Samui is a rapidly developing tourist destination in Thailand. Known for its stunning beaches and natural landscapes, the island attracts visitors from all over the world. You can find all types of sought-after real estate on its territory: 5-star hotels, apartments, and villas in Thailand. An increasing number of tourists are choosing to travel independently and not rely on hotel offers, which increases the demand for accommodation and makes it attractive for investment. Let's look at the advantages of investing in Samui real estate.
Content:
- Island Features
- Advantages of Investing in Samui Real Estate
- Buying an Apartment for Investment: Legal Intricacies
- Conclusion
Island Features
The island is located in the southern part of the Gulf of Thailand. The total area of the territory is only 229 km². Samui Airport is located 6 km from the city center, making transfers convenient. Unlike the larger island of Phuket, which is connected to the mainland by a bridge, Samui offers a more private lifestyle and easy access to the coast from almost anywhere.
Finding beachfront property is not difficult as developments projects in Thailand allow you to find the perfect property for both permanent residence and investment. The real estate market caters to a wide range of investment strategies. You can either sell property at a profit or generate a regular income from rentals.
Samui was originally discovered by Chinese and Malaysian fishermen and traders who were attracted by the natural beauty of the area, abundance of fresh fruit and fish, and numerous safe and quiet bays. The island is unique in many ways, as it manages to meet all the requirements of a developed tourist center with excellent infrastructure, while preserving the authenticity of the local culture and traditions.
Who Buys Property in Samui?
Real estate in Thailand in popular resort areas is sought after by buyers from Hong Kong, the United Kingdom, Singapore, Malaysia, Israel, and Dubai. Recently there has been growing interest from investors in Russia and Australia.
The number of buyers from Asia has increased steadily since the opening of the international airport with direct flights from China. Getting to Samui has become quicker and more convenient with regular flights.
Advantages of Investing in Samui Real Estate
The island real estate market is developing, but prices for houses and apartments in Thailand have not yet reached their peak. There are several reasons to invest in local real estate:
- Buying property in Samui during an economic downturn associated with the consequences of the pandemic will be a financially sound decision. As the situation stabilizes and tourism picks up, property prices will rise. This makes investments potentially profitable in both the short and long term.
- The country's high economic indicators contribute to the development of the real estate market. The authorities support foreign investors, creating a favorable investment climate.
- Affordable prices compared to other popular investment destinations such as Spain, Singapore, and Hong Kong. A 1-bedroom apartment can be purchased for $130,000. For the same amount, you can buy a 3-bedroom villa in the foundation stage.
- High rental yields. The average return on investment is 8-10% per annum, which is much higher than in Spain or Dubai with a rate of 4–5%. Some popular properties are yielding up to 30% per annum.
- Stable demand for both rentals and purchases. The tourist season has no significant limitations, allowing for year-round profitability. When reselling the property, it is always possible to achieve "capitalization value."
Buying an Apartment for Investment: Legal Intricacies
Under Thai law, foreign buyers are prohibited from purchasing land. Therefore, a villa can be owned as private property while the land underneath is leased on a long-term basis. The lease term can be up to 30 years with a double renewal for a similar period. In this case, the owner can dispose of the property as he wishes: resell, donate or bequeath it. The only restriction on buying apartments in Thailand is that foreigners cannot own more than 49% of the residential area within a particular condominium. Qualified legal assistance will help you navigate all the complexities involved in the purchase and ensure the legal validity of the transaction.
Conclusion
Foreigners can freely buy an apartment in Samui. The active development of the area allows you to consider not only finished properties, but also upcoming ones, which offer much more favorable prices. You can buy properties for sale off plan in Thailand and resell it at a substantial profit upon completion. Alternatively, you can earn a stable income from rentals. The constant flow of tourists will ensure high occupancy rates for the property.