Holiday and second homes: Thailand

As I have just returned from a longer holiday in Thailand and always look at properties when I am on holiday, I have spoken to several Austrians who have bought a house in Thailand to escape the European winter for a few months and prefer to spend it in warm Thailand. For a long time it was not possible for foreigners to buy, but there are now good offers on the market that make this possible for investors.

The demand for holiday and second homes has increased worldwide in recent years, as more and more people are looking for a retreat that serves both as a place to relax and as a profitable investment.

Why is Thailand an attractive market for holiday flats?

• Growth market for the tourism sector
• Thailand sees millions of international tourists travelling to popular regions such as Bangkok, Phuket, Koh Samui and Pattaya every year. The continued influx of tourists ensures a constant demand for holiday homes and investment properties.
• High returns through holiday rentals
• Holiday flats in popular tourist regions offer an attractive return through short-term rentals. Well-located properties are in high demand from tourists, particularly on platforms such as Airbnb and Booking.com, which leads to stable rental income.
• Affordable prices and tax advantages
• Compared to Western markets, property prices in Thailand are relatively favourable. There are also tax advantages for investors,
• who opt for a holiday home, including lower tax rates on rental income compared to other Asian countries.
• Long-term capital growth
• Regions such as Bangkok and Phuket have developed strongly in recent years. Anyone investing in property today could benefit from possible capital appreciation in the coming years. Prices tend to be higher, especially near beaches or in urban centres.

Challenges of investing in Thailand:

Although Thailand offers many advantages, there are also some hurdles that investors should be aware of. One of the biggest challenges is the foreign ownership ban in Thailand. Foreigners are generally not allowed to own more than 49% of the property in a condo complex. This means that foreign buyers can only purchase their property under certain conditions, such as buying in a project that complies with this regulation.

But of course there are also favourable solutions for this, especially as investments in non-Thais are formally advertised.