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Bali vs Thailand, Portugal & Spain: How Does Bali Property Investment Compare?

Bali vs Thailand, Portugal & Spain: How Does Bali Property Investment Compare?

July 29, 2025

For years, Bali has attracted lifestyle investors with its mix of tropical charm, strong rental returns, and increasing infrastructure. But how does it really compare to other popular destinations like Thailand, Portugal, and Spain — each of which has long been favoured by global investors, retirees, and digital nomads alike?

If you’re evaluating your next villa investment or holiday rental purchase, this comparison will break down the critical factors: yield, legal structure, market maturity, regulation, and lifestyle compatibility. Let’s dive into how Bali stacks up.

Bali vs. Thailand: Southeast Asia’s Top Contenders

Tourism & Occupancy

Both countries are powerhouse tourism destinations — but they serve different types of travellers. Thailand receives more annual visitors overall, yet Bali punches above its weight with villa-specific demand. In Uluwatu, occupancy rates consistently reach 85–90% in peak season. This is due to a growing luxury tourism segment, longer-stay visitors, and rising demand for private villas over hotels.
Thailand’s occupancy is strong in urban hubs like Bangkok or tourist areas like Phuket and Chiang Mai, but villa-specific demand can be more seasonal and dependent on localised infrastructure.

Ownership & Legal Framework

Thailand offers a more complex and often riskier legal landscape. Freehold land ownership is not available to foreigners, and many buyers resort to nominee structures — technically illegal and highly discouraged. Leasehold protections vary, and long-term renewals are not always guaranteed.
Bali’s legal structure, while different to Western models, is clearer for foreign investors. Leasehold agreements (typically 25–30 years with built-in extensions) are common and enforceable. With a properly structured PT PMA (foreign-owned company), investors can also lease land in a corporate structure and run rental operations legally.

Yields & Growth Potential

Rental yields in Bali are consistently among the best in the region — ranging between 8–15%. Akura Villas, for example, target net yields of 12–21% depending on size, location, and management structure. Thailand’s average yields sit between 4–8%, with greater variability due to market saturation and tourism fluctuations.
Bali’s property values in prime areas like Uluwatu are still on the rise, offering double-digit capital appreciation. In contrast, Thailand’s coastal hotspots have seen slower growth due to oversupply.

Build Quality & Market Differentiation

Bali’s boutique development scene is raising the bar on sustainability and design — with developers like Akura leading the way. European-standard construction, eco-conscious materials, and rental-ready design have become hallmarks of a premium product.
In Thailand, the standard varies widely. Some top-tier developments in Phuket or Samui meet global standards, but many budget-friendly options compromise on long-term durability.

Bottom Line: Bali offers stronger yields, better legal clarity, and a more boutique-driven, high-quality investment product.

Bali vs. Portugal: Security vs. Simplicity

Property Ownership & Residency

Portugal is a freehold market — and for years, its Golden Visa program was a top draw for international investors. But recent changes have made real estate less eligible, pushing investors to look elsewhere.

Portugal’s ownership structure is straightforward, but bureaucracy is slow. It often takes 3–6 months to close a deal, and coastal properties are increasingly restricted for short-term rental use.

Bali offers no freehold ownership for foreigners, but leasehold remains accessible, flexible, and simple with legal support. Akura handles the full process in-house — including lease structuring, due diligence, and optional PT PMA setup.

Entry Cost & Upfront Fees

Portugal’s property market has surged. Entry-level apartments in Lisbon or coastal Algarve can easily exceed €500,000 — with high transfer taxes, stamp duties, and VAT (if buying new). Renovating heritage buildings also comes with strict design and permitting restrictions.

In contrast, fully furnished, rental-ready villas in Bali start from $419,000 USD, with lower taxes and streamlined approvals. Investors often enjoy faster ROI and earlier rental income.

Rental Market Performance

Portugal’s short-term rental market is under pressure. Major cities have implemented caps or bans on new Airbnb licences, and some areas are phasing them out entirely. Occupancy is strong in peak seasons but can drop sharply in winter months.

Bali is a year-round destination, with digital nomads, luxury tourists, and returning holidaymakers driving occupancy across all seasons. Short-term rentals are still permitted in key areas like Uluwatu and Canggu.

Bottom Line: Portugal is secure, but slow and increasingly regulated. Bali offers speed, flexibility, and higher yield potential.

Bali vs. Spain: Regulation vs. ROI

Market Maturity

Spain has one of Europe’s most developed property markets. Investors enjoy robust title systems and stable governance, but yields are modest. Capital growth is slow in saturated areas, and competition is high.

Bali’s market is more agile. With boutique developers leading the charge and new infrastructure improving rapidly, the opportunity for early-stage appreciation is significantly stronger — especially in emerging luxury pockets like Uluwatu.

Short-Term Rental Regulations

Spain’s major cities have cracked down on short-term rentals. In places like Barcelona, Palma de Mallorca, and Madrid, licences are capped or restricted. Investors may be forced into long-term rental models with lower returns.

Bali has zoning-based rental rules, but in licensed tourism zones (like Uluwatu), short-term letting is fully permitted. With proper licensing and villa management, investors can earn strong returns without regulatory hurdles.

Operating Costs & Maintenance

Spain has higher operating costs: local taxes, agency fees, and community costs for shared developments add up. Many villas in Spain are part of gated communities or residential blocks, limiting autonomy.

In Bali, private villas are the norm. Maintenance and management are handled affordably, especially with providers like Akura that offer in-house full-service solutions.

Bottom Line: Spain is stable, but slow-growing. Bali gives you the flexibility to scale, earn more, and own a unique, high-performing asset.

Comparison Table

Why Bali Is Winning Investor Attention in 2025

Across all three comparisons, Bali consistently offers:

  • Higher yields: 8–15% net returns on managed villas

  • Lower entry prices: Fully furnished from ~$300K USD

  • Fewer restrictions: Short-term letting permitted in key zones

  • Tourism resilience: Year-round appeal with high daily spend

  • Legal solutions: Leasehold + PT PMA = full foreign compliance

  • Sustainability focus: Eco-conscious villas that guests prefer

And with Akura Villas, investors gain even more peace of mind:

  • European-standard builds with long-term durability

  • Sustainable construction and low operating costs

  • Hands-free villa management with transparent reporting

  • Triple Promise: On-time delivery, quality guarantee, rental-ready handover

In an increasingly regulated global property market, Bali stands out as one of the few destinations that still offers the trifecta: strong returns, lifestyle upside, and streamlined ownership.

Final Thought: What’s the Smarter Investment in 2025?

If your goal is to:

  • Generate passive income

  • Build long-term wealth

  • Own a retreat that doubles as a high-performing asset

  • Align your portfolio with sustainable, future-proof travel trends

Then Bali—particularly through a trusted partner like Akura—is one of the smartest moves you can make right now.

Thinking About Investing in Bali? Let’s Talk.

If you're looking for a stress-free, transparent investment, Akura Villas ensures your journey is seamless from contract signing to property management. Our team is here to help you map your investment goals to the right strategy—and the right villa.

📩 Let’s talk: Please follow link to 👉🏽 book a consultation to explore our available properties and secure a stress-free investment in Bali. Alternatively contact us at hello@akuravillas.com