Year One Rental Yields Across Six Bali Submarkets: The 2026 PARADYSE Benchmark

Uluwatu and Sanur post the highest Year-1 rental yields in Bali at 15.2% and 15.9% respectively, while Seminyak, despite commanding the highest average daily rate on the island, lands last at 12.9%. That gap is not a coincidence. It is the direct result of entry price relative to rental output, and it is the single most misunderstood number in Bali property conversations. According to PARADYSE's analysis of AirDNA 2025 professionally managed listings across six submarkets, buyers who chase the highest nightly rate often end up with the lowest return on capital, because a high ADR paired with a high buy-in price does not automatically translate into a high yield.

TL;DR

• Sanur (15.9%) and Uluwatu (15.2%) post the highest Year-1 yields in PARADYSE's six-submarket benchmark; Seminyak (12.9%) posts the lowest despite the top ADR at USD 307.
• Yield is a function of revenue relative to entry price, not revenue alone. Mengwi/Tabanan has the lowest ADR in the dataset (USD 225) but the second-highest yield (15.7%) because leasehold entry is also the lowest (USD 205K).
• All figures are PARADYSE's own analysis of AirDNA 2025 professionally managed listings, with buy prices as PARADYSE area-average leasehold estimates, not published market medians.
• Year-1 yields cited here are historical and modelled, calculated after distribution tax and operating costs. They are indicative of category performance and are never a forward guarantee.
• Occupancy and ADR data on their own are incomplete signals. The submarket-level benchmark below is designed to be read as a ratio, not a leaderboard.

About the Author: This benchmark is drawn from PARADYSE Homes' Market & Investment Report 2025 edition, built on the firm's own transaction data and property management performance across more than 25 villas built and sold, plus the portfolio it currently manages across six Bali submarkets. PARADYSE's founders, Marcus Jilla (ex-BCG) and Marius Scholinz (ex-McKinsey), built the underlying model as equity principals in the properties themselves, not as commission-based agents reselling someone else's numbers.

What is a Year-1 rental yield, and why does it matter more than ADR?

A Year-1 rental yield is the net rental profit a property generates in its first full year of operation, expressed as a percentage of the purchase price, after distribution tax and operating costs are deducted. It is the metric that tells you what your capital is actually doing, rather than what the villa is renting for on a given night. Average daily rate, or ADR, only measures pricing power. A villa can carry a premium ADR and still deliver a mediocre yield if the purchase price required to access that submarket is disproportionately high. This is the core analytical point of this benchmark: ADR and yield frequently move in opposite directions once entry price is factored in, and buyers who only look at nightly rate screenshots are working from half the picture. Industry-wide, gross rental yields for Bali residential property in 2026 typically span 7% to 14%, with net yields generally landing between 6% and 11% after fees, taxes, and running costs [investlandbali.com][prestigepropertybali.com][kinnara.asia]. PARADYSE's submarket figures sit within and above that range because they reflect professionally managed, benchmarked listings rather than an average across all quality tiers.

What does the 2026 PARADYSE submarket benchmark actually show?

Building on the yield-versus-ADR distinction above, the table below lays out PARADYSE's full six-submarket comparison: average daily rate, occupancy, average annual revenue per listing, PARADYSE's area-average leasehold entry estimate, and the resulting Year-1 yield after costs and tax. This is PARADYSE's own analysis of AirDNA 2025 professionally managed listings; buy prices are PARADYSE area-average leasehold estimates, not published market medians, and should be read as such.

Read across the rows and the mechanism becomes visible: Seminyak has the highest ADR in the dataset at USD 307 but the lowest yield at 12.9%, because its leasehold entry price of USD 310K is also the highest. Mengwi/Tabanan sits at the opposite end, with the lowest ADR at USD 225 but the second-highest yield at 15.7%, because entry is only USD 205K. Sanur is the standout combination: a near-top ADR of USD 302 paired with a mid-range entry price of USD 265K, producing the highest yield in the benchmark at 15.9%. These figures are indicative and modelled on historical performance. They describe how professionally managed listings have performed, not a forward promise of what any individual villa will earn.

Why does Seminyak have the highest ADR but the lowest yield?

This is the clearest illustration of the entry-price effect in the whole dataset. Seminyak/Kerobokan generates the highest average daily rate in the benchmark at USD 307, reflecting genuine pricing power: supply in the submarket fell 21.4% year-on-year as ageing mid-tier stock exits the market, which has driven a premium rate recovery of 7.6% year-on-year in revenue terms. But PARADYSE's area-average leasehold entry estimate for Seminyak is USD 310K, the highest of the six submarkets. Divide a strong but not exceptional revenue figure by the highest denominator in the set, and the yield compresses to 12.9%, the lowest in the benchmark. It is a useful example of a broader principle: a submarket can be commercially healthy and still be a comparatively expensive place to buy yield. Buyers drawn to Seminyak/Kerobokan's brand and rate strength should weigh it against the gap between gross and net yield before assuming premium ADR equals premium return.

Why does Mengwi/Tabanan punch above its ADR?

A related but distinct question is what happens at the other end of the spectrum. Mengwi/Tabanan posts the lowest ADR in the dataset at USD 225, which on its own would suggest a weak submarket. It doesn't. Occupancy is the highest of the six at 64%, entry price is the lowest at USD 205K, and the resulting yield of 15.7% is second only to Sanur. This is an emerging corridor: Tabanan leasehold prices rose 22.7% in 2024 according to REID data, ahead of the planned Gilimanuk-Mengwi toll road, and AirDNA scores the submarket 90 out of 100 on only 101 active listings. Occupancy still rose 14.9% year-on-year even as supply grew from roughly 25 to 125 listings, which suggests demand is absorbing new stock rather than being diluted by it. It is the kind of submarket where low ADR is a function of an earlier stage in the demand curve, not weak fundamentals.

How should a buyer actually use a yield benchmark like this?

Stepping back from the individual submarkets, the practical use of a benchmark table is comparative, not predictive. No single figure in this table tells a buyer what their specific villa will earn; average daily rates in Bali vary widely even within one submarket, from roughly USD 100 to USD 300 in Seminyak and USD 80 to USD 250 in Ubud depending on the individual property, design quality, and management standard [homesglobe.com]. Island-wide occupancy averages sit around 60% to 65%, though professionally managed villas in high-demand corridors like Canggu and Uluwatu can reach 70% to 75%, with seasonal peaks of 80% to 95% [homesglobe.com]. The benchmark's value is in showing the relationship between revenue and entry cost across areas, so a buyer comparing Uluwatu against Sanur, or Canggu against Mengwi/Tabanan, is comparing like-for-like ratios rather than raw nightly rates. It is also worth cross-checking any submarket figure against what that entry price actually buys in terms of land and build quality, since two villas at the same purchase price can carry very different operating economics.

What does a worked Year-1 yield calculation look like?

To make the mechanism concrete, take an illustrative leasehold villa priced at USD 265K, sitting at the midpoint of PARADYSE's seven-submarket dataset. At an ADR of USD 265 and 65% occupancy, gross Year-1 revenue works out to roughly USD 62,900. Subtract Indonesia's 10% distribution tax on gross revenue, about USD 5,740, and typical leasing, OTA, and operating expenses of around 40% of gross revenue, about USD 22,900. That leaves Year-1 operating profit of approximately USD 35,300, or roughly a 13% rental yield on entry. This is an illustrative calculation, not a projection for any specific property, and actual leasing and operating costs vary depending on villa size, management structure, and submarket. Bali-wide, total operating costs including management, maintenance, cleaning, and utilities generally consume 30% to 40% of gross income, and property management fees alone typically run 15% to 30% of gross rental revenue [source: verified external fact]. Foreign owners renting out a villa must also operate through a PT PMA structure to hold a Pondok Wisata short-term rental license, with rental income subject to a 20% withholding tax for non-residents plus local turnover taxes of around 10%.

Frequently Asked Questions

Is the highest ADR submarket always the best investment?
No. Seminyak/Kerobokan has the highest ADR in PARADYSE's benchmark at USD 307 but the lowest Year-1 yield at 12.9%, because its leasehold entry price is also the highest. Yield, which weighs revenue against purchase price, is the more complete measure of return.

Which Bali submarket has the highest Year-1 yield in the 2026 PARADYSE benchmark?
Sanur, at 15.9%, followed by Uluwatu/Pecatu at 15.2% and Mengwi/Tabanan at 15.7%. These figures are PARADYSE's analysis of AirDNA 2025 professionally managed listings and are indicative, not guaranteed.

Are these yield figures net or gross?
The Year-1 yields in this benchmark are calculated after distribution tax and operating costs, making them closer to net figures than headline gross ADR-based calculations. Bali-wide, net yields generally sit between 6% and 11% after management fees, taxes, and operating costs, while gross yields typically range from 7% to 14% [investlandbali.com][prestigepropertybali.com][kinnara.asia].

Why is occupancy not a reliable standalone indicator?
Occupancy tells you how often a villa is booked, not what it earns per booking or what it cost to buy. Mengwi/Tabanan has the highest occupancy in the benchmark at 64% but a below-median ADR, while Seminyak has lower occupancy at 58% but the highest ADR. Revenue and entry price together, not occupancy alone, determine yield.

Do these Year-1 yields apply to co-ownership as well as full ownership?
The submarket yield mechanics apply to the underlying villa regardless of ownership structure. In PARADYSE's co-ownership product, unused nights on a 1/8 share are rented short-term, targeting 10-15% annual returns on unused days, calculated on the same submarket performance data as full-ownership assets.

How reliable is a leasehold entry price estimate across submarkets?
PARADYSE's area-average leasehold entry figures are internal estimates based on its own transaction data, not published market medians, and individual properties can sit well above or below the average depending on land size, build quality, and proximity to demand drivers. Buyers should treat them as a planning benchmark rather than a fixed price.

Can a low-ADR submarket outperform a high-ADR one on total return?
Yes, and Mengwi/Tabanan is the clearest example in this dataset: its ADR of USD 225 is the lowest of the six submarkets, but its yield of 15.7% is the second-highest, because entry price is also the lowest. Total return depends on the ratio between revenue and capital deployed, not on nightly rate in isolation.

About PARADYSE

PARADYSE is the ownership partner for Bali residential property, structured around two equally weighted paths: Full Ownership for buyers who want complete control of a villa, and Co-Ownership for buyers who want a lower entry point, personal usage, and rental upside without operating the asset themselves. Both routes run through the same in-house advisory, legal structuring, transaction execution, and ongoing property management, so clients get one accountable team from sourcing through to year-round operations rather than a chain of separate agents, developers, and managers. The submarket benchmark in this article is built from PARADYSE's own Market & Investment Report 2025 edition and the performance of villas it currently manages across Uluwatu, Canggu, Seminyak-Umalas, Ubud, Sanur, and Seseh/Cemagi. Backed by Iterative.vc and The LAB, PARADYSE built this data model as an operator with capital in the properties, not as a brokerage repeating third-party numbers, in partnership with MYNE, Europe's leading co-ownership platform.

If you want the full submarket-by-submarket breakdown applied to your specific budget and goals, or a walkthrough of how PARADYSE structures Full Ownership and Co-Ownership around this data, get in touch with PARADYSE or visit paradysehomes.com.