The real estate market in Thailand is booming, as more and more people are looking to settle in the beautiful tropical paradise to launch a business for a relatively low cost. Chiang Mai is one of the largest and most populous cities in Thailand and it’s showing no signs of slowing down.
This city is known as one of the startup centers of Southeast Asia, which is the reason why so many foreigners are coming this way to establish their companies. To accommodate the migration, many condos are being built in the outskirts of Chiang Mai. Real estate investors know what this means – it’s a good time for them to buy a condo and rent it out! With the rising numbers of condos to choose from, buyers are given more choices on their decisions.
If you’re looking to buy a condo in Chiang Mai, this is what you need to know:
Choose the right size
Seeing as the condo market in Chiang Mai is still in the early growing stages, the market is considerably smaller than established locations such as Pattaya, Hua Hin, and Bangkok. Therefore, you can expect larger rooms to be much cheaper than those in these other areas where the condo market has already been saturated. However, larger rooms will also cost more to maintain as well, so if you’re planning to buy it to rent it out, you need to think about how soon you can find a tenant. The longer you go without a tenant, the more money you are going to lose. For this reason, it’s important to make sure that you find one as quickly as possible.
Learn more about the location
Obviously, another crucial consideration you have to keep in mind is the location of the condo. Chiang Mai is not a city known for its public transport, which means that you will need a car or a motorcycle to get around. This is especially true if the place you are looking into is located outside of the Old Town area. You need to do a lot of research to understand the general prices for the condos in each area. It’s not wise to buy a condo without knowing anything about the location it’s in, as that’s a sure way to buy a condo that doesn’t have any long-term monetary value.
The most popular locations for condos is the Nimmanhemin and Chiang Khan areas, as those are where the majority of foreigners and tourists stay. For those who are planning to rent out their condos, these are the locations where you should start your search. Most apartments and condos in Thailand typically sold off-plan, meaning that they are bought before the project is complete for a much lower price; the same is true in Chiang Mai as well. You have to choose a reliable condo chain, as many of them can go bankrupt even before the construction is complete. Investing in such a project means that all of your money will go to waste.
Consider the price and the profit margin
As mentioned, the prices of condos in Chiang Mai are typically much lower than those in Bangkok and other more popular real estate markets. In the rural areas, the typical price for a condo room is around 25,000 baht per square meter, while the one in the downtown area can go up to 60,000 baht and beyond. You have to consider how much value your condo is worth before you decide to commit to buying one.
If you’re planning to invest in the real estate market in Chiang Mai, Stayments is here to help. Get in touch today to see how we can help.