Why Thailand New Destination For Real Estate Investment
Looking for Investment outside India? Then, Thailand can be your best bet to go for it!
It is a place of fun, enjoyment, excitement, better opportunities as well as affordability for external investors (foreigners) to invest in Thailand, especially in its real estate sector. Major cities like Bangkok, Pattaya, Chiang Mai, Phuket, Maret, Mekong, etc. are the best attractions for tourists. The tourists come, stay and fall in love with the city’s happy lifestyle. Many of them, prefer these cities as their regular travel destination and end up in buying a Condo.
The “Condo” is a short form of Condominium, where an apartment is divided into several units or flats, which are separately owned by individuals and the common amenities (swimming pool, parking lot, gym, garden, etc.) are jointly owned and maintained by all owners of the condos.
Many foreign nationals of Thai prefer to buy real estate property in Thailand cities as compared to cities of other bigger countries (Sydney, Shanghai, etc.) because of• Cheap per sq.m area
• Cost per living is cheap
• Better infrastructure
• Availability of Condos as per the budget
• High Return on Investment
• Better rent with a profit (8-9% pa)
• Buying a Condo is easy than an independent house
• Stay permanently or Rent, ownership is protected
Special features of Condo:
• Good building designs, layouts and interiors
• Adequate elevators and efficient M&E system
• Good and secure neighborhoods, ensuring privacy of residents
• Good standard of construction using high-quality materials and specifications
• Comprehensive range of facilities, including swimming pool, gym and/or squash and tennis courts, etc.
• Sufficient car parking
• Professional management
Any foreigner can purchase/ lease a property in Thailand and easiest way is to buy a Condominium. It can be a one BHK for a smaller budget to a Luxury project with larger per sq.m. The owner can stay or rent it as per its wish.
It is not that buying a Condominium is convenient to buy, that’s why the foreign investors are flocking in every year to buy the real estate properties in Thai cities like – Bangkok, Pattaya, etc. But the other reasons are much bigger and brighter when we consider the improving Thai economy. It is seen that the Thailand property market is rebounding in 2017, after a slack in the economy due to political unrest a few years back. The economy saw a stagnancy in 2016. The pros to invest in Thai real estate property are many.
The Government of Thailand is steadily improving the infrastructure of many cities to reduce the travel commute time and indirectly trying to accommodate ever increasing working population of the cities. The foreign investment has rapidly increased, majorly from countries like China, Japan and other neighbouring countries. Cities like Bangkok, Phuket, Samui, Chiang Rai and Pattaya are commercial cities and also a high number of tourists visit every year. These cities are destinations for businesses and tourism.
The government of Thailand has started several mega projects under construction sector. It is focusing to increase its mass transit lines as the cities are expanding as the city centrals are already congested. This is like giving a new lease of life to businesses and real estate construction companies, for both commercial and residential segments. The Thailand government has increased its infrastructure budget to build double track railway lines, new highways, airports and other infrastructure to better the city amenities. This has attracted a lot of positive vibes from around the world to invest in Thailand. A lot of mega projects had shown interest in investing in the different sectors of the economy like Real estate, IT, Education, Hospitality, etc.
The present time is said to be the best time to buy Real estate property in Thailand as the economy is slowly picking up Few of the Thai Banks has already lowered the interest of Home loans and there is an improvement in consumer confidence for the economy.
Last year, there was a slack in purchasing of properties and subsequently delay in completion of projects. Now, many developers have started to reorganise their business structure to remain competitive in the market.
The bigger reputed developers have joined hands with other strategic partners for greater market dominance, better opportunities and higher chance to acquire loans from the banks.
The overseas real estate investors and buyers have always shown interest in Thailand real estate sectors because of its attractive prices and high potential of price growth. The government is putting all efforts to make Thailand an exciting market for Foreigners. Both expats and overseas investors are growing as customer segment in the Thailand Real estate market. As it could contribute to substantial growth in this real estate industry.
The proposed new land and building tax is forcing land owners to find ways to avoid the tax and including lending their land to developers (who would usually build luxury projects on it). Also, the leasehold projects are normally cheaper than freehold, preferably for foreign investors who focus on yield rates instead of a permanent stay. There are a large number of projects which are taking care of foreign/ overseas investors who are interested to buy small or rentable real estate properties at affordable prices with easy possession processes.
The experts of condominiums and serviced apartment businesses are foreseeing growth in 2017. The main cities of Thailand have a developing populace, due to its improving business sectors and vigorous economic growth. But there is a tight supply of homes to be purchased, which will probably prompt a portion of the biggest price increase. The infrastructural initiatives and capital investment are building a bright future for the Thai economy. Because of this, not only IT, Manufacturing, etc. sectors are prospering, but also other sectors like tourism industry, Hotel industry market, serviced apartment market are showing growth. The Thai government is promoting various festivals, sports and business meet in various cities like Bangkok, Pattaya to attract the world attention. E.g. International Cycling Festival, Khao Phansa- Buddhist festival.
Also, the geographical location of Thailand is almost in the center of South East Asian Countries making it a prime factor for investment in real estate sector – Commercial and residential.