Buying real estate at the construction stage is more profitable than buying ready-made housing. Real estate becomes significantly more expensive when construction is completed. This is great for investment. When renting out housing, an investor can get up to 10% a year as this is one of the most popular year-round resorts in Thailand - there are always tourists who want to rent an apartment or villa.
When you buy real estate under construction, developers often offer favorable offers and installments until construction is completed. Installments are a good option for foreigners as it isn’t easy to get a mortgage in Thailand without Thai citizenship or resident status.
At the construction stage, you can buy apartments in multi-story buildings, townhouses, duplexes, as well as detached houses.
Let's look at several different types of projects under construction in Thailand at the moment (April 2022).
In December 2021, the construction of the PHYLL Phuket Feel Phuket condominium began. This is a new project from Thailand's largest development company, Central Pattana. It’s one of the most reliable and proven in the country. The complex is in the central part of the island in the Deduction area. The starting price is 2,590,000 baht. An 8-story building is planned with a total of 3 buildings. The total number of apartments is 439. It’s fully furnished.
There are 3 types of apartments in total:
- 1-bedroom - 28-36 m2
- 1-bedroom - 39-46 m2
- 2-bedroom - 57-60 m2
The complex will have an enhanced security system with video surveillance in the apartments and buildings, an access control system, 24-hour security, and face scanning at the entrance.
A swimming pool, a garden, a yoga room, a fitness room, a sauna, coworking, a laundry room, a barbecue place, and a party area will all be available for residents.
Parking is designed for 61% of residents' cars (1 car per 1 apartment).
This project is a great option for residence but not for investing in Phuket to rent out as it’s far from the beach. It’s better suited for people with a car who’ll be more comfortable moving around the island.
MONO Plus Palai duplexes from The Attitude One developer stand out for their minimalistic Japanese style. It’s just 350 m from Padai Beach. The starting price is 5,590,000 baht. The complex has only 6 houses on 2 floors. The developer's guarantee is other nearby completed projects MONO KohKaew (completed in 2020) and MONO Palai (completed in 2018).
The usable area of MONO Plus Palai houses is 208, 25 m2. The plot area is 186 m2. The house has 1 parking space. The developer also gives residents the option to build a private pool. The houses have 3 bedrooms and 4 bathrooms. There are built-in bathrooms (with baths, not showers, which aren’t common in Thailand).
The developer plans to continue building similar projects in the area.
There are 2 hospitals nearby called Bandibuk and Orphans. There are also the Polye Pier, Chalong Pier, Rawai Beach and Plai Beach. It’s a very convenient location for a vacation in Phuket, making it perfect to rent a house profitably for income.
Another condominium project under construction is Layan Green Park. It’s 700 m from Bang Tao Beach and Layan Beach, 600 m from Dream Beach, a golf course 2.9 km away, and Surin Beach 9.4 km away.
The condominium is planned to have only 7 floors and 4 buildings. There’ll be 403 apartments. The fourth building D will be a 2-story clubhouse with only 6 apartments (apartments on 2 floors) with private access to the pool.
In the complex, there’s a fitness club, outdoor sports grounds, playgrounds, a coworking area with free Wi-Fi, a restaurant and a bar.
The developer offers a good deal. There’s a «Return Guarantee» contract for 3-5 years with a yield of 7% a year from the first year immediately after construction is completed. The developer will look for tenants for your apartment and sign contracts with them. The owner won’t need to worry about anything. After the contract is drawn up, the following is agreed to. First, the developer will organize the apartment rental but the profit will go to the owner and the company – the owner will receive 60% and the developer takes 40%. The developer guarantees a permanent profit but you have the right to live in your apartment only 15 days a year. There are other conditions like the owner arriving at their apartment at any time but in this case, the developer doesn’t guarantee a permanent profit.
Parking is designed for 103 cars which are 26% of the owners' cars (1 car per 1 apartment). This may seem like it’s not enough but it’s ideal for the area.
It’s a great investment option with guaranteed profitability from the developer and a favorable location to rent to tourists.
Another condominium under construction is MONO RESIDENCES BANGTAO BEACH. Prices start from 2,500,000 baht. The developer guarantees a yield of 7-8% for 3 years and it’s near Bang Tao Beach.
The building is designed in the style of minimalistic Japanese art Deco. The maximum height is 8 floors with only 1 building with 136 apartments. There are 2 types of apartments - 1 bedroom (34 m2) and 2 bedrooms (61 m2).
The complex has an above-ground swimming pool, a rooftop pool, a rooftop bar, 24-hour security and a garden around the house, video surveillance, as well as parking.
A good location for renting to tourists is located next to one of the most popular beaches in Phuket – Bang Tao.
To sum up, we can say that the best places to buy real estate for investment are the coastal zones of Phuket. Tenants prefer real estate near beaches and attractions, and the price of renting near the beach will also be higher. As we’ve already said, the profitability of real estate in Phuket can reach 10%. The average yield is 7%. Many projects are being built in Phuket so you always choose the best option for you if you contact specialists in the local market.