What Rental Yield Can You Expect from a Bali Villa in Prime Areas like Canggu, Ubud, Bingin (and Why Bingin is Your Best Bet)
Introduction
For many overseas investors, Bali remains one of the most attractive markets for vacation-rental real estate. But what kind of returns (rental yield) can you realistically expect if you buy a villa in prime locations like Canggu, Ubud or Bingin? And is an investment in Bingin even more compelling because of supply constraints, higher nightly rates, and a more upscale guest profile? This post walks you through up-to-date data, comparisons, and strategies to help you decide whether and where to invest.
What is Rental Yield, and What Affects It in Bali
To set definitions:
Gross Yield = (Annual rental income) ÷ (Purchase price) before expenses
Net Yield = (Gross income minus operating costs, management, maintenance, taxes etc.) ÷ (Purchase price)
Key variables that affect yield:
Location (proximity to beach, surf spots, views, accessibility)
Villa quality & amenities (pool, privacy, furnishings, layout)
Occupancy rate (how many nights per year booked)
Average nightly rate (ADR)
Seasonality — peak vs low tourist seasons
Operating costs and management effectiveness
Current Public Data: Canggu, Ubud & Bingin
If we look at the latest numbers, there are some clear differences between Bali’s prime investment areas.
In Canggu, two- to three-bedroom villas often rent for around USD 150–300 per night, with high-end luxury villas sometimes going for USD 600 or more. Average occupancy tends to sit in the 60–70% range, which can produce healthy gross yields between 10% and 20% if the villa is well-managed. However, competition is intense in Canggu. Oversupply of new villas has started to put pressure on nightly rates, especially for mid-tier properties that don’t have a unique selling point.
In Ubud, the situation is quite different. Villas there generally achieve lower nightly rates — typically closer to USD 150–200 per night — and occupancy is more seasonal, often in the 50–70% range. Because Ubud attracts a different traveler profile (wellness, culture, retreats rather than beach tourism), occupancy can fluctuate more dramatically. Gross yields are often in the 5–8% range, with only the very best-located and well-marketed properties pushing closer to 10–12%. For investors, this means a slower path to payback compared to the coastal hotspots.
The most interesting numbers currently come from Bingin. Villas here consistently command higher nightly rates because of the premium location close to some of the best beaches in Bali and upscale cafes and restaurants. Average daily rates often fall between USD 180–400 per night for one- to two-bedroom villas. Occupancy all year around reaches 85–95%, and even in the low season many villas hold steady at 75–85% occupancy. This translates into gross yields that frequently hit 18–20%, and in some cases as high as 20% during peak months. After costs, net yields are still very attractive, often 15%, which outperforms most other regions in Bali.
Why Bingin Looks Especially Strong Right Now
Putting the numbers together, Bingin starts to stand out. Here are the reasons:
Smaller Supply of Villas vs Oversupply Elsewhere
Canggu and Ubud have seen rapid development. Many villas, resorts, boutique stays are being built there, so supply is catching up (and in some sub-areas overshooting). This tends to compress ADRs or force discounting in lower quality units.
In contrast, Bingin have more geographic constraints (cliffs, terrain, zoning, less flat land near the coast) and stricter planning in certain zones. That limits how many new villas can be built, especially high-end cliff or ocean-view ones.
Higher Nightly Rates / ADR
Because of the dramatic ocean or cliff views, exclusivity, proximity to surf breaks, premium beach clubs, Bingin villas can command higher rates per night than many villa properties in Canggu which are further inland or with less dramatic views.
Tourists willing to pay top dollar for “experience” are more likely to book in Bingin vs just “close to Canggu beach / cafes”.
More Upscale Guest Profile in Bingin
Guests in Bingin tend to be more luxury-oriented, surf-oriented, those wanting the cliff-oriented premium stay. That often means longer minimum stays, paying extras (for views, design, premium amenities), better reviews & higher repeat bookings.
This guest profile supports higher ADRs even in shoulder or low seasons, which helps stabilize yield.
Strong Occupancy, Even Off Peak
As data suggests, well-managed Bingin villas hold up better in low season compared with many villas in Canggu or Ubud. While occupancy dips, it tends to stay in a healthier range.
High season occupancy for Bingin villas can reach 85-95% plus for premium villas. Low season might drop to ~75-85%, but that still produces good average occupancy when weighted over the year.
Sample Yield Estimates: Canggu vs Ubud vs Bingin
To understand how different areas of Bali perform, let’s look at a simplified example.
If you buy a two- to three-bedroom villa in Canggu for around USD 400,000, you might be able to charge an average nightly rate of about USD 250. With occupancy averaging around 220 nights per year (roughly 60%), that would generate about USD 55,000 in annual gross rental income. This works out to a gross yield of around 13–14%, with the net yield dropping closer to 10–11% once management fees, staff, maintenance, and other expenses are included.
In Ubud, the numbers look softer. Suppose you purchase a villa for USD 300,000 and achieve an average rate of USD 180 per night. With around 180 booked nights per year (50% occupancy), you would generate about USD 32,000 annually. That produces a gross yield of roughly 10–11%, but after operating costs the net yield is usually closer to 7–8%.
By contrast, Bingin show significantly stronger potential. A luxury designed villa in a centrally located location priced at USD 300,000 could easily command USD 260 per night on average. With strong demand, it’s realistic to see 310 nights per year booked (about 85% occupancy). That translates into USD 80,600 in gross annual income. The gross yield in this scenario is close to 27%, and even after subtracting expenses, the net yield often remains in the 15% range.
This comparison highlights why Bingin — is currently seen as one of Bali’s best opportunities for short-term rental investment. The combination of premium nightly rates, healthy occupancy, and limited villa supply gives investors a faster path to ROI compared to more saturated markets like Canggu and Ubud.
Risks & What You Must Do to Maximize Yield
Of course, higher yield potential comes with risk and requires good execution. If you're investing in Bingin with the aim of high returns, you’ll need to:
Choose a property with great design and location
Work with an excellent property manager to maintain high occupancy, do dynamic pricing, ensure quality reviews
Ensure legal / permit / licensing compliance (zoning, tourist license etc.) to avoid downtime or penalties
Plan for seasonality & slower months
Conclusion & What to Expect in 2025-2026
Expect net yields in prime Bali villa areas to broadly be in the 10-20% range for short-term rental-focused luxury villas.
Of the prime areas, Bingin likely to offer the best opportunity because of constrained supply vs increasing demand, higher possible ADRs, and a guest profile willing to pay for premium.
Investors targeting 4-5 year payback will need to buy smart, look for unique design and location, manage costs well, ensure occupancy (especially off-peak) is reasonable, and position the villa as high end / unique.
Ready to Invest in Bingin?
If you’re serious about achieving strong rental yields and long-term value, Bingin offer some of the most attractive opportunities in Bali right now. Limited supply, premium nightly rates, and an upscale guest market make this region one of the few places where investors can realistically achieve a 4–5 year payback period.
At Bali Property Projects, we specialize in high-ROI villa developments in Bingin, tailored for international investors who want a secure, hands-free path to owning a profitable property in Bali.
Get in touch with us today to see our latest villas for sale in Bingin and learn how you can maximize your returns with an experienced local development partner.
