Ilot Property Bali (ROI)

The Bali Real Estate Market currently stands as a dynamic and potentially lucrative financial option
for the fiscal year. Notably, recent years have witnessed an exceptional upswing in property values,
reflecting substantial growth.
TABLE OF CONTENTS
1. Bali Real 2. Introduction 3. ROI 4. Factors Influencing 5. Location

Estate Market to ROI Calculation ROI
6. Case Study 7. Strategy to 8. Bali Real Estate 9. Conclusion 10. Who We Are
Maximize ROI Average ROI
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BALI REAL ESTATE MARKET
The Bali Real Estate Market is highly dynamic and holds the potential to be the most rewarding financial choice you can make this year. In
recent years, Bali's property market has undergone an extraordinary upswing, showcasing remarkable growth.
The island is renowned for its exceptional quality of life and has been named the Best Island in the world for 12 years in a row and is still a top
travel destination.
There is no off-season in Bali, which makes it unique and attractive and people from all over the world are traveling to Bali all year long.
An estimated 5.3 million foreign tourists will visit Bali in 2024 and this number is expected to double by next year. In addition to its diversified
international tourism, Bali can also rely on important domestic tourism from a country with 280 million people.
According to the Investment Coordinating Council, investment in
Bali’s real estate has grown by 28.5% in the past 2 years. Many local
and international investors are choosing Bali for their property
investments because of its high return on investment, aligned with
the steady growth in tourism, affordable land price, and low
overhead cost.
Bali has firmly established itself as a leading global hub for property
investments, boasting impressive annual returns ranging from 13% to
18% and, at times, even surpassing these figures, contingent on
choosing the proper investment approach. In addition, lands and
villas value has grown by 10% yearly and even more in certain areas.
Countless investors from all around the world want to invest in Bali,
not only due to its impressive return on investment but also because
it’s cost-effective.
Due to the constant demand of places to stay, investing in rental

properties in Bali is highly profitable.
WANT TO KNOW MORE?

INTRODUCTION
TO ROI
When it comes to Real Estate Investment one of the most important
factors is the Return On Investment or ROI.
Return on Investment (ROI) in real estate is a key metric that measures

the profitability of an investment property. Calculating ROI is essential
for real estate investors to evaluate the performance of their
investments and make informed decisions.
Investing in real estate can be a lucrative venture, but success

depends on understanding how to maximize ROI.
To define your investment goals, you need to clearly outline your financial objectives, risk tolerance, and time horizon. Determine if you're
looking for short-term gains through property flipping or long-term stability with rental income. Your goals will shape your investment
strategy.
We have designed this guide to provide valuable insights and strategies to help investors make informed decisions and optimize their ROI in
the dynamic Bali real estate market.
ROI CALCULATION
Investors may focus on either short-term or long-term ROI, depending on their investment strategy. Short-term investors might aim for quick
returns through short-term rental and property flipping, while long-term investors seek sustained appreciation and long-term rental income.
Most of Bali real estate investors use Cash-on-Cash to

calculate their ROI:
The property is purchased entirely with cash.

The revenue is based on short-term rental (daily rental)
profitability minus the operating Cost.
The resale value.
If you’re looking to earn rental income through your investment

property, there will be a few additional steps to determine the
property’s ROI.
This starts with estimating your annual rental income, which is

frequently accomplished by searching for similar rental
properties in the area. During this step, look for the average
daily rent for the type of property and multiply that rent by the
occupancy rate to determine the potential annual rental
income.
Once you know the annual potential rental income, you can use it to estimate your net operating income. The net operating income of a rental
property is equal to the annual rental income minus the annual operating expenses – such as maintenance, insurance, property taxes. Now that
you’ve subtracted your operating costs from your potential rental income, you have your potential net operating income and you’re ready to
calculate the ROI
ROI CALCULATION
To calculate the ROI, you will need the following metrics:
Rental Income: The yearly rental income is calculated by multiplying the Daily Rental Price by the Occupancy Rate.
Operating Expenses: All costs such as property management fees, property taxes, insurance, maintenance, and utilities.
Investment Cost: Property Purchase price.
Net Income: Calculate the property's net income by subtracting operating expenses from rental income.
ROI Formula:
Rental Income – Operating Expenses

ROI = _______________________________________________________ X 100
Investment Cost
FACTORS
INFLUENCING ROI
Several factors have an impact on the ROI, and they should be considered
carefully to maximize your investment.
Strategy
Purchase Price
Location / Zoning
Rental rate
Operation Cost
Vacancy
Property Management
Property Type
Materials Market Trend
Value-Add Strategies
Strategy:
Your real estate investment strategy is relevant. Each type of strategy has a specific return structure, and returns will vary accordingly. The Bali
popular strategies include short-term rental and flipping.
Purchase Price:
Purchase price obviously has a significant impact on ROI. It’s important to pay the right price for the property based on the location, the income
potential, and the minimization of operation and maintenance costs.
Location:
Location is paramount in real estate. To maximize your ROI with a short-term rental, the property must be located in a high-demand area, close
to the beach, restaurants, and attractions, and in the proper zoning allowing daily rental.
Rental Rates:
Rental rates drive top-line income for a property. It’s very important to price your property correctly to be competitive and maximize
occupancy. Any change in rental rates, up or down, will have a material impact on ROI.
Operating Expenses:
On the expense side of the equation, the amount of operating expenses has a major impact on ROI. Properties that have high expense levels
will produce less ROI than ones that are run very efficiently.
Vacancy:
The occupancy level of the property also has an impact on ROI because it also
drives rental income. The location, the type of property, and the rental rates will
significantly affect the vacancy rate.
Property Management:
Efficient management can reduce operating costs and vacancy rates. It’s
important to use an experienced Villa Management company with proper
knowledge of the market.
Type of Property:
The type of property can impact profitability and vacancy rate. To maximize the
revenue potential, your property will need to be in adequation with the market
demand, such as building design, material quality, and number of bedrooms.
Materials:
The quality of the materials used to build your property will have a significant impact on attracting clients and reducing short- and long-term
maintenance costs.
Market Trends:
Supply and Demand Dynamics: Understand how market trends affect rental rates and property values. Assess the property's historical and
potential future value to determine the appreciation potential.
Value-Add Strategies:
Identify different opportunities for improvements that can increase property value and resale potential.
BALI LOCATIONS:
Numerous areas in Bali offer exceptional returns on investment. Proximity to popular attractions, Beach, Golf Courses, Beach Clubs,
Restaurants, and Shopping areas typically draws a higher number of tourists, making these areas ideal for holiday rentals. We recommend
the following locations in Bali:
Canggu Umalas Berawa Pererenan
Seseh Nusa Dua Uluwatu

Pink Zone:
Designated for tourism land where accommodations like hotels, resorts,
and villas are built near tourist spots. This zoning allows you to obtain a
Pondok Wisata and rent your villa daily.
Yellow Zone:
Designated as the Residential Zone, individuals are allowed to construct
various types of properties including houses, villas, boarding houses (kost-
kostan), offices, and shops.
Unlock the secrets of Bali land zoning

with our exclusive guide – download now!
TALK TO A PROPERTY
ADVISOR
CASE STUDY DATA
To help you comprehend Bali real estate ROI we have compiled data for several
locations and property types.
Location:
CANGGU
Photo source Cassie Gallegos
Zoning Pink
Bedrooms 2
Purchased Price 260,000 USD
Average Rental Price / Night 210 USD
Average Occupancy Rate 75%
Gross Revenue / Year 56,700 USD
Cost / Year 22,370 USD

(Marketing/Management Fee, Operation Cost, Maintenance)
Net Revenue / Year 34,331 USD

(Before Revenue Tax)
Net ROI / Year 13.20%
Amortization 7.57 Years

Zoning Pink
Bedrooms 3



Zoning Pink
Bedrooms 4



Zoning Pink
Bedrooms 5



Zoning Pink
Bedrooms 6



CASE STUDY DATA
Location:
SEMINYAK
Zoning Pink
Bedrooms 2



Zoning Pink
Bedrooms 3



Zoning Pink
Bedrooms 4



Zoning Pink
Bedrooms 5



Zoning Pink
Bedrooms 6



CASE STUDY DATA
Location:
ULUWATU
Zoning Pink
Bedrooms 2



Zoning Pink
Bedrooms 3
Purchased Price 350 USD



Zoning Pink
Bedrooms 4


Net ROI / Year 16,39%

Zoning Pink
Bedrooms 5


Net ROI / Year 16,72%

Zoning Pink
Bedrooms 6



STRATEGY TO MAXIMIZE ROI
Rental income is one of the most important sources of ROI for real estate investors, and there are several strategies to maximize rental
income. One strategy is to set competitive prices that are in line with the market rate in the area. This will help to attract clients and
minimize vacancies.
In addition, providing additional amenities or services will increase the value of the rental property. It's also important to maintain the
property in good condition.
Other factors to maximize your investment and ROI would be:

Evaluate Risk Management
Outline your Exist Strategy
Monitor and Adjusting Rental Pricing Is it more complex than you thought?
Select a Professional Property management book a free consultation now
BALI REAL ESTATE
AVERAGE ROI
With so many variables to consider, there’s no single overall
average ROI in real estate. It’s important to note that this average
would depend on what part of the real estate market is being
discussed – so while metrics are useful for predicting results, they
are by no means a guarantee.
What one investor considers a "good" ROI may be unacceptable to

another. A good ROI on real estate varies by risk tolerance—the
more risk you're willing to take, the higher ROI you might expect.
Conversely, risk-averse investors may happily settle for lower ROIs
in exchange for more certainty.
A “good” ROI is somewhat dependent upon the property type and

the return objectives of the investor, but a general rule is that 12% –
15% annually is a good ROI for a rental property in Bali.
CONCLUSION
Remember, ROI is just one metric, and it should be considered
alongside other factors to make well-rounded investment
decisions. Keep yourself informed, stay updated on market trends,
and be diligent in your analysis to achieve success in real estate
investing.
Achieving a high ROI in real estate requires a comprehensive

understanding of the market, thorough research, strategic
decision-making, and continuous monitoring. By implementing
these strategies and staying informed about market trends,
investors can optimize their returns and build a successful real
estate portfolio.
Consult with real estate professionals, financial advisors, and legal

experts to ensure sound decision-making.
BOOK A FREE CONSULTATION

WHO WE ARE
ILOT PROPERTY GROUP stands as a rapidly expanding real estate development
company, centrally located in Bali.
Our mission revolves around transforming aspirational lifestyles and high-yield concepts
into tangible realities. Comprising of five distinct entities specialized in Architecture,
Construction, Development, Villa Management, and Real Estate Agency. Our company
is structured to provide comprehensive solutions and a full range of services.
Hassle-free and all-inclusive property investment in Bali, our team handles everything
from land acquisition all the way through construction and villa management. With 12+
years of experience and more than 100 villas built, we are ready to take on the project of
your dreams.
Our clients typically see an annual ROI ranging from 13-25%, and some even achieve
higher returns. Our development properties have an average of 80% occupancy rate and
the rental price has increased by 15-20% yearly.
For anyone considering owning property in this beautiful paradise, either for permanent
residence or as an investment, the current market offers a perfect opportunity to make a
move.
Bali is one of the most stunning and breathtakingly beautiful places on earth, boasting unique landscapes, culture, and people.
Surprisingly, investing in a Bali property remains affordable. Whether you're looking to build your custom dream villa or are interested in
purchasing a development project, we're here to help.
THANK YOU
BERAWA PETITENGET KEROBOKAN
OFFICE OFFICE OFFICE
Gg. Sri Kahyangan, Tibubeneng, Kec. Kuta Utara, K Jl. Petitenget No.882, Kerobokan Kelod, Kec. Kuta Utara, Jl. Raya Kerobokan No.62A, Kerobokan Kelod,
abupaten Badung, Bali Kabupaten Badung, Bali 80361 Kec. Kuta Utara, Kabupaten Badung, Bali 80361
+62 813-3703-0702 +62 811-3899-984 +62 878-7598-0873
www.ilotpropertybali.com www.ilotpropertybali.com www.managementbali.com

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The Bali Real Estate Market currently stands as a dynamic and potentially lucrative financial option

1. Bali Real 2. Introduction 3. ROI 4. Factors Influencing 5. Location

Due to the constant demand of places to stay, investing in rental

WANT TO KNOW MORE?

Return on Investment (ROI) in real estate is a key metric that measures

Investing in real estate can be a lucrative venture, but success

Most of Bali real estate investors use Cash-on-Cash to

The property is purchased entirely with cash.

If you’re looking to earn rental income through your investment

This starts with estimating your annual rental income, which is

To calculate the ROI, you will need the following metrics:

Rental Income – Operating Expenses

Canggu Umalas Berawa Pererenan

Seseh Nusa Dua Uluwatu

Unlock the secrets of Bali land zoning

Purchased Price 260,000 USD

Average Rental Price / Night 210 USD

Average Occupancy Rate 75%

Gross Revenue / Year 56,700 USD

Cost / Year 22,370 USD

Net Revenue / Year 34,331 USD

Net ROI / Year 13.20%

Amortization 7.57 Years

Purchased Price 340,000 USD

Average Rental Price / Night 320 USD

Average Occupancy Rate 75%

Gross Revenue / Year 86,400 USD

Cost / Year 29,532 USD

Net Revenue / Year 56,868 USD

Net ROI / Year 16.73%

Amortization 5.98 Years

Purchased Price 470,000 USD

Average Rental Price / Night 440 USD

Average Occupancy Rate 75%

Gross Revenue / Year 118,800 USD

Cost / Year 40,578 USD

Net Revenue / Year 78,222 USD

Net ROI / Year 16.64%

Amortization 6.01 Years

Purchased Price 570,000 USD

Average Rental Price / Night 550 USD

Average Occupancy Rate 75%

Gross Revenue / Year 148,500 USD

Cost / Year 51,965 USD

Net Revenue / Year 96,536 USD

Net ROI / Year 16.94%

Amortization 5.90 Years

Purchased Price 698,000 USD

Average Rental Price / Night 680 USD

Average Occupancy Rate 75%

Gross Revenue / Year 183,600 USD

Cost / Year 60,582 USD

Net Revenue / Year 123,018 USD

Net ROI / Year 17.62%

Amortization 5.67 Years

Purchased Price 240,000 USD

Average Rental Price / Night 160 USD

Average Occupancy Rate 75%

Gross Revenue / Year 43,200 USD

Cost / Year 19,332 USD

Net Revenue / Year 23,868 USD

Net ROI / Year 9.95%

Amortization 10.06 Years

Purchased Price 320,000 USD