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Investment in Bangkok Commercial Real Estate and Office Space

Investment in Bangkok Commercial Real Estate and Office Space

Investment in Bangkok Commercial Real Estate and Office Space

There is a new investment concept emerging with a new pace from the Thailand that is making a big impact on investor’s behaviors. The idea is to purchase a long lease for office space in prime locations like Sukhumvit road, Sathorn and Silom and receive guaranteed rental income on a monthly basis. The returns start at 6% and increases to 12%, depending on the number and volume of units under purchase agreement. It’s a hands-off and hassle free investment that also yields a 20% asset appreciation. This is the best time to invest in Bangkok office space as it is the most favorable time Bangkok properties have ever seen.bangkok-photo

The monetary value of this investment opportunity does not just stop at with the investor. The office space being offered is rented to co-workers and industry fellows and niches, a fast growing work space and office sharing concept. Trends indicate that by 2022 more than 10 million Thai and Foreign workers will be freelancers, independent contractors and sol-entrepreneurs, making up about 30% of the workforce”.

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Although office sharing is a legendary concept, what is innovative with these new office spaces is that the tenant gets an all-in fixed fee, meaning no hidden extra charges each month. This means the tenant will get extra value added services like coffee, photocopying, phone, reduced price drinks and much more. If this wasn’t enough, the investor, too, gets a free lifetime membership and can also use the office and conference facilities whenever they want.

In Q1 2016, average Grade A CBD rents in Bangkok has shown a slight decrease because of the newly constructed buildings. The demand for new office places has met to a great extent due adequate supply. More than 400,000 square meters of office as well as residential Condominiums space is still under construction. About 20% of space under construction will be Grade A in the CBD. The total net take-up in Bangkok for Q2 2015 was around 65,000 sqm, increased by 17% this year. A reasonable level of demand and adequate supply has caused office rents to decrease by approximately 3% in 2016.
Due to this easy and cheaper availability of real estate properties Investor’s confidence remains very high in Thailand real estate, and indeed Bangkok in particular, according to a recent study conducted by top Real Estate personals in Bangkok. “Of course, investor confidence was low globally in 2008 to 2012 but now the story is very different.” The figures for 2016 have recorded an impressive growth of investments in Thailand.

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