Thailand - Economic Factors

Capital Growth of 10–15% Per Annum

Thailand is classed as an emerging property market while it remains in the early stages of growth. Investors are purchasing now, while property prices are at a low and look set to rise when the property market and supporting infrastructure matures in Thailand.

High growth figures are very achievable particularly in the newer resorts, where average growth can reach 15%.

Increased Tourist Figures

The government is concentrating on ambitious new marketing efforts to attract luxury tourism in order to meet its annual target of 10% growth in tourist numbers.

New construction in resorts less affected by the Tsunami disaster is expected to attract a vast numbers of tourists on short term holidays, while generating excellent rental yields for the investors who own these properties.

Fortunately, tourism figures are now reaching very near the pre-Tsunami disaster levels and overseas investors see no reason to treat Thailand any differently from any other emerging market.

Low Cost of Living

The cost of living in Thailand is much lower than in most European destinations while the facilities available to tourists and visitors are modern and of international standard.

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.

Suvarnabhumi-Bangkok International Airport (SBIA)

The completion of the airport is expected to spur growth in commercial property markets in eastern Bangkok as well as make Thailand even more accessible.

Cheap Flights

Due to its popularity as a tourist destination, Thailand is one of the cheapest places to fly to in Asia, with direct flights readily available to Bangkok from many international airports.

Booming Property Market

Thailand’s economy is continuously undergoing reforms, giving it a promising future in terms of economic growth (GDP 5.7 in 2005) and this directly translates to the property market.

Today, the Thai Prime Minister, Dr Thaksin Shinawatra, and his government see foreign investment as great asset while the dropping of certain financial requirements now make investment in Thailand an easier option than ever before.

This is a huge time of growth for Thailand and shrewd investors are purchasing now in order to generate good yields while waiting for the market to build even greater momentum. Property investors who bought post 1999 have witnessed impressive capital growth, particularly in major cities.

No Capital Gains Tax

There is no capital gains tax for private investors and low ongoing property tax applicable.

Economic Growth

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.

Economic Reasons Why Thailand Is An Intelligent Property Investment Location

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.