Thailand is a country of broad beaches and mountain lakes, of elephants, palms and tempting hot dishes – got its name from one of the “Asian tigers” in the 80-s. The country is still in its serious economic development stage, and this provokes a real boom in the sphere of tourism and in the real estate market. The southern island appeared to be the most attractive for the investors. The wave of visitors to Thailand is growing with every passing hour: the number of foreign tourists is expected to increase almost on 10% this year. According to the information provided by the Thailand Ministry of tourism, 13.8 million of foreigners came on holiday to the country in 2006, and they expect to host 15.5 million of tourists this year. 
Liam Baly from David Stanley Redfern Agency says, ‘In 2008 the Thai economy worked brilliantly: in the first quarter of the year the economic growth reached 6% if compared with the same period of the last year, and in comparison with the last quarter of the year 2007 the economic growth made 5.7%. After two years of political disorders which resulted in coup d’état, a new government seems to have felt itself steady enough for making the economic growth of the country its priority activity. The main efforts are now aimed at attracting domestic investments inside the country and region, because the rates of growth of the foreign investments are slowing down for obvious reasons at the present time’.
This economic situation reflects on the excellent state of the real estate market. Of course, the unprecedented real estate cost increase (at the beginning of the century it reached 25% a year in this region) is already in the past, but they expect its steady growth from 5% to 10% for the several next years. The majority of foreign investments is concentrated in two absolutely different country regions: in the north – in the neighborhood of the city Chiang Mai near the mountains, and in the south islands where the first place in buying activity certainly belongs to Phuket island, which is followed by the emerging real estate markets of Koh Chang and Koh Samui islands.

Phuket Island alone

There is no doubt that the main region, which attracts holiday houses buyers in Thailand, is the south islands. This area is also called tropical paradise, especially when speaking about the Phuket. Due to the tremendous beaches, excellent conditions for diving, a great number of noisy nightclubs and excellent restaurants The Phuket became one of the most popular seaside resorts in Asia.
It keeps winning popularity also among buyers from other countries. According to the CBRE company estimate, more than 2000 houses on this island belong now to the foreigners. The specialists of the agency report, ‘In fact, all these buyers have already gained much because of their property cost increase. Within four last years the annual increase of capital stays at the level of 15-20%, and some complexes have risen in price to 50-100% during the process of their construction’.
The Phuket is not less attractive for the investors seeking to gain rental income. This island is a popular place of resort; it has its own international airport, which has served more than 8 million people during the year 2004-2005. The CBRE agency states that in case of a skillful accommodation run it will bring to the owner the annual income of 6-12% if it is rented for 100 days per year.
The construction on the island is developing very fast. The developers are moving from the west coast to the recently unpopular south and east coasts of Phuket Island. It was the west coast – the area between Nai Thon beach and Kata Noi beach – where the real estate boom began, that is why the undeveloped areas are not very numerous here and are very expensive. On the south and east coasts people are even ready to buy the accommodation located far away from the sea and facing golf fields. The accommodation prices in the Phuket are the highest ones in the whole country. CBRE Company states the following approximate prices: in low price bracket – to $480 000 for a villa and $320 000 for apartments; in medium price bracket – to $1 million for a villa and $600 000 for apartments; and in the sphere of expensive real estate – about $1,5 million for a villa and million for luxurious apartments. 
Recent research of the Knight Frank Company shows that after the prices increase on 11% in 2007 the average price in the Phuket for a square meter makes $3600, and the average rental income reached 6.8%.
Since the prices on the Phuket keep rising, the buyers turn their looks to the islands, which are less build-up where they can gain much higher income for the same money.
The David Stanley Redfern (DSR) Company states that, for example, the real estate market of Samui Island cannot be considered as a developed one. According to the Company’s information, it has more five and six stars complexes than any other island in the world; and within the years 2006-2007 the real estate prices have risen on 50%. DSR offers villas with two bedrooms on the Samui in the Maenam Hills complex for $200 000. Other islands attracting investors’ attention are the Koh Cnang and the Koh Phangan.

Thai leasehold

Additional charges of a buyer when purchasing real estate in Thailand are not high. Tax on the transfer of property makes 2% of the property cost, stamp duty – 0.5%. The majority of the Thai banks do not draw up the mortgage for the foreigner’s name; however, the Singaporean Branch of Bangkok Bank provides such a service. Some developers also offer financing, but the majority of the property purchase is made with the whole sum payment.
Buyers from other countries have no right to purchase land on the territory of the country, that is why there exist two ways to become a homeowner in Thailand.
The first variant is to purchase the apartments in the condominium on condition that the majority of flats in the house belong to the citizens of Thailand. Real estate shall be registered in the Land Office, and the buyer shall make sure that he or she buys property which purchase is allowed to the foreigners. 
The second variant is to purchase a house on a leasehold basis. A nonresident buys a house and draws a lease of rent up for 30 days. There exist opportunities to extend a lease, but this fact will not be indicated in the title of land. Foreigners can also purchase property by registering the company in Thailand, but this is a very troublesome matter. 

Provided by Prian.ru