabanan, North/East Bali, and select Ubud locations currently provide the optimal combination of affordable entry costs and growing rental demand for long-term investors.
- Tabanan area offers villa entry costs of $100,000-$300,000 with growing demand from remote workers seeking affordable alternatives to expensive coastal areas, delivering 8-10% potential yields.
- North Bali (Lovina, Singaraja) provides beachfront properties at $150,000-$400,000 with increasing popularity among long-term visitors seeking quieter, more authentic Indonesian experiences.
- East Bali (Karangasem, Candidasa) offers affordable coastal properties with developing infrastructure that attracts adventure-focused expats and retirees seeking value and natural beauty.
- Ubud outskirts provide properties at lower costs than central Ubud while maintaining access to the wellness and cultural amenities that drive long-term rental demand.
- Emerging Canggu areas slightly inland from the beach offer more affordable villa options while benefiting from the area's strong rental demand and infrastructure development.
These areas benefit from ongoing infrastructure development, growing expat awareness, and significantly lower entry costs compared to established premium locations, making them attractive for investors seeking both capital appreciation and rental income potential.
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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 long-term rental market presents compelling opportunities for investors willing to navigate the legal complexities and focus on high-demand areas like Canggu, Seminyak, and emerging regions.
Success in Bali's rental market requires understanding local demand drivers, selecting appropriate property types, and maintaining realistic expectations about net yields after taxes and operating costs.
Sources
- iLot Property Bali - 5 Factors Behind Bali's High Property Returns
- Bali Villa Realty - Cost of Property in Bali
- BambooRoutes - Bali Real Estate Market Trends
- BambooRoutes - Average Price House Bali
- Things To Do In Bali - Cost of Living in Bali
- BambooRoutes - Average Rental Yield Bali
- Excel Bali - 14 Strong Forecasts for Bali Real Estate in 2025
- Exotiq Property - Bali vs Thailand Where Should You Invest
- Villa Bali Sale - Bali Villa Rental Income 2025
- Invest Land Bali - Bali Real Estate 2025 Market Trends