Real estate in Thailand is an attractive asset that can generate high returns for investors who responsibly search suitable property options. One of the most important factors a would-be buyer needs to consider is the location. Below we’ll tell you about the five most profitable locations for buying property in Thailand.
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Bangkok
The capital and recognized economic center of Thailand is a popular place to live and work for both locals and expats. The city is located next to the delta of Chao Phraya River. Its population exceeds 8,000,000 people. Combined with well-developed infrastructure, pleasant climate, and highly developed travel industry, this opens up great opportunities for the rental business and flipping (quick resale of a property) for Bangkok real estate investors.
Reasons to invest in property in Bangkok:
- The capital of Thailand is one of the main business and travel hubs of the entire South Asian region, and not just Thailand. This city is one of the most sought-after locations by foreign homebuyers and property tenants in the world.
- There is consistency in the urban development of Bangkok. The government and developers are introducing first-class residential properties here, developing infrastructure, investing in modern road networks and transport links with major industrial and commercial areas.
- For many years, Bangkok has had a stable rental market with an average yield of 4–6% per annum.
It’s better to note that the territory of Bangkok is huge. Several of its major districts have their own "sub-markets," each with its own regulations, occupancy rates, prices, and trends. "Centrality" and "accessibility" are key factors for many tenants and buyers when choosing a property. Purchasing a home in the suburbs of the capital, such as Don Mueang or Bang Na, and buying property in the city center, for example, near Lumpini Park, will bring completely different results to the investor.
There are general rules for purchasing property in Bangkok. Properties located close to the BTS Skytrain station will cost twice or even three times more than similar properties further away. Condominiums near the MRT line are also more expensive than those away from the metro lines, although not as much compared to the option with the BTS Skytrain station.
An apartment located 100 meters away from a central public transport stop, as a rule, costs no less than BHT 200,000 per square meter. If the property is located at a distance of 500 meters or further from a public transport stop, the price is reduced by about half.
Phuket
This is the world-famous tourist destination known as the "Pearl of the Andaman Sea". It is one of the southern provinces of Thailand and the largest island in the country. Phuket has gained popularity due to its well-maintained beaches, resort lifestyle, and well-developed infrastructure, which includes kindergartens, schools, hospitals, shops, restaurants, entertainment venues, and other important urban facilities.
Reasons to invest in Phuket real estate:
- Every year Phuket welcomes millions of foreigners, including tourists, expats, and investors wishing to gain profit on local real estate.
- The development of Phuket is in full swing. The roads’ construction and re-construction gives the local residents access to various new locations on the island every month. The transport capacity of the international airport has recently been expanded to accommodate more passengers.
- Stable and high demand for rental housing units is kept in Phuket all year round. The average income from the rental of real estate is 7% per annum.
In Phuket, the most expensive and profitable properties are located within walking distance from the beach. Most of the tourists renting accommodation for the holidays are looking for properties as close to the sea as possible and, as a rule, are ready to significantly overpay for such options.
Residential units located at a great distance from the beach can also generate good income. Inexpensive real estate is in demand among expats and Thais, for whom the developed infrastructure of the area (presence of schools, clinics, and other important facilities) plays a more significant role than proximity to the sea. The rental value of such houses and apartments will be lower, but the income will be more stable, since such housing is rented long-term.
Chiang Mai
Known as the "rose of the north" and often considered the cultural heart of Thailand, it is an integral part of its economic growth. The city is the capital of the province of the same name and the largest-population hub in the northern part of the country. The local landscape consists of picturesque mountains. Next to them, there are traditional buildings and old temples.
Reasons to invest in Chiang Mai real estate:
- Rapidly developing infrastructure. A lot of money has been invested in the development of Chiang Mai over the past decade.
- Harmonious and calm lifestyle. It attracts expats who want to take a break from the hustle and bustle of the "big world".
- Activity of tourists.
- The tourist flow to Chiang Mai is quite large, which increases the demand for rental housing. The average yield of real estate in Chiang Mai reaches 5% per annum.
Chiang Mai is the second largest city in Thailand. Its population is 2,000,000 people. There is no such huge variety of real estate that can be found in the capital. Nevertheless, the city remains one of Asia's most popular destinations for retirees, entrepreneurs, and digital nomads.
Chiang Mai's real estate market is even better for Airbnb and short-term rentals than Bangkok. Here you can earn more substantial income. Investors who are willing to put in the extra effort and who don't mind the hassle of running a hosting business can earn high rental returns with Airbnb.
Pattaya
An extremely popular holiday destination in Thailand, located in the eastern part of the country. Just two hours away from the capital, the resort town has become an idyllic retreat for weary Bangkok residents and international tourists. Besides, it has access to the Eastern Seaboard Industrial Estate (ESIE).
Reasons to invest in Pattaya real estate:
- Pattaya's urban development is proceeding at a rapid pace, with many projects aimed at improving local infrastructure being implemented at the same time.
- The city is a popular tourist destination that offers numerous locations for recreation and entertainment.
- Usually vacationers who come to Pattaya rent local property. The rental income that it brings varies between 6–10% per annum.
Central Pattaya is the heart of the city and its main commercial area. Prices for local real estate are among the highest in the resort. However, usually interested wealthy buyers and tenants are willing to overpay for an attractive location.
Hua Hin
An old beach resort, which is one of the eight districts of the province of Prachuap Khiri Khan in the northern part of the Malay Peninsula. It is located about 3 hours’ drive from Bangkok. The place was once a fishing village, which has turned into a fashionable city that attracts both Thais and expats. The reason for this transformation was the Thai royal family, who decided to build summer palaces here.
Reasons to invest in Hua Hin real estate:
- This place is popular with retirees due to its relaxed seaside lifestyle.
- Well-developed infrastructure and the royal palace attract expats who want to buy a house or an apartment in Thailand.
- Most tourists visiting Hua Hin for vacation prefer to rent accommodation. The average yield of local real estate is 6% per annum.
Hua Hin is much less developed than other Thai resort towns. Probably, it will remain so because of the royal palace located here. Demand for local real estate exceeds supply. Local property is in demand among wealthy Thais and foreigners who prefer to relax in quiet beautiful places.
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