Design is more as one of the main factors behind a villa’s profitability. Villas with the right layout, amenities, and location don’t just look good; they achieve higher occupancy, stronger guest reviews, and better resale value.
For new investors, overlooking how design ties into ROI often leads to costly mistakes and poor returns, a common pitfall we’ve discussed in our guide on ROI miscalculation. Understanding these factors early can mean the difference between a thriving investment and an underperforming property.
Here’s what high-performing villas do differently, and how you can apply the same principles to your own.
How should villa align with target guests and market trends to maximize rental ROI?
Targeting the Correct Guest based on Their Preferred Location
Bali has a diverse range of guest profiles, including couples and solo travelers in smaller properties, families and larger groups in larger villas, and a growing segment of digital nomads and long-term renters.
Thus, targeting the ideal guest might give you a greater earnings.
Let’s say if your vacation rental is located in the Uluwatu or Bingin area, targeting young travelers or honeymooners might be your best decision. According to AirROI, more than 79% of guests that visit Uluwatu, Bingin and Pecatu areas are dominated by Gen-Z and Alpha (1990s – Post 2000s).
Not every Bali area fits your villa investment goals. Learn how to match your investment strategy with the right area before you make the purchase.
Villa Design Adjustment between Short-Term and Long-Stay Renters
While short-term vacation rental design focuses on aesthetics, Instagrammable visuals, and unique features, the long-term villas design is highlighting the comfort and functionality, avoiding excessive decorations and usually having a neutral color palette.
When you could embrace these both design angles into your beloved vacation rental, could give a wide options for your future guests and strategies, whether it’s rented as daily or yearly.
Blending in eye-catching design with practical comfort, you can create a villa that appeals to both daily renters and long-stay guests, giving you more flexibility in how you market and manage your property.
What cultural or lifestyle preferences should investors consider?
Adapting design to the guest cultural aspects preferences helps your villa resonate with key markets. For example, Japanese guests might not see the freestanding bathtub in the center of the bedroom as an enticing factor, as it’s not seen as common practice in their culture.
In contrast, Australian tourists prefer large open-plan designs with private pools, which reflects their own beachside way of life.
While European visitors typically seek out chic, contemporary design combined with comfortable outdoor dining spaces to take advantage of Bali’s warm evenings, domestic and Southeast Asian tourists will yearn for air-conditioned interior areas with quick access to city amenities like cafes and stores.
By becoming aware of these cultural characteristics and incorporating them into the design of your villa, you can make your target guests feel welcome and instantly recognizable, which will increase the likelihood that they will return and make your villa more appealing in the long run.
How can you anticipate upcoming trends in Bali’s villa market?
Keep an eye on social media travel trends and what’s performing well on online travel websites like Airbnb. Emerging trends like Pererenan and Bingin demonstrate how tastes in design change over time; minimalist, eco-friendly designs are becoming more popular.
You can gain a lot of fresh insights and viewpoints on Bali’s vacation rental market by scheduling a consultation with seasoned real estate experts like Oniriq or by signing up for the services of a reputable vacation rental’s large data provider, like AirDNA.
How a 56 years old Australian man settled his dream home plus investment goals with Oniriq? Read more about Darren’s story here.
What layout and space-optimization features do Top Bali villas use?
The Essentials of Open Layout Design
Open layout design is naturally inspired by Bali’s warm and windy climate. Villas with smooth transitions between indoor and outdoor spaces, sliding glass doors, and shaded terraces appear bigger and cozier.
Additionally, because open layouts are easily modified to suit different needs, visitors can use the space for a variety of purposes, including dining, working, and relaxing, all in one location.
In addition to improving the visitor experience, this flow keeps the villa cooler, lowering operating expenses and the need for air conditioning.
Guest Experience Versus Privacy Needs
Open-plan layouts are perfect for creating a sense of space and social connection, making them popular among families and groups.
Then, what if the guest really needs their privacy to be respected
By pairing them with private retreats, such as enclosed bedrooms or shaded nooks, balances togetherness with the privacy guests need to unwind. This balance appeals to both social travelers and those who value quiet corners.
Bedrooms Size and Amenities
For couples or small groups, one standout master suite with premium features (like a bathtub or pool view) creates a luxury feel that justifies higher rates.
In family-oriented villas, equal-sized bedrooms with similar amenities avoid conflicts between guests and make the property more versatile for bookings.
Matching bedroom quality to your target market keeps your villa competitive.
Multifunctional Spaces to Save Costs and Boost Usability
Smaller villas maximize every square meter. Dining areas that double as lounges, convertible furniture, and smart storage solutions make the villa feel bigger without increasing build costs.
This efficiency appeals to digital nomads and couples, who value cozy but functional spaces, and keeps construction and maintenance expenses lower while maintaining guest comfort.
For example, Casa di Tanina, a 1-bedroom villa in Uluwatu, wonderfully displays how compact villas can maximize every space. Designed in a sophisticated Spanish-Mexican design, it blends an Instagram-worthy appearance with practical functionality.
Its sunken seating area in the living room creates a pleasant social hub, while many glass doors lead directly to the outside, showering the space with natural light and a breezy, open vibe.
The kitchen, dining, and living areas are seamlessly connected, creating one fluid space where nothing feels cramped or wasted. Casa di Tanina demonstrates how a small villa can deliver both style and usability, which are critical factors in driving strong guest appeal and ROI.
Why do smaller, efficiently designed villas often yield higher rental returns?
Price Benefits of Smaller Villas
Couples and solo travelers on a budget who still want privacy and comfort often find that smaller villas are just right for them. Their lower nightly rates than bigger estates draw in more people, which leads to more bookings. Data shows that villas with less than 100 square meters of space can have occupancy rates of around 85%, which is much higher than the 60–65% average for larger properties.
Small Villas = Lower Maintenance Cost
Building, furnishing, and keeping up a small villa is less expensive. Fewer rooms mean fewer utilities, less cleaning, and fewer staff, all of which help you keep your margins. This smaller business keeps costs low while rental income stays steady, which means annual returns of 8–10%, compared to 4–6% for bigger estates.
When Does A Larger Villa Become More Profitable?
Larger villas can perform well in niche markets like weddings, retreats, or vacations with a lot of family members. These kinds of bookings, on the other hand, happen less often and usually need more staff and maintenance. Most people who want to invest in Bali’s real estate market find that smaller villas give them faster, more stable returns without the hassle of managing a luxury estate.
Test the Water with Scalable Designs
Investors can test the market with less risk by starting with a villa with one or two bedrooms. It’s easier to add a bedroom, make living spaces bigger, or add new features later with modular layouts.
This method not only spreads out the costs of investing, but it also lets you grow your property based on actual demand and guest feedback.
Take, for example, an investor who built a compact one-bedroom villa in Pererenan five years ago, back when it was still a quiet village on the edge of Canggu. The initial investment was modest, designed with a flexible floor plan that allowed for future expansion.
As the area grew in popularity, drawing surfers, digital nomads, and boutique cafes, bookings surged. With steady rental income and rising land value, the owner reinvested profits to add a second bedroom and an outdoor lounge.
Today, that villa not only commands higher nightly rates but also sits in one of Bali’s trendiest destinations, proving how starting small with a scalable design can pay off as tourism hotspots evolve.
Which amenities and features set high-ROI villas apart?
Non-Negotiable “Must-Have” Amenities
At the very least, guests expect reliable air conditioning, fast Wi-Fi, and comfortable bedding. These essentials are non-negotiable in Bali’s humid climate and highly connected travel culture. A private pool is also almost standard for villa rentals, properties without one risk being overlooked in favor of competitors who offer it.
Luxury Extras to Boost the Best Return
Adding premium extra features could directly boost revenue. According to wander.com villas with private pools or hot tubs see an 18–24% increase in average daily rates (ADR) and up to a 7% bump in occupancy.
Extras like freestanding bathtubs with scenic views, rooftop lounges, or outdoor showers offer high visual appeal at relatively low installation cost, making them ideal for attracting “Instagram-minded” travelers.
Functional Amenities to Maintain Long-term Guest Satisfaction
Functional amenities like a full kitchen with quality appliances (oven, blender, and cookware for home-cooked meals), a washer and dryer for extended stays, built-in wardrobes with ample storage, and blackout curtains for better sleep, especially for long-term guests.
These details often lead to glowing reviews, strengthening a villa’s reputation and boosting repeat bookings over time.
How Can Tech-friendly Features Improve ROI without Overspending?
Small tech upgrades can make a big difference. Keyless entry simplifies check-in, smart lighting enhances comfort, and reliable streaming-capable TVs appeal to guests on longer stays. These low-cost improvements create a seamless guest experience, reducing staff dependency and adding a modern touch that travelers value.
In Bali’s crowded villa market, amenities that combine comfort, function, and a touch of luxury set high-performing properties apart.
When backed by market research, even simple additions, like ergonomic workspaces for remote workers or personalized welcome baskets, can transform guest satisfaction into stronger ROI.
If you’re unsure which amenities will give you the best return, our team at Oniriq Property can help. Book a consultation with us today, and we’ll guide you through smart design and amenity choices that align with Bali’s market trends and your investment goals.
Schedule a consultation with us to get many valuable insights for your real estate investment strategy.
