The rise of digital nomads has transformed accommodation preferences, driving growth in the property rental market. As digitalization advances and businesses embrace flexible work arrangements, this trend is expected to continue, further expanding opportunities in the property rental sector in Southeast Asia.
Economists highlight the positive impact of this phenomenon, particularly in industries related to accommodation and tourism, which cater to the needs of remote workers.
Increasing Demand for Affordable Rentals
A steady flow of digital nomads is searching for affordable rental options, often significantly cheaper than their home countries. This surge in demand has created ripple effects across Asia’s real estate markets.
Developers are capitalizing on this trend by offering co-living spaces designed for remote workers. In Phuket, HOMA integrates coworking spaces, communal kitchens, and eco-friendly features like solar panels and waste management systems. The design promotes long-term stays and community engagement through networking events, wellness programs, and visa support for international residents.
Similarly, lyf properties in Singapore and Japan are redefining urban living by providing short-term leases with features like bike-sharing stations, social kitchens, and on-site gardens.
Impact on Local Economies and SMEs
In Indonesia, the digital nomad boom is significantly impacting the economy, especially in popular cities like Bali, Yogyakarta, and Bandung. As more remote workers settle in these areas, local businesses experience increased demand.
To adapt to this trend, businesses must innovate by enhancing facilities such as high-speed internet and other remote work-friendly amenities.
According to Mohammad Faisal, Executive Director of the Center of Reform on Economics (CORE) Indonesia, businesses in the tourism sector must adapt to meet the needs of digital nomads, who prioritize convenience and comfort.
“Despite the challenges, the digital nomad trend offers vast opportunities for various sectors, provided they adopt the right strategies and innovations,” Faisal told Liputan6.com.
The tourism and SME sectors also benefit from this phenomenon. Digital nomads frequently shop at local stores, dine in small eateries, and visit tourist destinations.
“If they share their experiences online, their friends in major cities might be encouraged to visit, bringing more visitors to the area,” he added.
Government Initiatives: Special Visas for Nomads
Governments across Asia are now competing to attract digital nomads with tailored visa programs, aiming to boost housing, infrastructure, and local economies.
“Asia is rewriting the rulebook to attract a new kind of global citizen—digital nomads who seek flexible visas, affordable rentals, and community-driven spaces. Countries are racing to develop policies and places that match this lifestyle,” says Bill Barnett, managing director of C9 Hotelworks.
Thailand’s Digital Nomad Visa (DTV), introduced in 2024, grants five-year stays with multiple 180-day entries, making it easier for remote workers to settle long-term. While Indonesia’s Remote Worker Visa (E33G Programme) allows digital nomads to legally live and work in the country for up to one year, with an option for extension.
South Korea’s Workation Visa offers two-year residencies to high-earning professionals and their families. Meanwhile, Malaysia’s DE Rantau Nomad Pass is attracting mid- to high-income remote workers, strengthening hubs like Penang and Kuala Lumpur.
Property Rental Market: Global Meets Local
The Asia-Pacific co-living market is projected to grow at a compound annual growth rate (CAGR) of 17.9% through 2025, reflecting the rising demand for flexible, community-driven housing.
Secondary destinations are carving out a niche in the digital nomad landscape by offering a blend of affordability, flexibility, and community-focused living.
“The property rental market will continue to benefit from the low- to middle-segment of digital nomads seeking cost-effective housing,” says Marciano Birjmohun, vice chairman of the Singapore-Thai Chamber of Commerce.
As emerging destinations gain popularity alongside established hubs, Asia has the opportunity to lead by example—balancing the needs of digital nomads with those of local communities.
Source: asiapropertyawards.com, liputan6.com
Photo Credit: via Seven Stones Indonesia
