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
This article breaks down rental yields in Bali for 2026, covering everything from gross and net returns to neighborhood differences and the costs that eat into your profits.
We constantly update this blog post to reflect the latest data and market conditions in Bali's property market.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Bali.
Insights
- Bali's blended gross rental yield sits around 8.5% in early 2026, but that number hides a massive gap between long-term leases (4.5% to 7%) and short-term villa rentals (8% to 14%).
- Neighborhood choice alone can swing your gross yield by 4 to 7 percentage points in Bali, meaning location matters more here than in most markets.
- Villas in Bali show the highest headline yields, but their net returns vary widely because of pool maintenance, staff costs, and utility bills that scale quickly.
- Indonesia's final tax on rental income is 10% of gross rent under PP 34/2017, which is a fixed cost you cannot negotiate or optimize away.
- Canggu, Uluwatu, and the emerging Seseh-Kedungu coastal belt consistently deliver Bali's strongest yield profiles in early 2026.
- Short-term rental occupancy in Bali realistically averages 45% to 65% annually, so investors who assume peak-season performance year-round will overestimate returns.
- Landlords who include utilities in expat-style leases should budget IDR 2.5 to 6 million per month for villas with pools and heavy air conditioning use.
- Prime beachfront zones like parts of Seminyak often deliver lower yields because purchase prices are pushed up by lifestyle value rather than rental income.
Fact-checked and reviewed by our local expert
Daniel Rouquette 🇫🇷
CEO & Co-Founder at Villa Finder
What are the rental yields in Bali as of 2026?
What's the average gross rental yield in Bali as of 2026?
As of early 2026, the average gross rental yield for residential property in Bali sits at around 8.5% per year when you blend villas, houses, townhouses, and apartments together.
That said, the realistic range in Bali is quite wide, with most typical properties falling between 7% and 10% gross, depending on whether you lean toward long-term leasing or short-term rentals.
This puts Bali noticeably above Indonesia's national average for residential yields, largely because of the tourism-driven demand that supports higher rents relative to purchase prices.
The single biggest factor shaping gross yields in Bali right now is the strength of tourism arrivals, which directly fuels demand for both short-term and longer-stay rentals across the island.
What's the average net rental yield in Bali as of 2026?
As of early 2026, the average net rental yield in Bali lands at around 5.5% per year after you subtract typical recurring costs, maintenance, vacancy, and rental income tax.
This means landlords in Bali typically see a 2.5 to 3 percentage point drop from gross to net yield, which is steeper than many other markets because of Bali's unique operating costs.
The expense that hits hardest in Bali is the combination of property management fees and the 10% final income tax on rental income, which together can take a significant bite out of your returns.
For most standard investment properties in Bali, you can expect a realistic net yield range of 4% to 7%, with the variation depending on how well you control vacancy and operating costs.
By the way, you will find much more detailed rent ranges in our property pack covering the real estate market in Bali.
We made this infographic to show you how property prices in Indonesia compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
What yield is considered "good" in Bali in 2026?
In Bali's property market, a gross rental yield of 10% or higher is generally considered "good" by local investors looking at residential properties in early 2026.
The threshold that separates average performers from strong ones typically falls around the 10% gross mark, with anything below 7% often seen as lifestyle-priced or underoptimized.
How much do yields vary by neighborhood in Bali as of 2026?
As of early 2026, gross rental yields in Bali can swing by 4 to 7 percentage points depending on which neighborhood you buy in, making location one of the biggest yield drivers on the island.
The highest yields in Bali typically come from neighborhoods with strong tourism and expat demand but relatively accessible purchase prices, such as Pererenan, Berawa, Bingin, and Pecatu.
On the other hand, the lowest yields tend to appear in prime lifestyle zones where purchase prices are inflated by prestige, including parts of Seminyak, Nusa Dua, and ultra-prime beachfront pockets.
The main reason for this variation is that "prime" in Bali often means expensive to buy, and even when rents are high, the yield compresses because the purchase price is pushed up by lifestyle value.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Bali.
How much do yields vary by property type in Bali as of 2026?
As of early 2026, gross rental yields in Bali range from around 5% for landed houses and apartments up to 14% for well-managed villas in high-demand areas.
Villas currently deliver the highest average gross rental yield in Bali, typically falling between 8% and 14%, thanks to their ability to capture premium nightly and monthly rates from tourists and remote workers.
Landed houses and apartments tend to deliver the lowest gross yields in Bali, usually in the 5% to 8% range, because they attract more stable but lower-paying long-term tenants.
The key reason yields differ by property type in Bali is that villas can tap into tourism-driven pricing, while houses and apartments rely more on local and expat long-stay demand that doesn't pay as much per night.
By the way, you might want to read the following:
What's the typical vacancy rate in Bali as of 2026?
As of early 2026, the typical vacancy rate for long-term residential rentals in Bali runs between 5% and 15%, while short-term rentals see annualized occupancy of around 45% to 65%.
Vacancy rates vary quite a bit across Bali, with well-positioned areas like central Canggu seeing only 5% to 10% vacancy, while oversupplied or mispriced pockets can hit 15% or more.
The main factor driving vacancy in Bali right now is seasonality, since rental demand is closely tied to tourism cycles that create busy months and soft months throughout the year.
Compared to Indonesia's national average, Bali's vacancy dynamics are unique because so much of the rental market depends on tourism rather than purely local housing demand.
Finally please note that you will have all the indicators you need in our property pack covering the real estate market in Bali.
What's the rent-to-price ratio in Bali as of 2026?
As of early 2026, the average rent-to-price ratio in Bali is around 0.7% per month, which translates to roughly 8.5% gross yield per year.
For buy-to-let investors in Bali, a rent-to-price ratio of 0.8% to 1.0% per month is generally considered favorable, as this puts you in the 10% to 12% gross yield territory that most investors target.
Compared to other Indonesian cities, Bali's rent-to-price ratio is notably higher because tourism demand allows landlords to charge premium rents that wouldn't be sustainable in purely local markets.
We have made this infographic to give you a quick and clear snapshot of the property market in Indonesia. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
Which neighborhoods and micro-areas in Bali give the best yields as of 2026?
Where are the highest-yield areas in Bali as of 2026?
As of early 2026, the top three highest-yield areas in Bali are Pererenan and Berawa in the Canggu belt, Bingin and Pecatu in the Uluwatu area, and the emerging Seseh-Kedungu coastal stretch toward Tabanan.
In these top-performing neighborhoods, gross rental yields typically range from 9% to 13%, which is significantly above Bali's blended average of around 8.5%.
What Pererenan, Berawa, Bingin, Pecatu, and Seseh all share is a combination of intense demand from tourists and digital nomads, relatively accessible purchase prices, and depth in both nightly and monthly rental markets.
You'll find a much more detailed analysis of the areas with high profitability potential in our property pack covering the real estate market in Bali.
Where are the lowest-yield areas in Bali as of 2026?
As of early 2026, the lowest-yield areas in Bali include prime Seminyak pockets, high-end residential zones near Nusa Dua resorts, and ultra-prime beachfront locations where trophy properties dominate.
In these low-yield areas, gross rental yields typically fall between 5% and 8%, which is below Bali's island-wide average.
The main reason yields are compressed in Seminyak, Nusa Dua, and beachfront trophy zones is that purchase prices are inflated by lifestyle and prestige value rather than pure rental income potential.
Buying a property in a low-yield area is one of the mistakes we cover in our list of risks and pitfalls people face when buying property in Bali.
Which areas have the lowest vacancy in Bali as of 2026?
As of early 2026, the neighborhoods with the lowest residential vacancy rates in Bali are Berawa and Batu Bolong in central Canggu, Sanur along the east coast, and central Ubud in the cultural heartland.
In these low-vacancy areas, long-term rental vacancy typically runs just 3% to 7%, meaning landlords rarely face extended empty periods between tenants.
The main demand driver keeping vacancy low in Berawa, Sanur, and Ubud is that these areas attract year-round renter pools, including families, long-stay expats, and cultural tourists who visit regardless of peak season.
The trade-off investors face when targeting these low-vacancy areas is that purchase prices tend to be higher, which can compress yields even though occupancy is more stable.
Which areas have the most renter demand in Bali right now?
The three neighborhoods currently experiencing the strongest renter demand in Bali are the Canggu belt (especially Berawa and Pererenan), the Uluwatu-Bukit area (Bingin and Ungasan), and Ubud's central pockets like Penestanan.
The renter profile driving most of this demand is a mix of remote workers staying for one to six months, tourist groups booking villas, and long-stay expats looking for modern furnished homes.
In high-demand areas like Berawa, Pererenan, and Bingin, well-priced rental listings typically get filled within one to three weeks, especially during shoulder and peak seasons.
If you want to optimize your cashflow, you can read our complete guide on how to buy and rent out in Bali.
Which upcoming projects could boost rents and rental yields in Bali as of 2026?
As of early 2026, the top three developments expected to boost rents in Bali are road and access improvements around South Bali, new beach clubs and coworking hubs in emerging areas, and regulatory tightening on unlicensed accommodations.
The neighborhoods most likely to benefit from these projects include Pererenan and Berawa (better connectivity), Bingin and Ungasan (new lifestyle amenities), and Seseh-Kedungu (improved access from the main tourist belt).
Once these projects are completed, investors in the benefiting areas might realistically expect rent increases of 5% to 15%, depending on how directly the improvements affect their specific location.
You'll find our latest property market analysis about Bali here.
Get fresh and reliable information about the market in Bali
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What property type should I buy for renting in Bali as of 2026?
Between studios and larger units in Bali, which performs best in 2026?
As of early 2026, smaller units like studios and one-bedrooms tend to outperform on yield per square meter in Bali, while two-to-three bedroom villas generate higher absolute cashflow.
Studios in Bali typically deliver gross yields of 7% to 10% (around IDR 70 to 100 million per year, or USD 4,500 to 6,500, or EUR 4,100 to 6,000), while larger villas can hit 8% to 14% but require more capital upfront.
The main reason smaller units win on yield efficiency is that rent does not scale perfectly with size in Bali, so bigger properties cost more per square meter to buy and maintain without proportionally higher rents.
That said, larger two-to-three bedroom villas become the better choice when targeting families or groups of remote workers who specifically want space and are willing to pay premium monthly rates.
What property types are in most demand in Bali as of 2026?
As of early 2026, the most in-demand property type in Bali is the two-to-three bedroom villa, which attracts remote workers traveling in groups, families on extended stays, and tourists seeking the classic Bali experience.
The top three property types ranked by current tenant demand in Bali are two-to-three bedroom villas (highest demand), one-to-two bedroom modern houses and townhouses (strong value appeal), and studios or one-bedroom apartments (popular with budget-conscious long-stayers).
The primary demographic driving this demand pattern is the continued influx of digital nomads and remote workers who want furnished, move-in-ready homes with good internet and proximity to cafes and coworking spaces.
One property type that is currently underperforming in demand and likely to remain so in Bali is the large luxury villa (four-plus bedrooms), which appeals to a narrow buyer pool and sits empty longer between bookings.
What unit size has the best yield per m² in Bali as of 2026?
As of early 2026, the unit size delivering the best gross rental yield per square meter in Bali is typically between 40 and 80 square meters, which covers studios and efficient one-to-two bedroom layouts.
For this optimal unit size in Bali, gross rental yield per square meter runs around IDR 1.5 to 2.5 million per m² annually (roughly USD 95 to 160, or EUR 87 to 145), depending on location and finish quality.
The main reason smaller or larger units have lower yield per square meter is that very small units cannot command much rent, while larger villas require proportionally higher purchase prices and maintenance costs that outpace the rent premium.
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Bali.
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 costs cut my net yield in Bali as of 2026?
What are typical property taxes and recurring local fees in Bali as of 2026?
As of early 2026, the annual property tax (PBB-P2) for a typical rental apartment in Bali runs between IDR 1 to 5 million per year (roughly USD 65 to 320, or EUR 60 to 290), depending on location and assessed value.
Beyond property tax, landlords in Bali must also budget for the 10% final income tax on gross rental income under PP 34/2017, which is collected separately and cannot be reduced through deductions.
Together, property taxes and the rental income tax typically represent around 12% to 15% of gross rental income in Bali, making them a significant drag on net yields.
By the way, we cover all the hidden fees and taxes in our property pack covering the real estate market in Bali.
What insurance, maintenance, and annual repair costs should landlords budget in Bali right now?
Annual landlord insurance for a typical rental property in Bali costs roughly 0.1% to 0.3% of the insured value, which works out to around IDR 3 to 15 million per year (USD 190 to 960, or EUR 175 to 875) for a mid-range property.
For maintenance and repairs, landlords in Bali should budget 1% to 2.5% of property value annually, which is higher than many markets because of humidity, pools, and outdoor woodwork that wear faster in tropical conditions.
The repair expense that most commonly catches landlords off guard in Bali is pool equipment and pump failures, which can cost IDR 10 to 30 million (USD 640 to 1,900, or EUR 580 to 1,740) to fix unexpectedly.
In total, landlords should realistically budget IDR 25 to 75 million per year (USD 1,600 to 4,800, or EUR 1,450 to 4,350) for insurance, maintenance, and repairs combined on a typical Bali rental property.
Which utilities do landlords typically pay, and what do they cost in Bali right now?
In Bali, landlords of furnished expat-style rentals typically cover electricity, water, internet, and sometimes pool maintenance, while tenants on local-style leases usually pay their own utilities.
For a typical furnished rental in Bali, landlord-paid utilities run around IDR 1 to 2.5 million per month for apartments and small houses (USD 65 to 160, or EUR 60 to 145), and IDR 2.5 to 6 million per month for villas with pools and heavy AC use (USD 160 to 385, or EUR 145 to 350).
What does full-service property management cost, including leasing, in Bali as of 2026?
As of early 2026, full-service property management in Bali typically costs 8% to 12% of collected rent for long-term rentals, and 15% to 25% of gross booking revenue for short-term villa-style management.
On top of ongoing management fees, leasing or tenant-placement fees in Bali usually run between half a month to one full month of rent, depending on the management company and lease length.
What's a realistic vacancy buffer in Bali as of 2026?
As of early 2026, landlords in Bali should set aside around 8% to 17% of annual rental income as a vacancy buffer, depending on whether they target prime-demand areas or softer pockets.
In practical terms, this translates to roughly 4 to 8 weeks of vacancy per year for long-term rentals, while short-term rental operators should assume their peak-month occupancy will not hold year-round.
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What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Bali, we always rely on the strongest methodology we can ... and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why it's authoritative | How we used it |
|---|---|---|
| Bank Indonesia - Residential Property Price Survey | Bank Indonesia is Indonesia's central bank, making its surveys an official reference for housing market conditions. | We use it to anchor our view of price momentum in Bali going into 2026. We treat it as a sanity check so our rent-to-price assumptions stay aligned with official trend data. |
| BPS - Residential Property Price Index 2025 | BPS is Indonesia's national statistics office, so its price index is one of the most verifiable datasets available. | We use it to triangulate property price trends versus the central bank's survey. We keep our yield estimates consistent with national statistical methodology. |
| BPS Bali - Tourism Development Press Release | This is an official Bali provincial statistics release that directly tracks arrivals, which is the biggest demand driver for Bali rentals. | We use it to explain why tourism-linked rental demand is unusually strong in Bali. We also use it to justify why seasonality matters for vacancy and pricing. |
| BPS Bali - Hotel Occupancy Table 2025 | This is an official occupancy dataset, which is rare and useful as a proxy for short-stay demand cycles. | We use it to triangulate short-stay seasonality between busy and soft months. We apply it to calibrate occupancy assumptions for short-term rentals. |
| AirDNA - Outlook Report | AirDNA is a widely used short-term rental data platform with published methodology and global market coverage. | We use it to anchor the occupancy and ADR logic for short-term rental-style leasing in Bali. We then translate revenue into gross yield ranges by comparing to observed asking prices. |
| Government Legal Portal - UU No. 1 Tahun 2022 | This is a government portal version of a national law, so it's highly verifiable for tax and fee frameworks. | We use it to ground the one-time purchase taxes discussion, including the BPHTB framework. We convert legal rates into realistic entry-cost drag on investor returns. |
| JDIH BPK RI - PP No. 34 Tahun 2017 | BPK's regulation library is a standard reference point for Indonesian legal texts on taxation. | We use it to anchor the 10% final income tax treatment on land and building rental income. We incorporate that tax into our net yield estimates. |
| OJK - Insurance Tariff Framework (SEOJK 6/2017) | OJK is Indonesia's financial regulator, so its tariff frameworks are the official backbone behind many insurance premiums. | We use it to justify a realistic insurance premium range instead of guessing. We include insurance as a line item in net yield calculations. |
| PLN - Official Electricity Tariff Page | PLN is Indonesia's state electricity provider, making it the cleanest source for utility tariff logic. | We use it to estimate electricity cost ranges for rentals with pools and air conditioning. We incorporate typical utility burden into net yield and vacancy buffers. |
| PDAM Denpasar - Local Water Utility | This is the official municipal water company site for Denpasar, a core Bali rental market. | We use it to ground water as a recurring cost category even though exact bills vary by usage. We translate this into an annual cost range for landlords. |
| Telkomsel - IndiHome Package Catalog | Telkomsel is a national telecom leader and this is their official product catalog page. | We use it to anchor a realistic internet cost range for landlords who include internet in rent. We include it under recurring utilities landlords often cover. |
| Rumah123 - Bali For-Sale Listings | Rumah123 is one of Indonesia's biggest property marketplaces, useful for observable asking-price benchmarks. | We use it to estimate typical purchase-price bands by area and property type. We cross-check those bands against official price-trend data to avoid overfitting to outliers. |
| Rumah123 - Denpasar Monthly Villa Rentals | This is a large, active listings dataset that lets us observe rent levels in a consistent format. | We use it to estimate monthly rent ranges for long-term leases. We compute gross yields by combining those rents with observed asking prices. |
| 99.co Indonesia - Bali Villa Rentals | This is another major property portal, which helps us avoid relying on a single private dataset. | We use it to cross-check whether rent levels from one portal look inflated or thin. We adjust our typical rent estimate toward the overlap between portals. |
| JDIH Badung - Property Tax Reduction Regulation | This is an official local government legal database for Badung regency, one of Bali's key rental markets. | We use it to understand local property tax reduction policies that may apply to certain residential properties. We factor this into our recurring cost estimates. |
| JDIH Kemenko Infrastruktur - UU No. 1 Tahun 2022 PDF | This is a government-hosted PDF of the law text, which is ideal for citation-grade verification. | We use it as a second official reference for the same national law on fiscal relations. We rely on it when explaining what is national rule versus set by local regulation. |
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