How Profitable Are Your Villa Rentals in Canggu?

If you’re thinking about investing in property in Bali, you’ve likely heard that Canggu is one of the best spots to earn strong returns. But how profitable is the Canggu villa rental market? And what can you do to make sure your villa performs well?

This guide will walk you through everything you need to know, from rental income and occupancy rates to pricing strategies and guest experience tips. Let’s dive in!

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The Appeal of Canggu for Villa Rentals

Tourism in Bali has seen quite a rollercoaster ride over the past five years.

Visitor numbers soared in 2019, but things took a nosedive in 2020 when the COVID-19 pandemic hit. The recovery was slow in 2021, but by 2022 and 2023, the numbers were steadily climbing again.

In 2024, the latest stats show an impressive comeback, with tourist arrivals surpassing pre-pandemic levels (as shown in the image below).

canggu villa rental market rates — *Source: All Indonesia Travel – Bali tourism statistic 2019-2024*

This rise is thanks to:

The increasing popularity of Bali as a tourist destination
The increase in work and digital nomadism
The growing demand for unique and authentic travel experiences

That’s why the surge in popularity has directly impacted the demand for short and long-term villa rentals.

Canggu Villa Rental Market Rates

The market for Canggu villa rental is booming. According to recent data, the average villa in Canggu yields a rental return of 8-12% annually, higher than many other regions in Bali.

So, what does it mean for real estate investors?

It’s a solid indicator of Canggu’s growing appeal as an investment hotspot in Bali. Even Canggu’s occupancy rate has consistently stayed above 80%, thanks to the year-round tourist appeal.

average occupancy rate canggu — *Source: Bukit Vista – canggu villas for rent* *opportunity*

Long-Term Investment Outlook

The graph below shows the consistent growth in the supply of rental properties in Bali, with a 19.5% year-over-year increase observed in mid-2024.

*Source: REID – Supply of rental properties*

This steady rise reflects strong demand for villa rentals, especially in high-demand areas like Canggu. For investors, this trend indicates a thriving rental market with the potential for high occupancy rates and increasing revenues.

A report also shows a notable 15% increase in villa availability in the first half 2024.

The demand for 2- and 3-bedroom villas for rent monthly dominates, which aligns with Canggu’s appeal to families, digital nomads, and long-term renters.

This data reinforces the long-term viability of investing in villas, as market trends point to sustained and diversified tenant demand.

long term rental canggu — *Source: REID – Supply data by room (source: REID)*

Together, these graphs confirm that Canggu’s villa rental market offers excellent prospects for long-term profitability, with rising demand ensuring competitive returns for investors.

Now Available: Monthly & Yearly Villa Rentals in Canggu!

Things to Boost Your Canggu Villa Rentals

Now, you know the market and how profitable your Canggu villa could be. Next, there are three things you can do to boost your ROI even more.

1. The Importance Of Marketing

Your villa won’t rent itself. You need to have a strong marketing plan in place to reach potential guests.

This includes listing your villa on popular booking platforms, using social media, and building relationships with local businesses.

If it seems daunting, you can work with a local property agent like Bali Villa Realty, who can help you advertise and manage your villa.

2. The Importance Of Guest Experience

Your guests’ experience will make or break your business. Offering unique amenities is key to standing out in the competitive villa rental market.

Innovative villa owners are incorporating features like eco-friendly designs, home offices, and personalized services.

These additions not only enhance guest experience but also allow for premium pricing.

Additional tips:

Consider working with a local property management company. They can handle the day-to-day operations of your rental business, freeing you up to focus on other things.
Get involved in the local community. This is a great way to market your villa and meet potential guests.
Be patient. It takes time to build a successful villa rental business. Don’t get discouraged if you don’t see results overnight.

3. The Power of Strategic Pricing

How you price your villa can greatly impact your ROI. It’s not just about setting a rate—it’s about staying flexible and adapting to market trends, seasons, and guest demand.

Keep an Eye on the Competition: Check what similar villas are charging. Are they fully booked or struggling with discounts? Use this to adjust your rates and stay competitive.
Offer Deals for Longer Stays: Discounts for weekly or monthly stays attract more bookings and ensure steady income while reducing turnovers.
Stay Updated with Market Trends: Consider local events, tourist seasons, or holidays that could affect demand. Adjust your prices accordingly to maximize bookings and revenue.

Strategic pricing means finding the balance—competitive rates that attract guests while maximizing profits. You can use our ROI simulator to get a rough estimate of your ROI on villa rentals.

Is Canggu Worth the Investment?

Canggu villa rentals can be a profitable business. Between strong tourist demand, high occupancy rates, and year-round rental potential, the Canggu villa rental market offers a compelling investment case.

And it’s essential to research and understand the market before investing.

For more information on maximizing your rental income, check out this 7-minute article on How to Maximize Your Rental Yields in Bali.

Or, if you want to have a personalized investment plan for FREE, book your consultation, no-obligation consultation with our senior advisor below.

Have a quick chat with our real estate experts for personalized advice on your Bali investments. No commitment required.

FAQ

1. Are Villas in Bali Profitable?

Yes, villas in Bali can be very profitable. Popular areas like Canggu, Seminyak, and Uluwatu attract a steady stream of tourists, digital nomads, and long-term renters. That demand can bring in strong rental returns.

2. How Much to Rent a Villa in Bali per Month?

Monthly villa rentals in Bali start at around USD 1,000 and can go up to $6,000 or more, depending on where the villa is, how big it is, and the level of comfort it offers.

3. Where Is the Best Place to Live in Canggu?

It depends on your lifestyle. If you want to be close to cafes, gyms, and international schools, Berawa is a great choice. If you like trendy shops and nightlife, check out Batu Bolong.

Echo Beach is perfect for surfers, and if you prefer a quieter, more peaceful spot with rice field views, Pererenan might be exactly what you’re looking for.

4. Why Are Villas in Bali So Cheap?

At first glance, Bali villas seem surprisingly affordable compared to prices in Australia, Europe, or the U.S. Here’s why:

Labor and materials are cheaper.
Many villas are sold as leasehold (not freehold), which lowers the upfront price.
Foreigners can’t directly own land, which keeps prices from skyrocketing.
If you’re buying with USD, EUR, or AUD, the exchange rate works in your favor.

But cheap doesn’t mean low quality. You can still find well-built villas with amazing value, as long as you check the zoning, permits, and legal setup carefully.