When many people think of buying real estate in Thailand they think of a comfortable condo by a beach in Hua Hin or Phuket, in addition to the capital Bangkok, two of the most popular areas to buy a property in Thailand. There are however, many other areas that have been receiving attention from foreign property buyers and as you’ll realise as you continue reading, there are some excellent reasons for buying a property in the Kingdom, either as a residence or as an investment.
Reasons to Invest in Thailand Real Estate
Burgeoning condominium sector
Over the years, the condominium sector has emerged as the fastest growing and strongest property sector in Thailand. Bangkok, the bustling capital and international travel hub, has seen steady price growth, as have resort destinations like Hua Hin and Phuket.
Simple buying process for condos
Although it can prove difficult for foreign property buyers to buy landed properties like houses and villas, it’s remarkably straightforward to buy a condominium. Thai property ownership laws restrict foreign ownership of all properties to 49% with the remaining 51% Thai owned. This can prove problematic for those with their hearts set on buying land, though those who are interested in buying a condo –the condominium sector is the strongest property sector in the Kingdom – will find it simple and advantageous to buy a condo in Bangkok or one of the resort destinations along the beautiful Thai coastline.
Rapid economic expansion
The Thai economy has been expanding and growing strongly for some time now and this trend shows no sign of slowing down. This is great news for property investors because it shows that the already burgeoning Thai property market will continue to grow steadily well into the future as Thais increase their purchasing power and further continue to rent more comfortable properties. The stronger Thai workers’ purchasing power becomes – the greater the opportunities for foreign property investors to make a tidy profit by investing in the condominium sector.
Top tourist destination
Thailand is one of the top tourist destinations in the world and not only Southeast Asia. The attention Thailand receives helps to further boost property prices, but not only that, it also makes investing in the condominium sector in resort destinations more appealing for investors as the market grows stronger. When property investors think of tourism, it’s now important to not only think of Western tourists who flock to Thailand, but also Chinese tourists who are increasingly setting their sights on Thailand and resort destinations like Phuket as they enjoy higher wages and are increasingly able to travel overseas.
Long-term growth potential
Thailand has long been receiving global investment and it’s remarkable just how diverse the nationalities of investors who have been taking an interest in real estate in Thailand for investment purposes are. The diversity of global investment interest puts the already burgeoning Thai property market in an excellent position for long-term growth and sustainability.
Strong capital gains and yields
Rental yields in the condominium sector have been increasing strongly over time with many property investors enjoying rental yields of 6 – 10% per annum. Furthermore, due to increasing property prices,real estate investors who have invested in the condominium sector have been enjoying significant capital increases in recent years and this is a trend that experts predict will continue for many years to come.
As you can see from the points made above, there are some excellent reasons for investing in Thai property as a foreigner, though it must be stressed that as easy as it is to buy a condominium, nothing should be left to chance and legal advice or representation is therefore advisable.