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September 25, 2024

Invest in Amed – Rental Research for Amed’s Villa Market

Using the latest data from the industry-leading rental platform, AirDNA, learn how Amed’s rental villa market is performing. 

We cover occupancy rates and revenue expectations for 1-bed, 2-bed, 3-bed and 4-bed villas. 

This helps you to make an informed decision as you look to invest in Amed during the early stages of its property boom cycle.

Table of Contents

Why invest in Amed?

The northeast of Bali is gaining a lot of attention from tourists looking for an authentic experience in Bali. 

Property investors and business owners are looking to invest in Amed as they recognize the potential of Bali’s fastest-growing tourist destination.

With tourist numbers on the rise, the local government has prepared for Amed’s increasing popularity. Major road networks and infrastructure have been developed to cater for the noticeable increase in tourism.

Local businesses, cafes, restaurants, and fitness activities are opening around this beachfront town. With more lifestyle options for tourists opening up at such a rapid rate, Amed is showing strong signs of growth.

As more tourists put Amed on their list of places to go, the rental property market is in full swing, property investors are preparing to capitalize on the incoming boom.

AirDNA rental research platform

Our research uses several platforms to compile data on Bali’s real estate market. AirDNA.co is the industry-leading platform for rental properties around the world.

The platform takes data from popular booking platforms like Airbnb and Vrbo. The data provides an accurate assessment of how global rental markets are performing.

Rental villas in Amed

Using real-time data from the Airdna.co platform, there are 373 rental options in Amed. The options are a mix of hotels, guest houses, homestay bedsits, houses, and villas.

The chart below shows the distribution supply of rental listings in Amed;

Renting a villa in Amed

The potential to generate a passive income from Amed’s rental market presents investors with an exceptional opportunity.

Investing during the early stages of the property cycle can deliver annual rental profits of over 15% ROI per year. 

As land and property valuations rise over time, long-term capital appreciation is an effective to build wealth.

The upside potential of buying an investment villa in Amed presents investors with a much better investment proposition than can be found in Bali’s more popular tourist destinations.

Read this article to compare the cost of a villa in Amed against villas for sale in Canggu, Seminyak, and Ubud.

Occupancy rate metrics

The success of your investment in Amed’s holiday rental market will be determined by how often your villa is rented out.

Using ‘occupancy rate’ for this metric can help identify what type of property will perform the best.

A villa with an occupancy rate of 50%, means that the villa was rented out for half of its available listing days. 

Likewise, a villa performing at 75% occupancy means that during a 30-day month, the villa was rented out for 23 days (30 x 0.75 = 22.5) .

Occupancy rates in Amed

The chart below shows the occupancy rates of all rental listings in Amed since September 2021. You will notice the overall occupancy rate in Amed is rising year-over-year.

Amed’s rental occupancy rate has grown a staggering 189% since September 2021. This indicates a strong demand for villa rentals in Amed.

Price-per-day metrics

Next to occupancy rate data, the price-per-day of a rental property in Amed can help you to make an informed decision as you look to invest in Amed.

Combine the rental price-per-day with how often your villa is rented (occupancy) to get a clear picture of how much revenue your rental investment will generate.

If you want to invest in a rental villa costing $300,000, you must find out how much you can charge to rent the villa. 

Charging too high would likely reduce the occupancy rate. Charging too low would affect your earning potential.

Price-per-day in Amed

The chart below shows the price-per-day rates for all rental listings in Amed since 2021. You will see the trend is upwards meaning property owners in Amed are rewarded by rising prices.

On average, owners of 1-bed, 2-bed, 3-bed and 4-bed villas have enjoyed a 19% price-per-day increase since September 2021.

 

Investment villas in Amed

Using the ‘occupancy rate’ and ‘price-per-day’ metrics, you can identify what type of villa performs the best in Amed’s rental market. 

This information can help you decide if an investment in Amed’s real estate is a good match for your goals.

Buying a particular type of villa that will give you the highest rate of investment return will determine the financial success of your investment.

In this case, the supply and demand for different villa types can help generate high occupancy rates with rising rental prices.

Supply of villas in Amed

The image below shows the total supply of villas for rent in Amed. The total supply of rental accommodation in Amed is 373. This supply of villas is comprised of 1-bed, 2-bed, 3-bed, 4-bed, and 5-bed accommodation choices.

As a property investor in Amed, knowing the breakdown and performance of each property size (measured in numbers of bedrooms) can help you determine what type of villa can deliver the best return on investment.

Map of Amed showing accommodation
Map of Amed showing accommodation

Rental demand in Amed

The supply/demand ratio is a common metric used to help investors determine the potential performance of an investment.

Buying a villa in a category of low supply and high demand will benefit the owner with higher occupancy rates and higher price-per-day rental rates.

ROIs from villa investment

The ultimate data metric on your investment’s performance is the percentage return on investment (ROI).

Using the buying price of a villa, assessing the potential occupancy and price-per-day rental rates, you can identify the best type of villa to buy for your needs.

Best performing villas

The section below details several performance metrics for the different types of villas in Amed. Using the information can help you find the best investment for your needs.

The summary at the end of the next section shows that the best-performing type of villa in Amed is a 3-bedroom villa priced between $225-$250 per day.

4-Bed Villas in Amed

Below you can see how 4-bedroom rental villas are performing in Amed.

# of 4-Bed villas

Nine 4-Bed villas representing 2% of total supply.

Occupancy rate

50% occupancy from Sept 2023 to Sept 2024.

Price-per-day

$166 average (price range between $350 - $170 per-day).

Revenue per year

$27,600 average revenue from renting a 4-bed villa in Amed.

Summary of 4-bed villas for rent in Amed:
  • Low supply of villas (2% of total supply) with a 50% occupancy rate suggests low demand.
  • Low price per day suggests that 4-bed villas cannot attract a premium price. This due to either;
    1. Villa situated in a remote location;
    2. Condition of villa is old;
    3. Low demand for 4-bed villas.
  • Low revenue per year is a result of low demand as indicated by a 50% occupancy rate.

3-Bed Villas in Amed

Below you can see how 3-bedroom rental villas are performing in Amed. 

# of 3-Bed Villas

Eighteen 3-Bed villas representing 5% of total supply.

Occupancy rate

65% occupancy from Sept 2023 to Sept 2024.

Price-per-day

$238 average (price range between $590 - $126 per-day).

Revenue per year

$48,600 average revenue from renting a 3-bed villa in Amed.

Summary of 3-bed villas

Summary of 3-bed villas for rent in Amed:

  • Low supply of villas (5% of total supply) with an average 65% occupancy rate suggests high  demand.
  • High price per day suggests that 3-bed villas are able to  attract a premium price.
  • Revenue per year is high. A 3-bed villa costing $300k will take on average 6 years to pay the investment back. 

2-Bed Villas in Amed

Below you can see how 2-bedroom rental villas are performing in Amed.

# of 2-Bed villas

Fifty-five 2-Bed villas representing 15% of total supply.

Occupancy rate

50% occupancy from Sept 2023 to Sept 2024.

Price-per-day

$69 average (price range between ($140 - $74 per-day).

Revenue per year

$11,400 average revenue from renting a 2-bed villa in Amed.

Summary of 2-bed villas

Summary of 2-bed villas for rent in Amed:

  • Average supply of villas (15% of total supply) with an average 50% occupancy rate suggests moderate-to-low demand.
  • Low price per day suggests that 2-bed villas cannot attract a premium price.
  • Combine with moderate-to-low occupancy and low price-per-day, revenue per year for 2-bed villas in Amed is low.

1-Bed Villas in Amed

Below you can see how 1-bedroom rental villas are performing in Amed.

# of 1-Bed villas

One hundred-eight-three 1-Bed villas representing 49% of total supply.

Occupancy rate

52% occupancy from Sept 2023 to Sept 2024.

Price-per-day

$40 average (price range between ($266 - $9 per-day).

Revenue per year

$8,600 average revenue from renting a 1-bed villa in Amed.

Summary of 1-bed villas

Summary of 1-bed villas for rent in Amed:

  • High supply of villas (49% of total supply) with an average 52% occupancy rate suggests moderate demand.
  • Low price per day suggests that 1-bed villas cannot attract a premium price.
  • Combined with moderate occupancy and low price-per-day, revenue per year for 1-bed villas in Amed is low.

In summary

If you are looking to invest in Amed’s property rental market there are several metrics to consider.

To generate the best return on investment, look for the type of villa that has the highest occupancy rate and the highest price-per-day charge.

Look for a villa that can deliver a high occupancy rates with a high price-per-day. The result will generate a high rate of revenue return per year.   

In this case, 3-bedroom rental villas in Amed are in high demand. With low supply (5% of total supply), owners of 3-bed villas are able to charge a high price-per-day.

Property management & Villa rentals in Amed

We help property owners manage the day-to-day operations involved in running a successful rental management business in Amed. 

Property management

We help property owners manage the day-to-day operations involved in running a successful rental management business in Amed. 

Villas for rent

As Amed’s #1 holiday villa booking platform provides a range of accommodation choices to suite the needs of the modern traveller.

Amed villas for rent

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