Purchasing real estate in Bangkok continues to be a lucrative investment opportunity due to the city’s affordable property prices, rising rental demand, and increasing tourist numbers.
Bangkok has been named the most visited city in the world in recent years by Forbes; in fact, the bustling metropolis of Thailand has claimed the top spot four times in a row. Its dynamic culture, breathtaking landmarks, and renown for having a low cost of living come together to make it a genuinely exceptional and enthralling tourist destination.
Bangkok came in first place in the most recent Mastercard Global Destination Cities Index with a total of 22.78 foreign tourists. Despite being relatively new to the tourism industry, the city was ranked higher than well-known locations like Paris, London, Dubai, and New York.
Thailand started to see tremendous economic growth in the middle of the 20th century as its manufacturing and agricultural sectors expanded.
Bangkok, a port city, finds itself at the hub of international trade, facilitating imports and exports to and from Southeast Asia.
Additionally, Don Mueang Airport was expanding its operations and starting to generate tourist-related revenue. One of the world’s oldest airports, it was later replaced by Suvarnabhumi Airport.
According to latest data from CEIC, Thailand sees average 10 million visitors . Despite being impacted by the epidemic, the country’s tourism industry has been recovering swiftly in 2023 it had already reached its May reopening goal of over a million visitors per month.
Beginning in the first week of October 2022, Thailand ended its nationwide Covid-19 Emergency Decree and repealed the final of its travel bans. The Suvarnabhumi Airport is also being expanded by the nation, with new hanger buildings and link tunnels being added. Phase 2 is scheduled to be finished in 2023, increasing the annual passenger capacity from 45 million to 65 million. Phase 3 will increase the number of passengers allowed to 85 million.
Thailand and its capital city are well-known tourist destinations that have consistently topped lists for travel over the years. Because of this, Bangkok is a sure option for vacation rentals, with steady demand and high profits.
How do Bangkok’s real estate costs compare to those in other cities?
Despite a 50% increase in property prices over the previous ten years, Thailand’s real estate is still very inexpensive when compared to other capital cities.
Bangkok’s prime capital value was valued at €7,880 per square meter in the Savills Prime Residential World Cities Index (December 2019). When compared to other cities, Hong Kong is very affordable ($40,220 psm), London is expensive ($18,590 psm), and San Francisco is quite expensive ($14,400 psm).
According to some reports, the average residence in Bangkok is worth 3.4 million THB. This is roughly equivalent to 80,000 British pounds. To put things in perspective, you could purchase nearly six residences in Bangkok for the average cost of a home in London.
In the first quarter of 2022, domestic demand for condominiums increased by 27.7% QoQ (DOT property). Rental condo demand rose by 20.9% QoQ and over 50% year over year. Purchasing rental property in Bangkok is becoming a more appealing financial possibility as more people come back to the city after the plague.
Thailand is known for having one of the lowest costs of living in the world, not just in real estate. Consumer costs in Bangkok are 36% lower than those in London and 33% lower than those in Tokyo, according to Numbeo. This increases its appeal as a vacation spot and draws millions of expats from all over the world.
So, Thailand’s thriving capital city is undoubtedly one to take into account whether you’re looking for a rental investment or a new home.
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