Why you should invest in Bangkok’s real estate market now
Thinking about investing in Bangkok’s real estate market? You’re not alone. With its booming economy and lively tradition, Bangkok has become a hotspot for real estate investors worldwide. The city saw a remarkable 6% growth in property prices last year, attracting both local and international buyers.
Bangkok offers a unique blend of modernity and tradition, making it an appealing destination for both living and investing. The city’s infrastructure development, including new transport links and commercial hubs, further boosts its real estate potential. Whether you’re looking for rental income or long-term capital appreciation, Bangkok’s property market provides promising opportunities.
Is investing in real estate in Bangkok a good idea?
Buying real estate in Bangkok can be an excellent investment. The city’s growing economy, strategic location, rising rental index, growing expatriate population, and favourable government policies make it an attractive market.
Economic growth in Thailand
Bangkok’s expanding economy drives rental demand, leading to higher rental rates. A growing population, including young professionals and expatriates, ensures a steady stream of renters. Experts predict continued rental rate increases, promising stable passive income.
Infrastructure improvements and the presence of multinational corporations contribute to long-term capital appreciation. Properties in central business districts like Silom and Sathorn have seen annual value increases of around 5.5% over the past decade. Ongoing economic growth suggests property values will keep rising, offering significant returns.
Nationwide inflation in Thailand, measured by the Consumer Price Index (CPI), eased from 6.1% in 2022 to 1.20% in 2023 and was recently reported at 0.83% in July 2024, influenced by factors such as energy price subsidies and gradual monetary tightening. The Bank of Thailand (BOT) expects inflation to reach 0.6% in 2024, rising to 1.3% in 2025, while the IMF forecasts a mild acceleration to 0.7% in 2024 and 1.2% in 2025.
Bangkok’s strategic location
Bangkok’s location in Southeast Asia makes it an important hub for business and travel. This central position provides easy access to neighbouring countries, attracting international investors and expatriates. Suvarnabhumi Airport connects Bangkok to global markets, boosting demand for properties including short-term rentals.
The extensive public transport system, featuring the BTS Skytrain and MRT subway, raises property values. Areas near transit lines appeal to investors seeking properties with excellent commuting options. This makes spots alongside Sukhumvit Road such as Thonglor highly desirable.
Rising rental index
Bangkok’s rising rental index reflects strong demand for rental properties. Factors like a growing expatriate population, young professionals, and students drive this demand. Increased competition among renters allows landlords to raise rates, enhancing rental investment profitability.
High rental yields make Bangkok appealing to investors. Luxury condos can yield up to 8%, while one-bedroom apartments yield around 6%. This trend aligns rental rate hikes with capital appreciation, ensuring strong returns.
Residential rental yields in Thailand are on the rise, with the average gross yield reaching 6.27% in June 2024, up from 5.79% in December 2023, according to Global Property Guide. The highest yields were found in Sattahip at 7.05%, followed by Samut Prakan (6.75%) and Phuket (6.36%), while Bangkok recorded a yield of 5.07%.
| June 2024 | December 2023 | June 2024 vs December 2023 | |
| Bangkok | 5.07% | 4.88% | +0.19 pp |
| Nonthaburi | 6.27% | 6.25% | +0.02 pp |
| Pattaya | 6.11% | 6.25% | -0.14 pp |
| Phuket | 6.36% | 5.87% | +0.49 pp |
| Samut Prakan | 6.75% | 5.79% | +0.96 pp |
| Sattahip | 7.05% | 5.72% | +1.33 pp |
| Data Source: Global Property Guide | |||
The growing expatriate population in Bangkok
The influx of expatriates to Bangkok leads to higher rental demand, specifically for high-end condos and apartments. Most expats prefer renting, offering more flexibility. This demand allows landlords to charge higher rents and select quality tenants.
Rental rates across various property types—from luxury condos to studio apartments—continue rising. High rental yields are typical in central areas like Sukhumvit. Expats often seek modern amenities such as swimming pools and gyms, prompting developers to build high-end projects catering to this demographic.
Favourable government policies for expats
The Thai government has reduced transfer and mortgage fees for properties under 7 million baht, easing the financial burden on buyers. This supports property sales in high-demand areas like Bangkok.
There is a policy change in progress that will increase the foreign ownership cap in condominiums from 49% to 75%. On top of that, there is also a plan to extend property leaseholds for foreigners from 30 to 99 years also attracts more foreign investment. These policies are being done in the current trend of the influx of expats and foreign investors coming into the country.
Fazwaz properties that you can invest in
If you’re considering investing in the Bangkok real estate market, Fazwaz offers several attractive options. Here are three standout properties worth your attention.
If you need to know more about the policies for expats, Platforms like Fazwaz Bangkok can help guide you and keep you updated if you need to. They offer detailed listings and support for buying, selling, or renting properties in the city. With these resources and market insights, investing in Bangkok property becomes more accessible and rewarding.
Banyan Tree Residences Riverside Bangkok
Banyan Tree Residences Riverside Bangkok is a luxurious condo built to a world-class standard. Developed by Nirvana Daii with Banyan Tree Group, this project finished in 2019. The location in Soi Somdet Chaopraya 17 places you just 260 metres from the main road and 16 metres from the Chao Phraya River. This means you get a scenic view along with easy access to commercial areas.
The concept of ‘The Sanctuary For Your Soul’ resonates with its high privacy and top-notch architecture. It has won awards for Asia Pacific Property High-Rise Architecture and Residential High-Rise development, proving its excellence. Investing here promises not just a home but a lifestyle.
Ashton Silom
Ashton Silom delivers a perfect living experience right in the heart of Bangkok’s business district. Located near Si Lom Road, this property offers easy access to important transport links like Chong Nonsi BTS, Sala Daeng BTS, Lumphini MRT, and Si Rat Expressway.
This central location puts you close to Lumpini Park, Si Lom Complex, and renowned institutions like Chulalongkorn University. The area supports an upscale lifestyle with abundant facilities. Ashton Silom is ideal for professionals seeking both convenience and luxury.
Anil Sathorn 12
Anil Sathorn 12 suits health-conscious investors. It’s Thailand’s first condominium certified by the WELL Building Standard from IWBI, USA, at the Gold degree. This certification ensures high-quality living environments, with air quality control, dust filters, and a water purification system.
Situated in a prime location, it’s connected to main roads like Sathorn and Silom. The Surasak BTS station is just 450 metres away, with a future station in the pipeline. Investing in Anil Sathorn 12 means ensuring not just a prime location but also a healthier lifestyle.
For thorough guidance and listings, you can visit Fazwaz as they offer valuable insights and tools to help you guide Bangkok’s busy property market.
Whether you should invest in Bangkok’s real estate market is entirely up to you but you will find that it is lucrative. With favourable government policies, economic growth, a growing expat population, and attractive rental yields, right now is the time to begin investing in the real estate market of Bangkok.
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