Southeast Asia is quickly becoming a magnet for luxury property investors, blending unspoiled natural beauty with world-class amenities.
As superyacht owners and adventurous travelers expand their horizons beyond the well-trodden paths of the Mediterranean, Florida, and the Caribbean, destinations like Thailand, Bali, and Sri Lanka are experiencing a surge in high-end tourism and real estate development. With new marinas, upscale resorts, and luxury housing, these locales now offer a seamless combination of adventure and comfort.
Thailand: Phuket’s Flourishing Luxury Market
Phuket, Thailand’s largest island, is a prime example of this transformation. Boasting nearly 80 five-star hotels, a plethora of spas, fine dining establishments, and four marinas catering to superyachts, the island has established itself as a luxury haven.
According to property analysts at Colliers, Phuket saw a “remarkable surge” in real estate development in 2023, with almost 9,000 new homes hitting the market. Another 4,500 apartments are expected to be available in 2024.
The west coast, particularly areas like Bang Tao Beach, Laguna Phuket, and Layan Beach, remains a hotspot for buyers. These areas offer proximity to Phuket International Airport and international schools while maintaining a degree of exclusivity away from tourist crowds.
Since the pandemic, property prices in Phuket have climbed by 30–40%, driven by international demand, especially from Europe, Australia, and Russia. “Average prices are around 150,000 to 170,000 Thai baht (£3,220–£3,650) per square meter,” notes Pramaporn Nimpinij, senior sales manager at Knight Frank. While Nimpinij expects prices to rise further, she warns that rapid development could outpace demand, emphasizing the importance of discerning investments.
Bali
Bali, renowned for its lush jungles and stunning beaches, is another destination capturing the attention of affluent investors. Buyers are flocking to areas like Canggu and Sanur, which offer vibrant infrastructure, including cafés, shops, and restaurants, alongside easy access to the airport.
“These areas appeal to expats, digital nomads, and investors who often see double-digit returns on their investments,” says Rhodri Ellis Owen, director of Polarius Real Estate.
The island’s infrastructure includes several marinas, such as the Bali Marina and Benoa Marina, Indonesia’s first international-standard facility, which opened in 2020. Luxury properties are on the rise, with substantial four-bedroom villas priced between $1 million and $5 million (£790,000–£3.9 million). However, buyers should be aware of leasehold restrictions, with lease terms typically ranging from 25 to 50 years, though freehold properties are available.
While Australian buyers once dominated the market, North Americans are now showing growing interest, drawn by Bali’s unique culture, ancient temples, and rich biodiversity. “American buyers are increasingly exploring long-haul destinations,” Owen adds.
Sri Lanka
For those seeking a more off-the-beaten-path experience, Sri Lanka offers an emerging luxury property market. Less developed than Phuket or Bali, the island appeals to adventurous investors who value its vibrant culture and unspoiled landscapes.
“The luxury market here caters to a different type of buyer—someone looking for adventure and value,” says Max Duddy, founder of The New Sri Lankan House estate agents. Properties are concentrated in the “Golden Mile” between Talpe and Habaraduwa, known for its pristine beaches and proximity to Colombo, just two hours away via a new highway.
Colombo’s Port City Marina is a key part of a $15 billion urban regeneration project, reflecting the government’s ambitions to attract superyachts and rival destinations like Dubai. A beachfront four-bedroom villa in this area costs around $1.2 million, with premium properties commanding significantly higher prices.
Beyond the beaches, Sri Lanka offers a wealth of experiences, from elephant safaris and ancient Buddhist temples to tea plantations and rock climbing. “It’s not about Michelin-starred dining yet,” says Duddy, “but life in Sri Lanka is full of excitement and color.”
A New Era of Luxury
As Thailand, Bali, and Sri Lanka continue to evolve, they offer a compelling blend of luxury, natural beauty, and cultural richness. For property buyers and investors willing to embrace the road less traveled, these destinations promise not just remarkable returns but a lifestyle unlike any other.