In our world of rapid and not always pleasant changes, real estate remains the most reliable investment. This is especially true when it comes to foreign destinations that provide foreign currency income.
We’re Bali ambassadors, but today we’ve decided to explore other popular destinations as well. We’ve objectively compared Dubai, Turkey, Bali, and Thailand based on the most important criteria:
- Tourist flow
- Return on Investment (ROI)
- Payback period
- Ease of resale
We’ll provide the numbers and hard facts. You’ll make a balanced decision that will truly pay off.
Read also: Buying Property in Bali: Where to Invest
Dubai
Let’s start with the king of all advertisers and Pavel Durov’s favorite city. The emirate has long attracted tourists and foreign investors from all over the world. It lures with its technological advancement, safety, and low taxes. People here work hard and relax lavishly.
In recent years, Dubai has become a “second Moscow” due to the number of Russians who have moved there. Incidentally, Russian citizens are the sixth-largest buyers of real estate in Dubai in 2023. Demand has gradually shifted from the prestigious Downtown, Dubai Marina, and Palm Jumeirah to quieter areas.
Dubai welcomed 17.15 million tourists in 2023, breaking its previous records. However, the flow of tourists is uneven. Due to the unbearably hot summer, the city literally dies out: tourists wait for the high season, and expats try to leave the country.
Return on investment (ROI)
6-8%
Payback Period
12-15 years
*Ease and Speed of Resale
Due to the overheated local market, reselling a home is not easy right now. The number of new projects is growing at an exponential rate, and developers are offering favorable terms (presales, interest-free installments, assistance with residence permits, etc.), so resale properties, especially those located far from tourist areas, are not as popular.
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Those who managed to buy property in 2021-2022 will reap significant benefits. The Dubai market is truly overflowing with inventory, many of which will prove illiquid in the long run. Wealthy tourists are primarily staying in hotels, and expats will have to recoup their investment for many years by renting out their apartments.
Read also: Buying Real Estate in Bali: Step‑by‑Step Guide for First‑Time Foreign Buyers
Türkiye
A classic beloved by many Russians. The real estate market, and indeed politics in general, is as unpredictable as the Turkish mentality itself. The lira is falling, and obtaining a residence permit is becoming more difficult. According to the Central Bank of Turkey, real estate prices are expected to fall by 18% in 2024. And due to the unstable economic situation, the number of purchases and sales transactions among foreigners has fallen by 17.5%.
Another nuance: in 2017, a law came into force in Turkey restricting private owners’ ability to rent out their properties for short-term rentals. According to this law, only legal entities with the appropriate license and meeting a number of requirements can rent out properties for periods of less than six months. And these requirements are more stringent than any quest: registration with the tax authorities and the police, a fire escape, and even the presence of a night watchman.
Tourist Flow
Despite the 20% decrease in Russian tourist arrivals to Turkey, the overall tourist flow remains impressive—56.7 million people in 2023.
Return on Investment (ROI):
5-7% depending on the region .
Payback:
On average, about 16 years.
Ease and Speed of Resale
Resale of existing properties is practically nonexistent at Turkish resorts. There are also many offers from developers, and local realtors receive good commissions from these companies. They are simply too lazy to deal with existing properties, which are always more difficult to sell. There is no competition for land in Turkey, so potential investors will almost always prefer to buy brand-new apartments from the developer.
Resume
Turkey is currently experiencing turbulence, but it maintains its position in the tourism market. Owning real estate here for investment isn’t always a viable or “easy” option. The only strategy that will quickly turn a profit is buying apartments off-plan and reselling them immediately after construction is completed, while developers’ marketing campaigns are still in full swing.
Read also: What Areas in Bali are Suitable for Investment Property?
Bali
In recent years, the island has been called the most attractive investment destination. Bali exploded after the pandemic, now ranking among the top five resorts in the world. Many Russians (from bloggers to startup founders) have relocated here, and wealthy tourists from all over the world regularly fly there for vacation. The government has begun actively developing the island: building hundreds of millions of dollars worth of highways and international ports, hosting Formula 1 and the G20 summit. Indonesia currently ranks third in the world in economic growth, and the rupiah is one of the most stable currencies.
But even here, there are challenges. The part of Bali with developed infrastructure and suitable for construction is actually very small. Most beaches are suitable only for surfing due to strong waves. Therefore, when buying a home here, the most important factors are location and construction quality. The latter is not all that rosy on the island. Due to Bali’s rapid rise in popularity, dozens of unscrupulous developers have appeared, building slapdash villas and selling them at low prices. Of course, there’s no mention of consequences like black mold, rental restrictions, and problems with locals.
Tourist flow is projected to be 15.1 million in 2023. Indonesia also has a well-developed domestic tourism industry. This stable flow is due to the mild climate: Bali is always warm, and the rainy season is comfortable.
Return on investment (ROI)
from 12% per annum.
Payback period:
5-7 years.
Ease and Speed of Resale
One of Bali’s main advantages is its limited territory. Popular tourist areas are already almost 90% developed. Therefore, villas and apartments in such locations will only increase in price and will also be in demand for resale due to high daily rental rates.
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Investing in Bali real estate is suitable for everyone, from those looking for immediate profits through resale to those seeking a stable passive income. The key is to choose a developer responsibly and carefully study local laws before purchasing.
Read also: Buying Property in Bali: Expectations vs. Reality
Thailand
Phuket, Bangkok, Koh Samui; Thailand is familiar and easy to understand, like the Turkey of Asia. Many have vacationed here and have likely considered buying a cozy oceanfront villa. The kingdom has always been popular with downshifters, and after 2022, remote workers began moving there in droves.
Thailand is often compared to Bali. Both saw an increase in investment activity immediately after the pandemic, with developers focusing not only on the building itself but also on the surrounding infrastructure. Incidentally, in 2023, real estate sales and purchases increased by 20% (according to Bank of Thailand).
Let’s look at other figures.
Tourist Flow:
28 million people in 2023 alone.
Return on Investment (ROI):
From 5-6%, a relatively low figure compared to other Asian countries. Thailand has established itself as a “budget” Asian destination, where you can rent quite comfortable apartments for $600-700 for a month. Tourists often stay in chain hotels with high service.
Payback Period:
12-15 years.
Ease and Speed of Resale:
Property in Thailand is relatively easy to resell; location plays a key role, as in many countries. The most popular are Phuket, Samui, and Koh Phangan.
Resume
Thailand is a good choice for Asia, but it’s still behind Bali in terms of profitability and return on investment. You can resell property profitably here if all the cards fall into place. However, earning significant passive rental income requires some effort. Thailand is growing, but it hasn’t yet achieved the “beautiful Asian picture” with the developed infrastructure that wealthy tourists are accustomed to.
Conclusion
In this article, we promised not to focus on Bali, even though we objectively believe it to be the most profitable investment destination. Every investor is unique, so be clear about what you’re looking for. Are you looking for a quick, immediate profit or a stable rental income? Are you willing to get involved in management, or will you be using the property yourself? There are dozens of other questions that are best answered in advance.
If you want to become the owner of premium real estate in Bali’s top tourist destinations and earn at least $46,000 annually, we have something to offer. Submit a request, and a Magnum Estate manager will contact you for a personal consultation.
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