The high prices of properties in the US, Europe and Australia has made Asia a much more profitable market for property investors. This is especially true when it comes to Thailand. Foreign buyers are continuously purchasing real estate from Thailand due to high demand, improved economy, and predicted future growth of the Thailand property market.
Beautiful sunset over Thailand properties
Read on as we explain each factor that attracts property investors to Thailand real estate market.
High demand for office space
According to a report from Oxford Business Group, the demand for office spaces in Thailand rose last year, driving real estate companies struggling to increase supply.
Compared to its neighbouring countries, the price per square foot of office space in Thailand is much cheaper. And despite the effect of global recession where other countries experienced steeper real estate rents and more people deciding to work from home, the opposite has happened in Thailand.
With low overhead costs and connectivity to strong economic countries such as Japan and China, there’s no wonder companies are attracted to Thailand.
Luxury condos thrive in the residential sector
Residential area in Bangkok
While other countries earn higher rental yields from small apartments, it’s not the same for Thailand. For instance, while a 60-square metre Bangkok condo located in the city’s prime location will have gross rental yields of about 5.6%, a 120-square metre condo in the same location can have gross rental yields of 8%. The desirability and profitability of luxury condos has a positive effect on Thailand real estate too, as it prompts developers to increase supply of luxury properties.
One of the top foreign buyers of Thailand properties are the Japanese. With Japan’s high property values and mountainous landscape, there is little property developments done causing even small apartments to be expensive. This scenario has made Thailand’s bigger property lands to be better options for Japanese buyers.
Besides newly built properties in Thailand being cheaper than other countries’, maintenance and cost of living in Thailand is also lower.
Thailand’s blooming tourism attracts more foreign investors
Thailand’s popularity among tourists remains persistent with a predicted 10% increase each year and an increased demand for condos and villas. Some of the most common destinations include Phuket and Bangkok.
A lovely vacation house in Phuket
Despite being used mostly during peak seasons, luxury properties have helped in the growth of the luxury travel industry with buyers expecting a quick turnaround on their investments. During off-season, these properties can be rented out to maintain income. Investors also look into temporary leases for consumers wanting to stay in Thailand for a couple of months, making it a more doable option instead of flying in with higher airfare prices.
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