Thailand Real Estate Potential: Investment Housing Evaluation

This content will answer why World of Condos is in the Thai market today. Is Thailand a bubble that is growing every day? Or is it a diamond that continues to grow and increases its visitors every day after the pandemic? If you are good with numbers; it is worth saying: Thailand became the 8th country in the world with the most tourist visits in 2024! Thailand receiving so many tourist visits also increases the added value of many channels in the market. Especially in 'Real Estate Investment'! In this content, I will talk about the return on real estate investments in Thailand and our perspective on the evaluation of investment housing.

While evaluating real estate at World of Condos, we create solutions and make recommendations specific to the expectations and demands of all our customers. We complete our investment planning and consultancy processes with location analysis, past returns, location future and value gain calculations. We turn all these steps into a presentation and share potential investment gain options. Of course, we benefit from all the privileges that the digital world offers us in almost every step of this process and thus strengthen our predictions even more.

1. Location Analysis

One of the most important elements in our investment decisions is location analysis. By working with our expert local team in this field, we define the market and the region in the best way. In summary, 3 headings are important to us in this regard: Infrastructure, Quality of Life and Real Estate Demand

• Infrastructure: In this regard, the proximity of the location to public services such as traffic connections, public transportation systems, health and education is of critical importance. For example, if we are looking for a house in Bangkok; the priority of every Bangkok resident who does not want to spend their life on the road due to heavy traffic is to live in a house closer to the metro station. For this reason, choosing a house close to the new metro stations will be a priority. However, when the evaluation is Pattaya and Phuket, being located in an area that is more accessible to social life or summer activities will increase the asset value.
• Quality of Life: The quality of life in a region directly affects future tenants and buyers. Security, social facilities, park areas, green areas are the leading issues that add value to the investment. Bangkok's historical and cultural richness, Pattaya's social life and Phuket's natural beauties are among the issues that investors should evaluate from this perspective.
• Real Estate Demand: Housing demand in the region is directly related to the balance of supply and demand. Our experts analyze the expectations in the region in light of settlement plans, new projects and demographic changes, maximize the potential and present technical analysis and recovery calculation.

In fact, this is the clearest answer to the question "what do we do": We bring together the effects of infrastructure, quality of life and real estate demand and create options that will keep our investors' earning potential high.

2. Past Time Earnings

In order to evaluate the performance of a property to be invested, past returns create a very positive roadmap for us and provide a rational evaluation. The topics we take into consideration in this process include; Rental Yield, Value Increase and Market Trends.

• Rental Yield: Rental yield is a very important factor that shows the effect of the property on the return on investment period. For example; apartments in Bangkok have experienced a continuous rent increase in the last 4 years. Investors with long-term rental processes have achieved an annual return of 5-7%. However, investors who have residences in locations that stand out due to their strategic location and who have converted these residences into profit through short-term rentals have increased this value by 10% to 15%. So, how will you do this? Don't worry, at this point, we at World of Condos offer you support not only in the purchase process but also in investment return planning. You can contact us for more information.
• Value Increase: The increase in the value of properties varies according to the developments in the region. The high-speed train project to be built between Bangkok and Pattaya is a great example for this issue. Just like the closure of Ataturk Airport and the negative impact on some parts of Yesilkoy and the increase in housing prices in Arnavutkoy with the New Istanbul Airport.
• Market Trends: Trends in the real estate market play a direction-setting role for real estate investors. Our experts determine the types of housing in demand (for example, studio apartments or family residences) and ensure that investors make the right choice. We divide trends in this area into short-term and long-term trends.

For example, let's say you want to rent your apartment for a short period and your target audience is tourists. A tourist will want to spend most of their time in a more social area when planning their trip. For this reason; they will evaluate the opportunities offered by the building they rent under a much more important heading than the features of the apartment. Does the apartment in question have its own pool? Is there a work area in the building? Is there a fitness center? Is there a rooftop bar? Is there a restaurant? If your answer to these and similar questions is yes; your chances of being preferred will increase.

We evaluate the change in rental income, value increase and market trends together with the past period returns and create options that will keep the earning potential of our investors high.

3. Future Location Development

Future location development is another important factor that shapes our investment decisions. This issue is directly related to how much you follow the Thai agenda. But don't worry, we do! When analyzing developments in Thailand, we consider New Transportation Projects, Tourism Development, Housing development projects and much more:

• New Transportation Projects: New transportation lines and accelerated transportation projects that continue to be developed in Thailand directly support the increase in value by facilitating transportation in the region. In direct proportion, if access is easy, the value also increases, and we follow all these developments!
• Tourism Development: As we shared at the beginning of our article, Thailand is the 8th country in the world that receives the most tourists. However, tourist preferences can change every year and a new location can become a trend. For this reason, we follow tourism dynamics and provide our investors with the right guidance in this regard.
• Housing Development Projects: New housing projects and modern living spaces offer attractive options for investors. Especially luxury apartment projects can offer many advantages such as the right location and early participation privileges, the first step for the future today with easy payment comfort. You can contact us to get information about our projects.
   

4. Value Gain Calculation

Along with all the analyses we have shared before, we conduct a detailed evaluation process to calculate the value gain we foresee. The criteria we take into consideration at this stage are: Annual value increase expectation, Rental income and risk factors.

• Annual Value Increase Expectation: We make annual value increase estimates of potential properties depending on their location, transportation, social facilities and economy. For example, properties located near innovative projects and infrastructure investments are expected to increase by 6-8% annually in long-term rentals. However, this rate can reach twice as high levels in short-term rentals.
• Rental Income: The analyses performed are of great importance to determine the income to be provided from the rental income of the investment. Annual rental incomes, depending on the location of the properties, directly affect the payback period of the investment. Generally, apartments in Bangkok stand out with their high annual rental incomes, but apartments in Pattaya and Phuket offer short-term seasonal rental opportunities.

Conclusion:

We have briefly shared the prominent titles for World of Condos. However, these titles are only the tip of the iceberg. At World of Condos, we offer a comprehensive approach and investment planning privileges to evaluate your real estate investments in Thailand. We work to offer the best options to our investors by considering current market conditions and future expectations.

“Thailand has a unique potential today!” Contact us to plan your investment journey, we will be happy to help you.

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