People from all over the world choose Thailand as a place for a relaxing getaway. However, the Kingdom attracts not only holidaymakers but also those wishing to buy local property for a profitable investment. Thailand has a lot to offer: positive economic conditions, a unique living environment, and attractive tax incentives. On top of this, it boasts a tropical climate, proximity to the sea, and sandy beaches.
Together with the experts from Thailand-Real.Estate, we will find out what the property market in Pattaya is like, what kinds of properties are the most suitable for foreign investors, and what pitfalls may await you on the way to a lucrative investment.
Benefits of buying real estate in Pattaya
Pattaya stands as one of the prime locations in Thailand for expatriates to buy property. This comes as no surprise, as the city offers significant advantages for investors. They include:
- Regional economy. A major reason for choosing Pattaya for property purchases is the region’s thriving economy. Pattaya is part of the Eastern Economic Corridor, which is the most economically developed area of Thailand. The project was set up by the government in order to develop investments in major areas of the country. It involves the development of the urban network, industrial areas, and infrastructure.
- Tourist industry. Pattaya is one of the most sought-after tourist destinations in the world. This creates favourable conditions for investors to earn money, especially during the high season. People enjoy this place due to the fact that Pattaya offers a resort environment with beautiful weather all year round, sandy beaches, and a warm sea, while at the same time providing access to all the necessary facilities to ensure a high quality of life.
- Climate. In contrast to Phuket and Koh Samui, the seasons here are subtle. To put it another way, there are no long rainy months here, typical of similar monsoon regions. Even in winter, rainfall is low and temperatures remain stable.
This favourably distinguishes Pattaya from other resorts in Thailand. Those looking for a place with a warm climate, resort atmosphere, developed infrastructure, and high demand for property will find Pattaya an ideal option.
Available properties in Pattaya
Among the variety of property types in Thailand, foreign investors prefer to buy apartments in multi-dwelling complexes. This is due to the prohibition on land ownership for non-residents, which we will discuss in more detail below. When you buy a flat, you don’t have to worry about this. If the house is in a freehold zone, you will have full ownership of it.
This is another reason to choose Pattaya for buying real estate. Unlike another popular resort, Phuket, there are many apartment complexes being built here, so the choice of flats is quite extensive. Investors can buy a condominium in Pattaya for investment or resort-style living. The market is flourishing, and developers tend to offer a great number of premium amenities to stand out from their competitors. These may include:
- Swimming pools
- Private gym
- Guarded parking lot
- BBQ areas
- Children’s playgrounds
- Security and concierge services.
There is both secondary housing and property under construction. The latter are usually cheaper, and prices rise as commissioning nears. What’s more, you can choose to pay for the property in installments. However, with secondary real estate, you can start generating profit without any delay. Anyway, the choice will depend on your budget and goals.
The prices of flats in Pattaya are different depending on various factors. Those located closer to the sea are usually more expensive. The novelty of the building and the quality of construction, as well as a set of available amenities, are also important. The cost can vary from $30,000 for a small studio to $1 million for a luxury apartment with four bedrooms. On Thailand-Real.Estate’s website, you can find a variety of apartments in Pattaya for sale for expats with all the necessary information, including prices, layouts, and on-site facilities.
As for the potential profit, the average return on investment (ROI) in Pattaya is 80–10%, however, in some well-located seaside properties, it can be as high as 15%. During the high season, prices usually rise due to the influx of tourists, so it’s a great time to rent out your property and maximize your profits.
Obstacles to purchasing real estate for investments
While Thailand offers great opportunities for investors, you need to be careful and consider all the possible risks you may encounter. They include:
- Land ownership restrictions. As mentioned above, foreigners are not allowed to own land in Thailand. For example, if you have bought a villa in a freehold zone, you cannot own the land underneath it. Foreigners, though, can lease this land for 30 years, with the option to extend this term up to 90 years. There are ways to avoid this restriction. For example, opening a company in Thailand and registering the housing as a commercial property. However, this is a complicated and lengthy process with many pitfalls.
- Frauds. As in any other country, it is extremely important to work only with a trustworthy property agent in Thailand and to carefully review all documents before making a deal.
- Location-related risks. Sometimes properties may be located in areas prone to flooding or natural disasters, which may pose increased risks to investors.
- Market fluctuations. The Thai market, like any other, can be subject to fluctuations. Therefore, it is important to thoroughly research the market conditions at the time of purchase and consult a property expert.
If you are mindful of all the possible risks and pay close attention to them, you will minimize the possibility of them happening and have a successful transaction.
Choose your ideal property in Pattaya
You can start looking for your ideal property in Pattaya today with Thailand-Real.Estate. The real estate aggregator works only with reliable developers and real estate agencies and provides a wide range of real estate offers for different budgets and goals.