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Is a Villa in Bali a Good Investment in 2026? The Numbers

Asking rents in Canggu, Pererenan and Uluwatu are about 11–12% of asking sale prices a year before costs; a leasehold's shrinking term and running costs take a large share of that.

Updated 20 October 2026 · 6 min read

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What rents and prices say, area by area

Indonesia publishes no sale prices, so no one can measure a Bali yield from completed sales. What can be measured is what owners ask. These are the medians of the live listings of Baliestate's partner agencies on 20 October 2026, with how many listings stand behind each one.

A rent median and a sale median cover different houses, so the last column is a rough guide to the market, not a promise about any one villa. Sale medians include finished and off-plan homes, leasehold and freehold.

AreaMedian asking rentMedian asking priceA year's rent as share of price
CangguIDR 44M a month (352 listings)IDR 4.9B (224 listings)about 10.8%
PererenanIDR 42M a month (79 listings)IDR 4.5B (47 listings)about 11.2%
UluwatuIDR 43.5M a month (52 listings)IDR 4.5B (275 listings)about 11.6%

Property for sale in Canggu

See all 198 →

  • Villa 4BR in Canggu

    Canggu · 4 bedrooms

    Rp 8.163.111.449

    6% below the median price of 8 similar leasehold 4-bd homes in Canggu (±50% size, lease 16.5–27.5 yrs): Rp 8.692.000.000.

  • Villa 2BR in Canggu

    Berawa · 2 bedrooms

    Rp 3.791.311.762

    22% below the median price of 20 similar leasehold 2-bd villas in Canggu (±30% size, lease 19.5–32.5 yrs): Rp 4.844.500.000.

What comes off before it reaches you

A villa let to holiday guests pays a management company, booking sites, cleaning, upkeep and tax. Industry sources put the gap between a quoted gross yield and the owner's net cash at 40–60%, sometimes more, and our rental-yield guide sets out each of those costs.

A villa let by the month or the year costs less to run, but it still has empty months between tenants, repairs and tax. A figure that leaves these out is the bigger number, not the real one.

What independent data says

Our medians are asking prices. No one publishes Bali's sale prices, but a few sources measure demand without selling villas: AirDNA reads booking data from Airbnb, Vrbo and Booking.com, BPS (Indonesia's statistics agency) counts arrivals and surveys hotels every month, and Horwath HTL reports on member hotels of the Bali Hotels Association.

Foreign arrivals set a record in 2025 and were slightly lower in the first eight months of 2026. Holiday rentals filled a little over half their nights. In Canggu, where more new hotel rooms are being built than anywhere else in Bali, hotel occupancy was the lowest of the nine areas Horwath HTL names, though it notes its Canggu sample was still being built up in 2025.

Agency blogs also quote villa sale counts and median sale prices from a data firm called REID. We could not find REID's own report, so those figures are not repeated here.

FigurePeriodSource
Foreign arrivals straight to Bali: 6,948,754, up 9.72% on 20242025BPS Bali
Foreign arrivals: 4,586,959, down 1.62% on the same months of 2025January–August 2026BPS Bali
Short-term rental occupancy: 57%; average daily rate USD 13012 months to September 2026AirDNA
Active short-term rental listings: 47,977, down 45.9% in a yearSeptember 2026AirDNA
Star-rated hotel room occupancy: 68.19%August 2026BPS Bali
Canggu & Tabanan hotel occupancy 60.0%, average rate IDR 2.2 million2025Horwath HTL
Hotel rooms in the pipeline: 5,641 in 45 hotels, 1,480 of them in CangguMarch 2026 reportHorwath HTL

A leasehold is a shrinking asset

Freehold (Hak Milik) is for Indonesian citizens only, so most foreign buyers hold a leasehold. Among partner-agency leasehold listings on 6 October 2026, the median term was 25 years for finished villas and 28 for off-plan.

Each year uses up part of the lease. On a 25-year lease that is 4% of the price a year. Take that from Canggu's 10.8% and under 7% is left, before any running cost. A yield that does not subtract the lease is overstated.

Short leases cost the most for the time they buy: leaseholds with under 20 years left asked a median IDR 26.8 million per m² of building, against IDR 31.1 million for 25–30 years.

The risks no yield figure shows

Three changes in the past year affect the risk, and none of them appears in a yield: the province's ban on nominee ownership in Bali Perda 4/2026; the cut in a PT PMA's paid-up capital to IDR 2.5 billion per business line under BKPM Regulation 5/2025, with the IDR 10 billion investment plan behind it unchanged; and action against building without permits, made real by the demolition of 48 structures at Bingin beach in July 2025.

Short-term letting also needs a licence. Check that the villa has one, or can get one, before counting on holiday-rental income.

When it is a good investment

The cases that work usually share the same facts: a lease long enough that its yearly cost is small, a price close to what similar villas ask, a rent shown in real records rather than a brochure, and permits that allow the use you plan.

Before a deposit: compare the price with the area's comparables, read the years left on the lease, ask for twelve months of bookings or rent receipts, and have a notary check the land certificate and the permits.

Holiday-rental yield calculator

For a villa let to holiday guests, with a management company and booking sites taking their share. Put in one villa's price and rent, by the night or as a monthly figure. It starts from an area's median asking rent and median asking price, from partner agencies' live listings on 5 November 2026; the costs are assumptions taken from the ranges industry sources report, so change them to the villa's own figures where you have them.

Cost assumptions
Gross yield
10.9%
Net yield
3.7%
Net after a 25-year lease
-0.3%

With Canggu's medians, a year's rent of Rp 516.000.000 on a price of Rp 4.713.000.000 is a 10.9% gross yield. After management, booking fees and upkeep it is 3.7% (Rp 172.680.000 a year), and -0.3% once the lease is used up evenly at Rp 188.520.000 a year. Before tax.

Canggu: median of 343 rentals and 195 homes for sale on 5 November 2026. Asking prices, median to median, not one villa's return.

Common questions

Is a villa in Bali a good investment in 2026?

It can be, but it depends on the villa. On 20 October 2026, a year of median asking rent in Canggu was about 10.8% of the median asking sale price before costs. Running costs and a leasehold's shrinking term take a large share of that.

What rental yield can I expect from a Bali villa?

Gross yields are advertised from about 5% to the mid-teens. Industry sources put net cash 40–60% below the gross figure once management, booking fees, upkeep, empty nights and tax come out. On a leasehold, subtract the yearly share of the lease as well.

Can a foreigner own a villa in Bali?

Not as freehold. A foreigner can take a leasehold, hold Hak Pakai with a residence permit, or hold Hak Guna Bangunan through a PT PMA company.

Where in Bali do rents look highest against prices?

Among the areas with enough listings, Uluwatu (about 11.6%), Pererenan (about 11.2%) and Canggu (about 10.8%) were close on 20 October 2026. The gap between areas is smaller than the gap between one villa and the next.

Looking for a home in Bali?

Tell the Baliestate assistant your budget and dates. It replies in minutes with homes that fit and books the viewings.

Ask AI

Area medians are asking prices from the live listings of Baliestate's partner agencies on 20 October 2026, not sale prices and not the whole market. Arrival, occupancy and rate figures are from BPS Bali, AirDNA and Horwath HTL, read on their own pages on 20 October 2026. General information, not investment advice.

Sources and further reading

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