Buying a budget property, selling it profitably: analysing the UAE and Thailand markets

Buying a budget property, selling it profitably: analysing the UAE and Thailand markets

When it comes to investing in property, prospective owners encounter a diverse array of offers worldwide. The United Arab Emirates and Thailand are the countries with high potential, attracting increased interest from foreign investors and standing out as some of the most popular destinations.

UAE: developed infrastructure and favourable conditions for business

The UAE attracts with its developed infrastructure, high standard of living and favourable conditions for business, including the absence of property taxes and capital gains. The country is known for its fast-growing economy, stable demand for luxury housing and steady price growth for both completed and under-construction projects. This makes property in the UAE a solid asset.  Additionally, a wide range of freehold areas is a significant advantage for international investors.

Thailand: affordable prices and attractive conditions for long-term residence

Thailand, on the other hand, offers more affordable housing prices, as well as attractive conditions for long-term ownership and rental businesses. The country is known for its stable economy, growing tourism sector and high rental demand. The laws of the kingdom permit foreigners to own condominiums, making the market of property in Thailand convenient for foreign investors.

The importance of careful analysis

Before making a final decision, it’s essential to thoroughly research the differences between these markets. The choice depends on the investor's goals, the planned purchase budget, the level of risk they are willing to take and the desired return.

Thailand for foreign investment: pros and cons

One of the most noticeable differences between the UAE and Thailand markets is the cost of property. However, it’s difficult to identify a single trend in this regard. For example, flats in prestigious areas of Dubai, such as Dubai Marina and Palm Jumeirah, can be comparable in price to housing in Phuket. At the same time, in less popular areas, the price of housing tends to be lower in both countries.

The advantages of investing in Thailand property:

  • The country's stable economy creates a predictable environment, providing peace of mind for buyers;
  • The steady increase in tourist traffic keeps rental demand high;
  • Foreign investors can directly own condominiums which simplifies the buying process;
  • A wide selection of affordable housing makes it easy to enter the market.

Disadvantages of investing in Thailand compared to the UAE:

  • Legal protection: Legal protection for investors is less developed in the Kingdom than in the UAE;
  • Infrastructure: The UAE offers more modern and developed infrastructure;
  • Lack of opportunity for a residence permit: There’s no opportunity to obtain a residence permit in Thailand through investment.
Real Estate In Thailand

UAE for foreign investment: pros and cons

Most investors considering the United Arab Emirates for investment choose Dubai. The city serves as a business card for the country, attracting attention with its high rates of development and a comfortable environment for both living and conducting business. Investment in real estate in Dubai offers numerous advantages:

  • Absence of property tax: Property owners in Dubai are exempt from annual property taxes, which is especially beneficial for those not planning to resell immediately after a project’s completion;
  • Wide range of properties: The UAE provides overseas buyers with a broad selection of properties, including villas, houses, apartments, serviced suites, duplexes, penthouses, hotels and offices. Unlike Thailand, it’s also possible to purchase land plots;
  • Freehold zones: The UAE boats numerous freehold zones where foreigners can buy property in full ownership. Most of the prestigious and luxurious communities hold this status: central Downtown Dubai and Business Bay, the resort areas of Dubai Marina and Palm Jumeirah, as well as Arabian Ranches, Jumeirah Lakes Towers (JLT), Jumeirah Village Circle (JVC), Emirates Hills, Meydan and others. All of these areas offer exceptional infrastructure for living, leisure, work and entertainment, which has a direct impact on property pricing;
  • Transparency of transactions: The UAE provides a favourable environment for real estate transactions. Legislation upholds transparency and protects the rights of owners, which facilitates the buying and selling process and minimises risks for investors;
  • Visas for investors: By investing a minimum of AED 750,000 (USD 204,000) in property, foreign buyers can obtain a residence permit in the UAE for two years. A real estate purchase of 2 AED million (USD 544,500) qualifies for a five-year golden visa. However, maintaining the investment is essential to extend the visa.

The main disadvantage of investing in UAE property is the relatively high cost. Premium properties in the Emirates can be more expensive than those in Thailand. However, in the budget segment of under-construction complexes, there are no substantial price differences. The final cost depends not only on the specific property’s characteristics and its location but also on the level of comfort offered by the complex, the quality of finishing and the availability of additional amenities.

Comparative analysis of the property market in figures

CountryMinimum price (USD)Price growth during constructionConstruction durationMinimum down paymentPossibility to buy with a mortgage
Thailand From 100,000 30% 2 years 30-35% with the possibility of interest-free instalments Mortgages are not available for foreigners
The UAE From 110,000 20–30% 2–5 years From 10% with the possibility of interest-free instalments Mortgages are available

Conclusions

The choice for investors depends on various factors, including personal circumstances and preferences, making it difficult to identify the most attractive destination. Currently, under-construction housing in Thailand is experiencing slightly higher value growth. However, investments in residential complexes in the UAE are considered safer, with state-level protection. Other advantages of the UAE include a broad range of freehold properties, a low minimum deposit and the option to purchase with a mortgage. The country's economy is showing stable growth, which supports the positive dynamics of the property market. Investors can expect not only short-term resale profits but also long-term benefits from properties in this dynamic region. Ultimately, the choice between Thailand and the UAE depends on the buyer's specific goals and preferences.

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