Thinking of buying a villa in Bali and turning it into a rental property? You're not alone. With Bali's booming tourism and the rise of digital nomads, villa rentals have become one of the most profitable investment options on the island.

To understand the true ROI or Return of Investment of Bali real estate in 2025, this article will break down the real rental investment potential, compare short-term vs. long-term rentals, and highlight the key expenses of renting out a villa. 

Why are Bali Villas in High Demand?

Bali continues to attract millions of tourists every year due to its flourishing tourism sector, growing expat community, and the rise of digital nomadism. All of these factors are contributing to a very strong real estate market and opportunities. 

With high occupancy and strong daily rates in sought-after areas, it's no surprise that many investors are turning to villa rentals as a passive income stream.

Average Rental Income by Area (2025 Projections)

Here’s a glimpse of what owners are earning from villa rentals in Bali’s most sought-after neighborhoods: 

Canggu

  • Average daily rate (ADR) $219 USD (~€200)
  • Occupancy (Median): ~50%
  • Monthly Revenue (Median): $1,906 USD (~€1,740)
  • Top-Tier Villas: $269+ USD/night (~€230)

Uluwatu

  • Average daily rate (ADR): $122 USD (~€112)
  • Occupancy : ~71%
  • Monthly Revenue (Median): $2,800 USD (~€2,390)
  • High-End Villas (Cliff-Front, Event-Friendly): $400–600 USD/night (~€340–500)

Bali-Wide Average

  • Average daily rate (ADR): $95 USD (~€88)
  • Occupancy: ~64%
  • Monthly Revenue: $1,800 USD (€1,660)



Summary

Area

ADR (USD / €)

Occupancy Rate

Monthly Revenue (USD / €)

Elite / High-End Daily Rate

Canggu

$219 (~€200)

~45%

$1,900 (€1,740)

≥ $249 (~€227)

Uluwatu

$122 (€112)

~65% (est.)

$2,380 (€2,140)

$400–600 (~€365–550)

Bali Avg.

$95 (~€88)

~64%

$1,600 (€1,460)

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Short-term vs Long-term Rental in Bali

Aspect

Short-Term

Long-Term Rental

Daily Income

High ($100–600 USD / €95–560)

Stable ($1,500–3,500 USD / €1,400–3,250)

Occupancy Volatility

High

Low

Management Needed

More (cleaning, staff, turnover)

Less (1 contract/year)

Profit Margin

Higher Potential

More Predictable



Monthly Operating Costs (Estimation)

Expense Type

Cost Range (USD / EUR)

Staff (housekeeping, gardener)

$300–700 / €280–660

Property Management Fee

15–25% of rental income

Utilities & Internet

$150–400 / €140–370

Pool & Garden Maintenance

$100–200 / €95–185

Annual Taxes & Permits (IMB/PBG)

$1,000–2,000 / €950–1,900 annually

ROI Example: 3-Bedroom Villa in Canggu

  • Purchase Price (Leasehold, Furnished): $350,000 USD (~€322,000)

  • Annual Rental Income (Short-term): $66,000 USD (€60,700)

  • Annual Expenses: $18,000 USD (€16,500)

  • Net Profit: $48,000 USD (€44,100)

  • Annual ROI:~13.7%

Top-performing villas can reach 17–20% ROI, especially with unique architecture, strategic location, and good property management.

Final Thoughts

Bali’s villa rental market continues to deliver serious returns. With attractive ADRs, rising occupancy, and strong ROI potential, investing here isn’t just a dream—it’s a smart business move.

At Kibarer Property, we make this process seamless. Whether you're buying your first investment villa or expanding your portfolio, our expert team guides you every step of the way. From sourcing high-performing properties to handling legal due diligence and connecting you with trusted property management partners. Contact us for a free consultation and invest in island living with income that works while you relax.