Far from the usual postcard of Southern Thailand heavenly beaches, or Buddha temples lost in the Northern jungle, Bangkok is a kaleidoscopic urban landscape, where tradition and modernity merge into one another, just like the ancient water channels snaking around Glass-sheathed skyscrapers.
For those who wonder where are the best investment opportunities in Southeast Asia at the moment, here are 3 reasons to take a serious look at real estate investing in Bangkok, and in Thailand more generally:
Far from the chaotic tremors observed in other Southeast Asian capitals, Thailand's capital is enjoying a measured yet steady growth - + 4.6% GDP (2018, Q2) - which is a testimony to its good economic health.
Sustained by an uninterrupted flow of foreign investments, a rather stable national currency (the Thai Baht), and a real estate landscape in constant mutation, Bangkok’s market offers a balanced mix of dynamism (+50.000 units in 2018), attractiveness (between $390 and $470 per sqft.), and high profitability ( 4% to 6%), an exceptional combination in these parts of the world.
Evolution of sqm prices for real estate in Bangkok (CBD) in 2018, source: combien-coute.net
Another indicator of this economic serenity, is that Thailand has been progressing steadily within the index of global transparency for real estate (GRETI), gaining four places in 2018 - from 38th to 34th place - on a worldwide scale of 100 countries.
Whatever your preference in terms of real estate investment - rental property, office buildings, commercial premises or second home - all key performance indicators show a bright green light for years to come.
Indeed, while the creation of real estate units slowed relatively in the second quarter of 2018 compared with the first quarter, it remains on a strong dynamic with an increase of + 6.5% in the city center and + 2.2% in the outskirts.
Real Estate in Bangkok: Development Projects 2018 - 2025 - Source: The Nation
In addition, there is every indication that investors are only waiting for the launch of several large-scale programs to meet the demand, including in the coveted Central Business District (CBD) but also in other popular areas such as Lat Phrao, Charan Sanitwong, Phahon Yothin, or again Phetkasem.
In total 700 billion Baht (over 230 million dollars) should be fueled in the real estate market in Bangkok, just for CBD district by 2025.
If real estate is so hot in Thailand right now, especially in Bangkok, it’s not just to satisfy the growing demand of overseas tourists who have adopted the ‘Land of Smiles’ country as a secondary home for vacationing or retiring.
It is also because Thailand offers return rates that the United States, the UK and continental Europe, are looking at with envy : a return on investment (ROI) up to 6% depending on the property’s location and usage!
Thanks to its contained yet steady increase in prices driven by demand in flagship districts, combined with highly favorable tax schemes, Bangkok allows anyone to enjoy high profitability from real estate investments, without breaking the bank, or taking unnecessary risks.
Comparative Real estate taxes between Thailand and other countries :
Here are some key figures that illustrate the potential of real estate in Bangkok for investors:
● ROI from 4% to 6% depending on property
● Taxes on resale from 4% to 7% of selling price (compared to 22.5% - 45.6% in Hong Kong and up to 10.7% in the US)
● Prices per sqm well below UK (£4,000+ in Southern England)
● Maximum occupancy rate (92% in the city center)
Are you thinking of buying a secondary residence abroad? Planning on Investing in rental real estate? Or simply relocating for your well-earned retirement? Bangkok has developments for all tastes, and budgets!
Find the one project fulfilling your vision: Buy an appartment in Bangkok