Bali property investment report: yields, tenure and what the asking prices show

Implied gross yield by area

Each row divides the median annual asking rent in that area by the median asking sale price in the same area. Both sides come from the same index on the same day, which is what makes them comparable at all.

Read it as a ranking, not as a return. The rented properties and the for-sale properties are different properties, so this measures the relationship between two markets in an area — not what a specific villa would earn.

What the spread actually says

Uluwatu and Kuta sit 4.8 percentage points apart. That gap is not a free lunch: the high-yield areas are generally those where sale prices have not yet caught up with rental demand, and the low-yield ones are where capital values have run ahead of what tenants will pay.

An area at the top of this table is telling you rents are strong relative to prices today. An area at the bottom is telling you buyers are paying for something other than current income — usually scarcity, or an expectation about the future.

Tenure: the market is mostly leasehold

Of 8,533 priced sale listings, 6,204 are leasehold and 1,569 are freehold. Foreign buyers cannot hold freehold personally, which is most of why the advertised market looks like this.

The headline price gap — 68% — overstates the real difference in value, because a leasehold price already reflects a finite term while a freehold price does not. Two listings at the same number are not the same asset if one expires.

The lease clock nobody puts in the yield

The median advertised leasehold term is 25 years. A 10.1% gross yield on a 25-year leasehold is not comparable to the same yield on a freehold: in the leasehold case a portion of that return is simply the return of your own capital as the term runs down.

This is the single most common error in Bali investment material. Gross yield is quoted, the lease term is mentioned separately as a feature, and the two are never put in the same calculation.

How much of the market is not built yet

38.0% of priced sale listings are flagged off-plan. That share matters for anyone reading price trends, because off-plan units are advertised at completion-date pricing and drag the median for a market that has not delivered them yet.

Limitations, stated plainly

Asking prices, not transactions. Agreed prices are lower, and the gap widens the longer a listing sits.

Median-to-median, not matched pairs. The yield column compares two different sets of properties in the same area.

Gross, not net. Management, commission, cleaning, maintenance, vacancy and tax all come out before anything reaches an owner, and together they commonly consume 40–60% of gross.

Advertised inventory only. Properties let privately or sold off-market never appear in any index, including this one.

Common questions

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