Bali Villa Rental Yields 2027: The Data

Australian investors seeking Bali rental yields often hear stories of 15% returns. Real figures from Pertama Property's 2024-2026 transaction data show net yields of 6.2% to 11.8%. Understanding Bali rental yields by area is essential before investing.

Area	Avg Price (AUD)	Nightly Rate	Occupancy	Net Yield
Seminyak	$420,000	$350	68%	6.2%
Canggu	$380,000	$320	72%	8.1%
Ubud	$290,000	$280	75%	9.5%
Uluwatu	$350,000	$310	65%	6.8%
Sanur	$310,000	$260	70%	7.2%

Price Analysis

Since 2022, Bali rental yields compressed by 1.2 percentage points as purchase prices rose faster than nightly rates. Seminyak prices grew 18% from 2023-2025 while rates rose only 11%, compressing net yields from 7.1% to 6.2%. Canggu maintained yields above 8% due to consistent digital nomad demand.

Yield Leaders: Ubud

Ubud leads with 9.5% net yield — lower purchase prices ($290K vs $420K) and the highest occupancy (75%). Annual gross income is approximately $76,650. This makes Ubud the best Bali rental yields option for income-focused investors.

Cost Comparison

Property management costs 20-25% of gross rental income. Utilities, pool, garden, and security add 8-12%. PPN (VAT) at 11% applies to management fees. Insurance for foreign-owned villas: AUD $2,500-$4,500/year. Total operating costs reduce gross yields by 1.7-2.3 percentage points.

Year-on-Year Trends

The most significant risk to Bali rental yields is oversupply. Canggu and Seminyak villa developments increased 40% since 2023. Projected yield compression of 0.5-1% through 2027 in high-supply areas. Ubud and Sanur — where new construction is limited — offer the best yield stability.

2027 Projections

With Indonesia targeting 16 million visitors and remote work continuing to grow, yields should stabilise. Purchase price growth moderating to 5-8% annually. Optimisation strategies: longer-term rentals (3-6 months) reduce turnover costs. Direct booking channels cut OTA commissions from 18% to 5%, adding 1.2-1.5 points to net yield.

For expert analysis of Bali rental yields, book a consultation with Pertama Property's investment team. Access verified transaction data and area-specific projections.

Explore more: Bali Tax Guide, Construction Costs, Due Diligence Checklist.

For verified data: ATO foreign investment rules, Indonesia BKPM regulations, Smartraveller Indonesia advice.

Understanding Bali rental yields is essential for making informed decisions. Pertama Property provides verified data on Bali rental yields across all Bali areas.

Frequently Asked Questions

What is the average rental yield?

Net yields across Bali's main areas range from 6.2% in Seminyak to 9.5% in Ubud, based on Pertama Property's 2024-2026 transaction data.

Which area has the highest yield?

Ubud leads with net yields of 9.5%, driven by lower purchase prices averaging $290K and the highest occupancy at 75%.

How do Bali yields compare to Australia?

Australian capital city gross yields average 2.9-3.5%, while Bali yields of 6.2-11.8% offer significantly higher income potential.

What costs reduce net yields?

Management fees (20-25% of gross), utilities (8-12%), PPN VAT (11% on fees), and insurance ($2,500-$4,500/year).

Are Bali yields taxable in Australia?

Yes, rental income is assessable under Australian tax law. The Australia-Indonesia DTA allows foreign tax offsets.

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