Kuta villa investment: the 2027 outlook
Modelled base-case net yield: 2.9–4.7%. Qualifying sample: 268 villas. Source: John Miskelly, Kuta Lombok Villa Investment: ROI Outlook 2027, data as of 31 October 2026. Report inputs cite PriceLabs exports from 30 October and off-plan asking prices from one agency. Model assumptions, not guaranteed returns; underlying exports have not been independently audited here.
What you pay and how you operate matter as much as where you buy. Our latest operator report connects rental performance to the costs that sit between gross revenue and net income.
2.9–4.7%
Modelled base-case net yield
For professionally managed 1–3 bedroom villas at the report’s off-plan entry prices. Before capital growth and financing.
268
Villas in the qualifying sample
One-, two- and three-bedroom comparables open at least 180 nights. Bedroom-specific samples are more useful than one island-wide average.
2.8×
The operator gap
The report’s top-quartile 2-bedroom group generated about 2.8 times the bottom-quartile group’s revenue, with only around 12% more open nights.
Compare like with like
| Villa size | Qualifying villas | Median gross revenue | P75 gross revenue | Modelled base net income |
|---|---|---|---|---|
| 1 bedroom | 117 | 319 | 416 | 99 |
| 2 bedrooms | 109 | 474 | 661 | 146 |
| 3 bedrooms | 42 | 762 | 898 | 265 |
P75 is the 75th-percentile revenue threshold, not the average of the top quartile. Gross revenue is not owner profit.
From rental income to owner return
The model deducts a 15.5% platform fee, management at 20% of payout, monthly operating costs of IDR 6M / 9M / 12M by bedroom count, a 4% maintenance reserve and a tax assumption of 10% of gross. These are report inputs; fees and tax treatment must be confirmed for the specific property and operator.
Entry price including furniture is modelled at USD 209k / 277k / 349k, using IDR 16,300 per USD. These are asking-price examples from one agency, not completed-sale valuations or a complete acquisition-cost survey.
Purchase price changes the result
A strong-case managed 2-bedroom villa needs an entry cost of roughly USD 189k to reach the model’s 8% net-yield target, versus USD 277k in the report’s off-plan example.
Operating evidence: Hemingway
The report records 73% occupancy against a 62% comparison market for the prior year. Hemingway is operated by the report’s author. Kippling and Sallinger are too new for a comparable performance history.
Plan for a softer first season
The report flags weaker near-term 3-bedroom booking pace. Test a conservative revenue case, allow for launch costs and avoid treating peak-season rates as year-round income.
Questions to ask before committing
- Does the comparison set match the villa’s size, location, amenities and operating history?
- What is included in the acquisition budget, and which transaction or financing costs remain outside it?
- Who pays for staffing, utilities, repairs, replacement furniture and marketing?
- How does the model behave with lower rates, fewer booked nights or higher costs?
- Have qualified local advisers confirmed title, permitted use, licensing and tax treatment?
Source: John Miskelly, Kuta Lombok Villa Investment: ROI Outlook 2027, data as of 31 October 2026. Report inputs cite PriceLabs exports from 30 October and off-plan asking prices from one agency. Model assumptions, not guaranteed returns; underlying exports have not been independently audited here.
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