Which Areas of Bali Offer the Highest Rental Yields in 2025?

Investing in rental properties in Bali is a popular and profitable way to generate passive income. However, for your investment to be truly effective, it’s crucial to understand which areas deliver the best returns.

In this article, we analyze the areas in Bali that show the highest ROI, what influences it, and how to choose the right location for your investment strategy.

Why Location is Key to High ROI

Location is the most important factor impacting rental income. Even with the same investment budget, different areas can produce vastly different occupancy rates, rental prices, and ROI outcomes.

The key factors that determine a location’s rental potential include:

• Tourist flow (annual and seasonal)
• Infrastructure development
• Proximity to beaches, restaurants, surf schools, etc.
• Appeal to target audiences: young travelers, families, digital nomads
  

Canggu: A Consistent Leader in ROI

Canggu has remained the top-performing area for rental income over the past few years. It attracts digital nomads, young travelers, surfers, and entrepreneurs. Daily rental rates are high, occupancy is solid year-round, and the infrastructure includes cafés, coworking spaces, gyms, and beach clubs.

Key features:

• ROI: 12–15%
• High demand for short-term rentals
• Rapidly increasing land prices
  

Seminyak: Premium Style and High Rental Rates

Seminyak is synonymous with style and luxury. Tourists flock here for high-end restaurants, clubs, and boutiques. Rental rates—especially for villas—are high, but so is the competition, requiring professional property management.

Key features:

• ROI: 10–13%
• High rental rates
• Ideal for the premium segment

Uluwatu: Seclusion, Ocean Views, and Upscale Villas

Uluwatu is known for secluded residences and panoramic ocean views. Large luxury villas dominate this area, although rental demand is less stable compared to Canggu or Seminyak. It’s a great choice for investors targeting the luxury market.

Key features:

• ROI: 8–11%
• Target audience: surfers, couples, premium guests
• High average daily rate

Sanur: Family-Oriented Stability and Long-Term Tenants

Sanur offers tranquility and a family-friendly environment. It’s popular with families with children, senior travelers, and divers. Long-term rentals are common here, offering reliable occupancy and steady income.

Key features:

• ROI: 7–10%
• Consistent long-term tenants
• Safe, relaxed infrastructure
  

Ubud: Eco-Tourism and Spiritual Living

Ubud appeals to those interested in spirituality, yoga, art, and nature. Located inland, it’s not a beach destination. While ROI is lower, well-positioned properties can still provide steady returns through retreat-style accommodations.

Key features:

• ROI: 6–9%
• Eco-residences and retreats
• Long stays and meditation practices
  

How to Choose the Right Area for Your Goals

Your ideal location depends on your strategy:

• Short-term high-yield rentals → Canggu or Seminyak
• Stable occupancy with families → Sanur
• Premium segment and seclusion → Uluwatu
• Spirituality and eco-tourism → Ubud

For most investors seeking high ROI and hands-off management, Canggu is the most versatile choice — especially if the property is managed by a professional operator.

Success Depends on Conscious Planning

Choosing a location is more than picking a spot on the map. It’s about strategy, rental format, audience, and growth potential. Don’t just follow trends — look at the numbers: ROI, seasonality, demand.

If you want to invest in high-liquidity property with stable income and transparent structure, consider professionally managed aparthotels — especially in Canggu, like PGD Aparthotel, which offers strong returns, full-service management, and a secure legal framework.

Need help selecting the right area and rental format?

Contact us — we’ll help you craft the perfect investment strategy tailored to your goals.