Alta Thoughts (March 2026)
By Rakesh Patel
It’s been both insightful and energising to spend time travelling across South and Southeast Asia over the past few months – Thailand, Vietnam, Sri Lanka, Indonesia, and most recently at AHICE in Singapore.
The demographic story remains compelling. UN data points to a combined population of over 2.5 billion people by 2030 – more than 30% of the global total. Within this, the expansion of the consuming class is significant, with more than 1 billion people expected to enter middle-income brackets by the end of the decade.
While these demographic trends provide a compelling macro backdrop, the key question remains: is the region truly investable – particularly for us in the real estate and hospitality sectors?
Having invested in real estate across the region for over 20 years, I’ve seen both the opportunities and the challenges firsthand. Returns have been strong, but historically two of the most persistent risks have been ownership and liquidity. Encouragingly, both have improved meaningfully over the past decade.
Today, there are increasingly robust and legitimate frameworks for land access and control. Thailand offers BOI (Board of Investment) supported structures for commercial investment, Malaysia provides foreign ownership pathways, and countries such as Indonesia, Sri Lanka, and the Philippines allow for long-term leasehold and usage rights. These frameworks, while country-specific, provide viable pathways for foreign investors when
structured correctly.
Importantly, legal recourse is real. In my experience, land rights can be successfully enforced through the courts in markets such as Sri Lanka and Thailand – albeit with some patience.
Liquidity remains the more variable piece, as with most emerging markets. Buyer depth is still developing, and capital controls can add friction. In practice, liquidity comes down to fundamentals: the right product, in the right location.
In the end, it comes back to risk-adjusted returns. The hurdle rate in South and Southeast Asia should be higher – and for those who understand how to navigate the risks, the opportunities are substantial.
If you would like to learn more about our projects in Thailand, Indonesia, and Sri Lanka, I’m always happy to connect and exchange ideas. Please feel free to reach out.
Below are a few of our recent thoughts posted on LinkedIn. Always good to hear your feedback. You can follow us directly on LinkedIn and go to our website.
ASEAN hospitality continues its rebound, with international arrivals projected to meet or exceed pre-pandemic levels in 2026, according Howarth HTL. Whilst momentum builds across the region, it will be unevenly spread among member nations.
Geopolitical volatility and economic uncertainty are reshaping both travel and capital flows – from shifts in outbound Chinese demand to investment favouring conversion and adaptive reuse. Occupancy and profitability are strengthening, and hotels continue to report healthy operating performance, reinforcing ASEAN hospitality assets as compelling real estate investments.
Tourism remains a cornerstone of the ASEAN economy, contributing 12–15% of regional GDP. With diverse source markets, strong intra-Asian demand and growth beyond gateway cities into resort and secondary destinations, the region’s long-term outlook remains highly compelling.
Hidden gems rarely stay hidden for long. Across Southeast Asia, islands like Siargao, Phu Quoc, Koh Rong and Lombok are evolving from quiet escapes into some of the region’s fastest-growing travel destinations.
Strategic government investment and support, improved infrastructure, and sustainable tourism strategies are helping these islands move from niche spots to Asian travel hotspots. Part of this shift is also driven by overtourism in established destinations, pushing travellers to explore alternatives that offer similar natural beauty with more space and authenticity. As accessibility improves, these emerging islands are attracting more attention and investment.
The lesson for the travel industry is clear – the next wave of tourism growth will come in well-managed emerging destinations.
