Bali Villa ROI: STR vs LTR Rental Yields by Zone (2026 Data)

By Adrià Raduà · 8 min read · Updated June 2026

Short answer: Gross rental yields for well-managed Bali villas range from roughly 4% to 15% per year depending on the zone and the rental model. Uluwatu leads on short-term (STR) yield at about 15%, while established zones like Seminyak and Canggu sit near 8%, and Sanur and Ubud trade lower yields for stability and lower entry prices. Below is the real per-zone data — and what drives the gap.

What rental yield can a Bali villa actually achieve?

Well-managed luxury villas in Bali typically generate gross yields between 4% and 15% per year, depending on location, property quality and occupancy (Azeroth PM advisory). The spread is wide because the inputs vary enormously by zone: a 3-bed villa in Uluwatu averages a $267 nightly rate at 51% occupancy, while the same size in Ubud averages $115 at 38% (AirROI, 2026). The chart below shows gross yield by zone for both rental models, calculated from real average prices and rental performance.

Uluwatu: the highest-yield zone in 2026

Uluwatu leads Bali on rental yield, with a 3-bed villa achieving roughly 15% gross on the short-term model — the product of a $267 average nightly rate and 51% annual occupancy, the highest of any major area (AirROI, 2026). Leasehold 3-bed villas average around $325,000, lower than Seminyak or Canggu, which lifts the yield further. The trade-off is location: the Bukit is spread out and clifftop villas need reliable on-the-ground logistics. Explore villas in Uluwatu.

Seminyak and Canggu: balanced mid-yield holds

Seminyak and Canggu deliver roughly 8% gross yields with the deepest, most liquid resale markets on the island. Seminyak’s 3-bed villas average a $227 nightly rate at 42% occupancy; Canggu’s average $218 at 40% (AirROI, 2026). Entry prices are higher — leasehold 3-beds average around $410,000 in both — which trims yield versus Uluwatu but buys stability, brand recognition and easier exit. These are the zones for investors who weight liquidity and resale demand alongside income. See Canggu villas for sale.

Sanur and Ubud: lower yield, lower entry, steadier demand

Sanur (~5–6%) and Ubud (~4–5%) post the lowest headline yields, but for different reasons than weakness. Sanur’s deep long-term rental market — a 3-bed lets for around $1,550/month — actually makes its LTR yield (~6%) higher than its STR yield, a rarity in Bali. Ubud’s nightly rates are gentle ($115 average) but occupancy is steady from year-round wellness tourism, and leasehold entry prices are among the island’s most accessible. Both suit income-focused, lower-volatility buyers rather than yield maximisers.

STR vs LTR: which model earns more?

Across most Bali zones, short-term and long-term gross yields are surprisingly close — the difference is rarely more than a point or two. Short-term rentals capture higher nightly rates but carry occupancy risk, higher management intensity and the need for a licensed PT PMA structure. Long-term rentals trade upside for predictability: one tenant, stable cash flow and far lower operating effort. The bigger lever, in every zone, is occupancy and management quality — a professionally managed villa can out-earn a comparable self-managed one by a wide margin through dynamic pricing and channel distribution.

What the gross yield does not include

Every figure here is a gross yield — rental income divided by purchase price, before costs. Net returns are lower once you account for management fees (typically 15–20% for short-term, 10% for long-term), OTA commissions (15–17%), maintenance and capex, taxes, and — for leasehold — the amortisation of the lease over its remaining years. A realistic net yield often runs two to four points below the gross figure. Any advisor quoting only gross, or promising “guaranteed” returns, is not giving you the full picture. For how we model this, see our villa investment advisory.

A worked example: from gross to net

Take a leasehold 3-bed villa in Canggu bought at $410,000 and run short-term. At a $218 nightly rate and 40% occupancy, it grosses roughly $31,900 a year — about 7.8% gross. Now subtract the real costs: short-term management at 18% (~$5,700), OTA commissions around 16% of bookings (~$5,100), maintenance, utilities and capex reserve (~$4,000), and lease amortisation over the remaining term. The net cash yield lands closer to 4–5%. The headline number is not wrong, but it is only the starting point — which is why we model both gross and net for every villa before a client commits. The same exercise in Uluwatu, with its higher occupancy, holds a wider margin after costs, while Ubud’s thinner gross leaves less room.

Appreciation is the other half of total return, and it behaves differently for leasehold and freehold. Freehold (PT PMA) land can appreciate over decades; a leasehold villa’s value erodes as the term runs down, so a strong rental yield has to compensate for a shortening clock. This is why a 15% gross yield on a short lease is not automatically better than 8% on a long one — total return depends on both income and what the asset is worth at exit.

How we calculate these numbers

Yields here are built from Azeroth PM’s own market comparables (sale prices by zone, tenure and bedroom count) and short-term performance data from AirROI, observed in June 2026. STR yield = average daily rate × 365 × occupancy, divided by the average leasehold 3-bed price. LTR yield = average monthly long-term rent × 12, divided by the same price base. We use leasehold pricing as the common denominator because it is the most traded structure; freehold (PT PMA) yields run lower on the same income because entry prices are higher. To understand which ownership structure fits, read whether foreigners can buy property in Bali.

Frequently Asked Questions

What is a good rental yield for a Bali villa?

A gross yield of 8% or more is strong for Bali. Established zones like Seminyak and Canggu deliver around 8%, while Uluwatu can reach 15% on the short-term model. Below 5% (as in parts of Ubud) usually reflects lower entry prices and a focus on stability or capital appreciation rather than income.

Which Bali zone has the highest rental yield?

Uluwatu leads in 2026, with 3-bed villas achieving roughly 15% gross short-term yield on the back of the island’s highest occupancy (~51%) and nightly rate (~$267), combined with lower entry prices than Seminyak or Canggu (Azeroth PM / AirROI, 2026).

Is short-term or long-term rental more profitable in Bali?

Gross yields are close in most zones — usually within one or two points. Short-term earns higher nightly rates but needs a licensed PT PMA and active management; long-term offers lower-effort, predictable income. In Sanur, the deep long-term market makes LTR the higher-yielding option.

Are these yields net or gross?

All figures are gross — income divided by purchase price, before management fees, OTA commissions, maintenance, tax and lease amortisation. Net yields typically run two to four points lower, depending on the rental model and management quality.

Do unmanaged villas earn the same yield?

No. Professionally managed villas materially out-earn self-managed ones through dynamic pricing, multi-channel distribution and higher occupancy. The yields here assume professional management; an unmanaged or poorly listed villa can earn a fraction of its potential.

Adrià Raduà — Co-founder, Azeroth Property Management. 20 years in property management, real estate investment and hospitality across Spain, London and Italy. All data in this article is drawn from Azeroth PM’s own market comparables and verified third-party sources; this article does not constitute investment advice.