The era of the “private villa” is ending. The era of the “managed resort” has begun.
🎯 Quick Answer: In 2026, the highest returns in Bali real estate investments are no longer found in standalone private villas, but in Managed Resort Communities. Our data shows that resort units with integrated amenities (Gym, Padel, Coworking, Spa, etc.) generate 17-20% projected annual yields (pre-tax), compared to the market average of 8-10% for standalone villas.” This performance gap is driven by higher occupancy rates during low seasons and significantly lower maintenance costs due to economies of scale.
⚠️ Worried about market risks? Read our full risk assessment: [Is Buying Property in Bali a Good Investment? (Risks vs. Rewards)]
This report analyzes the shift in capital flows and provides the data to validate your investment strategy.
For the last decade, the “Bali Dream” was simple: Buy a plot of land in Canggu, build a 3-bedroom villa, and list it on Airbnb.
Today, that model is breaking. The market is flooded with generic villas competing on price, while maintenance costs (pool pumps, staffing, tropical weathering) eat into margins.
Smart capital has moved on. The 2026 market belongs to the Lifestyle Resort. These are institutional-grade developments that offer what a private villa cannot: Community. By integrating coworking, wellness and sport (like Padel) into a single ecosystem, these assets protect the investor from vacancy risks and deliver a true “hands-off” passive income.
👤 Written by: Rasmus Holst, Founder & CEO of Coco Development Group. Investment Data Review: COCO Financial Analytics Team. Last updated: 16 January 2026
ℹ️ Transparency: This report contrasts two asset classes: Standalone Villas vs. Managed Resorts. We develop Managed Resorts because our data proves they offer superior longevity and returns for foreign investors. The figures below are based on actual operating data from Uluwatu and Canggu in 2024-2025.
Table of Contents
- The New Benchmark: 12-17% Yields
- The “K-Shaped” Recovery: Resorts vs. Villas
- The Asset Class: Why Apartments are the New Villas
- Strategic Selection: Location & Amenities
- The “Hands-Off” Operations Model
- Limitations, Alternatives & Professional Guidance
- Frequently Asked Questions
- Conclusion: View High-Yield Opportunities
1. The New Benchmark: 17-20% Yields
Investors often ask, “What is a good ROI in Bali?” The answer depends entirely on the Efficiency of the asset. A standalone villa bleeds money on individual staffing and marketing. A resort unit shares these costs across 50+ units, drastically boosting the Net Operating Income (NOI).
ROI Comparison: Villa vs. Resort Unit
| Metric | Standalone Villa ($350k) | Resort Apartment ($100k) |
|---|---|---|
|
Occupancy (High Season) |
85% |
90% |
|
Occupancy (Low Season) |
50-60% (Volatile) |
75-80% (Stable) |
|
OpEx (Operating Expense) |
High (30-40% of Revenue) |
Low (15-20% of Revenue) |
|
Net Annual Yield |
8% – 10% |
17% – 20% |
|
Payback Period |
8-10 Years |
5-6 Years |
Note: These net yields are calculated pre-tax. You have to understand your final take-home income and compliance obligations!
⚖️ Before you invest: Understand your tax and visa obligations in our Bali Investor Guide 2026: Visas, Taxes & Legal Setup.
“Disclaimer: Returns are project-specific. Official Bali occupancy averages fluctuate between 60-70%. The figures above for resort apartments represent top-performing assets in high-demand zones, not the island-wide average.
⚠️ Risk Assessment: Read our honest breakdown: [Is Buying Property in Bali a Good Investment? (Risks vs. Rewards)]. – pending
📊 Deep Dive: See the raw numbers in [Rental Yield of Property in Bali: Average ROI vs. Resort Performance]. – pending
2. The “K-Shaped” Recovery: Resorts vs. Villas
The market is splitting. While generic villas fight a “race to the bottom” on nightly rates, properties with Unique Selling Points (USPs) are seeing rates explode.
The “Amenity Premium” A villa is just a bed and a pool. A resort is a lifestyle. Our comparative market analysis of Airbnb listings in Uluwatu (2024-2025) suggests that properties with access to Padel Courts, Coworking Spaces, and Wellness, etc. command premiums of up to 20% higher daily rates than comparable properties without them.
However, high yields are meaningless if the asset depreciates due to poor build quality. Before investing, always verify that the developer offers a comprehensive warranty against tropical weathering, as detailed in our Bali Villa Construction Guide 2026: Costs, Regulations & Risks.
🏗️ Don’t buy a lemon. Verify build quality using our Bali Villa Construction Guide 2026: Costs, Regulations & Risks.
📉 Vacancy Risk? See how amenities drive bookings in [Is Airbnb in Bali a Good Property Investment?]. – pending
3. The Asset Class: Why Apartments are the New Villas
The days of needing $500,000 to enter the Bali market are over. The rise of the Luxury Resort Apartment has democratized access to high-yield real estate.
Why Downsize?
- Liquidity: It is easier to sell a €100k apartment than a €500k villa.
- Yield: Smaller units often command higher “revenue per square meter.”
- Entry Point: You can diversify by owning 3 apartments in different locations for the price of one villa.
- The Asset: Investing in Bali Apartments & Resort Suites: High Yields for Under €100k – Pending
- Opportunity: Top Investment Opportunities in Uluwatu: The Rise of Padel Resorts – Pending
🏢 Small Budget? Learn how to start with under €100k in [Investing in Bali Apartments & Resort Suites]. – pending
📍 Location Spotlight: Read [Property Investment Opportunities in Bali: The Rise of Padel Resorts]. – pending
4. Strategic Selection: Location & Amenities
You cannot simply “buy a resort unit” and expect profit. The Location and the Concept must match the demographic.
The Golden Rules of 2026:
- Proximity is King: Commercially, we see the strongest demand for assets within a 5-minute drive of major beaches. (e.g., Suluban/Nyang Nyang). Note: Legally, the most important factor is Zoning Compliance (RDTR). Ensure your land is zoned for Tourism (Pink Zone), regardless of its distance to the ocean.
- Community is Sticky: Tenants stay longer in places where they have a social circle (Coworking/Gym).
- Wellness is Mandatory: The post-pandemic traveler demands recovery facilities (Sauna/Ice Bath, Spa) on-site.
💡 Strategy: Read [5 Property Investment Tips for Bali: Why Location & Amenities Matter Most]. – pending
5. The “Hands-Off” Operations Model
The biggest friction for foreign investors is Management. Who fixes the roof? Who files the taxes? Who replies to Airbnb guests at 3 AM?
The Integrated Solution In the Managed Resort model, the developer acts as the operator. This aligns incentives: We only make money if you make money.
- Marketing: Centralized booking team.
- Maintenance: On-site engineers (no call-out fees).
- Reporting: Quarterly digital statements.
🤝 Hands-Off: Learn about the “Done-For-You” model in How to Buy Investment Property in Bali.
6. Limitations, Alternatives & Professional Guidance
We believe in the Resort Model, but it is not without nuance. Transparency is the only way to build long-term wealth.
The Limitations
- HOA Fees: Resorts have higher fixed amenities, meaning there is a monthly maintenance fee (sinking fund). However, this is usually offset by the lack of individual repair bills.
- Less Customization: You generally cannot paint your apartment pink or renovate the kitchen without approval, as uniformity is key to the brand standard.
- Off-Plan Risk: Buying early captures the best price, but requires trust in the developer’s delivery timeline.
Alternatives
- Land Banking: Lower operational risk, but zero cash flow (Capital Appreciation only). For active investors looking for capital gains rather than yields, read our guide on [Real Estate Investment Strategies: Flipping vs. Holding] – pending
- Commercial Real Estate: Buying a leasehold restaurant/shop (High risk, high tenant turnover).
🔄 Active Investor? Compare strategies in [Real Estate Investment Strategies: Flipping vs. Holding]. – pending
The Critical Risks
- No Freehold (Hak Milik): Foreigners cannot own Freehold land in Indonesia. Any agent offering you “Freehold” via a Nominee Structure is putting you at risk. These agreements are legally void and can result in total asset loss. Stick to Leasehold or PT PMA structures.
- Tax Liabilities: The yields above are pre-tax. You must account for Final Income Tax (10-20%), Land & Building Tax (PBB), and potential VAT (11-12%) on your rental income. Always consult a tax advisor.
- Zoning Enforcement: A villa cannot legally operate as a rental unless it is in the correct Tourism Zone (Pink/ITR). Government enforcement is increasing; do not buy in a “Green Zone” expecting to run a daily rental business.
Seek Professional Advice Every portfolio is different. Before deploying capital, validate your strategy.
Want to run the numbers on a specific unit?
Book a Free 30-Minute Investment Strategy Call with our Founder & CEO, Rasmus Holst. We will open our financial models and show you the raw data behind the 17-20% projection.
Lets Meet
7. Frequently Asked Questions (FAQ)
In 2026, the average net yield for standalone private villas typically sits between 8-10%. However, optimized Managed Resort Units with integrated amenities (padel, coworking, spa) are currently outperforming the market, generating projected yields of 17-20% (pre-tax) due to higher occupancy and lower shared operating costs. 📊 See the data: [Rental Yield of Property in Bali: Average ROI vs. Resort Performance]. - pending
Data suggests a "Correction" rather than a bubble. While generic, older villas in saturated areas like central Canggu are seeing softening prices and occupancy, the demand for Investment-Grade Resorts in high-growth zones like Uluwatu remains heavily underserved, driving capital appreciation. 📉 Read the analysis: [Bali Real Estate Market Analysis: Is the Bubble Real?]. - pending
It depends on your goal. A private villa offers more customization but comes with high maintenance friction and variable occupancy. A resort unit offers a "hands-off" passive income model with professional management, higher stability, and typically better liquidity for resale. 🏢 Compare the assets: [Investing in Bali Apartments & Resort Suites: High Yields for Under €100k]. - pending
Technically yes, but it is effectively a full-time job. You must handle staff, maintenance, tax filings, and guest communications across time zones. For most foreign investors, the cost of a Professional Management Company (15-20%) is easily offset by the increase in occupancy and asset protection. 🛠️ Understand the workload: [How to Buy Investment Property in Bali: The "Hands-Off" Model]. - pending
"Flipping" (selling off-plan contracts before completion) can generate quick capital gains of 20-30%, but carries higher market timing risk. "Holding" for rental yield is the preferred strategy for building long-term generational wealth, especially with the 5-10 year Second Home Visa incentives. 🔄 Choose your strategy: [Real Estate Investment Strategies: Flipping vs. Holding in Bali]. - pending
8. Conclusion: View High-Yield Opportunities
The window to buy prime resort real estate in Uluwatu at current prices is closing. As infrastructure improves and the “New Bali” consolidates around lifestyle hubs, asset values in these zones are projected to appreciate significantly.
Stop competing with 10,000 other villas. Start investing in a scarcity asset.
Ready to see the financials? View our exclusive selection of resort units that are fully managed and optimized for passive income.
🔎 Browse all projects: Curated Investment Property for Sale in Bali: High-ROI Resort Units.
👉 Looking for high returns? View High-Yield Resort Units at Azoria
9. References & Official Sources
Market Data & Tourism Statistics
Badan Pusat Statistik (BPS) Bali (Sept 2025). “Official Statistics News: Development of Tourism and Transport in Bali Province”. (The official government data source confirming the visitor arrival numbers that underpin the “Tourism Rebound” narrative. Supports “Section 1: The New Benchmark”). https://bali.bps.go.id/
Bank Indonesia. (2025). Survei Harga Properti Residensial (SHPR) – Triwulan III 2025. Reports the Residential Property Price Index (IHPR) and its qoq/yoy trends for Indonesia’s primary (new housing) market; used to contextualize the report’s “stabilizing vs. growing” price trend in the report. Supports “Section 6: Market Transparency”). https://www.bi.go.id/id/publikasi/laporan/Pages/SHPR_Tw_III_2025.aspx
Zoning & Construction Regulations
Badung Regency Regulation (Perda) No. 4 of 2025. “Spatial Plan (RTRW) of Badung Regency 2025-2045”. (This is the critical new zoning law that replaced the 2013 regulation. It defines exactly which areas in Canggu and Uluwatu are designated for Tourism (Pink Zone) vs. Agriculture (Green Zone). Supports “Section 4: Strategic Selection” and “Section 6: Zoning Enforcement”). https://jdih.badungkab.go.id/produk-hukum/peraturan-perundang-undangan/peraturan-daerah/peraturan-daerah-kabupaten-badung-nomor-4-tahun-2025-tentang-rencana-tata-ruang-wilayah-kabupaten-badung-tahun-2025-2045
Badung Regency Regulation (Perda) No. 9 of 2023. “Implementation of Building Construction (PBG & SLF)”. (The local regulation enforcing the national building codes. It confirms that operating a villa without an SLF (Certificate of Fitness) is illegal and subject to sanctions. Supports “Section 6: Zoning Enforcement”). https://jdih.badungkab.go.id/produk-hukum/peraturan-perundang-undangan/peraturan-daerah/peraturan-daerah-kabupaten-badung-nomor-9-tahun-2023-tentang-penyelenggaraan-bangunan-gedung
Tax & Financial Compliance
Ministry of Finance Regulation (PMK) No. 131 of 2024. “Adjustment of Value Added Tax (VAT) Rate”. (Official confirmation of the 12% VAT rate effective from 2025, which investors must factor into their construction and acquisition costs. Supports “Section 6: Tax Liabilities”). https://www.pajak.go.id/id/artikel/pmk-1312024-tarif-ppn-sebelas-dua-belas
Government of Indonesia. (2016). Peraturan Pemerintah (PP) Nomor 34 Tahun 2016 tentang Pajak Penghasilan atas Penghasilan dari Pengalihan Hak atas Tanah dan/atau Bangunan. It explicitly sets the Final Income Tax (PPh Final) for a typical transfer/sale at 2.5% of the gross transfer value (see Pasal 2 ayat (1) huruf a). Supports “Section 1: Net Yields”). https://peraturan.go.id/files/pp34-2016bt.pdf
Rasmus Holst is a serial entrepreneur and Co-Founder of COCO Development Group, where he helps drive innovation and growth through strategic business development. He is also the Co-Founder of Estate of Bali and Regnskabshelten.dk, Denmark’s fastest-growing accounting firm, which grew to 35 employees and generated $2.5M in turnover in 2023. Rasmus is passionate about building businesses that create long-term value and impact.
