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Thailand’s Top Cities for High Yield Property Investments

News

Feb 2, 2024

When considering high yield property investments in Thailand, it's important to assess the potential return on investment and understand that location is the most crucial factor influencing it. The prospects for investment expansion and rental revenues fluctuate among Thailand's cities. The influx of tourists creates a high demand for rental properties, making it an ideal market for buy-to-let investors. 

The average return on investment (ROI) is 6% to 8%, and property appreciation is between 5% and 10% per year, depending on the location in Thailand.  This article will explore some of the top cities in Thailand that present attractive investment opportunities.

Bangkok

Bangkok, the capital city, is a bustling metropolis with a thriving real estate market. It offers a diverse range of properties, from luxury condominiums to affordable apartments, catering to various rental demands. It has been Asia's fourth highest rental yield city, with a moderate return of 5%, while popular areas like Sukhumvit, Silom, and Sathorn offer high rental yields ranging from 4% to 8%. and strong capital appreciation.

Phuket

Phuket, Thailand's largest island, is known as the "pearl of the Andaman Sea" for its stunning beauty, attracting millions of tourists annually. It has the premium segment of the Thai real estate market and stands as one of the top islands for rental yields. The average rental yield is between 4% and 10%, depending on the property types and locations. The top locations among investors include Patong, Kamala, Bang Tao, Kata, Ao Po, and Chalong.

Koh Samui

Koh Samui, the country’s third-largest island, offers a laid-back, romantic atmosphere with its natural beauty and calm waters. If you are looking for the highest ROI for your property investments in Thailand, Koh Samui is for you with notably higher rental yields, ranging from 7% to 10%.  The returns for villas range from 25% to 30%, and certain featured properties are capable of producing over 30%. The popular destinations are Chaweng, Chaweng Noi, Bophut and Choeng Mon.

Chiang Mai

Chiang Mai, located in northern Thailand, is a popular destination for digital nomads and expats, offering modern amenities like co-working spaces and international cuisine. The property market in Chiang Mai offers a range of options, including traditional Thai houses, modern condos, and serviced apartments. The gross rental yields of condos range around 6% and townhouses around 7%. 

Pattaya

Pattaya is a vibrant coastal city located on the eastern coast of the Gulf of Thailand, a two-hour drive from Bangkok. The real estate market in Pattaya is driven by a mix of domestic and international demand, making it an attractive option for high yield property investments. Condos are a hot commodity due to the high demand for vacation rentals, given the rising cost of other properties, with an average rental yield of around 7%. 

In Conclusion

With its top cities like Bangkok, Phuket, Koh Samui, Pattaya, and Chiang Mai offering attractive investment opportunities, Thailand presents a favorable environment for high yield property investments. If you are planning to invest in property in Thailand, you shouldn’t miss out on these locations. SKHAI has the best deal on luxury pool villa investments in Phuket and Koh Samui; do not hesitate to contact us for further information.