Sun, sand, sea, affordable property and a chance to wind down from the UK's clockwork culture – the building blocks of a vibrant market for holiday homes and permanent residences overseas. Of course, it helps if getting to such places is quick and easy, both for you and your potential tenants.

Yet ease of access does present its own complications. If you really want to escape from British life it doesn't help if you bump into your nextdoor neighbour in Benidorm or your Auntie Maureen in Marbella. So convenience can lead to over-familiarity, transforming what once felt like a foreign country into Costa del Shire.

If such concerns are holding back your entry into the international property market, perhaps it's time to look further afield and put exotic escapes on your property shopping list.

With Goa ten hours and Thailand 12 hours away by air, these two destinations are by no means out of range of the holidaymaker, but both nonetheless offer a completely different state of mind that can help ensure your stresses and strains are really left behind. Indeed, with Hinduism holding sway in India and Buddhism in Thailand, this isn't just a different state of mind but a different sense of time as well, with life lived to rhythms that have the power to liberate us oh-so-punctual Brits from our stifling routines. And, of course the powder-fine white sand between one's toes and turquoise waters lapping at one's feet only serves to heighten the blissful state of relaxation. But where in Thailand and Goa should you look for 40+ square metres of serenity, and how do you go about buying it? Sit back, relax, and let us supply you with the answers.

Thai temptations
Smile and the world smiles with you – at least that's what happens in Thailand. And no wonder the smiles rub off on visitors to the country. World-class beaches, excellent scuba diving, golf, trekking and fragrant food – all are available at particularly attractive prices. But Thailand also covers more practical considerations, too, says Celine Oerlemans of CB Richard Ellis (CBRE): "Thailand offers world-class facilities at prices that compare favourably with the established Mediterranean resorts. Only an overnight flight away, Pattaya and Phuket have international schools, first-class hospitals, shopping centres, and an excellent range of dining and entertainment facilities." This, Oerlemans continues, makes Thailand an attractive proposition for those with a permanent escape in mind. "Instead of retiring to a cottage in Cornwall or a bungalow in Spain, people can contemplate retiring to a villa in Phuket with a private pool, and enjoy the tropical climate and a quality of life that would not be affordable elsewhere."
"There's no need to worry about daily chores, either", adds Oerlemans. "Most homes have full time staff such as maids, cooks, drivers and gardeners, who can be hired from approximately £100–200 per person per month."
Tempted, but worried that Thailand has not yet recovered from the devastating effects of the tsunami which struck just over a year ago? Don't be. Although the Thai tourism industry was badly affected by the tsunami (flights to and within Thailand dropped by 26 per cent in 2005 compared to 2004), the property market proved to be more resilient.
"Only four months after the tsunami hit the coast of Thailand, nearly all areas were back to normal and property sales last Easter were stronger than ever", Oerlemans reports. "Immediately after the tsunami, some investors expected prices to fall and bargain hunters were on the look out for deals. The prices, however, were not discounted by developers, and in many cases we have seen prices rise."

This has especially been the case in Koh Samui and Pattaya, which escaped the tsunami due to their locations on the east coast of the Gulf of Thailand. However, the island of Phuket, the major tourist hub in the Andaman Sea on the west coast, was exposed to the tidal waves, but that too, Oerlemans reassures, has staged a "truly amazing recovery". She also feels that Phuket's reputation in the UK as a more upmarket exotic escape never waivered. "Asian buyers tend to be more superstitious about tsunami affected areas, but British buyers appear to see the tsunami as a once is a lifetime occurrence. Their wish to invest in Phuket has not reduced at all." In fact, some agents have reported that capital appreciation in Phuket has varied on average from 15 to 20 per cent over the past four years, although prices for selected properties have risen by 50–100 per cent between the launch of a project and the transfer of title deeds.

Certainly, the fact that Bangkok Bank's Singapore branch now offers 70 per cent mortgages to foreigners will help sustain this level of interest in the market, and if other financial institutions follow suit, sales could gain greater momentum.

Indeed, Ms Charlie Filleul of CBRE Phuket, foresees the island's property market heading along the same path as Spain – a view she feels is shared by Brits looking to buy now in the hope of great gains to come. "I think many British buyers can see Phuket's property market developing in the same way the Spanish market has", she comments.

So, where does that leave prices today? At Cape Panwa, three-bedroom villas with pools at CBRE's Tamarind Phuket development are available from 25 million baht (£360,000), while single-storey hillside properties at Prima Villas in nearby Karon are available from 13 million baht (£187,000). With beachfront building restrictions now in place, this is as close as you can hope to get to the coast if buying a new property. For those looking to let out their Thai property, take note: Phuket also offers the strongest holiday rental market in Thailand, with plenty of management agencies on hand to assist absent owners. "Return yields are already higher than elsewhere, with typically a 6–15 per cent annual return based on 100 nights occupancy", says Oerlemans, who also makes similar claims for Pattaya's rental market. The property market in Pattaya, Thailand's most developed holiday destination, is being driven by its proximity to Bangkok, and the forthcoming Suvarnabhumi airport. Ms Aliwassa Pathnadabutr, managing director of CBRE Thailand, elaborates as follows: "We are seeing more people buying houses and condominium units in Pattaya as first homes, as second homes for leisure and relaxation, and as retirement residences. We believe that Pattaya is at the beginning of a new property cycle."

Pathnadabutr is not alone in offering a positive outlook. Indeed, David Ames of Harlequin Properties believes Pattaya is "the biggest investment opportunity in the whole of Asia. Within the next 12 months this area will balloon. With so much beachfront land available, property development only just beginning and quality property available from only £15,000, this is the number one place to be investing money."  Currently, CBRE is selling beachfront condominiums in the Sails development from 5.7 million baht (£82,000), which will be just one hour by road from the new airport.

An hour from Pattaya is the island of Koh Chang, which has internal flights direct from Bangkok. According to Ames, "the island has unspoilt beaches and at present there are no developments. It is mainly a place where the rich Thai visit for weekends and holidays." However, things are about to change as Harlequin has just released plans for 14 villas at Chang Noi, with prices starting from £67,000, rising to £142,000 for a beachfront location. Ames also considers the island of Koh Samui, 300 kilometres south-west of Koh Chang in the Gulf, to offer excellent investment potential. "With its lush, tropical vegetation Koh Samui is an "underrated tropical paradise. Prices are only just beginning to escalate and anyone looking to invest should really be buying in the next few months to take advantage of this." Here, three-bedroom detached villas are available from 8.5 million baht (£110,000).

But before the temptation gets too much and you take the plunge into the world of paradise property, it pays to be aware of Thailand's property ownership laws.  Although a foreigner can own buildings freehold, this doesn't extend to land, but various options are available to negotiate this pothole on the unpaved roads of paradise. These include 30-year renewable leases and ownership of shares in a land-owning company. Both of these systems have been tried and tested, and whilst it is possible to buy a property subject to an incomplete or poor legal structure, with good advice, people can buy with peace of mind and security. Alternatively, marrying a Thai will do the trick.

An invitation to India
No stranger to British visitors, India, itself something of a riddle to a western mind, is riddled with reminders of British rule. But no matter how hard the mighty Empire tried to put an indelible stamp on the country, India continued to live at its own pace, and its beautiful beaches put the subcontinent firmly on the British tourist map in the 1960s. However, the times they are a-changing again, and the tiny state of Goa, halfway down India's west coast, is moving on. A hippy hangout in the 1960s before its flower power suffered a severe dip, Goa is now moving upmarket as some of the world's luxury hotel chains move in, and there's even a golf course on the way – as are more flights.

An Open Skies policy signed in 2005 by the British and Indian governments will lead to 40 more weekly flights (there are currently 16), perfect for those hoping to rent out their Goan bolthole. A new airport, to be built at Candolim, is also just over the horizon, although in typically mystifying Indian fashion it's not clear exactly when the airport will be ready. "It's India, so you never know", shrugs Nick Gregor from Aguada Management, who predicts that Goa is "like Florida or Spain 15–20 years ago: a property hotspot in the making". Such hazy details are part of Goa's charm, where cows still wander down the streets and things don't run like clockwork – no bad thing when you're trying to get away from it all. Moreover, building regulations are expected to keep developments at least 500 metres away from the beaches and no higher than a palm tree, and there'll be no such thing as private beaches, so the state can retain its charms: a tropical coastline, a gorgeous climate, colonial Portuguese architecture, swaying palm trees and a patchwork of rice paddies for that added touch of exoticism. "Goa isn't about to become a carbon copy of the worst excesses of Spain or even Thailand for that matter", says Gregor. "On top of this, there isn't that much land available to build on as up to 15 people could own a piece of land – and not all of them will agree to sell it."
Not that this has stopped Aguada finding enough land to build 100 three-bedroom, three-bathroom villas with air-conditioning, marble floors and teak surfaces for £112,000.
Alternatively, Harlequin is now marketing a selection of off-plan properties at Candolim Meadows, which are due for completion in spring 2007. Prices start from £19,750 for a studio apartment and increase to £106,250 for a three-bedroom detached villa with private gardens. The development will also feature a swimming pool, restaurants and other facilities. Both Gregor and Ames believe that capital appreciation will be strong over the next few years. Gregor feels that Goa's "capital appreciation could top 30 per cent in the next five years", while Ames is even more bullish and feels that India is "at the start of a cycle of dramatic growth". As a result, "investors are likely to see high levels of capital growth, with conservative estimates starting at 15 per cent per annum."

However, foreigners are currently unable to take money out of the country, including monies made through a property transaction, but, suggest Gregor, "you could sell to a Brit and hand the money over in the UK". There are also plans to introduce a 3.5 per cent property tax, but that is yet to be implemented and exactly when it happens is anyone's guess. Furthermore, issues surround foreigners owning property freehold, but all reputable agents and developers operating in Goa have their own legal sidesteps for such problems. So, isn't it time you started sidestepping Auntie Maureen by planning your own exotic escape?

Another option for those eyeing an exotic getaway is Sri Lanka. Like India, Sri Lanka also had close ties with the British Empire, when it was known as 'Ceylon', but is yet to feature as a fixture on the itineraries of modern British travellers. Beautiful and boasting a bewildering variety of scenic highlights, Sri Lanka certainly has the natural resources to make a real mark on the international tourist trail, but political instability has prevented it establishing much more than a toehold in the minds of those would be visitors. There are also barriers blocking the path of property pioneers, too. "One of the main reasons that has put people off buying in Sri Lanka is that there is a 100 per cent tax paid on any foreigners buying land/property", says David Ames of Harlequin Properties.

However, property agents and developers are nothing if not tenacious in seeking out land for development, then ironing out any legal creases to make buying property that little bit smoother. In Sri Lanka's case, the solution comes in the form of a five-star hotel in Sigiriya, the building of which has been approved by the Sri Lanka Board of Investment – a fact that handily cuts through the taxation strings at a snip.
Sigiriya lies some 157 kilometres north of the capital, Colombo. It is famous for its gardens and immense, Uluru-like rock. Ames describes Sigiriya as "one of the most popular tourist attractions in Sri Lanka", and hopes that the Palace Hotel will put it even more firmly on the map.
The hotel is being built on a 12-acre site 500 metres from Sigiriya Rock and Ames believes the investment opportunity would ideally suit the "lazy investor". Based on an 80 per cent occupancy rate, a rental return of 11.5 per cent per annum is predicted, all of which will be tax free for a minimum of five years. Prices start from £44,705 for a basic room, but the King Villa, which offers views over the Lake, pool and gardens, comes with a less modest price tag of £145,294.

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For further information: 
Harlequin Property
CB Richard Ellis
Aguada Management  

Article first published in April 2006