What’s Next for Residential Real Estate in Thailand?

 

There are many listings for residential real estate throughout Thailand and it is easy to find an available apartment on property sites such as DDProperty. But any buyer or investor should make sure they are getting the most out of their money, as residential real estate can be a disaster if it is done incorrectly. The easiest way to avoid financial disaster is to look into what is currently successful on the Thailand real estate market, and even what is happening in the commercial real estate field. Here are some of the latest trends in the Thailand property market for investors to keep an eye on:

Tourism

Buying apartments, villas, or condos to let out on temporary leases or for use as holiday homes is commonly viewed as a wise investment. The tourist industry has been increasing year on year in Thailand and an improved economy means that there is a higher demand for luxury travel. Even political issues or natural disasters don’t keep tourists away for very long. Political unrest in Thailand last year didn’t affect tourism, which continued to rise throughout 2015. Companies such as Airbnb which allow residents to rent out rooms in their homes for visitors have been popular in recent years and some even predicted that it would become the norm for tourism. However, a string of controversies and legal issues appear to be reversing the tide on this trend.

Condos

These are the most common type of new development seen throughout Thailand as they are the most sought after. Not only are they attractive to domestic buyers but they are the best option for the increased numbers of foreign buyers looking to move or retire to Thailand as well. By law, foreigners aren’t allowed to own land in Thailand but condos are exempt from this law. This is increasing the demand for condos even further so investors are keen to buy up newly developed properties. International Living lists Chiang Mai and Koh Samui as the most ideal locations in Thailand for expats, but there are large expat communities in Bangkok and Phuket as well so it isn’t too hard for investors to find projects to gain profit from.

Condos by the sea are the most commonly searched for and are worth the high price tag for the investor. They are also popular amongst tourists if investors also want to cross over into this area or keep options for their properties open.

Villas

While condos may be the most in-demand type of housing in Thailand, investors shouldn’t overlook villas either. Tourists make up the most demand for villas as most travellers want somewhere larger than an apartment for their stay, particularly if they have their family with them. There is also a market for people buying villas as holiday homes or second homes. There is even a demand for renting villas, particularly amongst foreigners. Foreigners may not be able to buy villas in Thailand, without navigating complicated legal loopholes, but a surprising amount are willing to rent villas. The rental costs may be the same as the cost of renting a small apartment in their own country so to them it is a better option. Investors looking to diversify their portfolios should have at least a few Thailand villas in their books to bring in a good steady profit.

Who is Moving to Thailand?

For investors keeping an eye on the market, it is important to know not only what is selling but also who the people seeking properties are. Two groups are making up large numbers of recent immigrants to Thailand. The first is Japanese expats who are looking for a warmer climate and larger spaces than what are available in Japan. Numbeo, a cost of living comparison site, lists average rent prices in Bangkok as being over 50 percent lower than Tokyo. Expats from other countries where the average cost of living is significantly higher have also found that their money goes much further in Thailand than it does in their home country.

Technology companies and start-ups are also moving to Thailand in increasing numbers due to cheaper office space and overheads, and their employees are looking for places to live too. Most of these offices are located in the central business districts of major cities so employees are looking for apartments close to these areas or with good transport links.

These trends show that almost all areas of Thailand’s residential real estate market are doing well, and that investors should particularly focus on condos and accommodation for expats. By keeping an eye open for the best properties available and staying up to date with news and trends in the investment field, you can ensure that you will make the right long term investments for maximum profit.