As Thailand’s business and investment sector strengthens, a significant number of property development projects has been established around the capital which is Bangkok and other famous tourist destinations such as Phuket, Krabi and Pattaya. The recent growth of the Thai Baht currency has enticed a lot of foreign investors to invest on the Real Estate industry of Thailand as a lot of foreigners also look forward to settle in the Kingdom.
Many condominiums, villas and even serviced hotel and apartment made its way to the market for foreigners to choose for either investment or personal use. In Bangkok alone, more than Thirty (30) Percent of the recent high-rise building constructions are High-end condominiums which caters the standards of foreign investors or foreign buyers. The growth of Thai Baht means bigger chances of flourishing your investment here in Thailand. majority of the developers in Thailand focuses on the bigger fish which is foreign investors providing more privilege and exclusive deals.
Although it seems that Thailand is very open to foreign investments, there are still restrictions and challenges towards foreigner investors. We listed down the difficulties that foreign investors might experience here in Thailand regarding the Real Estate Property:
- Foreigners cannot directly own a villa or house, they must first set up a Thai Company Limited and register the company, they can then buy the villa or house under the company’s name which will be considered company asset.
- Foreigners can buy and hold the condominium directly under their name (freehold properties) but only 49% of the total units of the condominium development building is allocated for foreigners, according to the Condominium Act 2008 (B.E. 2522)
“Section 19/2 (bis) Each condominium shall have aliens or corporate as indicated under Section 19 holding ownership in the units collectively not exceeding forty-nine percent (49%) of the spaces of the whole units in such particular condominium at the time of making the registration of such condominium in accordance with Section 6.”
This means that if a certain building or development already reached maximum of 49% foreign occupancy, they cannot sell further to foreigners as it will be against the law. Although problems about a development maxing out its 49% allocation usually doesn’t occur.
- There’s a lot of Pitfalls when it comes to Real Estate Industry in Thailand. To protect yourself further, you must hire a Lawyer and run Due Diligence to the Property or Development to make sure that everything is legal. The surge of foreign investors coming in is a sign of good economy and its also an opportunity for those who want to take them for granted. We always advise our clients to be vigilant when choosing and buying property in Thailand.
Although there may be pitfalls and challenges that foreigners may face when it comes to investing in Thailand’s Real Estate Industry, it is still going to be a good investment as Thai Baht continues to prosper and strengthens. We have been in this industry for a long time and we know how to play the cards to win and be successful on Real Estate deals. Our Property Lawyers and Agents can help maximize the opportunities and benefits that you may get when investing or buying a property in Thailand.
Whether you are buying a Condominium Development in Bangkok, or a Villa somewhere near the white sand beach of Krabi or Phuket, or a House near the lush and boundless forest of Chiangmai, all you need is someone who will make sure that everything will be done accordingly. As a foreigner in Thailand, we suggest you to be vigilant and smart when it comes to choosing the Property that you like, making sure that you get the best of the deal and minimize expenses.
Choosing a property is easy, buying the property is a different story. Although it seems easy but Thailand has a lot of complicated processes and most of the documents will be in Thai Language as well. You must hire someone to assist you legally to protect your interest. Investment is a big step towards anyone’s life, investing also means security and assurance, you must make sure to benefit from whatever property or business you want to invest. Always take a second glance at every decision you make, this also apply to your daily life and not just about buying a Property in Thailand. For every decision comes with consequences, you must make sure that it’s a good consequence and beneficial for you.