Infrastructure in major cities of Thailand continues to develop, and urban populations are also growing. Accordingly, alongside residential real estate, investment in commercial properties is becoming increasingly relevant.
A well-calculated selection of commercial real estate can generate higher income than residential property. In addition to rental income, commercial property in Thailand can also be used for business operations.
Main investment options
Townhouse
A townhouse is a low-rise building with separate entrances for each unit (section). Typically, different sections belong to different owners, although the entire building may also be owned by a single person.
The purpose of purchasing a townhouse may include converting it into a guesthouse, with a restaurant, massage salon, shop, laundry, or other business located on the ground floor—either for operating a business or renting it out. Expected rental returns may reach 15–20%.
Commercial unit in a condominium
Commercial premises located on the ground floor of residential condominiums are typically intended for businesses such as internet cafés, laundries, massage salons, restaurants, and other services in demand among residents. Expected rental returns are around 10–15%.
Land plot
The purpose of acquiring land may be resale (with land value in some areas increasing by up to 50% per year) or construction of a property for future sale or rental.
Depending on the size, location, and project budget, possible development options include: condominiums, villa projects, shopping centers, business centers, entertainment complexes, and more.
It is difficult to define a fixed expected return for construction projects. However, compared to investing in completed properties, construction projects generally offer higher profitability.
This is also supported by the widespread practice of off-plan sales—for example, when a buyer purchases land in a villa development and then pays for construction in stages.
Nevertheless, this type of investment is associated not only with higher potential returns but also with higher risks. Additionally, an investor expecting, for example, a 100% return must consider the need for personal involvement in the project, without which such expectations may not be achieved.
Author: Aleksandra Agapitova.
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