Bali, the Island of the Gods, is more than just a holiday destination; it’s a thriving hotspot for property investment. For Australians seeking high return on investment (ROI) in real estate, Bali offers a compelling opportunity. With its booming tourism industry, affordable property prices, and consistent rental demand, the ROI for Bali real estate is among the best in Southeast Asia.

This guide explores the factors influencing ROI in Bali real estate, the best property types and locations to consider, and tips for maximising your returns in this dynamic market.

Why Bali is a Top Choice for Real Estate Investment

1. Booming Tourism Industry

Bali attracts millions of visitors annually, including a large number of Australians. This steady stream of tourists fuels demand for short-term rentals, ensuring high occupancy rates and consistent rental income for property owners.

2. Affordable Property Prices

Compared to Australian real estate markets, Bali offers significantly lower entry points. Investors can acquire premium villas, beachfront homes, or urban apartments at a fraction of the cost of similar properties in Sydney or Melbourne.

3. High Rental Yields

With consistent tourist demand, rental properties in Bali can generate yields of up to 10–15% and higher in prime locations, far exceeding the average yields in many Australian cities.

4. Growing Infrastructure

Ongoing infrastructure projects, such as the North Bali Airport and new road networks, are opening up previously untapped regions creating opportunities for property investors to capitalise on future growth.

5. Lifestyle Appeal

Investing in Bali real estate also comes with lifestyle benefits. Many Australians combine their investment with personal use, enjoying their properties as holiday homes while earning income during other periods.

Factors Affecting ROI for Bali Real Estate

1. Location

Location is one of the most critical factors influencing ROI. Properties in tourist-heavy areas like Seminyak, Canggu, and Ubud tend to have higher occupancy rates and rental yields.

2. Property Type

The type of property also plays a significant role in ROI. Villas with private pools and modern amenities are in high demand, offering better rental income compared to aging villas and apartments.

3. Property Management

Effective property management ensures that rentals are well-maintained, marketed, and consistently occupied, which directly impacts ROI.  Through our network, we offer investors a 100% hands-off model with professional hospitality management companies looking after your asset day to day. 

4. Market Trends

Understanding market trends, such as the rise of eco-tourism or digital nomad-friendly accommodations, can help investors choose properties that align with current and future demand.

5. Target Audience

Identifying your target market—whether it’s luxury travellers, budget-conscious tourists, or long-term expatriates—helps determine the best location, property type, and rental strategy to maximise returns. As of 2025, the premium, 5-star luxury end of the market is booming in demand. 

Top Areas in Bali for High Real Estate ROI

1. Seminyak

• Why It’s Profitable: Seminyak is a luxury destination popular among high-income travellers. It’s known for its boutique shopping, upscale dining, and vibrant nightlife.

• Investment Potential: Properties here command premium rental rates, particularly luxury villas with private pools and proximity to the beach.

2. Canggu

• Why It’s Profitable: Canggu has grown rapidly in popularity, attracting surfers, digital nomads, and younger tourists. Its trendy cafes, coworking spaces, and beach clubs make it a hub for medium-term stays and boutique holiday experiences.

• Investment Potential: Stylish villas and apartments catering to remote workers or surfers yield excellent returns in this area.

3. Ubud

• Why It’s Profitable: Ubud is Bali’s cultural and spiritual centre, attracting eco-conscious travellers and wellness enthusiasts.

• Investment Potential: Eco-friendly resorts, wellness retreats, and boutique accommodations are ideal for this market.

4. Jimbaran and Uluwatu

• Why It’s Profitable: These areas cater to luxury travellers seeking tranquillity, stunning ocean views, and exclusive accommodations.

• Investment Potential: High-end villas and resorts in these regions generate excellent returns, especially for long-term rentals or honeymoon properties.

5. North Bali (Lovina and Singaraja)

• Why It’s Profitable: With planned infrastructure improvements, North Bali is emerging as a promising market for early investors.

• Investment Potential: Affordable land and eco-tourism projects in this region have strong growth potential as tourism expands.

Best Property Types for Maximising ROI from Bali Property

1. Luxury Villas

Luxury villas with private pools, modern amenities, and unique features like ocean views are among the most profitable property types in Bali. These properties attract high-paying guests, particularly families and groups of friends.

2. Holiday Rentals

Short-term rental properties in tourist-heavy areas consistently generate high occupancy rates. Offering fully furnished accommodations with high-speed internet and proximity to attractions enhances their appeal.

3. Eco-Friendly Properties

Sustainable and green-certified accommodations are increasingly popular, especially in regions like Ubud. Eco-friendly properties appeal to conscious travellers willing to pay a premium for sustainable stays.

4. Digital Nomad-Friendly Spaces

With the rise of remote work, properties equipped with fast Wi-Fi, office spaces, and communal living areas are in demand. Canggu, in particular, is a hotspot for digital nomads.

5. Commercial Properties

Hotels, boutique resorts, and coworking spaces are excellent options for those looking to tap into Bali’s growing tourism and business market with a 100% hands off investment model.  Sit back and enjoy your net returns as a property investor in Bali.

How to Maximise ROI for Bali Real Estate

1. Choose High-Demand Locations

Investing in areas with strong tourist appeal ensures consistent demand for rentals. Research occupancy rates and rental trends in potential locations.

2. Offer Unique Features

Properties with standout features—such as infinity pools, beachfront access, or eco-friendly designs—attract more bookings and can command higher rates.

3. Focus on Professional Property Management

Partner with a reputable property management company to handle bookings, maintenance, and guest experiences. This ensures your property remains competitive in the market.  Or choose a 100% hands-off investment model such as the Bali Property Investment network where day to day professional hospitality management is included. 

4. Target Specific Audiences

Tailor your property to meet the needs of specific groups, such as families, couples, or digital nomads. Understanding your audience helps optimise pricing and marketing strategies.

Benefits of Investing in Bali Real Estate for ROI

1. High Rental Demand

Bali’s year-round tourism ensures steady demand for short-term rentals, particularly in popular areas like Seminyak and Ubud.

2. Affordability

Investors can access premium properties at competitive prices, allowing for higher returns relative to investment costs.

3. Scalability

Bali offers opportunities for scaling investments, such as purchasing multiple properties or expanding into commercial real estate.

4. Growth Potential

The combination of increasing tourist numbers and infrastructure improvements creates a favourable environment for long-term property appreciation.

5. Lifestyle Benefits

In addition to financial returns, investors can enjoy personal use of their properties, combining ROI with lifestyle value.

Challenges to Consider

1. Legal Complexities

Foreign ownership laws in Indonesia can be restrictive. Ensure you work with legal experts to secure your investment through leasehold agreements, Hak Pakai titles, or PT PMA arrangements. Or work with a property investment partner network such as ourselves who have taken care of the hard work for you. 

2. Market Volatility

Bali’s reliance on tourism means the real estate market can be affected by global travel trends or unforeseen events. Diversifying your investments can mitigate these risks.

3. Property Management Costs

Effective property management is essential for maximising ROI, but it comes with associated costs. Budget for these expenses when calculating net returns.

4. Competition

The popularity of Bali as an investment destination means competition is high. Offering unique or niche properties in high-demand locations can help set you apart in a crowded market.

Future Trends Impacting ROI in Bali

1. Eco-Tourism Boom

Sustainable tourism is driving demand for eco-friendly accommodations, particularly in areas like Ubud and North Bali. Investing in green properties can yield higher returns.

2. Digital Nomad Growth

Bali’s appeal to remote workers is growing, creating opportunities for properties that cater to long-term stays and coworking-friendly environments.

3. North Bali Development

Infrastructure projects, including the planned North Bali Airport, are expected to boost tourism and property values in the region, making it a promising area for early investors.

4. Luxury Market Expansion

The rise in affluent travellers seeking exclusive experiences is driving demand for high-end villas and boutique hotels and resorts.

The ROI for Bali real estate remains one of the most attractive in the region, making it a prime destination for Australian investors. With its thriving tourism industry, affordable property prices, and high rental demand, Bali offers ample opportunities for strong financial returns.

To maximise your ROI, focus on high-demand locations, invest in properties with unique features, and work with trusted property and hospitality management professionals. By staying informed about market trends and tailoring your strategy to meet evolving demand, you can unlock the full potential of Bali’s dynamic real estate market.

Discover money management investment secrets and more information on the ins and outs of Bali property investment by accessing our educational video content.

Head to our main website to get started: balipropertyinvestment.com.au