Pattaya is an international destination for holiday making, medical tourism, sporting events, finance, and business and trade conferences. As Thailand’s largest and most well-known resort city, Pattaya enjoys sustained growth from the booming tourism sector, which draws millions of visitors from around the world to Thailand. Investors in the real estate market in Pattaya can expect the property market to follow recent trends, including growth driven by foreign investment in holiday properties and favorable conditions for foreign buyers and developers.
Pattaya’s diversified economy leads to a more stable real estate market when compared to other resort cities in Thailand and the greater Southeast Asia region. Pattaya has also been spared from recent flooding which impacted the tourism and real estate markets in southern Thailand, enjoying a robust 8 million+ visitors each year and an expat population of at least 40,000. Uptake rates of condos surpassed the national average in 2018, with rates of only 11% unsold inventory (~89% uptake) in Chonburi district in the first part of 2018, indicating a healthy demand for current supply.
Although Pattaya’s real estate market is more resilient than other tourist destinations in Thailand, property values are still in large part driven by foreign investors. Property values here can therefore be at the mercy of other international trends, such as the declining value of the Ruble which has recently led Russian investors to sell off properties and temporarily exit the market. That being said, there are areas within the Pattaya market that may show dependable prospects for demand and growth from both foreign and local investors.
Chinese investors have entered the market in recent years in large numbers, both in the upmarket and mid market segments. Pattaya, along with Phuket and other secondary cities, will remain a major focus for Chinese-driven development and property sales in 2019.
The Thai government’s investments in infrastructure and economic development projects have already yielded gains for the property market from Bangkok to Phuket and beyond. Projects that are planned or underway as part of the Eastern Economic Corridor (EEC) will directly benefit Pattaya, create value for existing properties, and spur property development in new areas of the eastern sea board in 2019 and beyond.
The overall regulatory environment in Thailand remains favorable to buyers, investors, and developers. Low interest rates have facilitated the development of new projects and allowed middle-class consumers greater access to credit, which has helped to bolster the mid-range market segment for condos and condotels. There are no indications of major changes to the expat visa regime or regulations for foreign ownership of Thai real estate.
Like any property market, buyers should be aware of the fundamentals of the real estate market as well as trends over the short-, medium-, and long-term in order to make an informed investment. Our agency has developed deep knowledge of the Pattaya property market over more than a decade with a range of foreign clients. Our expertise in expatriate holdings in Thai real estate makes us uniquely positioned to advise and assist you in your next investment.