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Bali's rental property market offers some of the highest yields in Southeast Asia, with gross returns ranging from 7% to 15% in prime tourist areas like Canggu and Seminyak. As of June 2025, the island's thriving digital nomad scene and year-round tourism create strong demand for short-term rentals, though operating costs and seasonality significantly impact net returns.
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Bali rental yields range from 7-15% gross in tourist hotspots, with net yields typically 10-12% after operating costs.
Canggu and Seminyak deliver the highest returns due to strong digital nomad and tourist demand, while remote areas offer lower but still competitive yields.
| Area | Gross Yield Range | Property Type | Typical Purchase Price (USD) | Monthly Rental (High Season) |
|---|---|---|---|---|
| Canggu | 7.9-15% | 2-3 Bed Villa | $200,000-$400,000 | $3,000-$6,000 |
| Seminyak | 9.2-15% | 2-3 Bed Villa | $200,000-$400,000 | $3,000-$6,000 |
| Uluwatu | 9-10% | 2-3 Bed Villa | $180,000+ | $2,500-$5,000 |
| Ubud | 4-8% | 2-3 Bed Villa | $150,000+ | $1,500-$3,000 |
| Amed/Lovina | 4-7% | 2-3 Bed Villa | $120,000+ | $1,000-$2,500 |
Fact-checked and reviewed by our local expert
Daniel Rouquette 🇫🇷
CEO & Co-Founder at Villa Finder
What are the average rental yields in Bali right now, and how do they vary across popular areas like Canggu, Seminyak, Uluwatu, and Ubud?
Bali's rental property market delivers gross yields ranging from 7% to 15% in tourist hotspots as of June 2025.
Canggu and Seminyak lead the market with yields between 8% and 15%, driven by strong demand from digital nomads and short-term tourists. These areas maintain high occupancy rates year-round due to their beach access, dining scenes, and coworking spaces.
Uluwatu offers more moderate yields around 9% to 10%, attracting surf enthusiasts and luxury travelers seeking oceanfront properties. The area's growing popularity has pushed yields higher over the past two years.
Ubud delivers the lowest yields in the 4% to 8% range, reflecting its focus on wellness tourism and longer-stay guests. The cultural and spiritual tourism in Ubud creates different rental patterns compared to beach areas.
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What's the typical purchase price of different types of properties in these areas?
Property prices vary significantly based on location and property type in Bali's rental market.
| Property Type | Canggu/Seminyak (USD) | Uluwatu (USD) | Ubud (USD) | Amed/Lovina (USD) |
|---|---|---|---|---|
| 1-Bedroom Villa | $120,000-$200,000 | $110,000+ | $100,000+ | $80,000+ |
| 2-3 Bedroom Villa | $200,000-$400,000 | $180,000+ | $150,000+ | $120,000+ |
| Premium Beachfront | $650,000+ | $400,000+ | $350,000+ | $250,000+ |
| Apartment/Studio | $70,000-$180,000 | $60,000+ | $60,000+ | $50,000+ |
| Luxury Villa (4+ bed) | $500,000-$1,200,000 | $450,000+ | $400,000+ | $300,000+ |
How much monthly rental income can you realistically expect in high and low seasons for each property type and location?
Seasonal variations significantly impact rental income across Bali, with high season occurring during July-August and December-January.
In Canggu and Seminyak, 2-3 bedroom villas generate $3,000 to $6,000 monthly during high season, dropping to $1,800 to $3,500 in low season. One-bedroom properties earn $1,500 to $3,000 in peak periods and $800 to $1,800 during slower months.
Uluwatu properties perform similarly to prime beach areas, with 2-3 bedroom villas earning $2,500 to $5,000 in high season. The surf season creates additional demand peaks outside traditional tourist seasons.
Ubud properties generate more consistent but lower income year-round, with 2-3 bedroom villas earning $1,500 to $3,000 monthly during peak wellness retreat seasons. Remote areas like Amed and Lovina typically generate 30% to 50% lower income than prime locations.
The average daily rate across Bali reaches approximately $95 to $100, with annual Airbnb revenue averaging around $19,000 for typical properties.
What is the occupancy rate like across the year in Bali, and how much does seasonality impact rental income?
Occupancy rates in prime Bali locations average 65% to 80% annually, with significant seasonal fluctuations affecting rental income.
Peak periods during July-August and December-January achieve 80% to 90% occupancy rates in areas like Canggu, Seminyak, and Uluwatu. Major holidays and festival periods also drive occupancy spikes throughout the year.
Low season months including May-June and September-November see occupancy drop to 50% to 60% even in popular areas. This seasonal variation directly impacts monthly income by 40% to 50% between peak and low periods.
Remote areas like Amed and Lovina maintain lower annual occupancy rates of 40% to 55%, with less pronounced seasonal peaks. Professional property management can improve these rates by 10% to 20% through better marketing and guest services.
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How much do operating costs like staff, maintenance, electricity, and internet reduce the net yield?
Operating costs typically reduce gross rental yields by 3 to 5 percentage points in Bali, bringing net yields to 10% to 12% for well-managed properties.
Staff costs including cleaning and security range from $150 to $500 monthly depending on property size and service level. Villas requiring daily cleaning and 24-hour security command higher rates but also higher operating expenses.
Maintenance expenses average $1,000 to $3,000 annually for villas, with apartments requiring lower maintenance budgets. Tropical climate conditions necessitate regular upkeep of pools, air conditioning, and structural elements.
Utility costs including electricity, water, and internet average $100 to $300 monthly. High-end properties with pools and extensive air conditioning usage reach the upper end of this range.
Property management fees consume 10% of rental income for monthly rentals and 20% for daily short-term rentals. Online travel agency fees add another 4% to 9% for Airbnb and similar platforms.
What are the main taxes or government fees on property income in Bali, especially for foreigners?
Foreign property investors in Bali face several tax obligations that significantly impact net rental yields.
Non-resident foreigners pay 20% tax on gross rental income, while residents pay 10% on gross rental income. Foreign companies (PT PMA) face 22% corporate tax rates on rental profits.
Annual Property and Building Tax (PBB) ranges from 0.01% to 0.3% of assessed property value, paid yearly to local authorities. Transfer taxes add 5% for buyers and 2.5% for sellers during property transactions.
Value Added Tax (VAT) of 11% to 12% applies to new construction or commercial properties, often included in purchase prices. Legal and notary fees consume 1% to 2% of transaction values.
Stamp duty remains minimal at approximately $1 per document, making it a negligible cost factor for most investors.
What are the upfront costs involved for different property setups?
Initial investment costs in Bali extend well beyond property purchase prices, requiring careful budget planning.
Land lease payments range from $50,000 to $200,000 for 25 to 30-year terms in prime locations like Canggu and Seminyak. Legal and notary fees add 1% to 2% of purchase price for proper documentation and title transfer.
Real estate agent commissions typically cost 3% to 5% of transaction value, though rates vary based on property type and location. Construction costs for new builds average $350 to $500 per square meter for medium-class finishes and approximately $600 per square meter for high-end construction.
Renovation expenses for existing properties range from $10,000 to $30,000 depending on scope and quality level. These costs significantly impact initial return calculations and should be factored into yield projections.
It's something we develop in our Indonesia property pack.
How much higher are yields in trending digital nomad areas versus remote spots?
Digital nomad hotspots in Bali command significantly higher rental yields compared to remote coastal areas.
Canggu and Seminyak achieve yields up to 15% due to consistent demand from remote workers and tourists seeking modern amenities, reliable internet, and social environments. These areas maintain 70% to 80% occupancy rates year-round.
Remote locations like Amed and Lovina generate yields between 4% and 7%, with lower nightly rates and 40% to 55% average occupancy. Limited infrastructure and fewer amenities reduce demand from high-paying guests.
Price appreciation in hotspots averages 7% to 12% annually, while remote areas lag significantly behind this growth rate. The digital nomad trend continues driving demand in connected areas with coworking spaces and modern infrastructure.
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.
How do Bali rental yields compare to nearby destinations like Phuket, Koh Samui, or Lombok?
Bali outperforms most Southeast Asian destinations in terms of rental yields and market stability.
Bali delivers 7% to 15% gross yields with 65% to 80% occupancy rates in prime areas, significantly exceeding regional competitors. The island's year-round appeal and diverse tourism segments create more stable income streams.
Phuket and Koh Samui in Indonesia generate 5% to 8% gross yields with more pronounced seasonality affecting occupancy outside peak periods. These markets experience sharper demand fluctuations due to weather patterns and tourism seasonality.
Lombok offers lower yields between 4% and 7% with a less developed rental market and limited tourist infrastructure. The island's proximity to Bali provides growth potential but currently lacks market maturity.
Bali's established digital nomad community and infrastructure advantages position it as the strongest rental yield market in the region as we reach mid-2025.
How much of a difference does professional management make on overall yield and occupancy?
Professional property management significantly improves rental performance and investor returns in Bali's competitive market.
Airbnb Superhosts and professional villa managers typically increase occupancy rates by 10% to 20% through superior marketing, guest services, and property presentation. Higher guest satisfaction scores lead to better platform rankings and increased bookings.
Professional managers achieve higher nightly rates through optimized pricing strategies, quality photography, and property upgrades that justify premium pricing. They also handle guest communications, maintenance coordination, and regulatory compliance.
Management fees consume 10% to 20% of rental income but often generate higher gross income that exceeds these costs. DIY management saves fees but frequently results in lower occupancy and guest satisfaction scores.
Properties with professional management maintain better condition over time, preserving long-term value and rental appeal in Bali's competitive market.
What kind of return can you expect over 5-10 years, factoring in potential property value appreciation or currency risks?
Long-term investment returns in Bali combine strong rental yields with capital appreciation potential, though currency risks require consideration.
Capital appreciation averages 7% to 12% annually in prime areas, with luxury and beachfront properties potentially achieving 15% to 20% growth rates. Total returns combining rental income and appreciation can reach 15% to 25% annually in top locations.
Rental yields of 8% to 15% gross and 10% to 12% net provide steady cash flow throughout investment periods. As we reach mid-2025, demand fundamentals remain strong with growing tourism and digital nomad populations.
Currency risk affects USD returns when the Indonesian Rupiah weakens against the dollar, potentially reducing overall returns for foreign investors. Leasehold properties face declining values as lease terms approach expiration unless extensions are secured.
Five to ten-year outlook remains positive given Bali's tourism growth trajectory and infrastructure development, though careful attention to legal structures and currency hedging strategies is essential.
What are the most common pitfalls or hidden costs that reduce rental profitability in Bali?
Several hidden costs and regulatory challenges can significantly reduce rental profitability for unprepared investors in Bali.
Legal issues including unclear land titles, zoning violations, or missing rental licenses (Pondok Wisata) create costly complications and potential income loss. Proper due diligence and legal compliance are essential for sustained operations.
Overestimating occupancy rates, particularly in non-hotspot areas, leads to disappointing cash flow performance. Many investors assume peak season rates apply year-round without accounting for seasonal variations.
Underestimating operating costs including repairs, staff wages, and management fees can erode projected yields by 30% to 50%. Tropical conditions require more frequent maintenance than temperate climates.
Currency fluctuations between Indonesian Rupiah and foreign currencies can reduce USD returns by 10% to 20% in adverse scenarios. Regulatory changes affecting foreign ownership or rental operations pose additional risks.
Successful investors mitigate these risks through reputable local agents, thorough due diligence, proper permits, and conservative cost budgeting that accounts for vacancy periods and unexpected expenses.
It's something we develop in our Indonesia property pack.
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 remains one of Asia's most attractive property investment destinations, with rental yields and capital appreciation outpacing most regional competitors in 2025.
Success requires careful location selection, professional management, legal compliance, and realistic cost budgeting to achieve the market's full potential returns.
Sources
- Invest Land Bali - Real Estate 2025 Market Trends
- Bali Home Immo - Investment in Bali Off-Plan Property
- Own Property Abroad - ROI and Rental Yield Bali
- BambooRoutes - Bali Property Market Analysis
- Own Property Abroad - Bali Real Estate Trends 2025
- SAS Bali - 2025 Trends Shaping Bali Real Estate
- Airbtics - Annual Airbnb Revenue in Bali
- Tranio - Indonesia Property Maintenance Costs
- International Investment - Property Taxes for Foreigners in Bali
- Bukit Vista - Bali Construction Pricing 2025