Development Project
Investing in a development project guarantees investors the opportunity to purchase at the lowest possible price while achieving maximum return on investment.
Buying into a development project provides a chance to invest in prime locations, ensuring high rental income and significant property appreciation.
All of this is available at the lowest possible price with excellent payment terms. The Thai government has enacted strict laws requiring all developers to complete their projects. The quality standards and integration into the natural environment are relatively high.
Most new, high-quality development projects are located in areas with the highest potential for property value appreciation.
Owning property in Thailand allows investors to benefit from steady rental income. They can also enjoy a beautiful vacation home while watching the property increase in value. These projects are usually in popular tourist destinations, ensuring reliable rental income.
How to Maximize Returns on Your Investment in a Development Project
Buy Early
Developers offer properties at lower prices, often below the market rate. Typically, the first few villas or apartments are the most affordable. Thailand’s progressive real estate market is still relatively low-cost but steadily rising. Investors who buy early have the best chance for high returns.
Choose the Right Property
Early buyers can select from the best properties in the project. Prime villas or apartments with sea views, larger layouts, or preferred locations promise the highest potential returns and rental income.
Price Movements Based on Construction Progress
As the project progresses, prices gradually increase. As completion nears, prices are higher, and fewer units are available.
Highest Prices Just Before Project Completion
As more villas or apartments are sold, the remaining units’ prices rise. The near-completed project attracts more investors who can see the property firsthand, driving up demand. At this stage, developers are less likely to offer discounts, having already sold most units.
For investors with short-term goals, selling the property at this point is often ideal. The price will typically be about 25% higher than at the early stages of the project.
Pros and Cons of Investing in a Development Project
Every developer faces substantial risk and aims to reduce debt and bank loans used for the project’s construction as quickly as possible.
Therefore, they offer properties at lower prices, often below market value.
On the other hand, investors are often buying based on renderings and trust in the developer’s reputation.
This is why we recommend thoroughly checking the developer’s credentials: verifying they are a reputable company, how many projects they have completed, how long they’ve been in business, etc.
Payment Terms
In addition to great pricing, investors benefit from excellent payment terms. Typically, an initial deposit of approximately 25% of the property’s price is required, with the remaining amount paid in installments throughout the construction period, interest-free!
