Investing in real estate in Bangkok vs. in other provinces.
When it comes to real estate investment, whether it's buying land, condos, or houses for speculation, renting out, or reselling at higher prices, most investors focus on Bangkok. This is because it's a rapidly developing city with high demand for housing and land for business purposes. However, this doesn't mean that buying real estate in the provinces is always a bad investment. The advantages of investing in provincial real estate are as follows:
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1. Lower Property Prices Than Bangkok
The primary condition for investment is budget. Even if you know a prime location in Bangkok has great potential, you may not be able to acquire it due to the extremely high property prices. In contrast, provincial real estate prices are still relatively low, offering a wider selection of promising locations for investment and profit. Provincial areas therefore present opportunities for ambitious investors to achieve success in the real estate market.
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2. Provincial Real Estate Markets Are Continuously Growing
Currently, Bangkok's real estate market has limited room for further expansion. People from Bangkok are gradually migrating to surrounding provinces. Wherever this influx of people occurs, prosperity and economic growth in the real estate sector follow. For example, the index of undeveloped land prices in Bangkok and its surrounding areas in Q1 2023 showed the highest price growth in Nakhon Pathom, increasing by 68.2%. This reflects the fact that provincial areas are experiencing significant growth and have considerable potential for further expansion. Furthermore, we must not forget that many provinces in Thailand have unique selling points, including tourist attractions and economic hubs. This indicates that investing in real estate in the provinces is just as viable as investing in Bangkok.
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3. A Selling Point: A Peaceful Environment
Even though many people live in urban areas today, the fast-paced, stressful, crowded, and increasingly severe traffic congestion are creating a yearning for tranquility. The desire for peaceful housing or a serene environment is steadily growing. Many people are seeking homes in the provinces to relocate, while a significant number of affluent individuals are opting for vacation homes in the countryside to escape the hustle and bustle of big cities and find peace and tranquility in natural surroundings. This shift in preference for tranquil homes surrounded by nature is a growing trend, presenting opportunities for those who recognize it. Investors who can secure prime locations in the provinces that meet this demand will have a high chance of future success.
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Whether investing in real estate in the provinces or in Bangkok, the opportunities and risks are similar. Each province has its own advantages, disadvantages, and target groups. Therefore, it's impossible to definitively say whether investing in provincial real estate is better than investing in Bangkok, as it depends on the investment strategy and other limitations of each investor.
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However, regardless of whether the investment is in Bangkok or any other province, staying informed about the housing market and having access to accurate and timely price index data will enable more effective decision-making, reduce risk, and increase the chances of success.
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Thank you for the valuable information from REIC.
