Currently, an increasing number of Russians wish to sell their properties in Russia and buy residential real estate units in Thailand. In 2022, Thailand became one of the top 10 countries where Russians prefer to purchase real estate. The Kingdom is not one of the most expensive countries to purchase a home to live in, and therefore attracts numerous ex-pats to the country. Additionally, the Thai government does not impose sanctions on Russians, which facilitates the process of purchasing property.
Not everyone possesses a large sum to purchase a real estate unit abroad, hence we will consider what kind of real estate in Thailand can be purchased when selling housing in Russia.
- Housing Prices in Russia
- Housing Prices in Thailand
- Possibility of Obtaining a Mortgage or an Installment Plan in Thailand
Naturally, real estate prices in Russia vary greatly. They are dependent on the city, infrastructure, the year the house was built, the view from the windows, the size of the apartment, and much more. Let's view the average figures.
In Moscow, the average cost of a 3-room apartment is about 17.8 million rubles (approximately $287,000 at the rate of 62 rub/$1). 1-bedroom apartments in Moscow cost about 8.3 million rubles as of November, and 2-bedroom apartments are priced at about 11.6 million rubles.
The prices vary substantially in different regions and cities. For example, in Moscow, one square meter of real estate costs about 332,000 rubles, in the Moscow region it is 173,000, in St. Petersburg – 191,000 rubles, in Yuzhno-Sakhalinsk – 162,000, in Anadyr – 157,000, in Kazan 149,000, and Tver – 99,000 rubles.
The average price for an apartment in Bangkok is approximately BHT 3,400,000 ($106,383).
The cost per square meter of housing in the central area of Sukhumvit in Bangkok is $3,653, and $1896 on the outskirts of Bangkok.
In expensive resort areas, such as Phuket, in the interior of the island, the price per square meter averages $1300 US, and in tourist areas, it reaches $3,070 and more (up to $6000-7000 per square meter).
One square meter of housing on the outskirts of Pattaya, away from the sea, is offered at about $1,600. The average price per square meter in the center of the resort and near the coastline is $2,350.
These are average figures. The cost of a particular real estate unit in Russia and Thailand depends on the following factors:
Real estate in the city centre will be more expensive than in the outlying suburbs.
The number of rooms and bathrooms will increase the overall value of the property.
Age and condition of the property.
An apartment in a new luxury residential complex will be more expensive than an older second-hand property.
A private house is more expensive than apartments or townhouses.
Complete offer of amenities.
In Thailand, the presence of a swimming pool, garden, gym, or coworking will increase the cost of an apartment in a residential complex or a cottage community.
In 2022, real estate prices in Russia were declining, while they were increasing in Thailand.
It is difficult for a foreigner to obtain a mortgage when purchasing property in Thailand.
To obtain a mortgage from a bank in Thailand, you must have an official job in the country, a residence permit, or a spouse with Thai citizenship. Another option for obtaining a mortgage is through a non-governmental organisation MBK Guarantee. They offer up to 50% of the property price. The minimum loan is BHT 1,000,000, and the term of the loan is up to 10 years. The organisation was opened in 2008 and actively lends to foreigners for real estate purchases. However, loans are issued only for the purchase of the real estate in Bangkok and resort towns.
A more realistic option for foreigners who do not have the amount necessary to purchase residential property is to receive an installment plan from the developer. Different companies offer varying terms and conditions, but discounts and promotions are possible. Most often, buyers are offered an interest-free installment until the completion of construction and a percentage once it is completed.
The price ratio shows that when selling housing in Russia to purchase in Thailand, it is quite possible to purchase a well-renovated property or a spacious apartment on the secondary market and then save for its renovation.