Buying Property in Thailand | Phuket Realtor
Buying Property in Thailand
Are you considering buying property in Thailand? Have you worked out a few of the preventive measures that you can do before stepping ahead?
It seems that the majority of property resources available mainly focus on Spain, Cyprus, and Italy. Only a few articles cover Thailand's real estate market, irrespective of the fact that Thailand is one of the most attractive property markets in the world.
Thailand is blessed with an abundance of exotic scenery, magnificent nature, and a unique culture with a consistent exhibition of warm sunshine, not to mention the closeness of the people residing here.
More and more foreigners are purchasing property legally in Thailand and areas like Phuket have developed into a world-class destination with infrastructure that is matchless and far superior to other Asian countries.
Thailand Real Estate Market
Anyone who's buying property in Thailand has noticed the growth in Phuket. Over the last 10 years, the demand for property here has increased by a great margin. There are many developments in the pipeline that aim to ensure the island's popularity for years to come. Phuket still has a lot of underdeveloped areas that will be turned into great holiday getaways in the future.
Thailand has been an extremely popular tourist destination for the last decades, attracting an astounding 28 million visitors last year. A large part of this group enjoys the Thai culture so much that they decide to buy a place in the land of smiles. The majority of these home buyers choose the white sand beaches and tropical lifestyle of Phuket for their holiday home.
The Market of Villas in Thailand
The Market for Condominiums in Thailand
Condominiums in Thailand have been gaining in popularity. Where people used to stay in hotels and resorts in the past, they now prefer to spend their holiday in a condominium. The prices are competitive with hotels and guests can enjoy a little more privacy and have the convenience of a kitchen and full-size refrigerator.
Most of the constructed condominiums are smaller in size than those that were built a decade ago. Over 80% of condominiums are currently smaller than 70 SQm. This is very different from what used to be the trend, where 80% of condominiums were bigger than 70 SQm.
There has been a growth in condominiums that are valued over 100 thousand baht per SQm. This is especially true for luxurious seaside condominiums. Because this relatively high price per SQm, caused by land becoming scarce, the condominiums are a lot smaller in size than what they used to be.
The Interesting Areas of Thailand
The most interesting area of Thailand for investment has always been Phuket. The most saturated area in Phuket is the west coast, with Patong beach at its center. This is where the most expensive property is located. This area stretches out all the way to the south, to the village of Rawai beach and as far north as Layan beach.
The real estate on the west coast of Phuket is likely to undergo a significant price increase in the coming years. A scarcity of land in this area keeps driving prices up as the number of tourists visiting the island continues to grow.
Phuket currently focuses on offering a luxurious holiday experience to its visitors. More luxurious shopping malls are being constructed and improvements on the island's infrastructure are being made. The center area of Phuket is especially benefiting from this with some of the fanciest malls in Thailand under construction. This is very interesting news to speculative investors and many of them have already found their way to this area.
The same can be said about the north of Phuket. This is currently the least popular and underdeveloped part of the island. Phuket's airport is located in this area and the yet to be constructed light rail train will be departing from here too. This will make the northern part much more accessible and could result in more people relocating here.
The Return On Investment (ROI) in Thailand
Most people looking to buy real estate in Thailand prefer a new property. You receive a discount if you buy during the construction phase or even before the building process is started, so interesting deals can be made.
If you want to sell a property, you can still compete with these low priced new developments. Because the land prices in Thailand's upcoming areas have constantly been increasing, buying a new property is more expensive than it was a couple of years back.
The strong appreciation of the Thai baht in recent years is an interesting development that enables you to keep the property price low. As long as the economy in Thailand is growing faster than that of other major countries, an extra profit can made this way.
Another advantage that your re-sale has over a newly constructed one, is that a buyer can actually see it before buying. Buying property in Thailand can be challenging and little things can make a difference to a new buyer. Many new building projects work with artist impressions only.
Investors will also be able to compare the rental performance of your property to that of other properties.
The large demand for new real estate doesn't have to negatively impact your existing property. It will eventually lead to a scarcity in available land to build on. which drives more people to the resale market.
If you are thinking about selling your property or if you want to invest in Thailand's real estate market and more specifically Phuket and like to be assisted by a real estate agent with years of experience, just click here.