Why global buyers are betting on Asian real estate

For decades, the "safe bet" for international property investors was London, New York, or Vancouver. But as we close out 2025, a vital shift in capital flow is undeniable. International buyers— from institutional investors to the global diaspora—are pivoting toward Asia and South Asia. From the luxury skylines of Mumbai and Singapore to the holiday villas of Bali and Phuket, the East is no longer just a place for manufacturing; it is becoming a premier destination for asset allocation.

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Why Asia and South Asia?

The motivation varies significantly between the two sub-regions, but the overarching theme is Growth vs. Stagnation. While Western markets struggle with high interest rates and saturation, Asian markets offer dynamic upside.

According to the IMF, with a collective GDP of over 4 trillion dollars, ASEAN already is the world’s 4th largest economy and is growing 25 per cent faster than the global average.  Economic integration, digitalisation, and the rise of a consumption-oriented middle class have supported a decade of resilient performance. Amid a global search for yield and diversification, this region has become a high-conviction theme. Whether through physical property or public equities, investors are betting on a landscape for its favourable demographics and structural reforms.

The South Asian "Homecoming"

For South Asia, the primary driver is not the random foreign investor, but the Diaspora. Non-Resident Indians (NRIs), Bangladeshis, and Pakistanis living in the UK, USA, and Canada are pouring money back home. In 2025, the "return to roots" trend is peaking, driven by ageing parents back home and a desire to own a "base" in their country of origin.

With the US Dollar and Euro remaining strong against the Rupee (INR/PKR) and Taka (BDT), foreign currency buys significantly more square footage in Mumbai, Dhaka, or Lahore than it did five years ago. Besides, developers in South Asia have adopted global standards.

Southeast & East Asian "Safe Haven"

Rental yields in Bangkok, Ho Chi Minh City, and Manila often range from 5% to 7%, significantly higher than in major European capitals. The Japanese Yen remains historically affordable for dollar-based buyers. Investors are buying up ski resorts in Niseko and heritage homes (Akiya) in Kyoto, viewing Japan as the ultimate stable, low-crime safe haven. As manufacturing moves from China to Vietnam and India, real estate money follows. Investors are buying housing where the new jobs are migrating.

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The Rise of "Branded Residences"

The rise of "branded residences" is largely driven by the need to bridge the trust gap in South Asia, where buyers have historically questioned the ability of local developers to deliver premium quality and finishes. To combat this, developers are increasingly partnering with global luxury icons. India is expected to see a spike in towers branded by names like Trump, Versace, and Four Seasons, assuring buyers of international standards. This trend is mirrored in Thailand as well.

The "Digital Nomad" Becomes the "Digital Settler"

The temporary digital nomad of 2020 has matured. They aren't just renting Airbnbs anymore; they are buying. Countries like Thailand (LTR Visa) and Indonesia (Second Home Visa) have streamlined the process. If you buy property above a certain value, you get long-term residency. This has led to a property boom in Bali and Phuket. 

Influence on Local Markets

The influx of foreign capital is a double-edged sword. It is reshaping the urban landscape of these nations. Foreign demand forces governments to improve infrastructure. The expansion of the Metro in Dhaka and the high-speed rail networks in Thailand are partially validated by the need to support high-value real estate zones.

International buyers demand transparency. This has forced South Asian real estate sectors to digitise land records and strictly enforce regulations to attract foreign capital. But this foreign investment is also harming the locals. In popular hubs, locals are being priced out of their own neighbourhoods.

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Risks for International Buyers

Despite the current boom, Asia remains a complex regulatory environment for international buyers, characterised by restrictive ownership laws that often limit foreigners to leaseholds and strict capital controls that complicate fund repatriation. To mitigate these hurdles and the risk of construction delays, investors are increasingly favouring "ready-to-move" properties; however, these challenges have not deterred global capital. As Western economies face headwinds, the East is becoming central to wealthy portfolios, driven by the diaspora’s emotional ties in South Asia and the pursuit of higher yields and lifestyle upgrades in Southeast Asia.