Why foreigners buy real estate in Thailand

Residential complexes under construction on Rama Street 9 in Bangkok. Pattanapong Hirunard. Thailand retains its appeal as an attractive destination for foreignreal estate buyers, especially those looking for a second home, despite certain restrictions on property ownership. Gradually, as the real estate market in Thailand recovers and returns to normalcy after the Covid-19 pandemic, the attractiveness of the real estate market in Thailand is becoming stronger. There was a particularly notable increase in sales from foreign clients in the first quarter at some real estate developers, even without the participation of Chinese buyers who played an important role during 2018-2019. The market could become even stronger when Chinese nationals resume their international travel, which promises a bright future for foreign real estate investment in Thailand.

WHY DO FOREIGNERS BUYREAL ESTATE IN THAILAND?

The reasons here are not unlike the reasons why foreigners choose to visit the country. Affordable cost of living, delicious cuisine, warm welcome, convenient travel options and excellent culture contribute to the appeal. Most foreigners investing in real estate in Thailand have already visited the country as tourists. In recent years, several factors have been added to attract foreign buyers, including relocation from their home country, education for their children and investment opportunities. According to the Phuket Real Estate Association, the largest group of foreign visitors arriving on Phuket Island from November 1, 2022 to March 7, 2023 were Russian nationals, numbering 387,329. At the same time, Russian buyers became the leading market for apartment transfers in Phuket in 2022, surpassing Chinese buyers who have dominated the market so far in 2020-2021. This turnover has been evident since the start of the war between Russia and Ukraine in February 2022, according to the Real Estate Information Center (REIC). Artitaya Kasemlawan, head of residential sales, real estate consultant at CBRE Thailand, said Russian buyers have become the main buyers in Phuket's post-pandemic real estate market. "Russian buyers are particularly attracted to 2-5 bedroom pool villas as they are looking for more space for their families. Prices for these villas are usually in the range of 20 to 60 million baht, making them a

WHICH MARKET HAS THE LARGEST NUMBER OF BUYERS?

Over the past five years, buyers from China have been the leading nationality in apartment transfers, accounting for 49% to 63% of the total, REIC said. "Despite difficulties in traveling abroad, Chinese buyers remained the largest group receiving apartment transfers in Thailand last year," said Vichai Viratkapan, acting CEO of REIC. "They accounted for about 50 percent in both volume and value." He said the main motivation behind their purchases was investment, as Chinese buyers preferred smaller apartments compared to other foreign buyers.

WHAT KIND OF EMERGENT MARKETS?

Carlo Pobre, executive director of CIM Property Consultants, a real estate consultant, said some wealthy Myanmar citizens are looking to buy a second home in safer and more stable countries such as Thailand. "Many Myanmar families have purchased second homes in Thailand for three reasons," he said. "They want to invest to preserve wealth, take advantage of medical services in Thailand and provide educational opportunities for their children." According to REIC, Myanmar ranked sixth in the number of apartment transfers to Thailand in 2022. This is the first year Myanmar has been in the top 10 ranking, with a total of 349 units transferred. Myanmar buyers ranked third in terms of purchase value, with transactions worth 2.55 billion baht. They were second only to Chinese and Russian buyers, ahead of the Americans, British and French, who ranked third, fourth and fifth respectively in terms of the number of units transferred. The average unit price for Myanmar buyers last year was the second highest among transfers to foreigners at 7.3 million baht, second only to Taiwan's 7.4 million baht. The average price was 5.1 million baht. Mr. Pobre said the average price for an apartment in Yangon was US$250,000 or 8.5 million baht with an average size of 70-100 square meters or two-bedroom apartments, as they lived as a large family of two or three generations. "For the same price categories of apartments.