Returns on Bali real estate: what is realistic

Per region

Uluwatu and Bingin: average market returns after costs between 10 and 14 percent, driven by the scarcity of cliff-front land. Canggu and Berawa: between 8 and 11 percent in a mature market with predictable occupancy. Pererenan and Tabanan: emerging areas with 8 to 10 percent expected annual price growth up to 2028. Ubud: between 7 and 10 percent, with a wellness audience and longer stays.

Where our figure comes from

We steer on sharper location choices, economies of scale on larger projects such as Nova Ocean Resort, and the choice of an international operator (MĀUA by Swiss-Belhotel) on that flagship project, which structurally raises ADR and occupancy.

Before you commit, we set out in writing for each project which position within our 12 to 17 percent range is realistic. Each quarter we report what the rental income actually leaves after costs, and what the value increase adds on top.

What gets deducted

We work with one all-in management fee of 32 percent of the rental income. That fee covers management and operations, utilities, insurance, staff, major maintenance and periodic refurbishment to keep the units on trend. There are no separate property management costs on top of it. Only booking costs from platforms such as Booking or Airbnb are passed on separately and transparently at cost. Alongside that you pay an HOA fee of 175 euros per month.

What remains after those two items is your rental return after costs, expressed as a percentage of your investment: 9 to 13 percent. On top of that comes the expected value increase of 3 percent per year, worth around 3.4 percent of your investment, which brings the expected total return to 12 to 17 percent. In the scenario calculations per unit that total works out at around 13 percent at 70 percent occupancy, around 15 percent at 80 percent and around 16 percent at 90 percent occupancy. The part that comes from the value increase is not paid out monthly; it is only realised when you sell. The Indonesian PB1 tax of 10 percent on hospitality revenue is already deducted in the nightly rates these figures are based on, so it does not come off again.

Leasehold extension falls outside the 32 percent: 6,000 euros for an apartment or the Golf View Private Pool (each extension 5 percent higher), 7,200 euros for a studio and 14,400 euros for a suite or two-bedroom apartment, every five years and only from year 5 through year 50. Your investment is 80 percent of the purchase price, with the remaining 20 percent paid interest-free out of the rental income. At Nova Ocean Resort a rental return guarantee of 8 percent applies for the first two years; that guarantee is limited to that project and to those first two years, and it does not apply to our other projects. The payback period on your investment sits between 8 and 10 years. That period is calculated on the rental income after costs and not on the value increase, compared with the 20 to 25 years that is usual for a rental property in the Netherlands.

This explanation is indicative. The 10 percent tax step depends on your personal situation and fiscal structure; we are happy to calculate what you actually keep. Past returns are no guarantee of future results.