Bali remains one of Southeast Asia’s most discussed property investment destinations. And yet, the rental yield numbers circulating across agency blogs and developer brochures rarely reflect what the market is actually like on the ground.
This report contains rental yield insights for Bali’s property market in 2026, including the impact of factors like property size, location, and occupancy.
Figures used are based on the REID’s 2025 Annual Market Report and Q1 2026 Market Report.
Bali’s Rental Market in 2026
As of 2025, there are 44,490 properties listed for short-term rentals in Bali, more than double (+107% ) the number of rental properties 3 years ago. This is a testament to Bali’s popularity as an investment destination.
Demand for rental accommodation remains strong. Foreign arrivals in Bali grew to a record number in 2026, with overseas tourists representing 42% of total visitors to the island. Occupancy rates in Bali increased by 2% to a market average of 53% in 2025, followed by a further 3.4% increase in Q1 2026 to reach 56.4%.
In 2026, the median property price for completed properties is $325,000 ($249,000 for off-the-plan).
Rental Yield in Bali’s Top Spots for Investment Villas
All gross yield estimates below are calculated using: (average daily rate × annual occupancy days) ÷ median property price. These rental yield estimates are reflective of the market average, and do not account for property management fees.
Canggu (North Badung)
North Badung accounts for 29.8% of all island-wide sales volume and 46.9% of all rental supply. It is Bali’s most liquid property market – largely due to Canggu’s reputation as a base for digital nomads, remote workers, and short-stay tourists.
Property Size | Median Price (Q1 2026) | Average Daily Rate (2025) | Occupancy (2025) | Gross Yield |
1 bedroom | $170,000 | $87 | 61% | 11.4% |
2 bedroom | $244,000 | $117 | 59% | 10.3% |
3 bedroom | $343,000 | $195 | 59% | 12.2% |
4 bedroom | $531,000 | $320 | 56% | 12.3% |
Uluwatu (South Badung)
South Badung experienced the greatest growth in rental revenue share in 2025 among all regions in Bali, increasing 17% year-on-year to reach 18% of Bali’s rental income.
In Q1 2026, South Badung’s overall occupancy rate grew 10% year-on-year – also the strongest regional gain in that period.
Property Size | Median Price (Q1 2026) | Average Daily Rate (2025) | Occupancy (2025) | Gross Yield |
1 bedroom | $155,000 | $103 | 57% | 13.8% |
2 bedroom | $262,000 | $154 | 62% | 13.3% |
3 bedroom | $367,000 | $254 | 54% | 12.9% |
4 bedroom | $630,000 | $411 | 51% | 12.1% |
Tabanan
Tabanan accounts for 2.7% of the island-wide rental supply. The main drawcard for investing in Tabanan is the low entry price as the location increases in popularity. At $145,000 for a 1-bedroom and $235,000 for a 2-bedroom, per-square-metre rates ($1,520–$2,740/sqm) are below both Badung regions.
As a tourist-stay destination, Tabanan is not yet as crowded as Canggu and Uluwatu, leading to lower occupancy rates. The investment value of Tabanan lies in capital appreciation rather than rental returns.
Property Size | Median Price (Q1 2026) | Average Daily Rate (2025) | Occupancy (2025) | Gross Yield |
1 bedroom | $145,000 | $74 | 41% | 7.6% |
2 bedroom | $235,000 | $129 | 52% | 10.4% |
3 bedroom | $284,000 | $186 | 45% | 10.5% |
4 bedroom | $499,000 | $292 | 43% | 9.2% |
Factors Affecting Rental Yield in Bali
Location
As with any property investment, location is a huge factor for rental yields and demand.
The cost of land in Bali’s most popular regions has increased by 15-30% over the past two years – finding the right plot of land can have a direct impact on the rate of return in the first few years of investment.
Demand for rental properties is closely linked with the surrounding environment and amenities. Availability of nearby beaches, shops, restaurants and transportation are all important factors to those travelling and renting in Bali.
Property Size
1 and 2-bedroom properties represent 53% of all Bali property sales (up 35% from 3 years ago). Smaller investments offer lower entry prices, higher occupancy rates, and stronger short-stay rental compatibility.
However, well-located, larger villas that appeal to the segment of luxury travellers often achieve higher rental yield than smaller properties. A $531,000 4-bedroom in North Badung at 56% occupancy and $320/night generates a rental yield of 12.3%, compared to a $170,000 1-bedroom at 61% occupancy and $87/night, which generates a yield of 11.4%.
Villa Design & Quality
In a market where 44,490 rental properties compete for bookings, having a property that differentiates itself from standard offerings in terms of design and quality is essential to secure consistent bookings.
Investment villas that tend to perform well in Bali typically have a distinctive architectural identity, well-designed outdoor spaces, strong photography, and amenities that justify a premium.
As an experienced investment property builder in Bali, Venaso Bali has a track record of building luxury villas with an accessible entry point price tag, designed to deliver high rental yields. Get in touch with our team to find out more about our current projects in Canggu, Uluwatu, and Tabanan.