How to Profitably Invest in Thai Real Estate and Get Unique Offers on Properties and Installments

July 28, 2024

Thailand's image in the modern world has long surpassed being just a tourist destination with paradisiacal beaches. Today, this country attracts investors from around the globe, and their interest is well justified.

In this article, we will discuss:

• Why it is profitable to invest in Thai real estate,
• Using a real project from Sunway Estates as an example, we will show how we approach property selection, evaluate its investment attractiveness, and help secure the right of first choice and highly favorable payment terms with installment plans from the developer for our clients.

The project we will analyze is Garrya Residences Phuket, a luxurious resort on the first beachfront line of Bang Tao Beach, developed by the globally renowned Banyan Tree Group. The cost of apartments starts at $923,000.

We will detail and openly describe all stages of the property purchase process: from finding a suitable property to the finalization of the deal. You will learn about potential profits and other important details of investing in Thailand.

Why is Real Estate in Thailand a Reliable Investment Asset?

More and more investors are paying attention to the Thai real estate market—and it is no surprise. The country offers a unique combination of stable economic growth, a developed tourism industry, and attractive conditions for foreign buyers.

Experts from PricewaterhouseCoopers believe that Thailand's economy can grow by 3.5% per year (according to the report "The World in 2050. Will the Shift in Global Economic Power Continue?"). Additionally, the London Post in its 2020 analytical report stated that Thailand is one of the best places in the world for investments.

So, why is it profitable to invest in Thai real estate? Here are a few key reasons.

If Thailand's investment appeal does not raise any doubts and you want to proceed directly to a step-by-step selection of a property, click on the section "Location—Assessing Growth Prospects"

• Stable Capital Growth

Property prices in Thailand, especially in major cities and popular resort areas, show consistent growth. From 2011 to 2021, land prices nationwide increased by an average of 4% per year, while condominium prices rose by 6%. In some resort areas and particularly attractive projects, this figure exceeded 10% annual growth between 2022 and 2024. This provides a good potential for profit from reselling properties.

Source: Bank of Thailand

Despite healthy growth, property prices in Thailand remain relatively low compared to many other countries in the region and the world. Where else can you buy a magnificent three-bedroom villa on an island with a sea view for $500,000?

• Developed Infrastructure and High Quality of Life

The Thai government has prioritized infrastructure development. Numerous facilities for quality medical care and high security are already in place, with great potential for further development. Here are just a few examples:

• A new airport will be built in Phang Nga province to serve Phuket Island and nearby resorts in the Andaman Sea.
• Another international route connecting Thailand with China through Laos is planned.
• On Samui, a new yacht marina project is underway.
• Several high-speed rail lines are planned, including the Don Mueang–Suvarnabhumi–U-Tapao high-speed railway connecting three airports.

Moreover, there are several large-scale programs for industrial and commercial infrastructure development, including the Eastern Economic Corridor (EEC) and the comprehensive economic development policy "Thailand 4.0."

• High Demand for Rental Housing

According to the reputable New York magazine Condé Nast Traveler, Thailand ranks among the top three best countries in the world for travel. It is no surprise: the comfortable climate, year-round tourist season, and well-developed leisure and entertainment industry ensure a consistently high demand for rental properties. For instance, the average hotel occupancy rate in Phuket is 80%. This is higher than in European resorts and even many business capitals.

• Simplicity of Property Ownership

Thailand has simple and clear property ownership rules for foreigners. According to the Condominium Act, foreigners can own apartments in residential complexes: they can sell, rent out, and pass them on to their children as inheritance.

There are only a few minor restrictions: foreigners can own no more than 49% of the total area of the apartments for sale in one project, and the money for the purchase must be transferred from abroad. But these conditions are easily met and do not create significant obstacles.

• Strong Currency

The Thai Baht is a reliable currency. Thanks to its stability, many consider it a "safe haven" currency compared to other developing market currencies.

Historical data from XE

• Low Taxes

Thailand has an attractive taxation system for property owners. Fees and taxes for purchasing and reselling properties are much lower compared to other major markets in Asia.

According to Global Property Guide

For example, the total tax on purchasing a new apartment in a condominium with full ownership is 6.3% of the contract value, but usually, the developer pays the majority of these costs, leaving the buyer to pay only 1%.

There is no doubt that real estate in Thailand is a profitable investment. However, one cannot simply buy the first appealing apartment and expect quick dividends. It is essential to study the differences between properties, identify reliable developers who will meet all promises on time and with quality, and choose locations with growing demand and the best potential. We start our analysis with the project's location.

Location—Assessing Growth Prospects

The location of Garrya Residences is one of the most popular on Phuket. The residences are situated directly on the seafront in the prestigious Laguna Phuket resort complex. The location is exceptionally favorable for investment for several reasons:

1. Beachfront: every year, there are fewer beach plots available on Phuket, especially in such a prime area, and there are virtually no competitive beachfront residential projects.
2. Bang Tao Beach is considered one of the most popular and high-end on the island. Post-pandemic, it has seen a new influx of tourists, and the area is rapidly developing, offering the best restaurants, shops, and entertainment.
3. The developer of the Laguna Phuket resort complex is the reliable and trustworthy world-class company Banyan Tree.
4. Owners and residents of Garrya Residences gain exclusive access to all the infrastructure of the Laguna Phuket resort.

Let us tell you more about the area. Laguna Phuket is a unique resort occupying a vast territory of over 1,000 acres of tropical parkland in the center of Bang Tao Beach.

Development here began in 1984 by Banyan Tree Group, which remains the owner and managing company.

It is a prestigious and safe area with developed infrastructure and high-quality maintenance of public areas to hotel standards. Since the Bang Tao area historically developed around Laguna, all the main shopping and entertainment centers are just minutes away by foot or car.

Within walking distance from Garrya Residences, there are:

• 7 hotels
• More than 20 residential complexes
• Catch Beach Club
• Porto de Phuket shopping center by Central Group
• Laguna Golf course
• Spas
• Wellness clinics
• Prestigious international schools
• Boat Avenue shopping area—considered the best spot for restaurants, cafes, and bars in Phuket, as well as numerous shops and boutiques.

Phuket International Airport is just a 25-minute drive away.

Residents of Laguna can also use internal shuttle buses that will take them to any point in the resort upon request.

Laguna Phuket is never boring: it regularly hosts sports events, including the annual Laguna Marathon and Singha Phuket Open golf tournament, cultural events, and workshops.

The location of Garrya Residences is one of the best on Phuket, with developed infrastructure, high service levels, and safety. It is an ideal choice for comfortable living on the island and for investment!

For those particularly interested in luxury villas in Phuket, the Laguna area offers some of the best options available. These properties not only provide an opulent living experience but also promise significant investment returns.

Analyzing the Investment Potential of the Project

It is important to note that Garrya Residences is an investment property: this property is purchased to generate rental income. At the same time, owners can stay in their apartments for free from 30 to 90 days a year, depending on the chosen program (see more in the section "Installments and Privileges for Investors").

In addition to the prime beachfront location in one of the best and most prestigious areas of Phuket, Garrya Residences stands out for its high investment attractiveness due to:

• Exclusive access to the infrastructure of the Laguna Phuket resort complex.

• Management by the Garrya brand from Banyan Tree Group. The international brand recognition and additional services and bonuses significantly enhance the property's appeal.

Garrya will be the first project with residences on Phuket's central west coast offering a full range of wellness procedures.

The project's concept combines tranquility and well-being. It is a small boutique hotel with 38 exclusive apartments in 4 low-rise buildings. The modern minimalist design harmoniously blends with the surrounding natural landscape.

The developer of the project deserves special mention. We always carefully select reliable and proven companies to minimize risks, but this project exceeds all expectations.

The developer of Garrya Residences is the globally renowned Banyan Tree Group. It is one of the largest hospitality groups in Asia, developing and managing resort complexes, hotels, spa centers, restaurants, golf courses, shopping galleries, and other properties in over 20 countries across Asia, America, Africa, and the Middle East.

The group is listed on the stock exchanges of Singapore (as Banyan Tree Holdings Ltd) and Thailand (as Laguna Resorts and Hotels PLC).

Banyan Tree Group owns several hotel brands, including Banyan Tree, Angsana, Cassia, Garrya, Homm, Escape, and Folio. Garrya resorts are modern minimalist wellness resorts in Asia.

A distinct advantage of Banyan Tree is the economy of scale when it comes to property management. Their Phuket projects are located at - and comprise the entirety of - Laguna Phuket integrated resort area. The management and upkeep of Laguna is centralized, which allows them to offer top-tier service at reasonable cost. This means that with Garya you are getting a property in one of Phuket's best neighborhoods with developed infrastructure and high-level service, but your ongoing costs are much lower than in other projects with comparable service and resort amenities.

• Apartments: Harmony of Nature and Luxury Service

Garrya Residences offers penthouses with private rooftop pools and two-bedroom apartments with spacious living rooms, panoramic balconies, and terraces offering picturesque views of Bang Tao Beach are available. Each floor houses only 2-3 apartments, ensuring maximum privacy for residents.

All apartments are designed in an eco-style. Smooth natural lines and organic shapes harmoniously combine with modern minimalist design.

To generate rental income from your apartments, you can choose one of the investment programs offered by the professional management team of the world-renowned Banyan Tree brand.

At Garrya Residences, you can enjoy comfortable living in spacious apartments with panoramic views, modern eco-design, and the opportunity to invest in rental under the management of experienced professionals. The perfect combination of natural beauty and high-level service!

• Installments and Privileges for Investors

All owners of residences at Garrya Residences Phuket receive not only high-quality real estate but also exclusive privileges

1. Convenient payment schedule with installments after the project completion.

Banyan Tree Group is one of the few developers in Thailand that offers its own financing program for up to 5 years after the project is completed on all its real estate properties in the country (excluding third-party projects under the Banyan Tree brand, such as Banyan Tree Riverside Residences in Bangkok).

This is quite rare. Usually, it is difficult for foreigners to get an installment plan when buying real estate in Thailand; it is unavailable to most buyers and properties.

You can get an installment plan based on simple voluntary agreement with a 50% loan-to-value ratio. In 2024, three options are available:

• 1-year installment plan with a 3% interest rate.
• 3-year installment plan with a 5% interest rate.
• 5-year installment plan with a 7% interest rate.

Thus, after the construction is completed and the first 50% of the unit's cost is paid, you can immediately move in or rent out the property. The remaining half, including interest, can be paid over 1, 3, or 5 years. This significantly increases the investment appeal of the property.

To receive a financial model calculation for investing in GARRYA RESIDENCES, fill out the form at the end of the article.

2. Opportunity to stay in your apartments for free from 30 to 90 days a year, depending on the chosen investment program.
3. Participation in the Sanctuary Exchange Program. 

This program allows owners to exchange part of their stay time in their apartments for stays at other Banyan Tree hotels worldwide.

4. Discounts and privileges at all Banyan Tree Group hotels worldwide with the Sanctuary Club membership card.
5. Membership in the Laguna Golf Club.

• Right of First Choice and Access to Exclusive Offers

Sunway Estates is not just a real estate agency but also a recognized developer and international award winner. We have been offering the best premium, luxury, and ultra-luxury properties in Thailand since 2010.

As experts in the real estate market, we prefer to let the facts speak for us. Here are just a few:

•  We have access to unique offers that are not available on the open market and information on early launches of the most anticipated projects before the official sales launch. Our clients get the first choice of the best units at the most favorable prices;
• We protect our reputation and are extremely selective in choosing developer partners and forming our catalog of offers;
• With years of expertise, we consult and select properties exclusively according to each client's request. Unlike many freelance brokers who have only recently appeared on the market, we see all potential pitfalls and honestly tell you about them;
• We help conduct transactions in rubles from Russia;
• We support the client throughout the entire transaction cycle until the moment of receiving the keys (and if necessary, beyond). You will never have to communicate with developers alone; our staff will inform you about the progress of construction, help solve any issues, and be there during the inspection and transfer of the property.

We also offer many additional after-sales services, such as rental management consultations, assistance with visas, enrolling children in school, and much more.

Contact us to receive a financial model calculation for investing in GARRYA RESIDENCES or learn more about special projects from Sunway Estates available only off-market.

For those particularly interested in luxury villas in Phuket, Sunway Estates offers some of the most exclusive properties that combine opulence with high investment returns. These luxury villas in Phuket are situated in prime locations, ensuring both a lavish lifestyle and profitable investments.