Exotic Thailand is Asia’s top tourist destination and offers a world class tourist industry at affordable prices, making it a magnet for visitors, re-locators and property investors alike. In many key locations in Thailand, the local economy relies heavily on tourism and increased property investment in these locations is now good news for domestic economic growth and good capital returns.
Natural and Cultural Factors
- Once an exotic long haul destination, Thailand is now also a sophisticated tourist destination with a universal appeal.
- For thousands of people who have worked in Asia for many years, Thailand is a very attractive retirement destination, in which the living environment will feel familiar.
- Retirement visas are available for foreigners over 50 years of age.
- Thailand has good schools, an efficient health care system and it is seen as a friendly country in which to live or visit.
- Thailand offers beautiful mountains, dense forests and stunning beaches, a tropical climate and cities teeming with culture and colour which draw visitors back each year.
- Warm weather for winter holidaymakers. Peak season is between November and February.
- The relatively undiscovered nature of Thailand means that property prices here remain far below those in the more established European markets, although they are growing quickly and strongly (around 10-15% a year).
- Thailand is the largest growth market in Asia. Some businesses choose Thailand as a regional base from which to keep their employees working all around Asia.
- Thailand has recently attracted significant foreign investment. It has become one of the Asian economic leaders and is one of the fastest-growing economies in the region.
- The completion of the Suvarnabhumi-Bangkok International Airport (SBIA) is expected to spur growth in commercial property markets in eastern Bangkok as well as make Thailand even more accessible by air. Thailand is one of the cheapest places to fly to in Asia.
- The country has strong business links with China and has an excellent infrastructure as well as world-class facilities in many resort towns.
- Property is much cheaper in Thailand than elsewhere and an increase in overseas interest in property purchase has helped to create an economic recovery in Thailand. Property investors who bought post 1999 have witnessed impressive capital growth, particularly in major cities.
- Rental potential is great, due to increased government spending luring growing numbers of tourists.
- No capital gains tax for private investors, and low ongoing taxes.
- Today foreigners are regarded by the government as a big investment opportunity in Thailand.
Thailand remains less exploited in the property investment sector than many other areas and for this reason prices are far below those in more established European markets. However in many areas, prices are moving upwards at a rate of approximately 10-15% per annum.
There are undoubtedly some very attractive investment options to be found in certain locations of Thailand and, according to world experts, Thailand’s economy is undergoing a steady growth spurt. While improvements to Thai property investment provisions continue, a symbiosis with the tourist economy and the real estate economy, will allow mutual growth at unprecedented levels.