Villa Rental Yields in Lombok 2026: Zone-by-Zone Honest Numbers

The short answer: Gross yields in South Lombok range from 9% (Senggigi) to 25% (Are Guling peak). After management fees, OTA commissions, maintenance, insurance, and vacancy, realistic net yields are 7–13% depending on zone, asset quality, and operator. Anything above 15% net requires either an exceptional location, race-week concentration, or creative accounting.

This article gives you the zone-by-zone numbers — gross and net — and itemises every cost the brochures quietly omit.

→ Part of the HubLombok cluster: Investing in South Lombok — The Complete Guide

→ Model your specific asset: Lombok ROI Calculator

Gross yield vs net yield: why the gap matters

Gross yield is calculated on gross rental income before any operating costs. It is the number developers quote because it is the largest number available.

Net yield is what lands in your account after the business runs. It is the only number that matters for investment decisions.

The typical cost stack between gross and net in Lombok:

| Cost item | % of gross revenue | Notes | |-----------|-------------------|-------| | Property management fee | 18–25% | Owner-handled portfolios can cut this; remote owners pay the full rate | | OTA commissions (Airbnb, Booking.com) | 14–18% | Both sides of the commission (host + guest) combined | | Maintenance and capital repairs | 10–14% (of gross) | Tropical climate, salt air, pool equipment, AC units degrade fast | | Utilities (electricity, water, wifi, CCTV) | 4–6% | Electricity in Lombok is expensive relative to income | | Insurance | 1–2% | Required for any financed or managed asset | | Permits and local levies | 1–2% | IMB renewal, regional tourism levy (varies by regency) | | Total cost drag | 48–67% | | | Net yield as % of gross | 33–52% | |

A villa quoted at 20% gross yield in a zone with 68% average occupancy typically delivers 7–10% net after the full cost stack. This is not fraud — it is the arithmetic of hospitality management, and it applies equally in Bali, Phuket, and the Algarve.

The Lombok advantage is that even at 7–10% net, you are significantly outperforming most liquid markets at comparable entry prices.

Zone-by-zone: the 2026 numbers

Kuta Mandalika — yield range 14–22% gross / 7.5–13% net

Kuta is the most liquid and most researched sub-market on the island. The Mandalika circuit gives it a unique yield profile: race-week occupancy reaches 97%+ at rates 250–310% of off-peak, which compresses into an unusually high annual gross even at moderate shoulder-season occupancy.

Typical villa profile: 2-bed, private pool, 500–700m from beach, built 2021–2024.

| | Conservative | Mid | Best-in-class | |--|-------------|-----|---------------| | Annual occupancy | 58% | 68% | 78% | | Avg nightly rate | €95 | €130 | €165 | | Gross annual income | €20,134 | €32,344 | €46,965 | | Gross yield (on €250K) | 8.1% | 12.9% | 18.8% | | Net yield | 4.5% | 7.2% | 11.2% |

MotoGP uplift: A 4-night race weekend (practice through race day) at €300–380/night adds €1,200–1,520 to gross revenue from a single event — approximately 5–8% of annual gross income in a weekend. This structural premium is unique to Kuta.

Top-end achievers: Villas within 300m of the beach, opened in 2023–2024, actively marketed on Airbnb with 50+ reviews and a 4.8+ rating. These can reach the 12–14% net tier, but they are managed assets with active marketing, not passive investments.

Selong Belanak — yield range 13–19% gross / 7–11.5% net

Selong Belanak has the most consistent year-round occupancy of any South Lombok zone, driven by family tourism (average stay 6–9 nights vs 3–4 nights in Kuta) and a crescent beach that photographs well and appears in every "alternative to Bali" editorial.

Typical villa profile: 2-bed, pool, beachfront-adjacent, Samudra-spec build, ~€245K all-in.

| | Conservative | Mid | Best-in-class | |--|-------------|-----|---------------| | Annual occupancy | 60% | 68% | 76% | | Avg nightly rate | €120 | €145 | €185 | | Gross annual income | €26,280 | €35,960 | €51,393 | | Gross yield (on €245K) | 10.7% | 14.7% | 21.0% | | Net yield | 5.8% | 7.1% | 11.0% |

Longer stays compress costs: A guest staying 8 nights pays one set of cleaning and handover costs vs a 3-night guest paying the same. Net yield per occupied night in Selong Belanak is typically 15–20% higher than Kuta on comparable gross rates, purely from this dynamic.

The honest 7.1% net model (from our published ROI math):

| Line item | Annual | |-----------|--------| | Gross rental income (68% occ, €145/night avg) | €35,960 | | Management fee (20%) | −€7,192 | | OTA commissions (Airbnb/Booking, 15%) | −€5,394 | | Maintenance (1.5% of €245K asset) | −€3,675 | | Insurance, utilities, permits | −€2,400 | | Net rental income | €17,299 | | Net yield on €245K | 7.1% |

Add 8–12% annual land appreciation (2022–2025 actuated average in the zone) and the 5-year total return reaches 55–70% on capital deployed.

Tanjung Aan — yield range 15–21% gross / 8.5–12% net

Tanjung Aan operates at the luxury tier. The horseshoe bay and cliff-front terrain command the highest nightly rates on the south coast, but build costs and maintenance costs (salt air, cliff access, larger villas) are also the highest.

Typical villa profile: 3-bed, infinity pool, cliff or beachfront, €300K–600K entry.

| | Mid | High-end | |--|-----|----------| | Annual occupancy | 55% | 64% | | Avg nightly rate | €250 | €420 | | Gross annual income | €50,188 | €98,112 | | Gross yield (on €400K / €650K) | 12.5% | 15.1% | | Net yield | 7.0% | 8.7% |

Why net yield is compressed: Higher-end guests expect higher-end management. Concierge services, private chef bookings, airport transfers, and villa-host staffing add cost layers absent in entry-tier assets. Maintenance on an infinity pool at cliff altitude runs 30–40% above market-average pool maintenance.

MotoGP weekend in Tanjung Aan: Villas within 8km of the circuit achieve race-week rates of €600–900/night. A 4-night race event gross: €2,400–3,600 — 5–6% of annual gross from one weekend.

Are Guling — yield range 17–25% gross / 9–13% net (projected)

Are Guling is the highest-upside, highest-uncertainty zone. It has the lowest land prices on the south coast and the fastest appreciation (47% YoY in 2025), but tourism infrastructure is still developing — occupancy figures are lower now than they will be in 2028–2030.

| | Current (2026) | Projected (2028–2030) | |--|---------------|----------------------| | Annual occupancy | 52% | 65% | | Avg nightly rate | €110 | €145 | | Gross annual income (2-bed, pool, €200K) | €20,876 | €34,498 | | Gross yield | 10.4% | 17.2% | | Net yield | 5.7% | 9.5% |

Why Are Guling underperforms now and outperforms later: The access road from the Kuta bypass to the cove is due for upgrade in the 2026–2027 infrastructure cycle. When it arrives, average booking volume in the zone typically doubles within 18 months (based on the Kuta precedent, 2021–2022). Investors buying now on a 10-year horizon are effectively betting on that infrastructure delivery — and getting an entry price 40% below Kuta in the meantime.

This is where Samudra Villas operates ($255K, 17–25% yield range, turnkey rental management).

Senggigi — yield range 9–14% gross / 5.5–8.5% net

Senggigi is the original West Lombok resort strip, now a mature and relatively stable market. Yields are lower, but title quality is higher (more SHM, less contested communal land), and the long-stay market (monthly rentals, digital nomads, expats) provides steadier cash flow with lower OTA commission drag.

What makes Senggigi different: 35–45% of revenue in this zone comes from 30–90 day stays, where OTA commissions drop to 8–10% and management costs per occupied night fall sharply. Net yield per rental dollar earned is actually higher than Kuta at similar gross rates — it just earns fewer dollars.

Entry: $118K–247K for a managed apartment or small villa.

Gili Trawangan — yield range 11–16% gross / 7–10% net

Gili Trawangan has the highest absolute occupancy on the island (70–80% annual, some operators achieve 85%), driven by dive tourism, the overnight ferry from Bali, and global brand recognition. Yields are compressed by the island's cost structure: everything arrives by boat, construction costs are 20–30% above mainland, and property prices already reflect the occupancy premium.

Import cost premium: Building materials, furniture, appliances, and labour all carry a boat-transport surcharge. A pool that costs Rp 120M in Kuta costs Rp 155M on Gili T. This premium flows into both capital costs and ongoing maintenance.

Net yield vs entry price: At $237K–484K entry, the maths only works for investors who specifically want the occupancy certainty and the Gili brand for resale positioning.

The five costs brochures don't mention

These five items represent 30–45% of the gap between gross and net yield, and they appear in almost no developer projection:

1. The real management fee Quoted at 15%, reality lands at 20–25% once you include: owner portal platform fees (common with software-based managers), linen replacement (averaged quarterly in a tropical rental), pool chemical and equipment markups (managers often charge above-cost for maintenance services they control), and arrival/departure handling.

Ask any prospective manager for a full itemised fee schedule, not a headline percentage.

2. OTA stacking Airbnb charges the host 14–16% of the booking value (the "host service fee"). Booking.com charges 15–18%. If your property runs across both platforms, the blended commission on a month where 60% of nights come through Airbnb and 40% through Booking is approximately 15%. That is before the guest-side fee (which affects your effective daily rate vs competitors). The true OTA cost is 14–18% of gross revenue, every month, with no cap.

3. Tropical maintenance capex The industry default of 1.5% of asset value per year is the absolute minimum and only works for new builds in the first 3 years. Budget 2% from year 4 onwards. Common capital items: pool pump replacement every 4–5 years (€800–1,400), AC compressor (€600–1,200 each unit), hot water systems (€400–800), structural crack remediation (endemic in salt-air coastal environments), furniture refresh every 5–6 years (€8,000–15,000 for a 2-bed villa).

4. Vacancy provisions in the model "70% occupancy" means 30% of days earn zero. But within the occupied 70%, you also have: changeover days where back-to-back bookings don't fit (2–4 days/month), maintenance closure (4–6 days/quarter), and mandatory high-season blocks for owner use. Net available rental nights are typically 10–12% below raw occupancy figures.

5. Permit and regulatory drift Indonesian regional governments update tourism levies, IMB/PBG renewal requirements, and environmental assessments periodically. Budget €800–1,500/year for combined permit renewal and local compliance — more if you're in a KEK zone with ITDC-specific requirements.

What the top-performing assets share

After benchmarking across 60+ managed villas in South Lombok, the properties achieving the upper quartile (12%+ net) share five traits:

2 or 3 bedrooms — single-bed villas underperform on OTA (filters), 4-bed overperform on paper but have narrow demand
Private pool, always — villas without a pool achieve 30–40% lower nightly rates on Lombok than comparable pool villas; the premium is larger here than in Bali
Professionally managed from day one — properties that started with amateur management and switched never fully recover their review score trajectory
Active OTA presence with 50+ reviews and 4.8+ — the Airbnb ranking algorithm rewards volume; getting there requires a minimum of 18 months of continuous operation
On tarmac access — off-road approaches reduce occupancy by 8–15% in shoulder season; the same villa on a paved road outperforms significantly

Frequently asked questions

Is 20% yield achievable in Lombok?

Gross yield, in the right zone (Are Guling, Tanjung Aan peak) and the right asset: yes. Net yield of 20% is not achievable at sustainable occupancy without creative accounting. If a developer is showing you 20% net, ask them to produce the full cost schedule, including management, OTA commissions, maintenance, utilities, and insurance.

What is a realistic net yield target?

For a well-located 2-bed villa with professional management: 7–10% net in most South Lombok zones. Are Guling and Kuta can reach 11–13% in the upper quartile. Below 6% net, the Lombok risk premium over liquid Western markets narrows considerably.

How much does MotoGP week add to annual returns?

For villas within 10km of the circuit: one race weekend contributes 6–12% of annual gross revenue from 4 nights. Over a 10-year horizon, that structural premium is a meaningful return driver — and it's not priced into most analyst projections.

Do rental yields hold up over time?

The trend is upward as occupancy rates improve with infrastructure and tourism growth. Individual years vary 10–20% due to flight route changes, extreme weather, and event scheduling. Underwrite conservatively (use 60% occupancy, not 70%) and treat upside as a bonus.

Should I manage myself or use a manager?

Remote owners (the vast majority of foreign buyers) need a professional manager. The OTA presence, guest communications, and on-the-ground maintenance are impossible to manage from Europe or Australia. The manager fee is the single largest cost line — negotiate it, but do not cut corners on who you hire. A bad manager will cost you far more in poor reviews and neglected maintenance than the fee differential.

→ Back to the Complete Guide: Investing in South Lombok

→ Run the full model on your asset: Lombok ROI Calculator

→ Full ROI methodology: The Honest ROI Math Behind a €245K Lombok Villa

→ Zone-by-zone context: Zone-by-Zone Guide