Understand the crazy world of real estate: 4 Property Types in Thailand

Investing in real estate in Thailand can be a lucrative opportunity, particularly for those interested in high-end properties. The country's luxury property market has experienced significant growth over the past few years, with demand driven by a growing number of high net worth individuals from around the world.

Thailand's real estate market has experienced steady growth over the past few years, driven by a combination of local and international demand. According to recent reports, the market is expected to continue to grow in the coming years, with a particular focus on high-end properties and low-rise properties in prime locations.

One of the main drivers of the real estate market in Thailand is the country's strong economy, which has seen sustained growth over the past decade. With a GDP growth rate of 3.1% in 2022 and expecting to grow 1.3% in 2023. Thailand has weather COVID-19 pandemic better than many other countries in the region, which bodes well for the future of the real estate market. As Thailand was the leading and first country to open to tourists in the region of Southeast Asia.

To fully understand the crazy world of real estate we need to differentiate 4 main properties found through-out Thailand. These four main types are: Barshell properties, Mildly furnished properties, Fully-fitted properties and fully furnished properties. 

Let’s dive right into what a barshell property type is in real estate. 

1. Barshell Properties (Unfurnished)

Bareshell or unfurnished property refers to a property that does not come with any furniture or appliances, except for the basics such as lighting fixtures and air conditioning. Bareshell properties are mainly office spaces or large condos such as penthouses. Purchasing an unfurnished property allows for complete control over how the space is furnished and decorated, making it a personalized space that meets your specific needs and preferences. 

Pros: 

1. Unfurnished properties tend to be more cost-effective than furnished ones, which can make them an attractive option for those who have their own furniture or who are looking to invest in additional furnishings.
2. If you already have furniture or appliances, purchasing an unfurnished property allows you to move in right away and settle down without the need to purchase or replace existing furniture. 

Cons: 

1. It's worth noting that unfurnished properties may have a more limited rental potential as many renters may prefer a fully furnished option.
2. It can take longer to move into an unfurnished property as you will need to purchase and install furniture and appliances before moving in. 

2. Mildly Furnish Property 

A standard or mildly furnished property is one that comes with the basic furnishings such as a bed, sofa, dining table, and chairs. The unfurnished unit is a vacant room, similar to the bareshell unit but with at least 30% of the furnishing completed. This relieves the buyer of the necessity to self-install utilities like water, electricity, or plumbing, so they can focus on outfitting the unit as they desire.

Pros: 

1. Standard or mildly furnished properties can be an attractive option for buyers who want the convenience of some furniture without the high cost of fully furnished properties.
2. Mildly furnished properties can be attractive to renters who are looking for a move-in-ready space that comes with some furnishings, making the property more appealing to potential tenants and may lead to higher rental income. 

Cons: 

1. Keep in mind that a standard or mildly furnished property may limit the buyer's ability to customize the space to their liking.
2. Furniture that comes with the property may not be of the best quality or may have wear and tear, which can lead to additional expenses down the line if the furniture needs to be replaced or repaired.

3. Fully Fitted Property 

When it comes to purchasing or renting a property, one of the key decisions you have to make is how much you want it to be furnished. There are three main options: unfurnished, mildly furnished, and fully-fitted. In this section, we will be focusing on the advantages and disadvantages of fully-fitted or mostly furnished properties.

Fully-fitted properties refer to units that are already installed with the necessary hardware and fittings for the household, as well as substantially pre-furnished. They often include features such as the sink, bathtub, shower, toilet, closets, bed frames, kitchen counters, and other essential items.

Pros:

1. Convenience: Fully-fitted properties offer a high level of convenience to homebuyers and renters, as they come with everything needed to move in immediately. You don’t have to worry about buying or moving in furniture, appliances, and other household items, as they are already provided.
2. Attractiveness: Fully-fitted properties can be more attractive to potential renters or buyers who want to avoid the hassle of furnishing their home themselves. They are ready for you to move in and make it your own.

Cons:

1. Limited personalization: Fully-fitted properties may not be fully customizable to your specific preferences. You may have to live with the existing decor and layout, limiting your ability to express your own style and taste.
2. Expensive: Fully-fitted properties can be more expensive to purchase or rent compared to unfurnished or mildly furnished properties. You’re paying for the convenience of having everything ready for you.

In addition to these pros and cons, it is also worth noting that fully-fitted properties tend to be more attractive to renters, and therefore have a higher rental potential. This can make them a great investment for landlords who are looking to maximize their rental income.

4. Ready-to-Move-in Properties 

Fully furnished properties are an excellent option for those who want to move into a new home without the hassle of furnishing it themselves. It is perfect for people who are busy and want an apartment to move in right away. 

Pros:

1. Convenience: Fully furnished properties provide the convenience of having everything you need to move in right away. You won't have to worry about purchasing or moving furniture, appliances, or household items, as they're already provided.
2. Expensive: Fully-fitted properties can be more expensive to purchase or rent compared to unfurnished or mildly furnished properties. You’re paying for the convenience of having everything ready for you.

Cons:

1. Limited personalization: Fully furnished properties limit your ability to personalize the space as you cannot bring in your own furniture or decorations. You will have to live with the existing decor and layout.
2. Higher rent: Fully furnished properties typically have higher rental rates, as landlords need to recoup the cost of the furniture and appliances they provide. You should consider your budget and whether the convenience of a fully furnished property is worth the higher rent.

In Conclusion 

To choose the right property type in Thailand, there are four options: apartments, townhouses, villas, and condos. Each type has its own features, advantages, and disadvantages, so the final decision should depend on personal preferences and needs.

Condos in Thailand come in many styles, such as modern high-rise buildings and cozy low-rise developments. They offer numerous amenities, including swimming pools, fitness centers, and 24-hour security, giving residents both comfort and luxury.

Whether you're a local resident, expat, or foreign investor, there's something in the Thai property market for everyone. Begin your search for the perfect condo in Thailand now to experience ultimate living in one of Southeast Asia's most beautiful and vibrant countries.