Investing in a villa is an emotional decision, but the math must be cold and calculated. If you are eyeing a property in Selong Belanak or Kuta, you need to understand how we project Return on Investment (ROI) in the 2026 market.
1. The Occupancy Reality Check
While some agencies promise 80% occupancy, a realistic, sustainable projection for South Lombok is 55% to 70%.
- Peak Season: July–August and December–January (Expect 90%+).
- Event Season: MotoGP and international surf competitions create massive spikes in nightly rates (often 3x–5x).
2. Nightly Rates vs. Management Fees
A well-designed 2-bedroom villa in a prime location can command $250 – $450 USD per night. However, you must account for:
- Management Fees (20-25%): Covers marketing, staff (housekeeping/security), and guest relations.
- Maintenance & Utilities: Budgeting roughly 5-10% for the upkeep of pools, gardens, and AC units.
3. Calculating Your Net Yield
To find your Net ROI, use this simple formula:
(Annual Rental Revenue – Annual Expenses) / Total Investment Cost = Net Yield
In the current market, professionally managed villas in South Lombok are hitting 10% to 14% Net ROI, significantly outperforming traditional bank interest or stock market averages.
Pro Tip: Properties with “Unique Selling Points” such as the bespoke design of our Vertical Estates typically achieve 20% higher occupancy than generic “cookie-cutter” villas.
