Investing in Thailand Hotels & Resorts: A Complete Guide

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We’ve mostly talked about buying residential real estate previously, covering foreign ownership regulations, taxes, and more. In this article, we take it to another level and review how it works when buying hotels and resorts.

Buying a hotel is generally more complex as the properties are treated as businesses. As such, different regulations apply. The transaction values tend to be higher as well.

In this article, you’ll learn how it works when buying a hotel or a resort in Thailand and the regulations that apply.

Topics covered:

  • Can foreigners buy hotels in Thailand?
  • Foreign Ownership Regulations of Hotels in Thailand
  • How do I get a hotel license in Thailand?
  • Hotel Classifications in Thailand
  • Documents & Information when Buying Hotels in Thailand
  • The Best Cities to Buy Hotels in Thailand

Can foreigners buy hotels in Thailand?

Foreign individuals cannot invest in hotels as we are only allowed to own strata-title units, which are predominantly in condominium projects.

Even if we can buy residential physical structures like villas, we are not allowed to own the land on which these are built on.

Therefore, foreign corporations set up a Joint Venture (JV) with a local partner or a Thai Limited Company (LLC) to invest in hotels.

This generally requires that you apply for a Foreign Business License (FBL) if foreigners own more than 49% of the shares.

Worth mentioning is also that the Board of Investment (BOI) sometimes exempt foreigners from applying for an FBL if you invest in special projects in certain areas.

Foreign Ownership Regulations of Hotels in Thailand

It’s important that you learn about local ownership regulations and find a credible partner before you engage in the commercial real estate market. Continue reading Investing in Thailand Hotels & Resorts: A Complete Guide

Investing in Thailand REITs: A Complete Guide

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Thailand has a comparatively developed REIT market and introduced its first REIT in 2014. Here, you’ll not only find REITs that solely invest in domestic real estate but also REITs with properties overseas.

If you invested in property in Thailand or other Southeast Asian countries, you’re probably aware of the obstacles that foreigners come across.

Not only are there restrictions to foreign ownership, but sometimes to the value of the unit, your residential status, and the list goes on.

Even if it’s fairly straight-forward to buy condominiums and you can get hold of freehold property in Thailand, you should not overlook the benefits of investing in REITs.

Topics covered in this article:

  • Can foreigners buy REITs in Thailand?
  • How can I start buying REIT units in Thailand?
  • Requirements to set up and run a REIT
  • What are the benefits of buying REITs in Thailand?
  • List of REITs in Thailand

Can foreigners buy REITs in Thailand?

Investing in REITs in Thailand is similar to other Asian countries, like Vietnam. The first thing you need is a brokerage account and it’s preferable to work with a local broker. Continue reading Investing in Thailand REITs: A Complete Guide

Thailand Commercial Property Taxes

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Investing in Southeast Asian markets requires thorough research and due diligence as regulations are less transparent and clear compared to developed countries.

Buying real estate in Singapore compared to Vietnam is often a significantly easier undertaking.

Some investors overlook the importance of understanding taxes apply before acquiring property, something that can greatly reduce your expected ROI. Thailand is not an exception.

In this article, I explain what commercial property taxes you have to pay in Thailand as a foreign investor.

What commercial property taxes exist in Thailand?

Thailand has low property taxes compared to neighboring countries. This is one of the prime reasons why it was ranked second in our yearly Asia Property Index, only behind the Philippines. Continue reading Thailand Commercial Property Taxes

Can foreigners buy commercial property in Thailand?

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Thailand has a developed tourism industry and has attracted many foreign companies that outsource assembly operations and that work in other industrial sectors.

Even if we see strong demand among foreigners who wish to buy hotels and resorts, office space and industrial real estate is also on many investors’ radars.

However, there are also many potential pitfalls that foreigners aren’t aware of due to a lack of market-knowledge or that they simply work with the wrong partners.

In this article, I explain how foreigners can buy commercial real estate in Thailand, what the regulations are, what commercial property types are available, and how you can find commercial property for sale.

Commercial Property Ownership Regulations

Foreign individuals have no access to commercial real estate except for strata-titled office units that you can find in a limited number in Bangkok. Continue reading Can foreigners buy commercial property in Thailand?

Top 13 Real Estate Agencies in Bangkok: A Complete Guide

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Bangkok is one of the most visited cities in the world and attracts everything from entrepreneurs, travelers, expats, and retirees.

Even if people claim that you can get better yields when buying a property in places like Cambodia, Bangkok, and Thailand in general, outperforms Cambodia greatly.

In fact, yields are not always the most important for real estate buyers. You always need to consider your risk appetite and personal preferences as well.

With that said, it’s not always easy to find the right real estate agency to turn to for help. Finding a reputable and credible agent is crucial to successfully buy a property.

Therefore, I’ve written this article where I list some of the most popular and credible agents in Bangkok.

1. Colliers International Thailand

Colliers is one of the biggest real estate agencies in the world having 400 offices in almost 70 countries. The head office is located in Bangkok and has a management team of 14 persons, mixed with both Thai nationals and foreigners.

The Bangkok office established in 2007 but Colliers also has a presence in Pattaya and in Hua Hin, employing around 250 people in total.

Worth mentioning is that Colliers has acquired a number of local real estate agencies, including Pasupat Realty Co. Ltd., in 2007, and FirstService in 2015.

Clients of Colliers include Bangkok Bank, Siam Commercial Bank, Siam Piwat, and Singha. Saying that Colliers is one of the top real estate agencies in Thailand is a fair statement.

Services Offered

Continue reading Top 13 Real Estate Agencies in Bangkok: A Complete Guide

Thailand Property Market Outlook 2021: A Complete Overview

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Buying property overseas is one of the biggest undertakings many foreigners make. Before you buy assets in a developing market, you must do thorough research and understand what you can expect from the market in the coming years.

While Thailand is by far one of the most popular options that foreigners have when buying property overseas, the market has been impacted hard due to the COVID-19 pandemic.

In this article, I explain our predictions for Thailand’s property market in 2021.

Topics covered in this article:

  • Thailand’s Property Market in Previous Years
  • Pattaya’s Property Market
  • Bangkok’s Property Market
  • Chiang Mai’s Property Market
  • How will Thailand’s property market perform in 2021?
  • Are there any other positive aspects of investing in Thai property?
  • New Property Projects in Bangkok
  • Thailand’s Demographic Issues

Thailand’s Property Market in Previous Years

Thailand’s property market was in a slow but consistent upward trend for over a decade until 2020. The main reason is the increasing number of foreigners that visit or decide to live in Thailand, might they be workers or retirees.

To give you a number, around 88,000 foreigners applied for work permits in Q2 2018 in Bangkok alone and the number continues to rise.

To put it in some context, 78,000 foreigners applied for work permits in Q1 2015. That’s an increase of 10,000 expats per quarter or 40,000 yearly.

A better economic outlook, higher take-up rates, and occupancy rates resulted in this upward trend. With that said, the market performance differs much between cities.

Bangkok and Chiang Mai Performed Better in Previous Years

For example, Bangkok and Chiang Mai have experienced higher growths, while places like Cha Am, Hua Hin, Khao Yai, and Pranburi have seen slower growth, or even stagnated. Continue reading Thailand Property Market Outlook 2021: A Complete Overview

Thailand Property Rental Yields: An Overview by Cities

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Thailand might not have the highest yields in Asia, but you can find some great deals if you work with the right agent and target the right area.

Certain sizes of units such as 2 – 3 bedrooms can also perform better as the quality of tenants is generally higher and there’s reduced demand for these kinds of units. Again, you must work with an agent that has a deep knowledge of the market and can come up with promising options.

In this article, we review the most popular cities among property investors in Thailand and check the average rental yields. If you have any interesting insights, feel free to drop a comment below.

Rental Yields in Different Cities in Thailand

In this section, we review the cities one-by-one and compared the rental yields. Let’s start with the capital and where we see the biggest uptake of units from foreign investors.

Bangkok

While condominium units along Sukhumvit Road can fetch up to THB 300,000 – 500,000 per square meter, it’s highly sought after among foreigners who invest in Bangkok. Areas like Silom-Sathorn also become increasingly popular, even if it’s located primarily catering to business professionals and not to tourists and travelers. Continue reading Thailand Property Rental Yields: An Overview by Cities

Can foreigners buy property in Thailand?

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Thailand is one of the most popular countries for real estate buyers in Asia. It’s not strange as it has a developed tourism industry, plenty of visa options available, and a climate and cuisine that suit most people’s taste.

Giving you an example, in Hua Hin alone you can find 3,500 – 5,000 Swedish residents while in Ho Chi Minh City there are only a couple of hundred Swedes. These figures clearly show that Thailand excels when it comes to attracting tourists and other countries still have some miles to go.

In this article, we will focus on the regulations that foreigners have to comply with when buying real estate in Thailand. There are property types that aren’t available to foreigners, depending on how you acquire the units.

Let’s start and review a brief overview of the requirements that foreigners have to meet when buying real estate in Thailand.

Requirements for Foreigners to Buy Property in Thailand

It’s comparably easy to buy real estate in Thailand by Southeast Asian standards. In Indonesia, Myanmar, and Vietnam, for example, foreigners cannot purchase freehold property which is available in Thailand, Cambodia, the Philippines, and Malaysia. Continue reading Can foreigners buy property in Thailand?

Top 4 Real Estate Websites in Thailand

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Thailand has been a hot-spot among foreign property buyers for decades back, but the market really took off around 2010. Since then, we have seen various real estate websites popping up, trying to attract local and foreign buyers alike.

Being one of the most popular markets in Asia, it would be an understatement to say that the competition for real estate leads is high in Thailand. Even if places like Vietnam become interesting among investors, Thailand will remain as a prime location with more options.

In this article, we review the four top real estate websites in Thailand and what sets these apart. Let’s start with the biggest one.

1. Dot Property & Thailand-Property

Dot Property and Thailand-Property are two of the biggest real estate websites in Thailand owned by Dot Property Group. Continue reading Top 4 Real Estate Websites in Thailand

Thailand Property Prices: An Overview

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Thailand is one of the most visited countries in the world that relies much on foreign investors. The country was affected badly, to say the least as COVID-19 spread over the world and reduced investments to a minimum.

It’s not easy to discuss future outcomes or current prices when the market is turbulent and behave abnormally. With that said, we have collected data and information to understand how the Thai real estate market has been affected, reviewing real estate prices in different cities and islands.

In this article, we analyze the top investment destinations among foreigners, including Bangkok, Phuket, Koh Samui, and Pattaya. If you have any questions or valuable information you would like to share, feel free to write a comment below.

Bangkok

Bangkok’s real estate market has been hit hard due to the COVID-19 pandemic and new supply was down more than 73% in Q2 2020 compared to the previous year.

Saying that both the tourism industry industries have been heavily disrupted would be an understatement. The demand and supply have decreased tremendously and around 100,000 units were unsold in May 2020, according to Knight Frank Thailand. Continue reading Thailand Property Prices: An Overview