Property developers are increasingly selling pre-build real estate in Thailand and there are several reasons behind it. The reason most people assume pre-build real estate is popular with developers, is due to the fact they can use the capital raised from deposits to fund the project. However, with the large PLC developers in Thailand dominating the market, they’re not usually short of the backing to complete a specific project. But for the buyer, pre-build property can provide other benefits.
Developers can often sell the pre-build at a lower cost than if the property had already been constructed, allowing the buyer access to a possible bargain. A pre-build property typically costs less than a new property that has just been built. This gives developers the chance to make a sale to anyone who wants to pay a little less and speculate with the chance of more handsome returns.
Selling the perfect lifestyle
Thailand is an incredibly beautiful country, and more and more people fall in love with the area, simply because the country as a lot to offer. Every years, thousands if not millions of people holiday in Thailand, and some of those holiday makers never want to leave.
Selling pre-build real estate in Thailand is all about selling the perfect lifestyle, and there is a huge market for it. If the perfect lifestyle involves living in an exotic location with incredible views and new opportunities, Thailand checks all of the boxes.
There is another reason why developers sell this particular type of real estate. If you want to own land in Thailand, you have to be a native. You simply cannot buy any land, no matter how much money you are willing to pay for it. Developers are aware of this, and they know that it means no-one from any other country can buy land and build a property on it. This is one of the reasons why they are happy to sell pre-build condos, it helps foreigners to get one step closer to their dream, and many are willing to pay for that dream. Serious property investors know that due to demand, they are likely to be able to rent their condo out in prime locations to others that can’t afford real estate themselves, or those that wish to stay in Thailand on a short to medium term basis.
Purchasing Real Estate in Thailand
It is perfectly legal for a foreigner to purchase real estate in Thailand via a professional real estate agent. Whether the apartment for example, has already been built, or it’s still in the pre-build stage. There is a law that states foreigners can buy apartments, but more than half of the building needs to be owned by Thais. Property is allocated accordingly. If less than half of the building’s occupants are from Thailand, foreigners will not be permitted to purchase the property. Only when these conditions are met, can foreigners pay a lower price for a pre-build property in this wonderful part of the world.
Once the pre-build real estate has been sold, developers can then be confident in financing the construction process, if they haven’t done so already. Deposits are usually very reasonable on pre-build or ‘off plan’ properties in Thailand, at around 20%. This can mean several years to save the remaining 80% (and a chance the property will appreciate in value in the meantime).
Find Thai Property
Local Service For Overseas Clients