Friendly and «friendly» country
Thailand is a special place on the map for Russian-speaking tourists and real estate investors. In the late noughties and early tenths, Russians were the leaders among foreign buyers of apartments and villas in the kingdom. Since 2015, due to the fall of the ruble against the baht, the share of Russian citizens in the Thai market has decreased, the Chinese have come out on top, but interest in this hospitable country with incredibly beautiful nature and a pleasant climate for recreation, nevertheless, has always remained high.
During the pandemic, the demand for Thailand among foreign investors has almost dried up, as the tourist flow in general has dramatically shallowed (40 million vacationers in 2019 against 6.7 million in 2021 and 428,000 in 2020, the forecast for 2022 is about 10 million).
Since the beginning of 2022, as coronavirus restrictions are lifted, guests and investors from abroad are gradually returning to Pattaya and Phuket, including Russians. Despite the absence of direct flights between Russia and Thailand, in the 1st quarter of 2022, Russian citizens took 2nd place after the Chinese among real estate buyers in the country.
Today, when, under the conditions of sanctions, transactions for the purchase of housing in Europe are difficult, the Country of Smiles is smiling again at investors from Russia. Thailand is not on the list of "unfriendly" countries, so settlements between a buyer with a Russian passport and a Thai developer or owner are relatively easy. In addition, the ruble exchange rate against the baht is favorable, in the region of 1.4-1.6 rubles per baht (compared to 2.5 rubles per baht in 2020-2021). Another positive news – since the beginning of November direct flights to Thailand from Moscow from Aeroflot and from Irkutsk from S7 Airlines have been announced, but tickets are still at least 2 times more expensive than before the pandemic. The most budget option for traveling to Thailand with a connection is a flight via Bahrain or Qatar.
Since October 1, 2022, all coronavirus restrictions have been lifted, and you can fly to the kingdom freely, as before the pandemic.
Visas and residence permits in Thailand
According to experts, the number of Russians who are considering buying an apartment in Thailand for the purpose of moving has increased. During the high season, from October to the end of March, the period of visa-free stay in the country was extended from 30 to 45 days (for citizens of the Russian Federation, Ukraine), as well as the period of stay in the country on a visa on arrival from 15 to 30 days (for citizens of Belarus, Kazakhstan, Uzbekistan). You can also apply for a tourist visa for 2 months in advance at the Thai consulate in your country with the right to extend it for another month. Alternatively, during a visa-free stay, travel to Laos and apply for a tourist visa at the Thai consulate there.
If you plan to stay for a longer period, you will face the question of a residence permit. The acquisition of real estate in the kingdom is not the basis for obtaining a residence permit (except for an investment visa). In order to stay in Thailand for a long time, one of the options is to get an annual visa with the possibility of extension, which is issued to foreigners who have an invitation to work from a local company or have opened a business here, as well as pensioners, students. If a child goes to an international or local school in Thailand, this is an argument for the whole family to be granted a visa. Admission to language courses in the kingdom also entitles you to a student visa.
This year, the Thai government announced new conditions for granting a 10-year visa (LTR, Long Term Residence), but there is no real practice of issuing it yet. It is assumed that qualified specialists in high-tech fields, as well as digital nomads or people with passive income and their family members will be able to apply for such a visa. However, it should be borne in mind that the required level of earnings for obtaining a visa is quite high compared to many other countries. So, digital nomads will have to confirm an annual income of $80,000 for two years before applying. LTR is also planned to be issued to persons whose assets exceed $ 1 million. It should be borne in mind that Thailand, after the pandemic, took a course to attract richer foreigners and form the image of the country as a "premium brand".
It is worth noting that Thailand has a program for issuing a residence permit for real estate investments (investment visa), but, according to experts, it is unpopular. The participation threshold is 10 million baht (about $270,000). However, an apartment purchased as a basis for filing an application cannot be sold without losing a residence permit.
Thailand Elite Visa has been gaining popularity in recent years. This is an opportunity to buy for yourself and your family the right to unlimited stay (but not work) in the kingdom for 5 years with the possibility of extending this period to 20 years. The budget for participation in the program starts from 600,000 baht (about $16,000). The invested funds are not a returnable investment, however, this method of legalization, according to experts, is convenient for those who are seriously planning to move to Thailand.
Where is it good to live in Thailand?
Pattaya city in mainland Thailand and Phuket Island are the two main tourist destinations in Thailand. And, accordingly, two main areas for the purchase of real estate, both for their own residence, permanent or seasonal, and for rent. Both of these regions are popular with buyers, but they have significant differences.
Location and landscape
Pattaya is located on the east coast of the Gulf of Thailand, 150 km from Bangkok. It is a lively, international, «party» resort with high-rise buildings and colorful advertising, tourist-infested streets.
Phuket Island is the largest in the Andaman Sea, located in the southwest of the country. It is noteworthy that about 80% of its territory is occupied by mountains. Phuket boasts of the postcard beauty of the landscape: long snow-white beaches, the purest sea from blue to emerald, rocks overgrown with lush greenery. The richness of flora and fauna is evidenced by the fact that there are five national parks on the island.
The most popular and crowded resort in Phuket is Patong. To the south of it on the west coast are Karon and Kata, and to the north is the quieter Kamala. To the north of Kamala, 20 kilometers from Patong, there are luxury hotels, clubs and villas of the elite Bang Tao quarter, and nearby is a new status area that is being actively built up by Surin.
The areas in the south of the island – Nai Harn, Nai Yang and Rawai – will attract lovers of a more secluded and measured holiday.
The capital of Phuket Town and the neighboring Chalong district lie on the east coast and due to the lack of good beaches, resorts are not considered.
It should be noted that in Phuket it is forbidden to build buildings above seven or eight floors, and in mountainous areas above three. The development here, unlike Pattaya, rather complements the natural landscape, rather than dominates it.
Airport
Pattaya has its own international airport, from which you can fly both around the country and throughout Southeast Asia, but most of the vacationers arrive at the airport of the capital, which is located about an hour's drive from the city.
Phuket has its own international airport, the second most important after the capital.
Climate
Pattaya has a sub-equatorial climate. The dry season lasts from November to April, and from May-June to October it gives way to the rainy season. Pattaya is very well located in the bay, so there is no danger of strong waves and tsunamis. The water temperature in the Gulf of Thailand off the coast of Pattaya all year round is about +27-28 °C. The peak season is in December.
The climate in Phuket is tropical, monsoon. The low season on the island begins in April and ends in October-November. The high season lasts from November to March. The air temperature in this paradise is always around +30 ° C. But, unlike Pattaya, Phuket is open to the winds. Precipitation in the rainy season is abundant, and the waves are high.
Beaches
Phuket is rightfully proud of its incredibly beautiful, clean beaches with snow-white sand. In some areas, for example, in the south of the island, you can enjoy a secluded holiday on the shore.
Pattaya beaches are more crowded and not always perfectly clean.
Transport
In Phuket, public transport is poorly developed, and taxis are expensive,therefore, foreigners often rent motorbikes or cars. In Pattaya, the situation with movement is better. Cheap tuk-tuks (songteo) and motorbike taxis run here, but they cannot be called a reliable means of transportation. Those who move to Pattaya to live, get their own transport.
Infrastructure
Both Pattaya and Phuket have developed medicine, education, shopping, sports and, of course, entertainment and tourist-oriented infrastructure. There are international schools designed for foreigners, kindergartens, new modern hospitals, supermarkets, shops of local and international brands. There are plenty of cafes and restaurants in busy areas, as well as outlets selling street food so beloved in Asia. Literally on every corner there are shops of the popular 7-Eleven and FamilyMart chains.
Real Estate
Phuket is a more statuesque resort, therefore, real estate prices here are traditionally significantly higher than in Pattaya. In addition, there is less space for building on the island, so the land is more expensive.
The cost of a new studio in Pattaya starts today from 1,400,000 baht ($37,000). There are cheaper options, but these will either be old houses in need of renovation and quarterly repair of pipes and air conditioners, or projects far from the city. In Phuket, the minimum cost of an apartment starts from 4.5 million baht ($120,000).
In the Phuket market there are low-rise condominiums – residential complexes with a developed internal infrastructure of the hotel level, as well as villas and townhouses. In Pattaya, mainly high-rise residential buildings and large-scale resorts are being built.
Experts note that in Pattaya, even with a relatively small budget, you can choose a good apartment in a developed area for your own living. However, it should be borne in mind that there is an excess of supply on the market of this resort, and reselling an apartment can be problematic. The same applies to the rental of the object in the future. Pattaya has enough investment housing, which foreigners bought before the pandemic, and Thais bought at a big discount during quarantine. You should keep this in mind when choosing a property today.
One of the projects that the consultants advise you to pay attention to is Grand Solaire Pattaya, consisting of two towers of 67 and 48 floors, from one of the leading developers of Pattaya. The complex is scheduled to be commissioned at the end of 2024. A studio can be purchased here at a price of 70,000 euros.
Another high-rise is also from a well-known developer (Matrix Developments), but at a higher stage of readiness Empire Tower Pattaya. Studios are sold at a price of 60,000 euros. The complex has already been built and is being finished, but when buying an apartment in it, you can still count on six months or a year of installments.
In Phuket, you can choose a suitable property both for living by yourself and for renting. Of course, there are no such large-scale high-rise complexes as in Pattaya. The specifics of the market are in the presence of small, chamber low-rise projects. In the elite segment, you can consider a boutique condominium Harmony or Sky Park in Bang Tao.
Villas worth about 20 million baht and above (about $ 500,000) are in high demand for rent in Phuket. You can consider, say, offers in the area Lagoon. Apartments in complexes with hotel management are also well rented. For example, complex near Kamala beach under the management of the international hotel brand MGallary orLayan Green Park, located next to the picturesque secluded Layan Beach in Bang Tao.The average yield from renting in Phuket, according to experts, is 5-7% per annum.
According to experts, about 70% of sales are in Thailand off-plan. This is beneficial, as it makes it possible to use an interest-free installment plan from the developer. However, those who have the necessary amount can find an interesting offer on the secondary market.
Summing up the results
Both the main resort centers of Thailand have their adherents. And the issue here is not only in the budget for the purchase or rental of housing, although this aspect is certainly important. Pattaya is more suitable for urbanists and lovers of Asian flavor. Phuket is chosen both for recreation and for investments by those who appreciate status, intimacy and natural beauty.
If we talk about the investment attractiveness of the regions, Phuket is preferable, since the volume of construction here is much smaller and there is no overstocking. However, it is worth noting that the island is more dependent on the flow of foreigners than Pattaya, located close to the capital and focused, among other things, on local tourists and investors.
A resort in the Gulf of Thailand is a good option for people who are considering moving to Thailand today, having a relatively small budget for the purchase or rental of housing.
The landscapes of Phuket, of course, do not leave anyone indifferent, nevertheless, from the point of view of safety and protection from the natural elements, Pattaya, located in the bay, wins.
Note that, according to experts, the real estate market in Thailand, both in Pattaya and Phuket, has gone up. Demand among Russian-speaking investors (and not only) has grown sharply. During the preparation of this material, it was necessary to adjust the prices indicated in the text, as they are going up.
Thank you for your help in preparing the article by our experts in Thailand:
Svetlana Kasatkina, Managing Partner Exotic Property
Olga Barteneva, head of the company «Gallery of real estate in Pattaya and Phuket»
Denis Babushkin, head of the company LETO Real Estate