Arguably, Pattaya happens to be one of the most talked-about cities in Thailand which has a booming real estate market fuelled by its luxury amenities and nightlife. After starting as a quiet fishing village in the 1960s, Pattaya is now a hub of tourism and business with luxury hotels, high rise condos, shopping malls and 24-hour clubs. Therefore, the perks and weaknesses of investing in Pattaya real estate will depend on the suburb of investment and other key lesser-known factors.
Pattaya has a growing market of off-plan condominium units where foreigners are encouraged to buy real estate before they are built. The prices of this market are cheaper than buying normal condominium units where the developers sell them at a fraction of the full sale price. The owner will then have the ability to resell the units at a higher price after they are built. This model happens to be a success in Pattaya except for the time factor. Investors will be required to wait longer for the projects to be completed which makes this a long-term investment.
Purchasing properties through a private limited company in Pattaya happens to be very effective where the owners are not legally required to pay some taxes due to the exclusion of the land department in the buying process. Foreign nationals can own up to 49% of the land while the rest has to be owned by a local. Implementing a system where the foreign nationals obtain greater voting rights will shift the control of the company back to the foreign national. This can be done through an attorney. This process is highly recommended when purchasing off-plan condominium units.
A Profitable Business
Investing in real estate for the rental market can give very high profits due to the busy nightlife and the global fame of Pattaya. Choosing the correct place and property becomes vital for the rental market. Investing in real estate in prime holiday areas of central Pattaya can be a gamechanger. Central Pattaya, which is known for its rich nightlife, luxury hotels, and cheap guesthouses currently has a limited high-end housing stock. Statistics also reveal that the holiday rentals market has been on rapid growth over the past 5 years which makes it a great investment opportunity.
The areas of North Pattaya and Pratumnak are also believed to be prime real estate properties. Known as the local Beverly hills, Pratumnak offers all the high-end luxury goods and lifestyles. Although the property prices are very high, the return on investment rate has also seen a steady increase over the past years. North Pattaya is known to be the greenest part of the city with the highest property prices. The majority of properties are used for health and wellbeing resorts with very reasonable prices. There is also a very high property demand for corporate rentals in north Pattaya due to the construction of the Laem Chabang water port.