The reasons to buy property in Thailand come down to a personal choice, and depend on your individual circumstances. Perhaps you will be relocating or retiring in Thailand for some years and you see long term rental as 'wasted' money, or perhaps you're looking for an overseas property investment that will surrender a rental income, while providing you with a place to stay on holiday when you visit.
Property values in Thailand have increased year-on-year at a rate of around 13% per year, but in many places notable in popular cities and coastal areas prices have increased by 30% to 50% per year. As with all property, the relative value and appeal of land and property in Thailand comes down to the three key factors: location, location, location.
Another important factor to consider in Thailand when buying property is the developed state of local and surrounding infrastructure in the location you're looking at. Not all areas are well developed, and property prices will be cheaper in those that are not. However if, for example, a high speed road is built connecting a previously 'remote' location to other, better developed places, you may see a property investment in that area increase substantially. Thailand is a diverse country and many of the islands have seen significant improvement with road and communication infrastructure which is improving every year, with most major places now adequately connected.
The outlook for the real estate investment market in Thailand is very promising. Currently, real estate is hot in most of the developed regions such as Bangkok , Koh Samui and Phuket. Other areas like Pattaya and Hua Hin are gaining interest from local and overseas developers as well. Foreign investors are targeting Thailand for long term investment in real estate and tourism as the Kingdom is one of the more secure countries in Asia with still a lot of potential for growth. With large economies like India , China and Russia around the corner and a reliable government, steady economic growth is generally expected and demand in the tourism real estate is likely to increase further.
Foreign nationals are not allowed to own land in Thailand , they're only allowed to own a building on the land. However, there are legal alternatives that allow a foreigner to own or have control over their investments.
A foreign national can own land through a leasehold construction, which are safe and uncomplicated. Land is leased for a period of usually 30 years with appropriate extensions, all registered with the local land office. As the lease is renewable after the lease period has ended, it is practically the same as owning the land.