The Myth of ROI in Bali: What They’re Not Telling You
In Bali’s fast-paced property market, "15% ROI" and "fully booked all year" have become standard sales phrases. But how much of it is true, and how much is marketing fluff?
The Problem: Inflated Numbers, Misleading Promises
Many developers and agents advertise villas with guaranteed returns, high occupancy, or unrealistic nightly rates. But in reality:
The advertised ROI often doesn’t include operational costs, maintenance, property management fees, or void periods.
The occupancy rates are based on peak season only or short-term promotions, not sustainable year-round income.
The numbers may come from comparable properties, not the actual one being sold — or worse, they’re entirely speculative.
What’s Really Happening in Bali’s Rental Market?
Bali remains a high-demand destination, but:
The competition is fierce, with hundreds of new villas listed every month.
Only well-located, well-managed, and well-designed villas perform consistently.
Algorithms and guest behavior on platforms like Airbnb are constantly shifting.
Guests are getting more selective: they want quality, service, and design — not just a place to sleep.
In short, not every villa makes money,and those that do, work for it.
What You Should Ask Before Buying
If you're being sold a villa with an "8-15% ROI," ask:
Is this ROI net or gross?
What expenses are included (or excluded)?
Is there real rental history, or just projections?
Who manages the villa? With what track record?
How is the pricing strategy set? How are bookings secured?
Transparency Is Power
At Payot Property, we don’t promise magic numbers. We offer real projections, based on actual performance, local insight, and a full breakdown of costs. We want you to invest smart, and stay profitable in the long run.
