Resort Real Estate Investments: Bali, Phuket, Dubai or Classic Cities?

If you have ever considered investing in overseas real estate, you have probably asked yourself:
Where is it better to buy — Bali, Phuket, Dubai, or perhaps more traditional locations such as Paris or New York?

Today, the world is experiencing a real boom in resort real estate — from Indonesia and Thailand to Georgia and Azerbaijan. And this is not just a trend. Investors are actively seeking destinations with high returns, growing tourism, and clear, understandable rules of the game.

In this article, we will explore why seaside property is becoming increasingly popular, what advantages and risks it offers, and how resort markets compare to classic urban real estate.

Why Investors Choose Resort Real Estate

In the past, resort property was often seen as an emotional purchase — a seaside home used a few weeks a year.
Today, it has evolved into a high-yield investment instrument.

The trend is global. According to Knight Frank, in 2024 global resort real estate sales increased by more than 35% compared to pre-COVID levels. In Southeast Asia — including Bali and Phuket — growth exceeded 50%, driven by foreign investors and rapid infrastructure development.

So why is this segment growing so fast? Let’s look at the key reasons.

1. Higher Rental Yields Than in Cities

In major capital cities, average gross rental yields rarely exceed 4–6% per year.
In contrast, resort markets with consistently strong rental demand often deliver 8–12% yields.

This is driven by several factors:

• strong tourist flows
• year-round rental demand
• hybrid rental models (short-term and long-term)
• relatively low tax pressure

As a result, seaside real estate provides not only emotional value, but also tangible financial returns.

2. Capital Appreciation

Prices for villas and apartments by the sea continue to rise steadily.

For example, in Bali, the average price per square meter has increased by 20–25% over the past three years, and in certain areas — such as Canggu, Uluwatu, and Nusa Dua — by up to 40%.

The reason is simple: land is limited, while global interest in tropical living is at an all-time high.

Phuket shows a similar dynamic. After the pandemic, the island became one of the most attractive destinations for digital nomads and European expats, creating strong demand not only from tourists but also from long-term residents.

3. International Demand and Stable Rental Occupancy

Resort destinations are no longer purely seasonal.

Bali and Phuket enjoy year-round rental demand thanks to remote work, digital entrepreneurship, and long-term stays by expats.
According to AirDNA:

• average occupancy in Bali exceeds 75%
• Phuket maintains around 70% occupancy throughout the year

This ensures stable cash flow and significantly reduces vacancy risks.

4. Low Entry Threshold

Unlike Europe and the United States, where entry-level apartments often start at €300,000–400,000,
on Bali and Phuket, quality investment projects can be found from $100,000–150,000.

This makes the market accessible not only to large investors, but also to those looking to diversify capital or start with a small studio by the ocean.

Market Snapshot

• Bali: The volume of transactions involving foreign investors grew by 48% in 2024. Developers report record sales speeds, with some projects (such as COCO Development and BREIG Property) selling out within 2–4 months.
• Phuket: According to CBRE Thailand, apartment sales increased by 35% year-on-year, particularly in Rawai, Bang Tao, and Laguna.
• Southeast Asia resort real estate market: Total volume exceeded $11 billion in 2024, with forecasts pointing to 20–25% growth in 2025.

Everything Is Relative: Resort vs Urban Real Estate

Before making an investment decision, it is useful to compare yields.

The figures above represent gross returns, excluding taxes and operating costs. In Europe and the U.S., net yields are often even lower due to high taxes, utility costs, and insurance.

Today, we are witnessing another wave of tax increases in Europe, which encourages investors to relocate capital to more flexible markets.
Do you think there will ever be a time when taxes start going down?

As a result:

• urban real estate typically has a payback period of 20–25 years
• resort real estate often pays back in just 6–10 years

When combined with limited coastal land and continuously growing tourism, it becomes clear why resort real estate is outperforming traditional city property in investment attractiveness.

Risks of Resort Real Estate

Like any investment, seaside property comes with risks. Let’s review them objectively.

1. Seasonality

Tourist flows are uneven. In countries like Turkey or Montenegro, the season may last only six months. Bali and Phuket benefit from year-round demand, but even there occupancy depends on tourist geography and regional events.

2. Currency and Inflation Risks

Currency fluctuations and inflation can affect profitability. It is important to analyze macroeconomic indicators and calculate ROI in a stable currency, such as USD.

3. Legal Restrictions

In many countries, foreigners cannot own land directly.
For example, in Indonesia, foreign investors typically use leasehold structures or company ownership (PMA).
Legal consultation with a local specialist is essential before purchasing.

4. Property Wear and Tear

Tropical climates accelerate wear due to humidity, salt, and heat.
Reputable developers factor this into design and construction, so it is important to ask about materials and maintenance solutions.

5. Property Management Quality

Rental success depends heavily on the management company — marketing, bookings, housekeeping, and guest services.
Choose projects with experienced operators and clarify management contract terms in advance.

Conclusion

Resort real estate is more than just an asset — it is a lifestyle.
It combines investment potential, stable demand, and the opportunity to enjoy the sea and sun.

Tourism growth, infrastructure development, and new economic initiatives make Bali and Phuket among the most promising destinations for seaside property investment today.

The key is a rational approach: analyze the market, the developer, legal structures, and realistic income figures. In return, you gain not only a profitable asset, but also a place you will always want to come back to.

About the Author

My name is Daniel, and I am a real estate broker in Bali with over 15 years of experience. I see how many people dream of living on this beautiful island, combining an active lifestyle with comfortable living. If you have any questions or would like to share your experience in managing property in Bali, feel free to leave comments. I’ll be happy to answer your questions and help you in your search for the perfect home! Follow for more on our Instagram.