Published on and written by Cyril Jarnias
Investing in a villa in Canggu is always a dream: sun, surf, year-round digital nomads and nightly rates on Airbnb that make your head spin. But beyond the sales pitch, how much does a villa really earn in 2026 in this iconic Bali neighborhood? And more importantly, what type of villa, with what rental model, in which specific area of Canggu?
The potential net rental yield for a villa in Canggu, based on consolidated 2025–2026 data.
Where does Canggu stand in the Balinese market in 2026?
Canggu remains one of the epicenters of Balinese real estate. The area is part of the “main corridor” along with Seminyak and Uluwatu, where foreign demand for villas has surged nearly 90% since 2022. The post-Covid market, once in “gold rush” mode, entered a normalization phase by 2026: prices continue to rise, but more selectively, and yields are tightening between good and bad products.
Average residential gross yields in Bali in 2026 are around 8.5% per year, with a range from 5% for poorly located properties to over 15% net for high-end villas in prime locations.
– Villas that are poorly managed or outside desirable areas max out at 3–4% net,
– and products that are well-designed, well-located, well-operated achieve 9–13% net, or even more if purchased off-plan at a discount.
In this landscape, Canggu holds a special place: it is one of the areas that outperforms the Balinese average, driven by a rare mix of classic tourism, digital nomads, and long stays.
A market still in high demand, but more selective
Canggu is described as one of the most supply-constrained markets: well-located land is becoming scarce, especially in central pockets like Batu Bolong, Berawa, or near Echo Beach. Price increases have cooled after the 2023–2024 frenzy, but the trend remains positive, with annual appreciation estimated at around 5–10% in established Canggu/Berawa areas.
The supply of villas with private pools has exploded, especially in the 1 to 4-bedroom categories. In 2026, after a surplus of poorly managed projects in 2025, a shakeout is underway: well-designed villas with proper permits and serious management remain well-booked, while standardized products are experiencing declining occupancy and rates.
The fundamentals of yield in Canggu: gross, net, market
Before zooming in on each villa type, a few key figures help place Canggu in relation to the rest of Bali.
Gross and net yield: orders of magnitude
2026 studies converge on several ranges for villas in prime areas like Canggu:
| Indicator (villas in prime areas) | Typical range 2026 |
|---|---|
| Gross yield (Canggu, Seminyak, Uluwatu) | 8–12% / year |
| Gross yield (Canggu, focus on well-operated villas) | 10–15% / year |
| Gross yield Canggu/Berawa (well-operated cases) | 15–17% / year |
| Net yield Canggu (professional management, prime location) | 9–13% / year |
| Net yield Canggu (average of professionally managed villas) | 7.7–10.5% / year |
| Net yield Canggu & Seminyak (more conservative view) | 6–9% / year |
| Average net Bali all areas, all qualities combined | 5–8% / year |
Across Bali, a 2026 guide puts residential gross profitability at 8.5% on average, but emphasizes the gap between gross and net: in a typical short-term rental scenario, the difference between gross revenue and net revenue after all expenses (management, platforms, maintenance, taxes, maintenance reserve) is often 40–50%. In other words, a villa showing 15–17% gross yield typically ends up at 8–10% net, unless it was purchased very early off-plan.
For well-managed villas in Canggu or Uluwatu, the honest gross yield is 15 to 17%, yielding 8 to 10% net on a turnkey product. Be wary of promises of 15% gross with no breakdown: apply a 50% discount to get a more realistic net yield estimate.
Canggu compared to other Balinese areas
Intra-Bali comparisons help situate Canggu’s risk/return:
| Area / product (2-bedroom villa with pool) | Gross yield 2026 | Net yield 2026 | Indicative purchase price | Average occupancy |
|---|---|---|---|---|
| Ubud, 2-bed villa with pool | 8.1% | 5.8% | IDR 3.1 Billion | 93% |
| Canggu, 2-bed villa with pool | 6.9% | 4.8% | IDR 5.2 Billion | 93% |
| Canggu, 3-bed villa with pool | 5.9% | 4.0% | IDR 8.1 Billion | 91% |
| Canggu, 4-bed villa with pool | 5.1% | 3.2% | IDR 12 Billion | 89% |
| Average Bali villas (all areas) | ~5.8% gross | ~3.8% net | — | — |
These figures come from a database tracking all major Bali neighborhoods. They show two key points:
In 2026, Ubud slightly outperforms Canggu in gross yield for a 2-bedroom product. In Canggu, gross and net yield decrease as property size increases (2, 3, then 4 bedrooms), because purchase prices rise faster than average rental rates.
Nonetheless, Canggu retains a decisive strategic advantage: liquidity (ease of resale) and depth of demand, especially for 2-bedroom villas, which remain the most “fluid” category in terms of both resale and rental.
How much does a villa in Canggu earn based on size?
In 2026, active management data from Canggu clearly distinguishes the behavior of 1, 2, 3, and 4-bedroom villas. This is essential for choosing a product aligned with your investor profile.
1-bedroom villas: good occupancy, lower ticket
1-bedroom villas with private pool rent short-term at rates between 90 and 140 USD per night. For monthly rentals, rates hover around 800 to 1,200 USD.
These smaller products primarily target couples and solo travelers. They perform particularly well outside peak tourist periods, thanks to teleworkers and digital nomads seeking private space at controlled costs. Their annual occupancy rate averages between 64 and 70%, with fairly steady demand during shoulder months.
From a yield perspective, aggregated Bali studies place gross ROI around 9% for this size, with net returns (before tax) around 3.5–4.2% in some more conservative samples. These figures, from portals like Propertia, include villas of very variable quality; the best units, well-managed, can exceed these averages, especially when acquired at a reasonable purchase price.
2-bedroom villas: the best compromise for a first investment
This is the king category in Canggu. 2-bedroom villas with private pool are positioned in 2026 within the following ranges:
– Short-term (Airbnb, Booking): 140–220 USD per night,
– Long-term rental (monthly contract): 1,200–1,800 USD per month.
Our data shows we attract remote-working couples, small families, and groups of friends.
They choose our spaces to combine comfort and remote productivity.
Seek a welcoming and safe environment for their stays.
Prefer a shared experience with suitable amenities.
– an average annual occupancy of 68–76%,
– rising to about 88% during peak months (July–August and Christmas/New Year period).
Local managers almost unanimously agree that this size offers the best liquidity / yield combination for a first investment in Canggu: 2-bedroom villas rent quickly, resell more easily, and remain in demand across all channels (short, medium, long stay).
The specific data is particularly telling:
– one example of a 2-bedroom villa in central Canggu purchased for 220,000 USD generates an annual net income of 17,000 to 23,000 USD after all operating expenses;
– from there, we get a net profitability on purchase price of around 7.7–10.5% per year, which matches the range observed on the professionally managed portfolio in Canggu (7.7–15% depending on exact location, management quality, and pricing strategy).
In terms of inter-neighborhood comparisons, another database shows for a 2-bedroom with pool in Canggu:
– purchase price: IDR 5.2 billion,
– gross yield: 6.9%,
– net yield: 4.8%,
– occupancy: 93%.
This “low view” accounts for more standard properties and higher operating costs. It mainly illustrates that the gap between what a good operator can achieve (9–11% net on a 2-bedroom in Canggu according to some professional portfolios) and what the average market produces (4–7% net) is enormous. Everything comes down to acquisition, location, and management.
Real estate analysis
3-bedroom villas: still solid yields, but more heterogeneous
In the 3-bedroom with pool and outdoor dining area segment, nightly rates in 2026 range between 220 and 380 USD. For long-term rentals, monthly rates typically vary from 1,800 to 2,800 USD, with higher levels for products very close to Echo Beach or Batu Bolong (within 500 meters), or with high-end finishes.
Key figures:
– average annual occupancy: 65–74%,
– net of seasonality, rate increases in high season reach 40–55% above the annual base,
– some Canggu analyses on 3-bedroom villas show a theoretical gross yield of 5.9% and a net of 4% for a purchase price around IDR 8.1 billion, with occupancy of 91%.
Conversely, other case studies, notably a 3-bedroom leasehold purchased for 180,000 USD, show much more attractive figures: 18–22% gross yield and 10–14% net after fees management, OTA commissions, and expenses. These differences are explained by the acquisition cost (a purchase at 180,000 USD for a nice 3-bedroom product is significantly below prices in central Canggu in 2026), but also by the quality of operations and seasonal pricing strategy.
Practically, the 3-bedroom becomes a playground for more experienced investors: well-chosen off-plan or in a submarket like Pererenan, it can still deliver double-digit net yields; poorly bought, at a premium price in a saturated area, it behaves like a product yielding 4–6% net.
4-bedroom villas and larger: yield under pressure, high ticket
4-bedroom villas in Canggu are positioned in the local high-end. Observed rates:
– short-term: 380–650 USD per night,
– long-term: 2,800–4,500 USD per month.
They show a strong concentration of demand in high season:
– 50–60% occupancy between January and March,
– over 90% in July–August,
– with price increases of 40–60% above the annual base that hold without significantly degrading the booking conversion rate.
Despite these impressive nightly rates, the “on-paper” yield figures for Canggu in this segment are noticeably less brilliant:
– average gross yield for a 4-bedroom pool villa in Canggu: 5.1%,
– net yield: 3.2%,
– purchase price: IDR 12 billion,
– occupancy: 89%.
The reason is simple: the entry ticket has risen faster than nightly rates, and competition in the large group villa niche is intense. The result: even if some submarkets like Pererenan still allow higher net yields (up to 9.3–15% thanks to purchase prices 20–30% lower than in central Canggu for comparable rental rates), the 4-bedroom segment overall performs less well in percentage yield than 2-bedroom villas.
Short-term vs long-term rental: which model earns more in Canggu?
In Canggu, daily rentals via Airbnb and Booking dominate investors’ imagination. Yet 2025–2026 data shows that the net yield gap between short-term rental and monthly rental is often narrower than imagined.
What the income figures say
For a 2–3 bedroom in Canggu or Seminyak, studies show:
| Rental model (2–3 bedroom Canggu/Seminyak) | Typical annual gross revenue | Typical annual net revenue |
|---|---|---|
| Short-term (Airbnb, Booking, direct) | ~20,000–26,000 USD | ~12,000–18,000 USD |
| Monthly long-term rental | 12,000–18,000 USD | Slightly lower but close |
On paper, short-term generates 20–40% more gross. But once you factor in:
– management (15–20% of gross revenue),
– OTA commissions (Airbnb, Booking… often 15–18%),
– housekeeping costs at each turnover,
– more frequent maintenance,
– specific taxes (hotel tax, income tax on gross revenue),
The net from short-term rental is only 10 to 15% higher than long-term for mid-range villas.
However, for 3-bedroom and larger villas, very well-located and actively managed, short-term rental retains a clearer advantage: data indicates that in Canggu, well-operated 3+ bedroom villas in short-term earn about 15–25% more net than if rented monthly, thanks to peak season rate spikes.
Why long-term remains competitive
Long-term rental (minimum 6 months or one year) offers three major advantages:
Less management intensity (check-in/out, emergency maintenance, reduced marketing), more predictable income with little seasonality despite rents renegotiated at each contract, and lighter compliance costs as tourist rentals involve heavier reporting obligations (specific permits, hotel taxes).
In Canggu, typical monthly rents in 2026 are:
| Canggu villa type (monthly rental) | Current monthly rent 2026 |
|---|---|
| 1-bedroom private pool | 800–1,200 USD |
| 2-bedroom private pool | 1,200–1,800 USD |
| 3-bedroom private pool | 1,800–2,800 USD |
| 2–3 bedroom (annual contracts, expats) | 1,500–4,000 USD |
For an investor profile prioritizing simplicity and stability over maximum yield, this model can make sense, especially since expat, family, and remote worker demand for this format remains solid in the “ring” of Canggu–Pererenan–Umalas–Sanur–Ubud.
The impact of seasonality: how a villa earns its year in Canggu
A key particularity of Canggu is its strong seasonality in short-term rentals, even though the market now operates almost year-round thanks to digital nomads. Understanding this seasonality is crucial for estimating a credible yield.
Three seasons, two major peaks
The rental calendar in Canggu breaks down into three main phases:
– a summer peak, July–August, fueled by European and Australian school holidays,
– a mini-peak in late December–early January (around Dec 20 to Jan 5),
– shoulder and low seasons in between.
For professionally managed 2–4 bedroom villas in Canggu, observed figures for 2025–2026 are as follows:
| Period in Canggu (2–4 bed professionally managed) | Typical occupancy rate | Price level vs. base | Role in annual revenue |
|---|---|---|---|
| Main high season (Jul–Aug) | 88–96% | +40–60% | Core of revenue |
| Second peak (Dec 20–Jan 8) | 85–93% | +40–65% | Highest rates |
| Shoulder seasons (May–Jun, Sep–Oct) | 65–82% | Around base | Underestimated revenue |
| Low season (Feb–Mar, Nov) | 35–62% | −25–35% | Toughest period |
Data from one operator on a typical 3-bedroom villa shows a case study:
Key indicators (ADR, occupancy, gross revenue) by season
July, August, December (~75 days): Average ADR 380 USD, 92% occupancy, about 26,100 USD gross.
January, February, March, November (~120 days): ADR 270 USD, 68% occupancy, about 22,000 USD gross.
April to June, September, October (~170 days): ADR 215 USD, 54% occupancy, about 19,700 USD gross.
Total annual gross: approximately 67,800 USD. Total costs (management, operations, maintenance, platforms, taxes): approximately 46,800 USD. Net: 21,000 USD, i.e., between 3.5 and 5.3% net on a property valued at 400–600k USD.
This last figure may be surprising, as it is well below the 8–10% net announced elsewhere: it illustrates a case of acquisition at a very high price (400–600k) in a market where the same types of villas could have been secured at 180–250k USD a few years earlier. That’s the key: in 2026, net yield depends as much on the price paid as on rental performance.
Canggu, a market that remains very busy
Despite increased competition, occupancy data remains impressive:
The average nightly rate in Canggu is around 185 USD in 2025, with an annual occupancy rate of 78%.
The market is far from “dead” as some alarmist rhetoric suggests: even in a normalization phase, Canggu operates close to 80% occupancy on well-operated products, with peaks in the 90–95% range during peak season.
The Pererenan case: the best yield lever in Canggu?
Pererenan, just northwest of Canggu, has become in 2026 a natural extension of the market. Investors find an interesting compromise: entry prices 20–30% lower than in core Canggu, for rental rates that remain close.
This is particularly visible in the 4-bedroom segment, where studies highlight:
4-bedroom villas in Pererenan deliver net yields between 9.3 and 15%, thanks to the acquisition price differential and sustained rental demand.
In a Canggu/Berawa market described as “critical saturation” for some segments (generic 1–4 bedroom highly competitive), Pererenan offers breathing room for those targeting higher net yield over a 5–10 year horizon, provided they select projects with complete permits and proven management.
From marketing promise to net yield: where does the 40–50% gap between gross and net go?
One of the big mistakes beginner investors make in Canggu is only looking at gross, often taken at face value from marketing brochures. Yet the cost mechanics are heavy and very standardized in practice.
Typical cost breakdown for a short-term rental villa
Audits of villas generating 20,000 USD in annual gross show a typical cost structure:
| Cost item on 20,000 USD gross revenue | Estimated range 2026 | Share of gross revenue |
|---|---|---|
| OTA commissions (Airbnb, Booking…) | ~15% | 3,000 USD |
| Management fees (property management agency) | 15–20% | 3,000–4,000 USD |
| Compliance (permits, accounting, taxes) | 8–12% | 1,600–2,400 USD |
| Operating costs (staff, utilities…) | 25–35% | 5,000–7,000 USD |
| Total operating costs | 63–90% of gross | 12,600–18,000 |
The result is clear: after all expenses, net income before tax generally falls to 10–37% of gross, depending on management quality and cost discipline. For mid-range villas, net often settles at 25–35% of gross, bringing a 15–17% gross yield down to 8–10% net.
That’s why serious 2026 guides insist
Serious 2026 guides
– gross yields 8–15% are achievable in Canggu,
– but net rents after everything (management, maintenance, taxes) land more at 7–13% for well-managed properties,
– the overall average, including poorly located or managed villas, is more like 5–8% net,
– investors who master these variables can realistically target 10–13% net; those who blindly trust commercial figures often end up with 3–4% net.
Independent management vs professional management?
Comparative 2026 data is fairly clear:
Net yield for villas integrated into a professional structure with real pricing control and occupancy optimization based on advantageous acquisition
The reason largely lies in the ability of professional managers to:
– maintain higher occupancy rates (70–80% vs 50–60% for non-optimized listings),
– push ADR during high-demand windows,
– minimize voids in low season through monthly rental strategies and targeted promotions.
In Canggu, professionally managed portfolios show annual occupancies of 71–78%, while the average for all listings regardless of quality plateaus at 55–65% across Bali. In the Pererenan submarket alone, a portfolio of 2-bedroom villas even shows 86% occupancy, against a market average of 61%.
What can a realistic investor aim for in Canggu in 2026?
Based on all this data, we can draw up a pragmatic framework for an investor targeting a villa in Canggu.
Realistic yield scenarios
The 2026 summaries describe several typical scenarios, applicable to Canggu:
| Investment scenario in Canggu | Asset and management profile | Realistic net yield |
|---|---|---|
| Conservative | Long-term or mixed rental, good location, stable management | 8–10% / year |
| Balanced | Short-term rental, professional management, sought-after area, active marketing | 10–15% / year |
| Aggressive | Off-plan discounted purchase, high-growth area, premium positioning | 15%+ net possible |
In practice, the meaningful ranges observed in Canggu in 2026 are:
– 7–10% net for a product bought at market price in core Canggu, well managed,
– 9–11% net for a 2-bedroom bought opportunistically (off-plan, Pererenan, good design) and actively operated,
– 3–6% net for an overpriced or poorly managed property, despite initial promises of 12–15% gross.
The potential total annual return for investors in Bali combines a net rental yield of 8 to 12% and a capital gain of 5 to 10%, over a 5 to 10 year period.
What a typical villa in Canggu actually earns
Some orders of magnitude from real cases give an idea:
| Example villa in Canggu | Purchase price | Estimated annual gross revenue | Estimated annual net revenue | Net yield (approx.) |
|---|---|---|---|---|
| 2-bed central, professional management | 220,000 USD | 25,000–30,000 USD | 17,000–23,000 USD | 7.7–10.5% |
| 3-bed leasehold opportunistic | 180,000 USD | 32,000–40,000 USD (18–22% gross) | 18,000–25,000 USD (10–14% net) | 10–14% |
| 2–3 bed standard Canggu/Seminyak | 200,000–300,000 USD | 20,000–26,000 USD | 12,000–18,000 USD | 6–9% |
| 4-bed core Canggu bought expensive | 12 Billion IDR (~750k USD) | 5.1% gross on price | 3.2% net | 3–4% |
In practice, most well-positioned 2–3 bedroom villas in Bali produce between 1,500 and 4,000 USD net per month after all expenses, i.e., 18,000–48,000 USD net per year, depending on purchase price, quality level, and management. Achieving 6,000–8,000 USD net per month requires either significant capital (multiple villas or an ultra-premium product) or exceptional performance.
Specific risks in Canggu in 2026
Even though Canggu remains one of Bali’s strongest markets, several risks must be factored into the yield calculation.
Over-supply and increased competition
The main risk identified for 2–4 bedroom villas in Canggu in 2026 is the rise of generic supply:
– an increase in the stock of standardized villas, often delivered in 2024–2025,
– head-to-head competition in the same price segments,
– high customer sensitivity to rate variations in certain micro-areas (Canggu & Pererenan are described as in “critical saturation” for the classic 1–4 bedroom segment).
Databases also indicate that:
Well-managed properties in Canggu maintain 70 to 80% occupancy during shoulder season, compared to 45 to 60% for mediocre properties.
Infrastructure and traffic
The second key risk identified for Canggu is road congestion. Market reports explicitly mention “traffic” as a structuring risk for 2-bedroom villas targeting teleworkers and startup founders: as access to the beach, cafés, and coworking spaces becomes more difficult, guests turn to slightly quieter but still well-connected alternatives like Pererenan, Seseh, or even Kedungu.
New planned infrastructure, such as north–south road links and the future metro connecting the airport to Kuta, Seminyak, and the west coast, is likely to transform the value of micro-locations over the next ten years.
Regulatory and tax risk
The final point investors often neglect: regulatory complexity. In 2026, there is a real “premium on legality“:
– properties with clear zoning, complete permits (PBG, SLF), tourist rental licenses, and proven tax compliance sell and rent for more,
– conversely, properties in agricultural zones or “grey zones” suffer discounts and are difficult to resell.
On the tax front, the gross rental flow is subject to a pile-up of taxes (local hotel tax around 10%, income tax on rent, annual PBB, local contributions…) which, if poorly anticipated, heavily erode net profitability. 2026 guides recommend assuming that 25–35% of gross rental income will go to direct and indirect taxes for a foreign owner.
Key takeaways before buying a villa in Canggu
In 2026, buying a villa in Canggu is no longer an easy speculation, but a real business project. For an investor who accepts this logic, the potential remains among the most attractive in Southeast Asia.
Cross-referencing the many market data points, several conclusions emerge for estimating “how much does a villa in Canggu earn”:
A well-located, well-designed, professionally managed 2-bedroom villa can generate a net yield of 7 to 11% on a market-aligned purchase price.
In summary, a villa in Canggu can still “earn very well” in 2026, but only for an investor who looks at the numbers down to the net, understands seasonality, carefully chooses their micro-location, and relies on truly professional management. For others, Bali remains a paradise… especially for travelers.
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Cyril Jarnias is an independent expert in international wealth management with over 20 years of experience. As an expatriate himself, he is dedicated to helping individuals and business leaders build, protect, and pass on their wealth with complete peace of mind.
On his website, cyriljarnias.com, he shares his expertise on international real estate, offshore company formation, and expatriation.
Thanks to his expertise, he offers sound advice to optimize his clients' wealth management. Cyril Jarnias is also recognized for his appearances in many prestigious media outlets such as BFM Business, les Français de l’étranger, Le Figaro, Les Echos, and Mieux vivre votre argent, where he shares his knowledge and know-how in wealth management.
