Partnership material 

Why is it worth investing in real estate in Thailand? How much and how can you earn from such investments? Why is Pattaya currently attractive from an investment point of view? Alexey Zaichenko, head of the real estate investment agency in Thailand ALZA Real Estate, told us about all this.

“Thailand has been a top 10 tourist destination for 20 years.”

— Why is now the time to invest in real estate in Thailand?

— I will name the main reasons:

  • Big growth potential

Thailand is a country that is one of the fastest growing economies in Asia and this offers many opportunities for investors. Moreover, the state is actively developing in the tourism sector, which leads to an increase in demand for real estate.

  • Real estate prices

The entry threshold here is lower than, for example, in Dubai or other countries that investors are currently interested in.

  • Convenient location

Thailand is located in the center of Southeast Asia and has good transport links with other countries in the region, providing easy access to international markets.

  • Stable economy and currency

Thailand has a stable economy and currency. The Thai baht is one of the strongest currencies in the world. This provides investors with security and stability in their investment decisions.

  • Tourism

Thailand has been in the top 10 in terms of tourist attendance for 20 years. The country has a rich culture and many attractions. There is also no seasonality here, especially in Pattaya, where there is no pronounced rainy season or very high temperatures. Therefore, in Thailand you can have a climate-friendly holiday all year round.

Alexey Zaichenko, head of the real estate investment agency in Thailand ALZA Real Estate, told us about all this

— What is the current market situation? 

— The property market in Thailand is currently stabilizing after years of rapid growth prior to COVID-19 and lower demand during the pandemic. Investors are now showing increased interest in Thai real estate, especially in major cities and popular tourist resorts. Experts predict that the local real estate market will continue to grow in the coming years.

— Why is it promising to invest in Pattaya real estate now? What is attractive about this city?

— Pattaya has always attracted a large number of tourists: it is a resort that combines relaxation on the beach and at the same time a very developed infrastructure, ranging from leisure facilities to medicine and education.

For people who prefer to live in Thailand for a longer period of time, Pattaya is the best option. The city has changed significantly over the past few years and continues to develop at a rapid pace. At the same time, the quality of real estate is growing, which meets international standards.

Also, unlike Phuket and other popular island and peninsular destinations, Pattaya has a wide variety of real estate properties — from villas to luxury high-rises of 60 floors.

And an important factor: Pattaya is located two hours away from Bangkok and has good transport accessibility.

I note that the five-year development plan for Pattaya includes the construction of a new airport directly in the city, the launch of a monorail train that allows you to get to the capital in 40 minutes, and other global changes that in the future will ensure high demand for real estate among investors.

“There is an interest-free installment plan for all projects under construction”

— What kind of real estate in the country is worth investing in now and in the future, in your opinion?

— Investment is a matter that requires a detailed study of all inputs. There is no universal offer for all investors; much depends on the investor’s budget and investment strategy. Our company always has up-to-date information about promising projects at the time of a specific request.

— What is the current minimum entry amount and, in general, the price range for such real estate for investors?

— The initial cost of real estate for investment is approximately $100,000, with the down payment starting from 25% (depending on the specific property). All properties under construction are subject to an interest-free installment plan for the period of construction—our company helps to choose the most suitable payment schedule for the investor, which we fix in the contract.
 
— What benefits do such investments provide to the client? How exactly can he make money by investing in a property in Thailand?

— There are different investment strategies, the most popular is making money on the increase in the value of real estate during construction. That is, our company: 1) selects a property that has certain unique characteristics that will be in short supply for the developer in the future; 2) purchases a contract where the cost per sq.m. is fixed at the pre-sale stage; 3) and then monitors the most profitable moment for the investor to exit the project. We conclude an agreement to support the investor and inform about all changes. In this way, you can get a profit of up to 40%, and sometimes more if other factors are superimposed, such as, for example, the ruble exchange rate.

The second popular strategy is investing with the goal of subsequently renting out the property. Based on the investor’s capabilities, our team selects the most popular property and, at the investor’s request, can subsequently take over the management of the property, as a result of which the investor will receive a stable passive income of 6-9% per year.

— Who are currently among the most active investors in the Thai market?

— There is no specific group of people who invest to a greater or lesser extent. In Pattaya there are large and not so large investors from the CIS countries, Europe, as well as from the USA, Australia and, of course, China.

— What nuances and difficulties may a client face when purchasing, and why should he ask professionals for help?

— Due to the high demand for real estate, there is also a side effect: unprofessional real estate brokers who do not fully understand the real estate market, its features, as well as legislation, mislead interested investors. For example, they often provide incorrect information not only about properties and developers, but also about forms of ownership.

The form of ownership is the most popular question and, looking ahead, we can immediately say that foreign citizens can own real estate in their own name on the right of full ownership with all the relevant documents. There are other forms of ownership, which we additionally tell our clients about.

— What are the advantages of the Alza Real Estate & Development agency and what services does it provide?

— Our company deals exclusively with investment real estate and works with trusted developers. We do not engage in resale or rental of third-party properties. The focus of our activities is only on new real estate properties that may be of interest to investors.

We also make individual selection of options and develop investment strategies together with the client. Before starting cooperation with us, we sign a support agreement, which sets out the responsibilities of our company in the form of notification and informing the client until the closing of the property transaction, or the delivery of the project with subsequent transfer to management.

In addition to all of the above, our company regularly collects statistics on various metrics of the real estate market, which is an advantage when analyzing an option for an investor.