Investors are extremely optimistic about the property market in Thailand, which is remarkably buoyant considering the current global economic situation. There are two chief reasons for this – one is related directly to the Thai population, of which approximately one third is aged between twenty-four and forty-four, an ideal demographic for a healthy domestic housing market. The second is that, although foreign speculation is steadily growing, Thai real estate is still a relatively untapped market with enormous potential. Thai property offers investors exceptional value for money, with an opportunity to make solid financial returns. In addition, the standard of Thai property is extraordinarily high, with talented Thai architects and reputable construction companies able to design and build beautiful, world class residential and commercial buildings that still retain a distinctly Thai appearance. Many offer comprehensive, end-to-end construction services which make buying property in Thailand less stressful and altogether more attractive.
And as Thailand seems to be recovering from recent political uncertainty, the demand for Thai real estate looks likely to increase.
Foreigners in particular, are quickly discovering that Thailand is not only a great place to invest their hard earned cash, but also an excellent place in which to live or retire. Tourists to Thailand often become so captivated with their Thai holiday resort that they decide to build or buy their own luxury Thai villa. They are lured by the terrific Thai climate, the great standard of living and outdoor lifestyle, the outstanding facilities and infrastructure and the friendliness of Thai locals. Many regard a move to Thailand as a complete lifestyle change and look at their new Thai villa as somewhere to enjoy living either now or in retirement, perhaps renting it out on the Thai holiday rental market in the meantime.
And the face of foreign investors is beginning to change, which is partly due to a shift in the distribution of global wealth. Investors and indeed, holiday makers are just as likely to come from China, Russia or the Middle East as from the UK or the US.
The Thai property market continues to flourish in the country’s capital Bangkok, where mid-range property is outperforming all other sectors. Foreigners tend to invest in areas that are expected to develop, such as those served by planned extensions to the modern sky train transportation system. Thon Buri is especially popular with expats as there are fewer high rise buildings and less pollution than in other parts of Bangkok. Bang Na is another boom area, probably because it boasts a good number of international schools. Overall, the population in these suburban areas has increased by a dramatic 30 percent in the last ten years.
Traditional Thai holiday resorts such as Phuket, Pattaya, Koh Samui and Krabi are also becoming property hot spots. These resorts manage to combine sophisticated facilities and a relaxed, healthy, lifestyle in an ideal tropical climate, which appeals to those looking to escape the rat race or cold weather. There is rapid property development in these sought after tourist areas and Thai construction companies are building not only Thai holiday resorts and hotels, but also high profile residential schemes such as the Royal Krabi Marina project in Krabi. This exciting new development will offer top quality, beachfront condominium properties at an attractive price, only 20 minutes from Krabi airport with its international terminal.
Investors are calling ever more loudly on regulators to scrap some of the antiquated Thai property laws that are still capable of deterring all but the most tenacious of foreign investors. Thailand does not allow freehold ownership of land by non-natives, although there are a number of ways to get around this and legitimately purchase property in the country. If restrictions are lifted, then real estate in Thailand is likely to become an even better proposition than it already is, making now the perfect time to buy – remember, the early bird catches the worm!