Where Is It More Profitable to Invest in Resort Real Estate: Dubai, Thailand, or Bali? Comparing Returns, Risks, and Purchase Terms
AB
Andrei Balinsky
Founder of Balinsky
"Where to invest in resort real estate: Thailand, Dubai, or Bali?
The key point in two words
• Dubai - reliability and simple rules.
• Thailand - a good balance of return and risk.
• Bali - maximum returns, but more hassle.
Thailand
• Tourism is growing, infrastructure is improving.
• A foreigner can easily buy a condo; land - through lease or structures.
• Returns: 7-10% gross, higher in resort areas.
• Risks: land lease terms, overheating in some locations.
Dubai
• Strong brand, events all year round.
• Full freehold, visas from ~200k-550k.
• Returns: 6-8% gross, almost no taxes.
• Risks: market cyclicality, service charges.
Bali
• Record tourist flow, a new airport is planned.
• Usually leasehold for 25-30 years or through a company.
• Returns: 12-18% gross, 8-12% net is realistic.
• Risks: more complex legal side, lower liquidity, weaker currency.
Indicative budgets
• 100-150k - entry point in Thailand or Bali.
• 200-300k - a good leasehold villa in Bali, 1-2 bedrooms in Thailand, a studio/1BR in new areas of Dubai.
• 500k+ - Dubai with a long-term visa.
• 1-3 million+ - premium properties in Dubai and top villas in Asia.
What to choose
• Want something quieter and more reliable - Dubai.
• Need balance - Thailand.
• Want maximum returns and are ready to go deeper - Bali.
How to do it wisely
• Diversify: part in Dubai for stable cash flow, part in Thailand for balance, a smaller share in Bali for high returns.
• Always keep a reserve for a tourism downturn.
• Buy what is easy to rent out and resell: location, product, management."