The art of successful real estate investment is all about buying when prices are low and selling when prices are high. When it comes to Thailand, all eyes are on the south and the tourism that drives the local real estate.
Many real estate investors fail to see that there is an emerging opportunity in the north. To be more precise, the north-western part of the country. Chiang Mai has all the symptoms of a growing real estate market.
Introduction to Chiang Mai
Chiang Mai is located 700 km north of Bangkok. It has a population of over 160,000 residents. The city is a harmonious mix of culture, history, and nature. The city was founded in 1296 and is surrounded by some of the highest mountains in the country. Chiang Mai is divided into four areas: Kawila, Mengrai, Srivijaya, and Nakhon Ping. Kawila is situated on the east bank of the Ping River, while the remaining three are on its west bank.
Real Estate Market in 2020
The Chiang Mai real estate market in 2020 is still growing and is not as mature as it is Bangkok. But that is about to change as the interest for real estate is growing. Tourism is the main boost. Then some folks want to get away from the hassle that follows living in a big city like Bangkok. Also, there is an increasing number of digital nomads that are attracted by the affordable living costs, the surrounding nature, and culture.
Compared to other parts of the country, real estate prices are still low, despite the spike in recent years.
The biggest price spike was for real estate in and around Nimminhemin Ave, the night market, and the old town. Furthermore, the city limits expanded quite a lot in the last several years. Mainly due to the rise of tourism and the emerging middle-class, there is a plethora of new communities and housing projects.
As a result, many once poor rice farmers sold their lands to property developers. That had a profound effect on their financial situation and made them significantly richer as developers were outbidding themselves for their land.
What’s More to Come?
The Thai government seems dedicated to developing all parts of the country, not just the southern, seaside regions. As a result, they have already invested millions in the local infrastructure, with many new investments planned soon.
Tourism is growing, but it is far from reaching its ceiling. Chiang Mai is, in many ways, different than the rest of the country, especially the southern tourist centers. That uniqueness is the magnet that drives more and more tourists each year. That’s guaranteed growth for the real estate market.
Last but not least, it is fair to expect that real estate prices will grow exponentially. Things are moving fast in Chiang Mai, and those that come aboard first will be the ones that will yield top returns. The rest will take notes of how wise real estate investment is made.