Developers are now pitching homes at this growing market, with no better example than the new Santa Pola Life Resort on Spain'sCosta Blanca, the most popular non-English-speaking location for British retirees. Santa Pola is a 450-home version of the retirement communities for 55-plus residents now spreading across the UK. Retirement no longer means having to settle for uncertain British summers and a small flat in the West Country. A British fund-manager based in the UK has bought the Istana, a collection of villas in Uluwatu, which he intends using himself and renting out."I know the Far East very well, but I'm attracted to the beauty of this place; it's much more culturally interesting than Thailand and the Balinese were very kind to me."Elite Havens: 00 62 361 731 074; www.elitehavens FX Property: 0700 593 1006; www.fxproperty.co.ukAlila Villas through Erna Low Property: 020-7590 1624; www.ernalowproperty.co.uk www.alilavillasuluwatu . Owners enjoy amenities such as personal butler service, restaurant and cliff-top bar.

Prices range from $400,000 for one-bedroom villas up to $1.35m for three bedrooms, guaranteeing owners 30 days' use annually and rental returns of 6 per cent for two years.Foreigners can buy property leasehold, with automatic renewal after 30 years, or set up a company, which gives a more permanent form of ownership and which enables them to take out mortgages.Many buyers are finding that the island also offers business opportunities. Each open-plan villa features infinity pools and cabanas where you can sleep under the sky. They are not yet built, but the designs (above) are stunning.Renowned for its stylish boutique hotels, Alila aims to provide full hotel services at this small collection of privately owned villas designed by the award-winning Singapore architects WOHA. FX Property is selling Jegeg Bali Villas, on a quiet site near the famed Kudeta Restaurant (serviced, with private pool) for $300,000.New hotspots are emerging.

The Bukit, a peninsula in the south, has been overlooked as it lacks infrastructure, yet its potential is attracting investors. Its west coast draws surfers to a scenic coastline where the surf crashes in; its eastern side has clear waters protected by coral reefs, making it perfect for children. Bukit won't be a secret much longer; the renowned Bulgari Hotel will open here this autumn; the Banyan Tree is planning a project and two new golf courses are on the way.Erna Low has just launched Alila Villas at Uluwatu on the Bukit. A Thai villa could cost US$600,000 (£330,000) or so, but a comparable villa in Bali can be had for less than $350,000.In association with Knight Frank, Elite Havens is selling Livbali Villas in Jimbaran Bay, Bali's "golden mile", where properties with private pools start from $285,000.A resale villa in Pererenan, 40 minutes from the airport, has thatched roofs and a pool overlooking rice paddies and jungle; it's for sale at $425,000.