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Foreign Investment in Thailand

   
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Thailand Investment Growth

Despite the recent political upheaval, Thailand's tourism industry and
Foreign Investment in Thailand couldn't be better and is increasing at an annual growth rate of 10% per annum.

Investment Growth opportunities:

The country's well-regarded reputation as an exotic and exciting yet comfortable place to visit combined with a strong marketing effort by the government, to attract more high-end tourists has quietly revived the tourist industry from its low point following the Tsunami disaster in December 1994. New construction in resorts less affected by the disaster is expected to attract vast numbers of tourists on short-term holidays and generate excellent rental yields for the investors who own these properties.

To meet its target of 10% growth in tourist numbers per annum, the government is concentrating its marketing efforts on high-end international tourists with purchasing power, especially those from the European Union and the United States, Japan and China. It also is going after new markets, including a strong drive in Russia and India in 2006.

New areas of focus for investors include Koh Samui where land prices jumped 20% last year. Projects in the resorts areas of Hua Hin and Lanta Island are also attracting substantial interest. Investors must concentrate on popular areas in order to benefit from maximum investment growth.

Of note, about 33% of the Thai population is aged between 25-44 years, a very good demographic figure for growth of the domestic housing market, especially the middle-end investment sector.

Capital Growth Predictions:

While returns on Foreign Investment in Thailand can be relatively slow compared to those in some other emerging property markets, Thailand has huge appeal due to its thriving tourist trade and the future potential. The government looks favourably on foreign investment as a key driver of economic development and could very easily opt to open up the market even more with more investor-friendly tax laws and regulations.

Rental Yield Predictions:

The best investment returns come from apartments in the major cities which are offered for rent in the domestic market and apartments in resorts built for development and resale to overseas buyers of second home, retirees and expatriates. Many property developers are planning new projects in the Sukhumvit area of Bangkok, where demand is dominated by expatriates.

Rental income during the peak season from a property in a suitable location should cover at least a good part of the mortgage payments and bills.

Reasons Why Thailand Is an Intelligent Property Investment Location

An exotic long haul destination, Thailand is also a sophisticated tourist destination with great universal appeal.

For thousands of people who have worked in Asia for many years, Thailand is a very attractive retirement destination, in which the living environment will feel familiar.

Retirement visas are available for foreigners over 50 years of age, according to financial means.

Thailand has good schools, an efficient health care system and it is seen as a friendly country in which to live or visit.

Thailand boasts beautiful mountains, dense forests and stunning beaches.

With a tropical climate and cities teeming with culture and colour, Thailand entices visitors back each year.

Warm weather for winter holidaymakers between November and February.

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.

 
 
 


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Why Thailand

While Hong Kong and Singapore have already felt the effects of global investment, property company CB Richard Ellis makes a case for Thailand as the next big beneficiary.

 


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