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 market offers investors gross yields ranging from 7% to 15% in popular tourist zones, with villas in Canggu and Seminyak leading the pack.
The island's property investment landscape varies significantly by location and property type, with short-term vacation rentals generally outperforming long-term residential leases. Understanding these yield variations is crucial for making informed investment decisions in Bali's competitive real estate market.
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's rental yields vary significantly by location and property type, with Canggu and Seminyak villas delivering the highest returns at 8-15% gross yields.
Short-term tourist rentals generally outperform long-term leases, though they require higher management costs and face seasonal occupancy fluctuations.
| Location | Property Type | Gross Yield | Net Yield (After Costs) | Annual Occupancy |
|---|---|---|---|---|
| Canggu | Villa (2-3 bed) | 8-15% | 10-12% | 70-80% |
| Seminyak | Villa | 9-15% | 10-12% | 70-80% |
| Uluwatu | Villa | 9-10% | 7-8% | 65-75% |
| Ubud | Villa | 4-8% | 3-6% | 60-70% |
| Seminyak | 1-bed Apartment | 4-8% | 4-6% | 60-70% |
| Denpasar | Apartment | 5-6% | 4-5% | 41-56% |
Fact-checked and reviewed by our local expert
Daniel Rouquette 🇫🇷
CEO & Co-Founder at Villa Finder
What are the current rental yields in Bali for different property types?
As of September 2025, Bali's rental yields vary significantly depending on property type and location.
Villas in prime tourist areas generate gross yields between 8% and 15%, with net yields after operating expenses typically reaching 10-12%. These properties perform best in Canggu and Seminyak, where strong tourist demand and digital nomad influx drive consistent occupancy rates.
Apartments deliver more modest returns, with gross yields averaging 3.7% to 6.3% across the island. One-bedroom apartments in Seminyak can achieve 4-8% gross yields, while similar properties in Denpasar typically generate around 5-6%.
Guesthouses fall somewhere in the middle range, generally performing above basic apartments but below the best-performing villas in prime locations.
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Which Bali areas deliver the highest rental yields?
Canggu and Seminyak consistently lead Bali's rental yield rankings, with both areas generating gross yields of 9-15% for well-positioned villas.
Canggu particularly attracts digital nomads and surfers, creating year-round demand that translates to occupancy rates of 70-80%. The area's beachfront proximity and vibrant café scene make it especially appealing to international visitors willing to pay premium rates.
Seminyak matches Canggu's performance with similar yield ranges, benefiting from its upscale dining scene and luxury shopping options. High-end villas in Seminyak can command $3,000-$6,000 per month during peak season.
Uluwatu shows strong potential with yields of 9-10%, driven by the growing surf tourism and luxury resort development in the area. However, its more remote location means slightly lower occupancy rates of 65-75%.
Ubud lags significantly with yields of just 4-8%, as the wellness and cultural tourism market generates lower rental rates and more seasonal demand patterns.
How much income does a typical Canggu villa generate annually?
A 2-3 bedroom villa in Canggu typically generates between $36,000 and $60,000 in gross annual rental income.
| Season | Monthly Rental Range | Occupancy Rate | Annual Contribution |
|---|---|---|---|
| High Season (Jul-Aug, Dec-Jan) | $3,000-$6,000 | 85-95% | $24,000-$48,000 |
| Shoulder Season (Mar-Jun, Sep-Nov) | $2,000-$4,000 | 60-75% | $12,000-$24,000 |
| Low Season (Feb, Oct-Nov) | $1,800-$3,500 | 40-60% | $3,600-$7,000 |
Properties with strong marketing, professional photography, and excellent guest reviews achieve occupancy rates of 70-80% annually, translating to 8-10 months of full bookings. Premium villas with unique features like infinity pools or beachfront access can command rates at the higher end of these ranges.
The key to maximizing income lies in effective property management, maintaining high guest satisfaction scores, and strategic pricing during peak periods when demand from international tourists peaks.
What annual income can a Seminyak or Denpasar apartment generate?
A one-bedroom apartment in Seminyak generates annual gross income between $10,000 and $18,000, depending on the property's quality and management.
Monthly rental rates in Seminyak range from $800 to $1,800, with peak season commanding the highest rates. Well-located apartments near Seminyak Beach or popular restaurant areas perform at the upper end of this range.
Denpasar apartments show more modest performance, with median Airbnb hosts earning approximately $12,600 annually. Peak performing units can generate up to $2,165 per month during high season, while the median nightly rate across Denpasar sits at $64.
The income disparity between Seminyak and Denpasar reflects the different target markets - Seminyak attracts international tourists willing to pay premium rates, while Denpasar serves more price-conscious travelers and longer-term residents.
How do short-term tourist rentals compare to long-term expat rentals?
Short-term tourist rentals significantly outperform long-term leases in terms of gross yields but require higher management intensity.
Tourist-focused properties achieve gross yields of 8-15% in prime locations, with occupancy rates reaching 70-85% annually in areas like Canggu and Seminyak. Peak months can see occupancy rates of 80-90%, generating substantial monthly income.
Long-term rentals to expats and locals typically deliver gross yields of 6-10%, offering more stable but lower returns. These arrangements reduce vacancy risk and minimize wear-and-tear from frequent guest turnover.
The trade-off comes in management complexity - short-term rentals require constant guest communication, cleaning services, maintenance oversight, and marketing efforts. Long-term leases offer predictable monthly income with minimal ongoing management requirements.
Operating expenses also differ significantly, with short-term rentals facing higher costs for cleaning, utilities, guest amenities, and platform commissions that can consume 30-40% of gross income.
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What factors create the biggest variations in Bali rental yields?
Location stands as the single most important factor determining rental yields in Bali's property market.
- Geographic location - Canggu and Seminyak command premium rates due to beach access, dining scenes, and international appeal, while remote northern areas struggle with yields of just 4-7%
- Property type and design - Luxury villas with pools, modern amenities, and Instagram-worthy aesthetics significantly outperform basic apartments or older properties
- Occupancy management - Professional property management can boost occupancy from 50% to 80%+ through superior marketing, guest service, and pricing optimization
- Seasonal positioning - Properties that capture peak season demand (July-August, December-January) can generate 40-50% of annual income in just 4-5 months
- Target market alignment - Properties designed for digital nomads, surfers, or luxury travelers command different rate premiums based on their specific needs and spending patterns
The gap between top-performing and underperforming properties can exceed 10 percentage points in yield differences, making strategic positioning crucial for investment success.
How many months per year are tourist zone properties typically occupied?
Properties in popular tourist zones like Canggu and Uluwatu achieve occupancy rates equivalent to 8-10 months of full bookings annually.
Canggu properties average 70-80% annual occupancy, with the best-managed villas reaching 85% or higher. This translates to consistent bookings throughout most of the year, with brief gaps during transition periods between seasons.
Uluwatu properties typically achieve 65-80% occupancy, benefiting from the area's growing reputation among surf enthusiasts and luxury travelers. The slightly lower rates reflect Uluwatu's more remote location compared to Canggu's central position.
Peak season months (July-August and December-January) see occupancy rates of 85-95% across both areas, while shoulder seasons maintain 60-75% occupancy. Even low season periods rarely drop below 40-50% for well-positioned properties.
Properties that invest in professional photography, maintain excellent guest reviews, and implement dynamic pricing strategies consistently outperform the market averages by 10-15 percentage points.
It's something we develop in our Indonesia property pack.
What are the major operating expenses that reduce rental yields?
Operating expenses typically consume 30-40% of gross rental income for villa properties in Bali, with several major cost categories.
| Expense Category | Typical Cost (% of Gross Income) | Annual Cost Range (USD) |
|---|---|---|
| Staff salaries (housekeeper, gardener) | 8-12% | $3,000-$7,200 |
| Pool & garden maintenance | 4-6% | $1,500-$3,600 |
| Property management fees | 10-15% | $3,600-$9,000 |
| Utilities (electricity, water, internet) | 3-5% | $1,200-$3,000 |
| Government taxes & permits | 2-4% | $800-$2,400 |
| Repairs & renovations | 3-5% | $1,200-$3,000 |
Staff salaries represent the largest single expense category, as most villa rentals require daily housekeeping and regular garden maintenance to meet guest expectations. Property management fees vary significantly based on service levels, with full-service management commanding 15-20% of gross income.
Apartments face lower operating costs, typically consuming 20-30% of gross income due to reduced maintenance requirements and shared utility costs in building complexes.
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 percentage of gross income typically goes to operating expenses?
Villa properties in Bali typically allocate 30-40% of gross rental income toward operating expenses, while apartments operate more efficiently at 20-30%.
The higher expense ratio for villas reflects their intensive maintenance requirements, including pool cleaning, garden upkeep, and dedicated staff for daily housekeeping. Premium villas with extensive amenities can see operating costs reach 40-45% of gross income.
Apartment properties benefit from shared building expenses and typically require less hands-on maintenance, resulting in lower cost ratios. Basic apartments in Denpasar might operate at expense ratios as low as 20-25% of gross income.
Property management quality significantly impacts these ratios - professional managers often achieve better cost control through bulk purchasing, preventive maintenance, and efficient staff utilization, potentially reducing expense ratios by 5-10 percentage points.
These expense levels allow net yields to reach 10-12% for well-managed villas in prime locations, making Bali competitive with other Southeast Asian investment destinations.
How do Bali yields compare with other Southeast Asian holiday rental markets?
Bali outperforms most comparable Southeast Asian holiday rental markets in terms of net rental yields.
Bali delivers gross yields of 7-15% in hotspots, translating to net yields of 10-12% after operating expenses. This performance surpasses Thailand destinations like Phuket and Koh Samui, which typically generate gross yields of 5-8% with higher seasonality and more volatile occupancy patterns.
Lombok, despite its proximity to Bali, delivers significantly lower returns with gross yields of just 4-7% due to less developed tourism infrastructure and lower visitor demand. The island lacks Bali's international airport connectivity and established expat community.
Vietnam's coastal destinations like Da Nang and Nha Trang offer similar gross yield potential but face regulatory uncertainties around foreign ownership and rental operations that don't exist in Bali's more established market.
Malaysia's Langkawi and Penang provide stable but lower yields of 4-7%, appealing to investors seeking more conservative returns with less management intensity.
Bali's competitive advantage stems from its combination of strong tourism demand, established infrastructure, favorable foreign ownership rules, and proven track record of consistent rental performance.
What has been the trend in Bali rental yields over the past five years?
Bali rental yields have experienced moderate softening from their peak levels between 2015-2020, when yields commonly reached 10-13% in prime locations.
Current yields of 7-15% for top-performing properties reflect the impact of increased property prices and new supply entering the market. The surge in villa construction, particularly in Canggu and Seminyak, has created more competition for rental income.
However, tourism demand has remained robust, with digital nomad influx and Indonesian domestic tourism helping maintain occupancy rates. The COVID-19 pandemic temporarily disrupted yields in 2020-2021, but recovery has been strong since 2022.
Looking ahead, yields are expected to stabilize around current levels rather than decline significantly. Continued tourism growth and infrastructure improvements should support rental demand, while land scarcity in prime locations may limit new supply growth.
High seasonality remains a risk factor, and growing competition may pressure yields slightly, but no sharp falls are forecast barring external economic shocks or major regulatory changes.
It's something we develop in our Indonesia property pack.
What realistic returns can someone expect from a $200,000 villa investment?
A $200,000 investment in a mid-range Bali villa can realistically generate net annual returns of 8-10%, translating to $16,000-$20,000 in annual income.
The calculation breaks down as follows: at gross yield rates of 12-15%, the property would generate $24,000-$30,000 in annual gross rental income. After deducting typical operating expenses of 35% ($8,400-$10,500), net annual income reaches $15,600-$19,500.
This performance assumes the property is well-located in areas like Canggu or Seminyak, professionally managed, and maintains occupancy rates of 70-80% annually. Properties in less desirable locations or with poor management may underperform these projections significantly.
The $200,000 budget typically secures a 2-3 bedroom villa with pool in secondary locations within prime areas, or smaller properties in the most desirable neighborhoods. Investors should budget additional funds for furniture, initial setup costs, and working capital for the first few months of operation.
These returns make Bali attractive compared to many developed market alternatives, though investors must account for currency risk, regulatory changes, and the hands-on nature of short-term rental management.
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 an attractive destination for property investors seeking strong rental yields, particularly in established tourist zones like Canggu and Seminyak where net returns of 10-12% are achievable.
Success in Bali's rental market requires careful attention to location selection, professional property management, and realistic expectations about operating costs and seasonal fluctuations.
Sources
- Invest Land Bali - Real Estate Market Trends 2025
- ILOT Property Bali - Factors Behind High Property Returns
- BambooRoutes - Bali Rental Yield Analysis
- Global Property Guide - Indonesia Price History
- AirROI - Denpasar Market Report
- Airbtics - Annual Airbnb Revenue in Bali
- Bali Villa Realty - ROI Analysis
- Villa Finder - Invest in Bali Guide