Vauban

May 29, 2019

6253

Formerly a quiet and peaceful fishing village, Pattaya began to grow when the American GIs stationed in Vietnam chose it as one of their privileged places to enjoy their permissions. To cope with the growing amount of visitors, restaurants, bungalows and hotels gradually started to emerge and progressively made of Pattaya a world famous tourist destination.

Today, the city officially has a population of just over 350,000 inhabitants, but in reality, its population is estimated at about a million inhabitants, making it one of the most populous cities in the country. Pattaya is also the Kingdom’s second largest tourist destination with more than 12 million tourists visiting it each year (the country hosts totally just over 38 million visitors each year).

Pattaya is mainly known for its nightlife but by spending a few days there, you will quickly realize that it has numerous other assets that have fully participated in its development. All this also has had a great impact on the real estate sector, whether residential or aiming rental incomes, allowing Pattaya to become one of the spearheads of the country in the real estate sector. Indeed like the country, Pattaya has undeniable assets allowing it to become a place where it is good to invest in real estate, here is why!

The reflection of a highly attractive country

Before speaking of Pattaya in particular, it is worthwhile to dwell for a few moments on the dynamism of Thailand in general and its undeniable attractiveness on various aspects, directly and indirectly impacting the real estate sector. Indeed speaking about economy, Thailand is , for example:

A 4% annual growth for 5 years.
An only 1.2% unemployment rate.
A founding member of ASEAN.
The 2nd economic power of South-East Asia.
A solid industry (automotive, electronic components, etc.).
A strong agriculture (rice, shrimps, rubber, wood, etc.).
The first tourist destination of South-East Asia (38 million visitors in 2018).
Quality infrastructure (airports, highways, hospitals, etc.).
3 cities ranking among the 20 most visited cities in the world (1 – Bangkok, 12 – Phuket and 14 – Pattaya).

Regarding real estate, Thailand has been able to stand out among numerous countries in the world thanks to:

A highly attractive tax system.
Access to full freehold ownership for foreigners.
An average rental yield of 7%.
An excellent quality / price ratio.
Accessible prices.
A growing market.
A strong rental demand.
A unique living environment.

Pattaya perfectly reflects the many components making the Kingdom’s attractiveness and holds numerous assets attracting millions of visitors every year, whether they are tourists here for a few days or weeks or retirees and expatriates wishing to settle there for long.

Pattaya, an increasingly attractive destination

Indeed, in recent years, the government has clearly shown its intention to turn Pattaya, renowned for its nightlife and wild nights, into a perfect family destination to accommodate local and international tourists. The restoration of several beaches, actions to limit pollution, more frequent controls and heavier penalties for offenders are already in place to allow Pattaya to unleash its full potential. Add to that, an ideal climate that knows no (or very little) rainy season and a wide variety of landscapes with a modern city center, endless beaches, wild and unspoiled areas, pretty islands in the immediate vicinity (Koh Larn, Koh Samet, etc.), Pattaya is probably the only destination in the Kingdom offering a superb and so diversified living environment, between a dynamic city and a quiet seaside resort.

Pattaya is also a city where you will find high quality infrastructures with an efficient road network allowing a smooth traffic, current and under construction highways allowing an easy and fast connection between Pattaya and the surrounding cities (Bangkok, Chonburi, Si Racha, Rayong, etc. .), a high-speed train project to connect Pattaya to Bangkok in just 30 minutes, a tramway project to improve transportation in the city center, an ever-expanding airport that welcomes more and more flights, including international, deep-water ports to increase the transport of goods, and people. Pattaya also hosts several high quality hospitals, the most famous being the Bangkok Hospital.

Pattaya is full of activities for all tastes and ages. In fact, you’ll find everything you need, from the famous Walking Street with its lively bars and nightclubs to Na Jomtien and its excellent restaurants with a relaxing atmosphere right on the beach as well as shopping centers such as the brand new Terminal 21, water parks, temples, golf courses, beaches, tropical gardens, boat trips, islands, delicious restaurants, spas, animal parks, kart tracks, etc., the list is endless and to sum it up, you will never get bored!

A strong economy

In addition to these very important aspects, Pattaya is also not left behind in terms of economy. Indeed, it occupies a central position on the Eastern Economic Corridor (EEC), an investment plan of more than 1.5 billion THB (47 million USD) aiming to develop the infrastructure in the region (Chachoengsao, Chonburi and Rayong provinces): airports, deep-water ports, high-speed trains, highways, etc. allowing Pattaya to improve its accessibility for the transport of goods and people. Secondly, the objective of the EEC is to attract major economic players in the area thanks to newly renovated and improved infrastructures, the creation of free trade zones and by offering them other numerous advantages, especially related to taxes and employment. The operation has already attracted several multinationals such as Airbus, which is partnering with Thai Airways to create the largest maintenance center in South East Asia, or the E-commerce giant player, Alibaba which is investing more than 300 million USD to develop several facilities including a logistics center to link China and Thailand, a research and development complex, and a university project.

It is also worth recalling the importance of tourism, which occupies a major role in Pattaya. Indeed, every year, the city welcomes more than 10 million international visitors, having made it the 14th most visited city in the world in 2018, in front of heavyweights like Milan, Hong Kong, Barcelona or Bali. The profiles are very varied among them with tourists from all around the world visiting Pattaya for a few days or for ERROR fo Invalid do several months. This makes it even more interesting when talking about investing in Pattaya real estate market in order to capitalize on this massive influx of visitors whose habits have changed enormously. Indeed, most of them now prefer to rent an apartment rather than to go to the hotel.

A very competitive real estate offer

The property market in Pattaya offers many advantages. The first lies in the pricing compared to other countries and even other destinations in Thailand. Indeed, you can find apartments in a new residence with pool and gym from approximately 60,000 USD.

Another very important point and specific Pattaya’s real estate market is the great diversity of the offer in terms of price, in terms of range, types of property or the different objectives to which they respond. Indeed, it is one of the only destinations in the Kingdom in which you can find cheap apartments, luxury apartments by the sea, houses at competitive prices or beautiful villas worth several million USD. This wide range of goods can meet all types of needs:

A property as a main residence or a second home.
A property aiming the rental income, some even offering a rental guarantee and a buyback guarantee.
A property with a great rental potential that you can also use as your second home
Etc.

The highly attractive prices coupled with the strong rental demand and very low expenses (common area fees, taxes, etc.) allow Pattaya to stand out in terms of rental yields, indeed, it is not rare to exceed a 6% annual rental yield.

Do not hesitate to get in touch to get more insight about Pattaya’s real estate market and get advice to complete your real estate projects in the Land of Smile! Do not forget to mention you saw in the Business Supplement!