It’s no secret that investing in real estate has always been a fairly safe and solid means of growing your fortune but that’s not to say that it isn’t without its risks. There are many different factors that you must consider before investing your money in a property and one of the big one’s is which country’s market you would like to tap into.
In this article, we’re going to answer the question: “What are the benefits of real estate investing in Thailand?” If this is something that you’ve been wondering yourself for some time and would like to know more, then this is the article for you. 
Investing in Thailand for foreigners
First of all, let’s address the elephant in the room – investing in Thailand for foreigners. Is it possible? The short answer is yes. Either way, you’ll need to seek proper legal advice before you rush into anything.
In any case, when it comes to property investments in Thailand, there is an ocean of opportunity that receives interest from shrewd investors all over the world.
If you’d like to invest in a home of your own, or rent it out to holiday makers, you will find no shortage of luxury homes at affordable prices in Thailand. Certainly, you should expect to pay more for property in high-demand locations such as central Bangkok, for example.
Additionally Bangkok rental properties are in high demand for both tourists, and expats looking to remain long-term. The same applies for popular islands such as Koh Samui and Koh Pangan with properties that are in demand with overseas tourists.
But, it’s not just luxury properties that are available for investment; outside of Bangkok there are large industrial complexes with factories and warehouses, many of which are located conveniently close to the various transport hubs such as airports, rail networks, and seaports – an ideal investment for those who are interested in both property and business.
Insights about the property market in ThailandFor some further insights about the property market in Thailand, this section touches on the current climate and what is to be expected over the coming years…
Thailand’s housing price index has always been steadily rising month by month, until recently. With the global economic slowdown due to the COVID-19 pandemic, there has been a drop in the property market as there have been fewer foreign buyers (particularly those coming in from China).
In any case, as the prices continue to drop, there is an anticipated recovery on its way in 2022 and the Thai real estate market has always been—and is likely to remain—a steady and reliable industry.
Certainly, the current drop in prices isn’t ideal for those who may have already invested in the Thai property market, however, as more and more properties become affordable in Thailand, the ROI’s will be substantial over the coming years.
And regardless of any economic factors, COVID-19 aside, property prices in Thailand have always been significantly lower than those in other countries. Here’s a comparison of current house prices on an average of 120 sqm (in USD) for your reference:
- Thailand property per 120 sqm: $5,266
- Honk Kong property per 120 sqm: $28,570
- United States property per 120 sqm: $17,191
- United Kingdom property per 120 sqm: $21,179
The key benefits of investing in Thailand’s real estate market
1.The return on investment on Thai properties
If you are looking for a solid financial investment option, you’re going to want to see a return on your investment. This is why Thailand is a solid choice, as there has always been a steady increase in property prices over the years (recent global economic issues aside).
Demand for property in Thailand remains strong both from Thai locals and overseas investors so as the world begins to open up and normality is restored, you will be in a solid position.
2. A country in consistent development
Thailand has a sophisticated road network in place with many connections to the main commercial and industrial centers. Yes, Bangkok is notorious the world-over for having significant traffic and congestion problems, but these are being addressed with the help of the city’s transport system (e.g., the BTS skytrain and underground networks that interconnect well with one another, granting access throughout the entirety of Bangkok).
In addition to that, Thailand boasts some of the most excellent medical facilities in the world, fast and reliable internet connections, modern business facilities, and a plethora of quality accommodation options. This is what has made Thailand an attractive location for foreigners for real estate investment, and it will only get better.
Furthermore, in popular island locations such as Koh Samui, with limited availability on property, it will also help to drive up prices of your investment properties.
3. Buy to let: another way to profit from property investment in Thailand
Another great way to benefit from investing in the Thai real estate market is “buying to let”.
An increase in property value isn’t the only way for an investor to make a return on their investment. Many people like to buy a luxury property and then let it out, so that they can profit from the property on a month-by-month basis, whilst enjoying an increase in the total property value.
In most cases, rental yields of over 5% represent a very good opportunity for those who are thinking about investing in Thailand. Of course, this is an average figure so you can certainly expect to find even higher yields in certain parts of the country if you put the time in and do your research.
Final note
Naturally, with the current economic uncertainty, investing in real estate in a foreign country might be the furthest thing from your mind right now. However, the eventual economic balance is on its way and if Thailand’s long history of successful real estate investments are anything to go by, then it’s fair to say that now (while property prices are low) is as good a time as any to invest in Thailand’s real estate market.
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