Disclaimer: This article is for informational purposes only, and is not intended to replace consultation with professional advisors. We strongly recommend speaking with a qualified senior property advisor before making any final investment decisions.
Key Takeaways
| Best Bali Cities for Airbnb Investment | Best For | Active Listings | Monthly Revenue | ADR | Occupancy | Key Advantages |
|---|---|---|---|---|---|---|
| Canggu | First-time investors learning the Airbnb business | 3,992 | $1,976 | $216 | 38.3% | Proven tourism demand, established infrastructure, strong expat market, and extensive lifestyle facilities |
| Ubud | Steady rentals and lower-entry, long-term investment | 2,542 | $1,072 | $115 | 37.9% | Bali’s most searched Airbnb destination, land prices 40–60% below coastal areas, and strong demand for longer stays |
| Pecatu, Uluwatu | Five- to ten-year investment and capital growth | 1,662 | $2,512 | $228 | 43.4% | Strong revenue, approximately 40% lower entry prices than Canggu, lower supply, and significant growth potential |
| Seminyak | Premium Airbnb rentals and maximum revenue potential | 1,628 | $2,652 | $283 | 40.4% | Highest monthly revenue and ADR, mature tourism market, premium guests, and walkable access to dining, nightlife, and beach clubs |
Are you considering starting an Airbnb rental? If so, Bali should be on your list. The island is a favorite among travelers and remote workers, making it a great opportunity for investors.
Recent data shows that short-term rentals in Bali have a median occupancy rate of 63%. This puts the island among the top 8% for rental yield in Southeast Asia.
However, Bali is not a one-size-fits-all market. Our research shows that not all cities in Bali perform equally well for Airbnb rentals. Let's take a closer look at the details.
Bali's Airbnb Market by the Numbers
Before we look at each area in detail, here is a snapshot of Bali's current Airbnb market:
As of March 2026, the number of active Airbnb listings in Bali has grown by 27.7% compared to last year. There are now about 38,640 properties available for rent.
With so many listings, the median occupancy rate is about 63%. This is lower than the post-COVID peak of 60-91%, but it still remains much higher than the global average of 33.7%. The market is clearly very competitive.
The large number of listings also shows how quickly Bali’s rental market has matured. A surge of new properties in recent years has lowered median occupancy, which is why location, licensing, and positioning are now more important than just simply buying a villa.
Looking at annual revenue per listing, the median is $21,000 (about IDR 340 million). The average daily rate across the island is $98, while professionally managed villas in top locations can earn up to $226 per night.
Top Areas in Bali for Airbnb Business
Bali’s top Airbnb markets right now are Canggu, Ubud, Seminyak, and Pecatu (Uluwatu). Here’s a look at how they stack up, using the latest AirROI data:
| Area | Active Listings | Revenue/month | ADR (Average Daily Rate) | Occupancy |
| Canggu | 3,992 | $1,976 (IDR 35.7 mil) | $216 (IDR 3.9 mil) | 38.3% |
| Ubud | 2,542 | $1,072 (IDR 19.4 mil) | $115 (IDR 2.1 mil) | 37.9% |
| Pecatu (Uluwatu) | 1,662 | $2,512 (IDR 45.5 mil) | $228 (IDR 4.1 mil) | 43.4% |
| Seminyak | 1,628 | $2,652 (IDR 48 mil) | $283 (IDR 5.1 mil) | 40.4% |
Below is a full breakdown of what makes each area stand out and how they perform:
1. Canggu - Best for First-Time Investors Learning About the Business
Canggu remains Bali's most reliable area for Airbnb, making it the safest choice for most first-time investors.
The reason is simple: Canggu has a strong expat community, attracting everyone from casual travelers and digital nomads to families and people moving for work. The area has plenty of stores, restaurants, beach clubs, bars, medical care, and even international-grade schools.
This is why Canggu has become the most developed short-term rental market in Bali. Plus, a new metro line is being built to connect the airport to Canggu, making it even easier for people to visit.
Because demand is so high, it’s no surprise that many investors start with Canggu. However, this also means there is real competition among rentals. Setting the right price for your villa and having strong marketing are especially important here. It’s also a great place to learn about the business.
- Best for: First-time investors looking for big opportunities and a chance to learn business strategy
- Pros: Lots of travelers visit the area (high rental potential); well-established environment with many attractions
- Cons: High competition among rentals
Read More: Invest in Canggu Real Estate 2026: ROI, Prices and Guide for Buyers
2. Ubud - Most Searched Airbnb Destination in Bali
Ubud is the most searched Airbnb destination in Bali, even more than Canggu, according to Google Trends. It’s also the island’s second-largest market, with 2,542 active listings based on the AirROI report.
Revenue per listing is lower here, at about $1,072 per month, with an average daily rate of $115. However, land prices are 40-60% cheaper than in coastal areas, making Ubud a good choice for investors who want lower entry costs and are thinking long-term.
Areas with rice terrace views, such as Penestanan, Sayan, and Kedewatan, are the most popular in Ubud. Penestanan stands out with a solid 42.5% occupancy rate, even at lower nightly rates, indicating steady demand.
Ubud is also a great fit for digital nomads, thanks to reliable internet and a slower pace that attracts guests who want longer stays instead of just weekend trips.
- Best for: Steady Airbnb rentals
- Cons: Lower daily rates compared to Seminyak or Canggu
- Pros: Second largest market, most searched by guests, and steady occupancy rates
3. Pecatu, Uluwatu - Best for Long-Term Investment
Uluwatu is not tracked as a single market in most data sets. Instead, it’s a group of sub-areas—Pecatu, Ungasan, and the cliff-front strip—each with slightly different performance.
Pecatu generates $2,512 per month in revenue at a 43.4% occupancy rate, which is among the highest on the island. Entry prices are about 40% lower than in Canggu for similar properties.
We think Uluwatu is best for long-term investments, like 5 to 10 years, because the area is still developing its infrastructure and popularity. There are also fewer properties available compared to Canggu or Seminyak, especially in the mid-cliff and second-row areas. Prices have not yet reached the high levels seen on the cliff-front.
If you want less competition in Uluwatu, Ungasan has only 576 active listings. The Bukit Peninsula is also good for land investment, with land appreciation rates of 25-35%, which is much higher than in Bali’s more established coastal areas.
- Best for: Long-term investment
- Pros: Lower property prices and fast growth
- Cons: The area’s infrastructure is still developing
4. Seminyak - Best For Premium Airbnb Rental (Most Mature Market)
Seminyak is the most established Airbnb market in Bali, and the revenue numbers prove it. AirROI data (2026) shows that Seminyak has the highest average monthly revenue per listing in Bali at $2,652, with a nightly rate of $283—the highest on the island. The occupancy rate here is also higher than in Canggu, at 40.4%.
If you have a bigger budget, Seminyak is worth considering. The main tradeoff is the higher entry cost, as villa prices are often higher than in other parts of Bali. This is because Seminyak is known for its premium environment, with high-end dining, nightlife, and facilities.
Many travelers and expats still prefer this area because everything is within walking distance, which keeps demand from short-stay guests high. It’s the closest thing Bali has to a resort town, and guests are happy to pay for that convenience.
- Cons: Higher entry costs and a more saturated market than Canggu.
- Best For: Premium Airbnb investment for maximum return opportunity.
- Pros: Well-established area with a premium market willing to pay higher prices.
Read More: Invest in Seminyak: Insider Look at High Returns & Luxury
Conclusion
There's no single best city for Airbnb investment in Bali, only the one that matches your goals. Canggu remains the safest, most liquid choice for investors seeking proven demand and existing infrastructure. If your goal is for a long-term Airbnb rental, then Ubud is worth considering.
Wherever you land, returns depend just on smart operations. And if Airbnb itself isn't the right fit for your property or strategy, it's worth knowing what alternative platforms exist in Bali too.
Not sure which area fits your investment goals? Get in touch with our team for tailored guidance on where to buy.
FAQ
Yes, though returns vary by location and management quality, with net yields typically ranging from 7 to 12% in 2026.
Since March 31, 2026, Airbnb and Booking.com have enforced mandatory NIB and Sertifikat Standar licensing, with properties in non-tourism zones (residential, agricultural, conservation) no longer eligible to list.
Yes, especially now that stricter licensing enforcement has pushed out non-compliant listings, making the platform more reliable for both guests and legitimate hosts.
Check your property's zoning status, since only tourism zones qualify, while residential, agricultural, and conservation zones are not eligible for short-term rental licenses.
According to Airbtics, destinations such as the US Virgin Islands, the Bahamas, Aruba, and French Polynesia currently generate some of the highest Airbnb revenues. However, Bali offers a stronger balance of rental income, occupancy, and affordable entry costs. It may not rank first by revenue alone, but it remains one of the best-value markets for Airbnb investors.
