Profitability of a villa in Bali: yield, income and real examples
Real-estate investment in Bali attracts more and more international investors thanks to a dynamic tourism market and yields often higher than those observed in Europe.
Villas intended for short-term rental can generate attractive income, provided you choose the right location, design a coherent project, and control operating costs.
But one question often comes up among investors: what profitability can a villa in Bali actually generate?
On this page we detail the rental income observed, the factors influencing profitability, and a real example of an operating villa in Bali.
To understand all the stages of a real-estate project on the island, you can also consult our complete guide: how to invest in Bali.
What profitability can a villa in Bali generate?
A villa’s profitability in Bali depends on several factors: location, villa design, occupancy rate and rental strategy.
In many projects intended for short-term rental, investors can observe:
| Yield type | Estimate |
|---|---|
| Gross yield | about 20 to 25 % |
| Net yield | about 10 to 14 % |
These yield levels remain well above those seen in many European real-estate markets, where net yields rarely exceed 4 to 6 %.
However, these performances depend heavily on the project’s quality and alignment with tourist demand. Investors can either have their villa built or buy an already-built villa in Bali to rent it out.
Real example of villa profitability in Bali
Here is a real example of a project developed by Balimmo, operated in short-term rental.
Project characteristics:
- 2-bedroom villa
- 200 m² land
- 110 m² living surface
- Location: Padonan
- Contract: 30-year leasehold
Total project budget:
| Item | Budget |
|---|---|
| Land | €40,000 |
| Company creation (PT PMA) | €3,000 |
| Construction | €139,900 |
| Furniture & equipment | €16,800 |
| Total investment | €199,700 |
Rental income:
- Average price per night: ≈ €135
- Occupancy rate: ≈ 78 %
- Annual revenue: ≈ €50,000
Net result (after deducting costs) : around €28,000 / year, i.e. ≈ €2,330 / month
This corresponds to a net yield of 14 %.
If you want to understand how this budget is structured, consult our guide on the construction price of a villa in Bali.
What costs should be anticipated for a villa in Bali?
Like any real-estate investment, a villa in Bali generates operating costs that must be taken into account when calculating profitability.
The main costs generally include:
- Booking platforms (Airbnb, Booking): about 15 %
- Rental management / concierge: about 15 %
- Operating costs (maintenance, staff, consumables): about 10 %
- PT PMA company accounting: about €3,000
- Upkeep and refreshing of the property
- Rental income tax: 0.5% of revenue for the first 3 years.
These elements are part of the parameters to analyse in order to invest in Bali under good conditions.
Efficient management helps maintain a good level of profitability while ensuring a quality experience for travellers.
What factors influence a villa’s profitability in Bali?
Location
Areas such as Canggu, Uluwatu or Pererenan attract significant tourist traffic and can achieve high occupancy rates.
Villa design
Villas with:
- Private pool
- Modern architecture
- Photogenic spaces
Generally achieve better performance on rental platforms.
Customer experience
The quality of welcome, villa upkeep and booking management directly influence:
- Guest reviews
- Visibility on Airbnb
- Occupancy rate
Why is Bali particularly attractive for rental investment?
Several factors explain Bali’s appeal for rental investment:
- Significant international tourist flow
- A favourable climate year-round
- A very dynamic short-term rental market
- Relatively competitive construction costs
These elements allow many investors to develop profitable real-estate projects when they are well designed.
How to optimise a villa’s profitability in Bali?
Several elements can improve a project’s rental performance:
- Choose a location aligned with tourist demand
- Design a villa suited to short-term rental
- Offer a differentiating design
- Optimise booking management and customer experience
Rental management can be handled by Balimmo Villa Management, which takes care of the villa’s full operation.
Build a villa to optimise profitability
Many investors choose to have their villa built in Bali to optimise the project’s profitability from the design stage.
Building in particular allows you to:
- Choose the land’s location
- Adapt architecture and furnishing to rental demand
- Optimise construction costs
- Start with a full lease duration
If you want to know more about the construction process, consult our guide: villa construction in Bali.
Invest in Bali with a smaller budget
For investors with a more limited budget, there are also shared investment solutions, allowing you to invest in a villa by buying shares in a company.
Some projects allow you to invest from around €25,000, while receiving a share of the rental income generated by the villa.
Would you like to know the potential profitability of a real-estate project in Bali?
Our team can help you:
Analyse your investment budget
Estimate possible rental income
Design a villa optimised for rental
Develop a secure real-estate project
