Thai Condo Developers Targeting Buyers from the Middle East
Middle easterners, as well as foreigners based in countries such as United Arab Emirates, have recently shown interest in investing in properties in Asia, specifically Thailand, according to Sorapoj Techakraisri, Pace Development Corporation CEO. To respond to the increased demand of Middle Eastern clients for luxury properties, real estate developers in Thailand are currently targeting clients from the region for their up and coming residential properties in the capital city of Bangkok.
To advertise their luxury properties to interested clients, Pace Development recently organized a road show in Dubai in the second week of April 2013. The event gathered more than 120 prospective clients who expressed their interest in capitalizing on Bangkok luxury residences. Despite the short notice (advertisement was just posted a week prior to the event), Pace Development considers the road show very successful because it yielded the sale of three units amounting to THB 140 million. According to Techakraisri, instrumental to the success of the road show was the company’s ability to promote their products to interested investors, and its ability to provide information about the state of Thai capital market. The influx of investment money shows that the demand of Middle Eastern businessmen for Bangkok luxury homes is still very strong, Techakraisri notes.
With the success of its Dubai road show, Pace Development is expecting sales figures of THB 300 to 450 million, almost 25% of its pre-sales target of THB 2 billion. The rest of the profits are expected to pour in from sales of Pace Development’s glitzy Ritz-Carlton residences project, located at Sathorn Road. It will be part of the firm’s ambitious MahaNakhon project. Constructed to mimic the design of a glass curtain, the Mahanakhon, which translates to ‘Great Metropolis’ in Thai, will be Thailand’s tallest tower standing at 314 meters when it gets completed in 2015. According to Pace Development records, 50% of the units of the THB 12 billion residence have already been sold. From these purchases, 60% of the transactions were generated by Middle Easterners and foreign investors, while 40% came from local buyers.
Dubai-based business owner Asgar Patel is just one of the many investors who showed interest in Thailand properties. Patel has recently bought two penthouses with stunning views of the Gulf of Thailand, as well as five apartment units at the Ritz-Carlton project. The total sale price for the units is reportedly THB 480 million. The businessman’s investment is said to be motivated by Thailand’s beautiful environment, warm hospitality and improving investment potential, given the country’s economic growth of 4-5% per annum. As the future beneficiary of the Asean Economic Community, more and more Middle Eastern investors such as Patel are thinking of capitalizing on Thai real estate. With Thailand as his second home, Patel and his associates are also interested in investing in other properties developed by Pace Development, especially real estate located in the lovely Hua Hin region. With more and more investments coming from the Middle Eastern region, the Thailand property market is expected to flourish for the years to come, despite the speculations of an impending real estate bubble.