Bali · Invest · Yield
The real yield of investing in Bali: ROI, occupancy and honest numbers (2026)
The real yield of a villa in Bali: average occupancy (63%), nightly rate, gross vs net ROI and a conservative illustrative example. With 2025 market data and the risks no one mentions.
Yield is the reason most people consider investing in Bali, and also where the most smoke is sold. This page gives the real numbers —with 2025 market data— and, above all, teaches you how to read them: how to separate gross from net, how to understand what each euro depends on, and how to recognise inflated figures before signing.
The macro data that underpins the yield
Demand is the foundation, and it is solid. In 2025 Bali received 6,948,754 international visitors, up 9.7% on 2024, according to the official statistics office (BPS Bali). The source markets are diversified —Australia leading, followed by India, China, South Korea, the United Kingdom, France and the United States— which reduces dependence on any single country and cushions regional crises.
On top of that demand, the 2024-2025 short-term rental data paints a realistic picture:
- Average annual occupancy: ~63%, with peaks in July and August and troughs in January and November.
- Average daily rate (ADR): ~USD 90 for standard villas, significantly higher for luxury product and in prime areas.
Gross vs net: the distinction that changes everything
It is the most expensive confusion in the sector. It is worth having it crystal clear before looking at any brochure:
| Gross ROI | Net ROI | |
|---|---|---|
| What it measures | Revenue ÷ total investment | What is left after all costs |
| What it is for | Comparing products quickly | Knowing what you really earn |
| Bali range 2025-2026 | 7–12% (up to 15% prime) | 6–10% well managed |
| Who uses it | Marketing | The informed investor |
The practical rule: a villa advertised with a 20% yield typically delivers 10-14% net. Not because anyone is necessarily lying, but because gross ignores costs that genuinely exist.
The components of net ROI
Net is built by subtracting, one by one, these items from gross revenue:
- Annual occupancy. The most sensitive variable. A single occupancy point up or down moves the whole calculation.
- Average daily rate (ADR). Defined by area, typology, season and product quality.
- Professional management. Typical commission of 10-25% on gross revenue. It pays the operator who fills the villa and maintains it.
- Platform commissions. Airbnb, Booking and the like take 15-20% of each reservation.
- Maintenance and replacement. Linen, pool, garden, supplies, minor repairs.
- Taxes. Local tourism levy and rental income tax.
An illustrative example (conservative)
To make it concrete, a conservative estimate on a 1-bedroom Dune villa at €59,000, with prudent assumptions (55% occupancy, below the market average given that this is an area not yet saturated, and an ADR of €90):
| Item | € / year |
|---|---|
| Gross revenue (201 nights × €90) | 18,090 |
| Professional management (−20%) | −3,618 |
| Platform commissions (−15%) | −2,714 |
| Maintenance and replacement | −3,000 |
| Taxes (tourism levy + income) | −2,000 |
| Approximate net result | 6,758 |
On an investment of €59,000, that amounts to a net ROI of around 11-12%. Note one important nuance: the gross in this example (≈31%) looks very high, and it is precisely because the entry price is low. On more expensive villas, the same rental yields a lower percentage gross. That is why the figure that truly compares products is the net, not the gross.
The real risks you should weigh
Investing in Bali makes sense, but with your eyes open:
- Oversupply in trendy areas. Canggu and its surroundings are accumulating a great deal of new villa stock; that pressures rates and occupancy. It is one of the reasons we favour Tabanan, still unsaturated.
- Ramp-up curve. A new villa does not reach its cruising occupancy in the first month: the figures mature over the first year.
- Operator quality. The same property performs very differently depending on who manages it. The operator is half the investment.
- Legal framework and permits. Without the correct ownership structure and permits, tourist operation is not legal. We cover this in leasehold vs freehold and setting up a company.
All of this can be managed, but it is managed before buying, not after. And it is managed by those on the ground: a local company specialised in Bali, not a promise made from afar.