Thousands of people from all over the world choose Thailand as a place for profitable real estate investments. The kingdom has much to offer expatriates seeking to generate good returns here, including favorable economic conditions, a unique living environment, and attractive tax incentives. On top of that, there is a tropical climate, proximity to the sea, and sandy beaches.
When purchasing real estate, Pattaya is one of the places that comes to mind first. Being a part of the Eastern Economic Corridor, the city today is a famous resort and a developed economic center that provides many opportunities for earning a stable income.
What makes this place so appealing? How can investors generate the maximum profit here? And where do you find the best deals? We will answer all these questions together with Thailand-Real.Estate.
Benefits of investing in real estate in Pattaya
One of the main reasons for choosing Pattaya to buy real estate is the region’s thriving economy. As mentioned above, Pattaya is part of the Eastern Economic Corridor, Thailand’s most economically advanced area. Urban networks, industrial zones, and infrastructure are being developed within the project’s framework. So today, Pattaya boasts a high economic growth rate and favorable conditions for the real estate market.
Moreover, Pattaya is considered one of the most popular tourist destinations in the world. The city hosts about 12 million foreign visitors annually, providing a positive environment for investors to earn money, especially during the high season.
The climate is another thing worth mentioning. In Pattaya, you can enjoy a resort environment with beautiful year-round weather, sandy beaches, and a warm sea. Moreover, thanks to well-developed infrastructure, you can access all the necessary facilities to ensure a high quality of life, including an efficient road network, proximity to Bangkok’s Suvarnaphum International Airport, and high-quality international schools, hospitals, and medical centers.
Types of properties in Pattaya
Due to the economic development and tourist inflow, new residential complexes are being constructed in Pattaya. Unlike Phuket, where villas are in greater demand, the structure of high-rise buildings with flats is flourishing here. Buying apartments in Pattaya for investment is extremely popular among expats.
The choice of property is diverse. You can consider a compact studio with a sea view, a spacious four-bedroom apartment for a big family, or a more modest flat option further away from the beach. Competition among property developers is high, so they are trying to offer more premium amenities to stand out.
They may include:
- Swimming pools
- Private gym
- Guarded parking
- BBQ areas
- Children’s playgrounds
- Security and concierge services.
There is both off-plan and secondary housing in Pattaya. The choice of property will depend on your investment goals. It is crucial to outline your strategy before choosing real estate. A professional broker can help you with this. In general, properties under construction are cheaper, and prices rise as commissioning nears. You also get the opportunity to pay in installments. However, with ready-made housing, you can start generating profit right after concluding a deal.
The prices for flats in Pattaya depend on different factors, including location, proximity to the sea, views from the windows, on-site amenities, and the novelty of the building. The price will also differ between off-plan and finished developments.
It can vary from $30,000 for a compact studio to $1 million for a luxury four-bedroom condominium. For example, a studio flat of 25 sq. m. in a finished premium-class complex with a great variety of on-site amenities and a convenient location will cost approximately $60,000.
Ways to profit from real estate
There are different ways to earn income from property. Among them are:
- Resale during a construction process or upon its completion. Real estate at the construction phase is always cheaper than the finished one. However, the price is increasing as construction gets closer to completion. An investor can fix the profit by selling the property when the construction proceeds to a new stage or when the keys are handed over. With the adequately chosen unit, the price rises by 25–30% during construction.
- Rentals. It is a convenient way to generate steady passive income. There are two strategies: short-term and long-term rentals. These two types are very different, so it is up to the investor to decide which one suits him best. The average return on investment (ROI) in Pattaya is 80–10%, and it can even reach 15% in some fortunately placed seaside properties.
- Buy-rent-sell. This is the most well-balanced strategy that maximizes returns in the medium term. According to the strategy, investors buy property at the initial stage. Lease it for several years, earning a passive income. In 5–7 years, sell the property at a higher price. Thus, a 30–40 % return can be achieved in seven years.
In Pattaya, finding a property in a freehold zone is easy. When buying real estate in such an area, you get full property ownership and can use it without restrictions. However, there is one difficulty that overseas investors have to face when buying a home in Thailand. Foreigners are not allowed to own land in the Kingdom.
The good news is that this rule should not bother you if you buy an apartment in one of the residential complexes in Pattaya. You will fully own the property unless it is in a freehold territory. In addition, you do not need to pay annual property taxes. You only pay income tax that ranges from 5 to 30%, depending on the amount of profit.
Choose your property in Pattaya.
You can start choosing your ideal property in Pattaya today with Thailand-Real.Estate. This real estate aggregator has an impeccable reputation and years of experience. They offer a significant number of properties from leading developers. With their help, you will effortlessly find something that perfectly suits your requirements.