Bangkok, with a population of 5.7 million, is the capital of Thailand and the largest city in the country. The metropolis attracts not only tourists but also foreign investors. Here you can buy real estate in Thailand for seasonal vacation, relocation or for profit. Let's look at the advantages of investing in Bangkok residential property.
Content:
- Real Estate Market Update
- 6 Reasons to Invest in Real Estate in Bangkok
- What You Need to Know About Buying Property in Thailand
- Conclusions
Real Estate Market Update
In a city, which is home to 12.6% of the country's total population, you can find various types of housing. There are compact studio apartments in condominiums, luxurious residences in modern apartment complexes, townhouses, and villas. While a studio apartment can be purchased for $45,000, the price of a 4-bedroom luxury apartment can reach $2.5 million.
In recent years, Bangkok has experienced stable price growth, making investment in local real estate potentially lucrative. This is not only understood by residents but also by foreigners. In the first quarter of 2023, there were 3,775 property purchase transactions involving non-residents, accounting for 4.57% of total sales. Among non-residents, buyers from China, Russia and the United States lead the way.
6 Reasons to Invest in Real Estate in Bangkok
Investing in real estate is an affordable way to protect your money from inflation. Investing in foreign properties allows for portfolio diversification. Thanks to accelerated economic growth and development, Bangkok remains an attractive option for foreign investors. Several reasons can be highlighted for buying apartments in Thailand:
- Stability. Bangkok has a well-developed infrastructure and thriving business centers, ensuring economic stability. The reasonable tax policies and government policies to attract foreign investment instill confidence in investors. A stable economy promotes the growth of the local real estate market.
- Growing population. The city is one of the most popular tourist destinations in Southeast Asia, attracting expatriates from other regions. The constant influx of people creates a high demand for housing. Investing in property in Thailand provides investors with ample opportunities to generate income.
- Development of transportation infrastructure. Targeted efforts to improve transportation links contribute to economic growth and promote the city as a desirable place to live. Improved accessibility and reduced commuting time have a direct impact on property prices, making well-connected areas highly desirable.
- High quality of life. Bangkok offers everything needed to attract people from other regions, including hospitals, schools, universities, shopping malls and restaurants serving a variety of international cuisines.
- Competitive prices. Bangkok offers a lower entry point into the real estate market compared to other major cities around the world, providing favorable prices for investors.
- Rental Income. With the continuous influx of multinational companies, foreign professionals and students, there is a stable demand for rental properties. The average rental yield in the city is around 4.65% per annum. Final figures depend on the comfort level of the specific property and its type.
What You Need to Know About Buying Property in Thailand
Foreigners can buy an apartment in a new building in Thailand and have the right to own it as private property. The only restriction is the sales volume. Within a condominium, foreign owners cannot own more than 49% of the area. This measure is intended to support the local population but does not significantly affect the rights of foreign buyers.
If you want to have the widest range of options in a particular area, it is advisable to consider condominiums in off-plan projects in Thailand. Such properties are also an excellent opportunity to make a profit. Buying a condominium in the foundation stage allows you to profit from the price difference when the condominium is completed. This difference can reach tens of percent.
Long term leasehold rights are offered for land plots. Essentially, the buyer becomes the lessee for a period of 30 years, and the agreement can be extended twice. Thus, the maximum period of use of the land on which the house or villa is located is 90 years.
Conclusions
Foreigners can purchase and own property in Thailand regardless of the form of ownership established by law. The seemingly complex system of purchase procedures is relatively simple in practice. It is sufficient to seek the assistance of qualified professionals. Real estate in Bangkok is potentially advantageous in terms of capitalization and appreciation. It also remains a source of passive income that can be earned remotely. Local agencies are ready to organize property management, where the owner delegates his authority to a realtor who takes care of finding and accommodating tenants and handling all organizational matters.