Thailand’s Luxury Real Estate is Outpacing Bali and Dubai in 2025
As of April 1, 2025, the luxury real estate market in Thailand is showing strong momentum, making it a noteworthy contender in the global luxury property race. With major cities like Bangkok and Phuket leading the charge, the country’s market is attracting high-net-worth individuals seeking both lifestyle and investment opportunities. While comprehensive 2025 year-end figures are yet to be unfolded, current trends and projections indicate that Thailand’s luxury real estate market is outpacing Bali and Dubai in key areas, offering a unique blend of opportunities for investors.
Thailand’s Luxury Real Estate Market Is Gaining Momentum
Thailand’s luxury property market has seen an impressive surge, particularly in well-established hubs such as Bangkok, Phuket, and Hua Hin. The country’s increasing appeal is being driven by favorable investment conditions, government incentives, and a growing selection of branded residences. Projects like the Porsche Tower Residences in Bangkok, exclusive villas in Phuket, and luxury retreats in Hua Hin are redefining the luxury property landscape.
Government initiatives, including long-term visas for investors, such as the DTV visas and the Privilege visas, have also played a key role in boosting Thailand’s market. Thailand’s tourism industry is another significant driver. With Thailand expecting to return to pre-pandemic visitor levels by mid-2025, the demand for luxury vacation homes and rental properties has soared. In prime areas like Thong Lo in Bangkok, rental rates are rising rapidly as more international buyers seek to invest in this dynamic, cosmopolitan city. Phuket, known for its scenic beauty and vacation appeal, is making it even more attractive to foreign buyers. Hua Hin, with its relaxed coastal atmosphere and proximity to Bangkok, is also gaining popularity, attracting those seeking a more relaxed lifestyle while still enjoying luxury living and investment opportunities.
Projections show that Thailand’s luxury property market is expected to grow by 3.4% annually through 2029, with a $3.4 billion market valuation in 2024. This growth, combined with the country’s robust tourism sector, makes Thailand a rising star in the global luxury real estate market.
Bali Has A Strong Appeal, But Faces Challenges
Bali has long been a hotbed for luxury real estate, especially among investors looking for a more affordable yet still exclusive destination. Villas in areas like Canggu and Uluwatu continue to offer high rental yields, driven by a booming tourism sector and the influx of digital nomads. However, Bali’s property market faces a few challenges that could limit its potential in the coming years.
Foreign ownership is restricted to leasehold agreements, typically lasting 25-50 years, which can be a deterrent for high-net-worth buyers seeking long-term property ownership. Additionally, while Bali’s infrastructure is set to improve—such as the planned North Bali International Airport—the market has started showing signs of saturation. Popular areas have seen slower bookings by the end of 2024, signaling that demand may not be growing at the same pace as in previous years. Although property prices in Bali are projected to rise by 5-10% in 2025, the market’s momentum appears to be slowing when compared to Thailand’s explosive growth.
Dubai Is Ultra-Luxury at a Premium Price
Dubai’s luxury real estate market is renowned for its opulence and global appeal. In 2025, prime areas like Palm Jumeirah and Downtown Dubai are expected to see property prices grow by 5-8% annually. The ultra-luxury segment in Dubai remains particularly strong, with sales of properties over $10 million nearly doubling in 2023. The city’s investor-friendly policies, including no taxes on rental income and long-term visa options, keep it a magnet for HNWIs from around the world.
However, Dubai’s luxury real estate market faces some potential headwinds. High entry costs, combined with an expected oversupply of 41,000 new units in 2025, could slow down growth in some segments. Despite this, Dubai’s dominance in the ultra-luxury market and its established reputation as a global wealth hub continue to make it a key player in the luxury real estate sector.
Thailand vs. Bali vs. Dubai
So, is Thailand outpacing Bali and Dubai in 2025? The answer seems to be yes, but with important aspects. Thailand’s combination of luxury growth, freehold ownership options, and government incentives gives it a slight edge over Bali, where foreign ownership restrictions limit investment flexibility. Bali’s rental market is also showing signs of saturation, and its slower pace of growth could leave it trailing behind Thailand in terms of momentum.
When compared to Dubai, Thailand may not match the sheer scale, stability, or ultra-luxury dominance of Dubai’s market. However, Thailand’s lower entry costs, tourism-driven rental boom, and broader appeal to a diverse range of high-net-worth individuals position it as a rising force in the global luxury real estate market. Dubai’s ultra-luxury properties still reign supreme, but Thailand is gaining ground fast, particularly in the mid-to-high-end luxury segment.
The Outlook for 2025 and Beyond
While data for the full year of 2025 is still unfolding, the trends currently emerging suggest that Thailand is on a hot streak. Its luxury real estate market is not just keeping pace with Bali and Dubai—it may well be outpacing them in terms of growth, particularly in the mid-range luxury segment. With government support, an expanding tourism sector, and an increasingly attractive investment environment, Thailand’s luxury real estate market looks poised to continue its upward trajectory in 2025 and beyond.
However, all three markets—Thailand, Bali, and Dubai—are thriving in their own right, each offering unique opportunities for high-net-worth investors. What’s clear is that Thailand’s momentum in 2025 is undeniable, and it’s fast becoming one of the most exciting markets for luxury real estate in the world.