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Suppose you have €250,000 available and want to invest in real estate. You are looking at Bali, Dubai, and Spain. It is tempting to lay three brochures side by side and compare how many square meters, bedrooms, and swimming pools you get for your money.
But that is not the comparison that matters.
The real question is: what product are you buying, under what legal conditions, with what financing, for which target group, and with what operational responsibility? An apartment in Dubai, a home on the Costa Blanca, and a participation in a resort in Bali may have roughly the same entry price, but economically, they are completely different products.
If you don't have a clear grasp of that difference, you are comparing apples, oranges, and a hotel room as if they were the same thing.
Before I look at a country, I want to know what someone wants to achieve with the investment. Are you looking for monthly cash flow? Is capital preservation your main priority? Do you want to use the property yourself for six weeks a year? Is liquidity important to you? Do you want to finance or invest debt-free? And how much involvement do you want after the purchase?
Someone who wants a second home for the family makes a different choice than someone who wants to participate passively in a professionally operated resort. Therefore, there is no universal answer to the question of which market is "the best."
There is, however, a best match between goal, product, and risk.
When people think of Bali, they often think of low construction costs, tropical villas, and high returns. Sometimes those benefits are sold so aggressively that the nuance disappears. Foreign buyers do not automatically receive the same property rights as they would in their home country. Many commercial projects work with a leasehold, a right of use, or a corporate structure. The duration, renewal conditions, permits, and contracts are therefore essential.
Furthermore, financing for a foreign investor is generally less straightforward than in Europe. This means that investments are more often made with equity. That lowers the financing risk, but also makes your capital less liquid.
What makes Bali interesting is that you aren't just looking at bricks and mortar. You are looking at a hospitality product. The revenue comes from overnight stays and sometimes from additional spending. Location, concept, nightly rate, reviews, distribution, and operational discipline therefore determine a large part of the result.
That offers opportunities. A strong resort can distinguish itself and charge an attractive price per night. But it also means that poor management cannot be solved by a beautiful location alone.
Dubai is more transparent for many international buyers. There are freehold areas, a large market of developers and brokers, international financing options, and a relatively liquid buying and selling market. The city is growing rapidly and has strong infrastructure, air connections, and a large rental market.
On the other hand, much of the supply is very similar. In certain segments, large numbers of apartments are completed in a short period. Your competition consists not only of the building next door, but sometimes of hundreds of nearly identical units in the same tower.
Service charges can eat up a significant portion of the gross yield. The entry price, payment plan, and timing of completion also have a major impact. If you buy off-plan, you take on development and completion risks. If you buy existing property, you can better verify the actual rental history, but you may pay more for proven quality.
Dubai can be a great fit for someone who values a transparent transaction market and international rentals. However, "Dubai is growing" is not a complete investment case here either.
Spain often feels familiar to Dutch investors. You are buying within the European Union, property rights are recognizable, and financing is possible, depending on your income, collateral, and the bank. You can use the property yourself and rent it out, although the rules for tourist rentals vary significantly by region and municipality.
It is precisely the latter that is often underestimated. An apartment that seems perfect for vacation rentals may be restricted by a permit, a homeowners' association, or local regulations. Costs such as transfer tax, notary fees, maintenance, insurance, and management must be factored in.
Moreover, Spain has a strong seasonal pattern in many coastal areas. The summer can be excellent, while the low season is much quieter. That is not necessarily bad, as long as the purchase price and operations are based on that reality.
For those who value personal use, recognizable legislation, and financing, Spain can be a logical choice. For someone looking purely for hotel-like cash flow, it may be less obvious.
Brochures love to compare gross yields. Suppose a project predicts €25,000 in annual revenue on an investment of €250,000. A 10% figure is quickly displayed in large print.
But what are the deductions?
Think of platform commissions, local taxes, staff, cleaning, utilities, internet, linens, maintenance, insurance, reserves for replacement, management fees, and sometimes a contribution to common facilities. In Dubai, you have service charges. In Spain, management, taxes, and periods without rentals can weigh heavily. In Bali, operational costs and the quality of management are decisive.
The only fair comparison is net, after realistic costs and with a reserve for setbacks. And even then, you want to know how sensitive the model is. What happens if the nightly rate is 10% lower? If occupancy is 60% instead of 75%? If completion is delayed by six months? If maintenance costs turn out higher?
An investment model should not only work when everything goes right.
With a property in Spain or a freehold apartment in Dubai, you generally purchase an individual property right within the local legal structure. In Bali, an investment can be a leasehold, share, contractual right of use, or participation in an operation. That doesn't have to be worse, but it is different.
You must therefore know exactly what you can sell, to whom, under what conditions, and with what remaining term. An investor can often sell their shares or participation later, but no one can guarantee that there will be a buyer immediately or what price the market will offer at that time. Liquidity should therefore be part of your risk analysis, not just in the fine print.
Personal use also comes at a price. If you stay in your unit for six weeks during the high season, that may take away the best rental weeks. A good concept therefore makes it clear in advance how much personal use is possible and how that is handled financially.
In all three markets, management is important, but in a resort investment in Bali, the operator is truly part of the product. Who sets the prices? Who manages housekeeping, maintenance, and guest relations? Who manages the advertising channels? Who monitors income and expenses? Who responds if reviews start to decline?
An investor who only reviews the blueprints is missing half the case.
That is why, at Shape Haus, we view development and operations as a single entity. The design must be marketable, but above all, leasable and manageable. The guest must have a powerful experience. The team must be able to deliver the product consistently every single day. And the investor must be able to understand how the results are generated.
I wouldn't start by asking which country promises the highest return. I would start with five choices.
Do I want to use financing? How important is legal familiarity? Do I want to use the property myself? How much operational risk am I willing to accept? And how quickly do I want to be able to sell?
If financing and a relatively liquid market are high priorities, Dubai might be interesting. If personal use, a European structure, and a long-term horizon are important, Spain could be a good fit. If you believe in hospitality, choose a strong operator, and are comfortable with a different legal structure, Bali can be very attractive.
But don't buy anywhere just because a spreadsheet shows a high percentage.
With €250,000, you aren't simply buying real estate. You are buying a combination of rights, market, management, risk, and time. Once you see that, the comparison becomes much fairer — and usually much more interesting.
Important note: This article provides general information and does not constitute individual legal, tax, or financial advice. Always have your chosen structure reviewed by independent local and Dutch advisors.
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