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Guideline to International Real Estate Investment in Thailand

Guideline to International Real Estate Investment in Thailand

Jumping into an emerging real estate market abroad is always a challenge; it means you run into an enigmatic territory filled with unfamiliar political, economy, mortgage rate, infrastructure and so on. Though international real estate investment gives attractive diversification to your portfolio, you can’t underestimate its risk.

Here, We will sum up 3 practical guidelines to help you capitalize on profit opportunities while minimizing unsystematic risk from foreign investment in emerging market economies.

Transparency

Reliable quality and depth of information about the fundamentals of the market will surely attract foreign investors. They will be more confident and better informed of what is really happening with the emerging economy landscape concerning real estate investors and activities. Thus, the availability of accurate information, including law and regulation, finance, market, property rights, and listed real estate companies are critical areas to take a close examination.

In Thailand: Compared to other countries in emerging countries, Thailand has an acceptable transparency level with a corruption perception index of 37, below only Singapore, Brunei, and Malaysia. However, investors still need to do further analysis and refine all the information to gain the most insightful knowledge which reduces the risk of the unknown.

Established Infrastructure

Lots of real estate research show a positive and substantial result that physical infrastructure plays a vital role in attracting foreign real estate investors. Reliable public infrastructure such as transportation, telecommunication, highways, and water and electric system signifies an encouraging sign of urban development which draws in a flock of long-term investors and demands for residential properties alike.

In Thailand: So much has been spent in bringing Thai public infrastructure to match the level of major Asian countries. There are a lot of new building, office supplies, rail transit lines, road links as well as electric and water systems. When these combine with an ever-expanding tourist market coming to Thailand, it can probably suggest a bright potential of many years to come.

Property Prices

Heightening costs often significantly incite foreign real estate investment because of expectation for capital gains of real estate assets. In particular, every investor pursues a return on real estate investments so they will look for properties with the great potential to climb in values and fond for locations with higher property prices compared to other areas in its perimeter.

In Thailand: Despite a stronger economy based on the national GDP figure, Thailand’s housing market is slowing down as well as real demand. The bright side of the story is high-end section and demand for prime areas, central business district (CBD), will continue to rise and remain solid as ever which is mainly due to the scarcity of CBD freehold areas. Hence, investors have to be extra mindful of the price trend as well as filter for the location with the highest opportunity to grow.

Angel Real Estate Consultancy is always devoted to its vision of “Select the best Thai real estates for global clients.” We promote 360-degree real-estate solution including market studies, property acquisition, project financing, portfolio management, development consulting and other multi-dimensional services related to the context that will surely enable property investors to make the most practical and profitable decisions.

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Nonthanat Penprapat

The author's views are entirely his or her own and may not always reflect the views of Angel Real Estate Consultancy.

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