Every Bali property developer will tell you their project delivers 15-25% returns. Some of them are right. Many are quoting gross yield before costs, before management, before the years where occupancy is lower than projected. Some are quoting peak occupancy scenarios from their best quarter.
This guide breaks down what a realistic Bali villa investment actually delivers – gross yield, net yield after costs, capital growth over a 10-year hold, and total return. I will give you ranges and explain what drives the outcomes in either direction.
Gross yield vs net yield: the gap
Gross yield is revenue divided by investment cost. Net yield is what you actually receive after all costs. The gap between the two is typically 30-50% of gross.
| Area | Gross yield | Net yield (after all costs) | Notes |
|---|---|---|---|
| Uluwatu | 15-22% | 11-16% | Highest yield in Bali. Surf market drives strong rates. |
| Canggu | 10-15% | 7-11% | High demand, but land cost compresses yield on new builds. |
| Pererenan | 12-15% | 9-12% | Good balance of yield and entry cost. |
| Cemagi | 12-16% | 9-13% | Early market, strong yield for the entry price. |
| Seminyak | 8-12% | 6-9% | Mature market, lower yield relative to capital outlay. |
| Ubud | 10-16% | 8-13% | Longer stays, lower nightly rate, lower vacancy. |
Net yield figures assume professional management (around 20% of gross with Balitecture), standard running costs ($8K-15K/year), insurance, and property tax. Actual results vary by villa quality, design, and management company.