Southeast Asia remains a top choice for real estate investors, thanks to its rich culture, beautiful scenery, and booming tourism industry. For 2025, Bali in Indonesia and Thailand emerge as leading destinations.
Both Thailand and Bali are also offering a unique combination of lifestyle advantages, investment opportunities, and cultural richness that attract international investors.
However, the question remains: which is the best choice for property investment?
This article will dive deeper into the subject and provide the key information you need when considering real estate investments in Southeast Asia.
Key Takeaways
- Bali and Thailand are top property hotspots in Southeast Asia, driven by tourism, expat growth, and cultural appeal. In comparison, Bali stands out for higher yields and limited supply, making it a strong choice for villa investment.
- In 2024, Thailand welcomed 34.5M tourists, while Bali had 6.3M, with Bali showing stronger economic growth (5.71% vs 2.5%).
- Bali offers higher rental yields (8–15%) and faster ROI (5–6 years), with strong short-term rental demand, affordable property prices, and investor-friendly structures like leasehold and PT PMA.
- Thailand provides steady price growth (5–8%), strong rental returns (7–12%), and investor-friendly perks such as low transaction costs, no capital gains tax, and long-stay visa programs.
- Remember that both markets still have risks: legal complexity, scams, market fluctuations, and policy changes.
Explore Top Deals: Available Bali Villa For Sale - Leasehold and Freehold!
Why Have Bali and Thailand Been on Investors' Radar?
Southeast Asia's real estate markets are thriving thanks to increasing foreign investment, growing expat communities, and booming tourism.
In 2024, Southeast Asia attracted more than 70 million international visitors, with Bali and Thailand standing out as the most visited:
| Category | Thailand | Bali / Indonesia |
| Tourism Growth (2024) | 34.5 million tourists | 6.3 million tourists |
| Economic Growth (2023) | 2.5% GDP growth | 5.71% GDP growth |
Bali is an ideal destination to explore spirituality, surf, enjoy breathtaking nature, practice yoga or pilates, and embrace a healthy lifestyle. It has also become a hub for digital nomads, offering a balance between work and leisure in a tropical paradise.
Thailand attracts visitors with its stunning natural landscapes, vibrant culture, delicious street food, and warm hospitality, all at an affordable price and supported by a strong tourism infrastructure.
From beautiful beaches and ornate temples to lively cities, hiking, diving, and colourful festivals, Thailand appeals to a broad spectrum of travellers.
Read More: How to Buy Property in Bali from Abroad: Complete Guide
The Investment Opportunities: Bali vs Thailand
Now, let’s get to the important part—what do you actually gain from investing in property in these locations? Here’s a quick market overview for each country:
Bali Market Overview
We will first look at the Bali market condition and opportunities:
- Bali Economic Situation: Bali’s economy grew 5.52% in the first quarter of 2025 compared to last year. Tourism is also rising, with 591,221 foreign visitors in April—up 25.56% from March’s 470,851.
- High Rental Yields (Long-Term Rental): Due to Bali's developing tourist industry, there is a high demand for rental homes. Long-term rentals (in hotspots) may provide stable cash flow with yields of 8-15%.
- Short-Term Rental Demand: Short-term rentals enjoy occupancy rates of 80-90% and generate gross yields between 7-15%. Premium oceanfront villas (like villas in Jimbaran) can deliver even higher daily returns, reaching 12-20%.
- Payback Period: ROI coming in as fast as 5-6 years.
Furthermore, there are many other benefits if you invest in Bali, Indonesia:
- Reasonably priced real estate: Bali has comparatively cheap real estate as compared to other international centres, which makes it easier for investors to get funds.
- Accessible Investment Pathways: International investors may purchase real estate more easily in Bali because of its accessible investment structures, which include foreign-owned businesses and leasehold rights.
- Beneficial Tax Laws: Indonesia has very cheap land and property taxes, which increases the return on an investment in Bali real estate.
- Robust Tourism & Lifestyle: Bali's thriving tourism, cultural diversity, and alluring way of life generate steady demand for real estate and provide advantages for individual lifestyles.
Read More: Invest in Bali with High ROI for Foreigner: A Step-by-Step Guide
Thailand Market Overview
Meanwhile, Thailand offers the following conditions and opportunities for real estate investment:
- Steady Price Growth: In popular resort areas like Phuket, property prices rise 5–8% yearly due to strong demand and limited beachfront land. Buying during construction can bring up to 15% growth per year until completion.
- Strong Rental Returns: Holiday rentals in Phuket often give 7–12% annual net yields, while long-term rentals in cities like Bangkok and Chiang Mai also perform well.
- Tourism Recovery: Over 35 million tourists visited Thailand in 2024, with numbers expected to surpass 40 million by 2026.
Now for the benefits that come with investing in Thailand:
- Investor-Friendly regulations: Thailand provides investors with advantageous regulations that lower barriers to investment, such as cheap transaction costs and no capital gains tax on individual sales.
- Options for Long-Term Residency: A number of long-stay visa programs, such as the 10-year Long-Term Resident Visa, offer simpler paths to tax advantages and long-term residency.
- Stable Economy & Legal Protection: For international investors, Thailand offers a safe and open environment thanks to its stable economy and strong private property rights protection.
- Strong tourist Recovery: The demand for rental homes and hospitality developments is still high due to a thriving tourist industry.
The Legal Agreement of Thailand vs Bali that You Need to Know About
When you’re investing in property, it’s not just about the location; you also need to understand the legal rules. Both Bali and Thailand have special laws for foreign buyers, and it’s important to know what’s possible and what’s not.
Bali Legal Agreement
In Bali, foreigners cannot directly own Hak Milik (freehold) land. But don’t worry, you still have options:
- Long-term leases: You can lease land or property for 20–30 years, and most agreements can be extended.
- PT PMA company: By setting up a foreign-owned company (called PT PMA), you can register under Hak Pakai (right to use) or HGB (right to build). With the HGB option, your company has a legal path to long-term property ownership.
These structures make it possible for foreigners to safely invest and enjoy long-term use of their property in Bali.
Read More: Freehold vs Leasehold: Which Ownership Type is Right for You?
Thailand Legal Agreement
In Thailand, foreigners also face limits, but there are smart ways to invest:
- You can own a condo unit, as long as foreign buyers don’t exceed 49% of the building.
- You can enter long-term leases for land or villas.
- Some people set up a Thai company to buy property.
- In special cases, you can get ownership through Board of Investment (BOI)-approved
The Risk of Investment: What You Have to Think About
Although investing in Southeast Asia presents amazing opportunities, there are drawbacks as well.
It's crucial to understand some of the major risks before purchasing real estate and to take preventative steps to safeguard your investment:
- Legal Complexities: Foreigners cannot directly own land in Bali, so options like leaseholds or company structures are required. These can be complex and need professional guidance.
- Risk of Scams: Some investors fall victim to unreliable agents, dishonest developers, or misleading promises. Working with trusted professionals is essential.
- Market Fluctuations: Property values and rental income can be affected by global economic downturns, shifts in the tourism industry, or sudden market changes.
- Political and Policy Risks: Political instability or changes in government regulations may impact property rights and investor confidence. Staying updated on local policies is crucial.
- Currency Exchange Risk: Shifts in currency exchange rates can reduce overall returns for foreign investors.
- Remote Property Management: Managing a villa from abroad can be challenging. Hiring trustworthy staff and ensuring proper maintenance are key to protecting profitability.
Read More: 12 Hidden Dangers of Investing Alone in Bali: Avoid These Common Mistakes!
Bali or Thailand: Which Place is Better?
Looking at all the information, it’s clear that both Bali and Thailand can deliver solid returns and attractive lifestyle benefits. However, Bali stands out for several reasons.
Rental yields are typically higher, often between 8–15%, compared to Thailand’s 5–8%. Prime areas in Bali also show strong capital appreciation potential, especially in desirable locations where boutique developments emphasize high-quality construction and eco-friendly design.
This combination of higher income and sustainable growth makes Bali a compelling choice for many investors. That said, Thailand has its own advantages. The market is larger and more diverse, with opportunities ranging from affordable condos in Bangkok to high-end villas in Phuket.
Regulations are fairly investor-friendly, and infrastructure is well developed. But with this scale comes the risk of oversupply in some areas, which can put pressure on rental returns and property values.
Read More: Comparing Bali Top Investment Location (2025): Canggu, Seminyak, and Uluwatu
Investment Property Tips for Better ROI
No matter if you buy in Bali or Thailand, there are a few rules that can help you stay safe:
- Always hire a local lawyer: The laws are different in each country and can be confusing. A good lawyer will guide you through the process and make sure your money is protected.
- Do your research: Check who the developer is, make sure the property has the right legal papers, and read the lease agreement carefully before you sign.
- Watch the money part: When you buy property, you need to bring the money in as foreign currency and file the right forms with the local offices. This is important if you want to sell later and move your money back out.
Conclusion: Start Your Bali Property Investment with Ease
It’s safe to say that Bali is still better than Phuket or Thailand for villa investment. Many expats are still leaning toward Bali for its better profit potential.
The yields are stronger, the supply is more limited, and the international appeal is growing, driven by tourism, digital nomads, and lifestyle seekers.
If you believe Bali is the right place for your investment, you’re already one step closer to a brighter future.
Now, all you need is the right plan. Don’t worry—you don’t have to figure it out alone.
Our experts at Bali Villa Realty are here to help anytime. Book a free consultation to get clear answers and a personalized plan tailored to your goals—completely free, no strings attached.
FAQ
1. Why is Bali so famous?
Bali is known for its exotic location, friendly culture, and stunning attractions like beaches, surf spots, temples, and rice fields.
2. Is Bali or Thailand cheaper?
For activities and attractions, Bali is usually a bit cheaper than Bangkok. Overall, both Bali and Thailand are affordable for most travelers.
3. Which is better for families, Bali or Thailand?
Bali has safe family beaches like Nusa Dua and Sanur, though many have strong waves. Thailand’s beaches are calmer overall, making them very family-friendly.
