Feb. 13, 2014 7:32 p.m. ET  Two years ago, not long after Paul and Kate Anderson and their family arrived at their open-air, glossy-wood beachfront home in Fiji, their daughter and her boyfriend went down the back steps to the sand. The pair returned to announce their engagement; within the hour, the couple's son and his girlfriend were engaged too.  "This place is magical," said Kate Anderson, 59 years old, gazing at her perfectly framed view of palm fronds and sapphire-blue sea. The Andersons, who get to Fiji via a four-hour flight from Australia, paid $1 million in 2009 to buy the land and build their 6,400-square-foot, five-bedroom home in the Maui Bay Estates development on Viti Levu, Fiji's largest and most populated island.  For centuries, this collection of 333 South Pacific islands with a population just over 896,000 has lured adventurers, mercenaries and evangelists (some of whom ended their travels as meals for local cannibals). Now, Fiji attracts an eclectic mix of Australians, New Zealanders, diving enthusiasts and beach-loving romantics who are drawn to its steamy jungles, colorful underwater vistas and endless supply of white-sand seclusion.  After a few difficult years following the country's 2006 military coup and the global economic slowdown, Fiji is back on the upswing. In 2012, more than 660,000 people visited Fiji—a 20% increase over 2006, according to Fiji's Bureau of Statistics.  And while there are real challenges to buying or building a second home here—including legal issues, corruption and bumpy logistics—many people are jumping in. Along with the return of Australians, New Zealanders and Americans, cash buyers are coming from new places such as China and Papua New Guinea.  "We're seeing a real upswing," said David Miller, director of Taveuni Development, which has developments on three islands, including Maui Bay Estates. The company, which usually sells about 50 lots a year at prices ranging from $35,000 to $475,000, sold 12 lots in January alone—"a record for us."  Fiji fans praise the nation's particular brand of friendliness—Fijians are known for inviting visitors to stay at their homes—and its jungles that creep right to the water's edge. Fiji is "like what the Bahamas was maybe 20 years ago," said Traviss Orr, head of sales for Naisoso Island, a new gated residential and resort development taking shape on a narrow island connected to Viti Levu by a bridge. Prices range from $270,000 for a quarter-acre lot to $700,000 for a half-acre lot.  Then there is the cost, which is substantially lower than that for many other tropical destinations. One-acre beachfront lots at Nanuku Resort and Spa, for example, will sell for approximately $1 million, a fraction of the prices in Hawaii.  Chris and Nicola Alpe, 34, who live in Australia and Los Angeles, are part-owners of Vomo Island Resort, a tiny island with 28 luxury villas that cost about $1,000 to $1,300 a night. Now, they're spending $1 million to build a three-bedroom, 5,000-square-foot vacation home on an acre of beachfront that they hope to rent when they aren't using it, for $3,000 to $5,000 a night.  "You'll have a picnic, and you can strip off and go snorkeling and never see another person all day," said Mr. Alpe, 63, who proposed to his wife on a small deserted island nearby.  The couple's investment illustrates an important feature of Fijian real estate: Foreigners can't purchase most of its land outright. The former British colony set aside 90% of its land for native ownership—land controlled by Fijian clans who can lease the land to foreigners. So the Alpes paid $600,000 for an acre of leased land; the lease gives them possession of their acre for 99 years—the typical time frame.  Once the contract is up, the terms can be renegotiated. About 6% of Fiji's land is freehold—it can be purchased outright by foreigners.  Fijian developers and land experts said leases are generally stable, but can become problematic if either side decides to renegotiate the terms or if a dispute develops. Also, while many foreigners build their own homes—the country's modern luxury stock is low and much of its prime beachfront is undeveloped—experts said it is unclear who ultimately owns the homes if a lease is broken or ends.  Fiji's political situation also is in flux. The country is run by the military commander who orchestrated a coup. Corruption is an issue. The government has improved the country's legal protections and recently established a real estate licensing board.  Still, "you can't fix it overnight," said Ken Chambers, a land-management expert in Fiji. The Fiji Independent Commission Against Corruption was set up in 2007 to investigate and prosecute government corruption, according to government officials.  Ruth and David Peterson, retirees from outside Seattle, Wash., spent $1.1 million to purchase freehold land and build their 5,500-square-foot home at Maui Bay in 2007. They said the owners of the neighboring property started using it as a guesthouse for tourists, and the Petersons have since been locked in a battle with the government and the neighbors. "It's been a nightmare," Ruth Peterson said, adding that she doesn't like the noise and disruption of tourists coming and going.  Annemarie DeVos, who owns the neighboring property, said she received permission from the government to open a small boutique hotel on the site before she purchased and built the property in 2005. An employee with the Department of Town and Country Planning, which handles zoning requests, declined to discuss specific applications but said individual property owners can apply to the government directly for special use zoning, including for tourism.  Mr. Chambers, the land-management expert, said potential buyers should hire a Fiji-based lawyer and check that the title includes easements and restrictive covenants about what can and can't be built around them. Finding a reputable lawyer can be difficult; buyers should research the lawyer's reputation and track record.  Russell Pflueger, a 50-year-old developer of medical devices, and David Kohler, a 53-year-old owner of a sports memorabilia company, and their wives bought a 4,500-square-foot home on freehold land for $2.5 million in 2006, as part of a development that went bankrupt. The lenders, Chicago's Bixby Bridge Capital, took over and invested another $15 million to finish and improve the resort and residential development, rebranding it Nanuku Resort and Spa.  "It was unsettling," said Orange County, Calif.-based Mr. Pflueger, who with the others gets to Fiji via an 11-hour direct flight from Los Angeles. But the new owners "have done an amazing job."  Westerners also caution newcomers about Fiji's island culture, which doesn't always meet Western expectations of planning and punctuality.  Originally from northern California, Bob Facciola, a 77-year-old former owner of a wholesale food-distribution company, and Marie Peyman, a 65-year-old former professional horse trainer, spent $1 million on an acre of freehold land and are building a retreat with separate, free-standing bedroom suites.  The home, at the tip of the island between an ocean inlet and the Pacific, has soaring ceilings framed in timber lashed together with traditional Fijian materials.  The pair stressed the importance of finding a builder with experience in Fiji and who plans ahead—ordering materials and supplies months in advance to avoid cyclone season and shipping delays—and can manage complex sourcing. The couple hired a U.S.-trained Fijian architect and a New Zealand builder who relocated to Fiji. The total estimated cost of the project is about $2.5 million.  The Andersons, whose children got engaged at their house, said they had to give up a planned infinity pool when they couldn't find a builder with the expertise.  The Andersons said they love Fiji's relaxed pace and exotic charms. As they spoke, their housekeeper, a local woman, turned out platters of warm, sticky-sweet pastries topped with freshly grated coconut.  On a recent evening, the South Pacific glimmered in their doorway. Soon it would be time for the Andersons favorite ritual: sunset gin and tonics on the deck, just for the two of them.  Write to Tamara Audi at tammy.audi@wsj.com
The island nation has hundreds of islands, empty beaches, friendly locals and gentle prices, but buying in this corner of Polynesia has its challenges