Bali Through an Insider’s Eyes: How the Real Estate Market Works

Recently, a lengthy interview about the lives of Ukrainians in Bali was published on Andriy Burenok’s YouTube channel. One of the featured guests was Ksenia Dronga, who has been living and working on the island for over two and a half years, developing hotel projects for Ribas Hotels Group.

In the conversation, Ksenia shared her hands-on experience with real estate on the island — from the cost of living to the specifics of hotel management and the realistic expectations of investors.

Market Context and Project Development in Bali

All six of Ribas Hotels Group’s current projects in Bali are located in the Ubud area and surrounding locations — one of the island’s most stable and culturally rich districts. The company’s first project, Moon Rock Villas by Ribas, features 16 villas in southern Ubud that are already welcoming guests in a soft opening format. Also in the launch and construction completion stages are the OM Club House boutique hotel with apartments from 50 sq. m, the PGD apart-hotel with 85 apartments, and the Anta Residence Canggu complex with 117 units. In total, six projects will be launched over the next two and a half years in Bali under Ribas Hotels Group management.

Bali is currently experiencing strong growth in tourist numbers: in 2025, the island welcomed approximately 7 million foreign tourists — one of the highest figures in its history. Against this backdrop, investor interest, including from Ukrainians, has grown noticeably, and the market is increasingly being considered as an alternative to domestic real estate.

However, looking deeper, the real picture differs significantly from what is often presented in promotional materials. Midway through the conversation, Ksenia explains that one of the market’s key problems is inflated yield expectations. Advertised returns of 25–30% per year typically have no real basis. In reality, market figures for well-managed properties are more modest: an average of 10–12% net per year, with possible fluctuations in the 9–15% range depending on location and format. The timing of entry into a project plays an important role. Investing at early construction stages offers a better price and potentially higher returns. Completed properties carry less risk, but also more moderate profits.

The Financial Model: Deeper Than “Three Lines”

One of the biggest risks for investors in Bali is the lack of transparency in financial models. Many developers limit themselves to simplified tables with just a few lines — revenue, expenses, profit — and use these to project expected ROI. In reality, the operational model is far more complex. It includes booking platform commissions, staff salaries, utilities, taxes, consumables, a depreciation fund, and other costs that directly affect the final result.

Ribas Hotels Group’s financial model contains around 60 line items, with each category broken down in detail. Investors see the full picture — from basic expenses to platform commissions and tax obligations. This is not just transparency; it is a tool for making informed decisions. The company also works with long-term planning: it draws up a budget a year in advance, conducts monthly plan-versus-actual analysis, and signs management agreements for a minimum of five years. Some projects include guaranteed ROI payouts.

What a Management Company Actually Does

A developer focuses on the speed and quality of construction. A management company focuses on how the property will perform over the next 10–15 years. Ribas Hotels Group gets involved at the construction stage and sets technical requirements for the project — similar to international hotel chains such as Marriott or Radisson. This covers specific details: furniture specifications, textile quality, and room equipment standards. This approach has a direct impact on returns. Cutting corners on materials at the outset almost always leads to higher costs down the line due to depreciation.

In addition, the company provides construction supervision: monitoring material quality, structural integrity, and compliance with building techniques that account for the island’s seismic activity and climate.

Once a property launches, investors gain access to a mobile app displaying real-time key performance indicators: occupancy rate, average daily rate, and yield. Reports are provided monthly, and payouts are made quarterly.

More details and practical insights can be found in the full interview on YouTube, where Ksenia Dronga goes into greater depth about life in Bali, adapting to the island, working with local teams, and the nuances that matter both in day-to-day operations and in making investment decisions.