Gross yield, net yield and the gap between them
Gross yield is a year of rental revenue divided by the purchase price. It's the number on the brochure. It ignores everything between the guest's card and your bank account.
Net yield is what's left after operating costs and tax, divided by the same price. On a managed Bali villa, our model sends 18% of revenue to the management company and 12% to upkeep, repairs and empty nights. Another 10% goes to income tax if you're an Indonesian tax resident. That leaves the owner about 60%.
Non-residents pay 20% withholding on gross rent (PPh 26) instead of the final 10% (PP 34/2017), so their share drops to about 50%. On a typical villa, that residency question moves net yield by one to two points. Settle it before you buy.
- 60%
- 18%
- 12%
- 10%
Source: Rise Real Bali yield model; PP 34/2017; Income Tax Law, Article 26; Ortax on villa rental income of non-residents, June 2026
What each area earned over the last year
Revenue per listing comes from two numbers multiplied together: the nightly rate and the share of nights booked. Seminyak charges the most per night. Uluwatu charges less but fills eight points more of the calendar, so the two areas end up about Rp 23 million apart on a year of revenue.
Canggu and Pererenan sit in the middle at roughly Rp 380 million per listing. Ubud earns about half. Entry prices there are lower too, and these are averages across every short-term listing in each area, from studios to five-bedroom villas.
| Area | Nightly rate | Occupancy | Revenue per listing | Revenue, year on year |
|---|---|---|---|---|
| Seminyak | Rp 4.92 mn | 38.0% | Rp 514 mn | −18.1% |
| Uluwatu | Rp 4.32 mn | 46.2% | Rp 491 mn | — |
| Pererenan | Rp 3.68 mn | 40.2% | Rp 386 mn | −27.9% |
| Canggu | Rp 3.79 mn | 36.2% | Rp 376 mn | −23.1% |
| Ubud | Rp 2.00 mn | 36.6% | Rp 206 mn | −19.3% |
Source: AirROI, trailing 12 months, data checked September 2026; year-on-year change for August 2025 to July 2026. Figures converted to rupiah at the rate our site uses.
Want the numbers for your budget?
Gusti Ayu will send the net yield math for your budget on WhatsApp.
The price at which an average listing clears 8% net
We run a quick test on every area. Take the average listing's revenue, keep 60% for the owner, and ask what purchase price would turn that into an 8% net yield. Then compare it with what villas in that area actually cost.
In Canggu and Pererenan the two numbers are close, so an ordinary villa can hit 8% if it's priced near the median. In Uluwatu the median asking price sits well above the line. To earn its price, a villa there has to beat the average listing on rate or occupancy. Good ones do. Ubud shows the widest gap: its average listing is often a small guesthouse room, while our Ubud catalog is mostly pool villas.
| Area | Owner's net, a year | Price for 8% net | Median asking price in our catalog |
|---|---|---|---|
| Seminyak | Rp 308 mn | Rp 3.86 bn | Rp 2.64 bn |
| Uluwatu | Rp 294 mn | Rp 3.68 bn | Rp 5.68 bn |
| Pererenan | Rp 231 mn | Rp 2.89 bn | Rp 3.36 bn |
| Canggu | Rp 226 mn | Rp 2.82 bn | Rp 3.38 bn |
| Ubud | Rp 123 mn | Rp 1.54 bn | Rp 3.43 bn |
Source: AirROI revenue per listing; Rise Real Bali model at 60% owner share; Rise Real Bali catalog medians of published listings, September 2026
A worked example: two-bedroom pool villa in Canggu
Say you buy a two-bedroom pool villa in Canggu for Rp 4,000,000,000. We set its nightly rate at Rp 2,500,000, below the area average of Rp 3.79 million, because that average includes three- and four-bedroom villas. Occupancy swings the result more than any other input, so we run three cases.
At 60% occupancy the villa grosses about Rp 548 million a year, a 13.7% gross yield. The owner keeps about Rp 329 million, or 8.2% net. Drop to 50% and net falls to 6.8%. A non-resident owner loses another 1.1–1.6 points, depending on the case.
| Occupancy | Gross revenue | Gross yield | Owner's net (60%) | Net yield |
|---|---|---|---|---|
| 50% | Rp 456 mn | 11.4% | Rp 274 mn | 6.8% |
| 60% | Rp 548 mn | 13.7% | Rp 329 mn | 8.2% |
| 70% | Rp 639 mn | 16.0% | Rp 383 mn | 9.6% |
Source: Rise Real Bali calculation; inputs are illustrative, not a listing
Why 60% occupancy and not the market's 36%
The AirROI averages include every listing, run well or badly. In our practice, villas with professional management, a license and consistent cleaning hold 60–75% occupancy in areas where the average sits at 36–46%. That's the range we model.
Two caveats. A new villa needs six to nine months to collect reviews and reach its planned occupancy, so we haircut the first year. And the tourist flow isn't growing: Bali received a record 6.95 million foreign arrivals in 2025 (BPS Bali), and the first half of 2026 came in 2.4% lower. Demand is on a plateau at a record level, and new villas are splitting it.
Source: BPS Bali, 2025 annual release and 2026 monthly releases; Rise Real Bali practice, 2024–2026
Where supply is growing fastest
Revenue per listing fell in every area that reports a year-on-year figure. The cause is the same everywhere: listings grew faster than guests. Pererenan added 45.6% more listings in a year and lost 27.9% of revenue per listing. Ubud added 43.2% and lost 19.3%.
Canggu is the odd case. Its supply shrank 8%, yet revenue per listing still fell 23.1%: fewer listings didn't bring more guests to each one. Uluwatu held up. It's the one tracked area where revenue per listing didn't drop, and it books the most nights of the five. We now model Pererenan and Ubud on this year's occupancy rather than last year's, and we assume some further squeeze.
Source: AirROI, August 2025 to July 2026; Rise Real Bali model assumptions, September 2026
Checking a developer's yield projection
Most projections we see are honest arithmetic on optimistic inputs. Ask for the inputs, then test each one against the market data above.
A projection you can work with
- Uses the property's own nightly rate
- Shows three occupancy cases, from cautious to strong
- Deducts management, upkeep and tax
- Discounts the first year while the villa collects reviews
A projection to rework
- Divides the area's average revenue by the unit's price
- Uses the August rate for all 365 nights
- Quotes gross yield as the return
- Assumes full occupancy from the first month after handover
Source: Rise Real Bali practice
Run the numbers on a real villa
Start with the area. Our pages for Uluwatu, Canggu and Ubud show rates, occupancy and entry prices. Then plug a specific property into the yield calculator, or pick one from our catalog, where most listings carry our net-yield estimate.
Revenue also moves month to month, as our occupancy guide shows. For the cost side, see management fees and booking commissions.
What this means for buyers
- Expect 6–10% net on a managed villa, 8–12% in the strongest locations. A 15–20% figure is almost always gross.
- About 60% of revenue reaches a tax-resident owner, about 50% for a non-resident.
- Uluwatu nearly matches Seminyak on revenue because it fills more nights.
- Pererenan and Ubud grew supply by 43–46% in a year, and revenue per listing fell.
Next step: Bali Villa Occupancy Rates and Seasonality
FAQ
What is a realistic rental yield for a villa in Bali?
Net of management, upkeep, vacancy and tax, 6–10% a year for a well-run villa, and 8–12% in the strongest locations. Gross yields of 15–20% appear in brochures, but they come before about 40% of revenue goes to costs and tax.
Which area of Bali has the highest rental income?
Seminyak, at about Rp 514 million per listing over the last 12 months, followed closely by Uluwatu at Rp 491 million (AirROI). Uluwatu charges less per night but books 46.2% of nights, the best of the five tracked areas.
How much of the rental income does the owner keep?
In our model, about 60% if you're an Indonesian tax resident: 18% goes to management, 12% to upkeep and empty nights, and 10% to tax. A non-resident pays 20% withholding and keeps about 50%.
Why is revenue per villa falling in Bali?
Supply grew faster than demand. Pererenan added 45.6% more listings in a year and Ubud 43.2%, while foreign arrivals in early 2026 ran slightly below 2025. The same guests are spread over more villas.
Is a guaranteed 15% yield realistic?
As a net figure, rarely. Check whether the rate is gross or net, what occupancy it assumes and who pays the guarantee. Our <a href="/guides/bali-property-management-fees/">management and guarantees guide</a> covers the contract terms.
How we know this
Nightly rates, occupancy and revenue per listing come from AirROI's trailing 12-month data for each area, checked in September 2026. Year-on-year changes and supply growth are from the same source for August 2025 to July 2026. AirROI reports in another currency. We converted to rupiah at the rate our site uses. The 60% owner share is our model: 18% management, 12% upkeep and vacancy, 10% tax for a resident. Catalog medians are from the published listings on this site in September 2026 and cover all property types. The Canggu villa example uses illustrative inputs we chose, not a listing. Arrival figures are from BPS Bali. This isn't investment advice.
- AirROI, Bali short-term rental data by area, trailing 12 months, September 2026
- BPS Bali, foreign arrivals 2025 and January–July 2026
- Government Regulation No. 34 of 2017 on income tax from land and building rentals
- Income Tax Law, Article 26, withholding on non-residents
- Ortax, rental income from Bali villas earned by non-residents, June 2026
- Rise Real Bali yield model and catalog, September 2026
By Dmitrii Rogov, Rise Real Bali.
Rise Real Bali is a real estate agency in Bali. We write from the deals we handle and from public data, and we name our sources.
This report is published under the CC BY 4.0 license. You may quote, republish and use the figures and text commercially if you credit "Rise Real Bali", name the license and link to this page. Photos and renderings are not covered by the license: their rights belong to the developers and other rights holders.
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