Disclaimer: This article is for informational purposes only; data and figures may change due to market conditions. We recommend speaking with a senior advisor before making any final decisions.
Key Takeaways
| Best Areas to Invest in Bali (2026) | Best For | Occupancy Rate | Annual Yield |
|---|---|---|---|
| Uluwatu | Luxury villas & surf tourism | 83%+ (top villas 90%+) | 8%–15% |
| Pererenan | Balanced lifestyle & steady growth | 54%–84.5% | ~10% (up to 20%) |
| Canggu | Digital nomads & commercial assets | 60%–70% (top villas 85%+) | 8%–12% |
| Seseh | Affordable growth potential | 75%–90% | 12%–15% |
| Ubud | Culture & wellness retreats | 50%–60% | 8%–12% |
| North Bali (Lovina) | Long-term land investment | 50%–70% | 8%–15% |
| Kedungu | Quiet coastal living | 70%–85% | 7%–10% |
Investment trends in Bali are shifting in 2026. Emerging locations are gaining momentum, established hotspots are maturing, and investors are becoming more selective about where they put their money.
Understanding which areas match your goals can make a real difference in maximizing rental income.
That’s why this guide breaks down the best areas to invest in Bali in 2026—covering occupancy rates, annual yields, and the key factors that separate today’s high-performing locations from the rest
Knowing which locations are the most profitable and in demand can help you and long-term value.
1. Uluwatu – Best for Luxury Villas and World-Class Surf
Uluwatu stands out as the top location for Bali property investment in 2026. The area has grown rapidly since last year, driven by strong demand for quieter destinations with beautiful beaches and luxury properties.
Known as a surfer’s paradise, Uluwatu is home to some of Bali’s most iconic beaches with strong waves and white sand. Popular spots include Nyang Nyang Beach, Padang Padang Beach, and Suluban Beach, all well-known among surfing enthusiasts.
Occupancy rate in Uluwatu: Over 83% (top-performing villas can exceed 90%)
Annual yield in Uluwatu: 8%–15%
Special features of Uluwatu:
- Located just a short drive from Ngurah Rai International Airport, making it easy and convenient for travelers.
- Dramatic cliff landscapes offering some of the best ocean and sunset views in Bali.
- A strong concentration of luxury villas and high-end tourism developments, close to world-class resorts such as Four Seasons and Bulgari.
- Home to Uluwatu Temple, one of Bali’s most iconic landmarks, along with cultural attractions like the Kecak Fire Dance performed at sunset with an ocean backdrop.
- A rare combination of cultural depth and surf-friendly beaches that attracts a steady flow of tourists and supports strong rental demand.
Things to consider: Infrastructure in Uluwatu is still developing. Some roads remain narrow natural stone paths that are difficult for cars to pass, and internet connectivity can be unstable in more remote areas near beaches or cliffs.
Browse Top Uluwatu Villas for Sale
Read More: Bali Property Market 2026 Outlook: A Shift Toward Realistic Investment
2. Pererenan – Best for Balanced Lifestyle
Pererenan is located just north of Canggu, positioned between busy urban areas and peaceful countryside. It combines relaxed village living with modern amenities, making it one of Bali’s most attractive emerging locations for property buyers who want both tranquillity and accessibility.
Occupancy rate in Pererenan: 54% - 84,5%
Annual yield in Pererenan: 10% (top-performing villas can reach up to 20%)
Special features of Pererenan:
- Pererenan Beach is popular among surfers of all levels and is also well known for sunset views.
- The area has a growing selection of cafes, co-working spaces, and wellness venues while remaining quieter than central Canggu.
- Rice fields, local culture, and community life remain strong, while modern comforts continue to develop.
Things to consider: Although facilities are improving, some services are still catching up compared to fully established tourism hubs.
Browse Top Pererenan Villas for Sale
3. Canggu – Best for Digital Nomads and Commercial Opportunities
Canggu has long been one of Bali’s top areas for real estate investment, tourism, and trend-driven businesses. However, by 2026, market demand has started to shift.
Canggu still offers a wide range of cafes, restaurants, and beach clubs. It remains popular among digital nomads and trendsetters, but many foreigners now view the area as overcrowded and overrated, leading some demand to move elsewhere.
That said, Canggu continues to provide strong opportunities across various business investments, including accommodation rentals, restaurants, cafes, entertainment venues, and service-based businesses.
Occupancy rate in Canggu: 60%–70% (top-performing villas can exceed 85%)
Annual yield in Canggu: 8%–12%. Learn a detailed breakdown of Canggu investment profits so you know what to expect.
Special features of Canggu:
- Well-known surf and sunset beaches such as Echo Beach, Batu Bolong Beach, and Berawa Beach, popular with solo travelers and families.
- A unique mix of diverse dining options alongside rice field views.
- High concentration of co-working spaces, strong internet connectivity, and services tailored to remote workers.
- Major lifestyle attractions including beach clubs, entertainment venues, and a large upcoming mall project scheduled to open in 2028.
Things to consider: Traffic congestion can be heavy during peak hours, although the area remains easy to navigate by motorbike.
Browse Top Canggu Villas for Sale
Read More: Invest in Canggu: Here’s What You MUST Know Before Buying
4. Seseh – Best for Affordable Growth Potential
If you want to stay close to Canggu while keeping prices more affordable, Seseh is a strong option.
Often described as a hidden gem, Seseh offers a quiet and relaxed environment surrounded by nature. It appeals to buyers who want to enjoy Bali’s beauty without heavy crowds.
Finding affordable land for sale or building villas with beachfront views is still more achievable here, as development remains limited.
Occupancy rate in Seseh: 75%–90%
Annual ROI in Seseh: 12%–15%
Special features of Seseh:
- A growing number of wellness-focused resorts with yoga shalas, spa services, and direct beach access.
- Quiet black-sand beaches with sunset views and minimal crowds.
- Several standout dining spots offering refined restaurant experiences.
- Secluded luxury boutique villas and private accommodations.
- Located just 15–20 minutes from central Canggu.
Things to consider: Ocean waves can be strong and are not ideal for swimming or children. Infrastructure and amenities are still limited but expected to improve over time. Investors must also be careful to avoid green-zone land restrictions.
Browse Top Seseh Villas for Sale
5. Ubud – Best for Culture, Nature and Wellness Retreats
Ubud is widely recognized as the cultural heart of Bali. Surrounded by landmarks such as the Sacred Monkey Forest, Tegalalang Rice Terraces, and ancient temples, it offers a deeply immersive cultural experience.
For foreign investors, Ubud presents strong opportunities in nature-based and wellness-focused travel. Demand remains high for peaceful stays close to culture and nature, supporting consistent rental income.
Occupancy rate in Ubud: 50%–60%
Annual yield in Ubud: 8%–12%
Special features of Ubud:
- A major cultural and spiritual center with art markets, museums, handicrafts, jewelry, statues, and traditional Balinese dance performances.
- One of Bali’s top wellness destinations, with premium yoga studios, spas, meditation centers, and traditional healing practices.
- Scenic jungle and rice field views with calm surroundings.
- A steady year-round flow of tourists.
Things to consider: Roads are narrow and traffic congestion is common, especially during peak hours.
Browse Top Ubud Villas for Sale
6. North Bali – Best for Long-Term Land & Early-Market Investors
North Bali includes areas such as Lovina, Singaraja, and surrounding villages. Unlike South Bali hotspots, this region is known for its natural landscapes, cultural villages, and slower pace of life.
Tourism in North Bali is supported by black-sand beaches, dolphin watching in Lovina, waterfalls, and peaceful rice fields. The region is drawing more attention and new investment opportunities due to the planned North Bali International Airport, which could significantly boost tourism and property demand in the future.
Occupancy rate in North Bali (Lovina): 50%-70%
Annual yield in North Bali (Lovina): 8%-15%
Special features of North Bali:
- More affordable property prices compared to South Bali.
- Diverse tourism attractions, including nature, culture, and seaside towns.
- Less traffic and a more authentic Balinese village atmosphere.
Things to consider:
Infrastructure and luxury hospitality are still limited, and some areas remain rural. Rental demand may take longer to develop compared to southern Bali.
Browse Top North Bali Villas for Sale
7. Kedungu – Best for Quiet Coastal Living Near Canggu
Another promising location for foreign property investment in Bali is Kedungu.
Kedungu is a coastal village located just north of Canggu, known for its peaceful beaches, rice fields, and relaxed atmosphere.
It offers a slower lifestyle than Canggu while remaining close enough to access popular amenities, making it attractive for second homes or long-term living near the surf without heavy crowds.
Occupancy rate in Kedungu: 70%-85%
Annual yield in Kedungu: 7%-10%
Special features of Kedungu:
- Kedungu Beach features black sand and gentle waves suitable for beginner and intermediate surfers.
- Strong authentic Bali lifestyle with strong local community, open rice paddies, local warungs, and simple wellness spaces in many spots
- Close enough for convenience, yet far enough to avoid congestion.
Things to consider: High-end infrastructure and luxury services are still limited.
Browse Top Kedungu Villas for Sale
Key Factors That Determine Profitable Areas in Bali
Despite being ranked the No. 1 travel destination in the world for 2026 by TripAdvisor, not all areas in Bali are profitable for property investment. A profitable vacation rental depends on several key factors, including:
- Its proximity to popular tourist attractions, beaches, and amenities.
- The level of development and infrastructure.
- The area's exclusivity and demand for rentals from tourists and expatriates.
- A unique charm, cultural significance, or exceptional natural view.
On average, property investments in Bali offer returns (ROI) of around 7% to 12% annually. Villas in prime tourist areas often perform even better, generating up to 15%. In exclusive zones, returns can reach as high as 20%.
Conclusion
These are the best areas to invest in Bali in 2026. Uluwatu currently leads the market, followed by Pererenan, with Canggu remaining a strong option for established demand and commercial opportunities.
As shown above, many emerging areas are now attracting increased attention from both investors and travelers. Investing at this stage offers a key advantage: property prices in these locations are still relatively affordable, while long-term growth potential remains high.
Not sure which area best matches your goals? Our senior advisors at Bali Villa Realty are here to help you invest smartly, from planning to execution. Simply start with a free consultation, available anytime at your convenience
FAQ
Yes. Smaller villas in Bali typically generate rental yields of 8–10% and also show consistent value appreciation. Popular areas such as Canggu and Uluwatu often achieve occupancy rates of about 85%.
On average, annual ROI in Bali ranges from 10–15%. In some cases, returns can reach up to 25% (though these figures are on the optimistic side). Rental income yields generally fall between 5–10% per year.
Vacation rentals and property management are among the most profitable businesses in Bali, thanks to strong tourism and high demand for short-term villa rentals.
