While property markets across much of Europe and North America remain in the doldrums, markets in Asia are continuing to rise throughout most of the region.

Thailand is one of the countries which has seen rapid growth in its property market both from its domestic market, as local banks make their mortgage products more attractive, and also from an increasing number of foreign buyers.  Following an amendment to the Condominium Act in 2008, it is now possible, for the first time, for foreigners to buy condominiums on a freehold basis in their own names.  Prior to this amendment, foreigners could only buy property in Thailand as a minority shareholder in a Thai company on a freehold basis or lease property for a maximum of thirty years – both options being considered as unattractive by many potential buyers.

The city which has benefitted most from the changes to the law is Pattaya, a resort city where property prices have traditionally been lower than Thailand’s other top tourist destinations such as Phuket, Koh Samui and Hua Hin.  By marketing itself to a broader demographic than the single Western males who have been coming to Pattaya since US servicemen used the area as a base for R&R and to tourists from a wider variety of countries, visitor numbers have been increasing constantly since 2009.  Pattaya is currently on course to receive a record-breaking 8 million visitors in 2012, making it the most popular tourist destination in Thailand after Bangkok.

While the numbers of European visitors – the majority of which come from Germany, Scandinavia and the UK – have remained relatively constant during the period due to the effects of the recession, the number of Russian and Chinese tourists visiting the city has been growing rapidly over the period.  These visitors are also becoming increasingly active on the property market as they look outside the borders of their own countries for capital growth, because their domestic markets have slowed down or are now in decline after many years of constant growth.


Due to these factors, Pattaya now has the largest and most diverse ex-pat population in Thailand, with a tendency for each nationality to buy in different parts of the city – Germans favouring Naklua, the British in Central Pattaya, Scandinavians on Pratumnak Hill and Russians being most active in Jomtien.

International property analyst, Nick Pendrell, who has just written a comprehensive guide to buying property in the city, Pattaya Property and Thailand’s Real Estate, commented, “Currently prices in Pattaya are still very affordable, with one-bedroom apartments starting from around £35,000.  Prices in the market are increasing rapidly, however, as demand continues to increase each year as buyers from different geographic and demographic areas enter the market.  With rental yields in the city averaging 8% currently, there are few signs of a bubble occurring in the market though as most of the apartments are currently being bought by individuals as holiday homes rather than by institutional speculators.”


Source: Nick Pendrell

Are you looking to buy property in Thailand ? Pattaya , Koh Samui , Chonburi , Bangkok , Phuket

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  1. avatar
    Nick Marr

    I am an internet entrepreneur with a passion for driving big audiences and a love for real estate. I have had plenty of ups and downs which has given me the experience to help others launch their own businesses. I enjoy projects that save consumers time and money, challenge convention and add real value to peoples lives.