Pattaya May 2019

BUSINESS SUPPLEMENT
WHY INVEST
IN PATTAYA?
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 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 it in the Business
Supplement!
pattaya@companyvauban.com
+66 (0)38 251 729
Chateau Dale, 306/71, Thappaya Road,
Moo 12, Nongprue, Banglamung,
Pattaya City, 20150
High Tower Co., Ltd. Tel: 038 411 009 For all your advertising enquiries - Tel: 0846 77 43 60