Information About Investment in Bangkok

What are the Top Reasons to Invest in Bangkok?

The top reasons to invest in Bangkok are that the city is investing in its own future via infrastructure projects and that it already has a strong economic foundation. Tourism and consumer demand add another dimension that make Bangkok an appealing place for investment.

1. Economic Dominance and High Tourism Demand

The most economically dominant city with the highest tourist demand in Thailand is the capital city, Bangkok. It has the largest population in the country by far with 10.5 million people in the central city in 2020, or 15% of the total Thai population, and in 2019 hosted 22.78 million tourists.

The population of the City of Angels is spread across 50 districts and 180 sub districts, with many of them living in central Bangkok.

BKK is the economic hub of the Thai Kingdom, contributing 47.5% to the country’s overall GDP in 2018. A large part of that GDP contribution came from exports which makes up 58% of the Thai economy’s overall GDP.

An economy is only as healthy as its workforce, and Bangkok boasts some of the best employment rates in the world, recording 0.9% unemployment in 2022.

2. Advanced and Integrated Infrastructure

Advanced and integrated infrastructure in Bangkok has been a top priority of the government for many years now. Between railway lines, highways, ports, and utility infrastructure, BKK is becoming more interconnected every day.

Since 2004, 4 lines have opened up in the MRT (Metropolitan Rapid Transit) system including the Blue, Purple, Yellow, and Pink lines. Since 1999 the BTS (Bangkok Mass Transit System) has added another 3 lines, consistently expanding them over the years – the Sukhumvit, Silom, and the shorter Gold line that connects the Silom line to the Icon Siam shopping mall. There are plans for 5 new lines in the near future which are in addition to pre-existing railway and bus lines that run throughout the city.

There are also more than 20 bridges crossing the Chao Phraya River with plans for more such as the bow shaped bridge from Sing Buri Province expected to be complete in 2026. In addition to the many bridges over the Chao Phraya River, the BTS Skytrain also utilizes two tunnels to cross. At the mouth of that river is Bangkok Port, one of the busiest ports in the world that handles much of the Thai Kingdom’s exports and imports.

In terms of USD values, the Thai government expects to spend $100 billion by 2040.

What are some Major successful Infrastructure Projects Invest in Bangkok?

5 major successful infrastructure projects in Bangkok are:

1. Suvanaphumi airport, Thailand’s main airport that opened in 2006.
2. Free Zone addition to Bangkok Port, aiming to provide improved services to international freighters.
3. MRT line expansions such as the blue, yellow, purple, and pink lines.
4. BTS Sukhumvit, Silom, and Gold lines along with the green and orange lines under construction.
5. Bang Sue Grand Station in Chatuchak district which opened in 2021. It’s the largest railway station in Southeast Asia and cost 15 billion baht.
6. Rama VIII Bridge, also known as the Golden Bridge above the Chao Phraya River, the fifth longest asymmetrical cable-stayed bridge in the world.
7. Queen Sirikit National Convention Center in Khlong Toei district. A 300,000 square meter convention center originally opened in 1991 as part of hosting duties for the 46th Annual Meeting of the Boards of Governors of the World Bank Group and IMF in Bangkok. It was renovated from 2019-2022 at a total cost of 12 billion baht.

3. Other Good Reasons to Invest in Bangkok

Other good reasons to invest in Bangkok include:

• • Worldwide ranking of Bangkok city at 52 in terms of GDP.
  • The high level of medical tourism to the city. Thailand’s projected medical tourism revenue in 2024 is $15.4 billion USD and its compound annual growth rate (CAGR) projected to 2034 is 15.7%. 80% of this revenue is generated in Bangkok.
  • High-end shopping and entertainment facilities. The massive One Bangkok multi-use development set to open in stages from November 2024 in Sathom is just one of many.
  • Smart city plans for Bangkok including smart energy, mobility, economy, and governance.

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What are the Most Ideal Sectors to invest in Bangkok?

1. Industrial Sector Investment in Bangkok

Industrial sector investment in Bangkok is traditionally one of the most lucrative spaces for revenue growth. Automotive production and exports make up a large portion of this production at 10% of Thai GDP. It’s been so beneficial for Bangkok that the city is often referred to as the ‘Detroit of Asia.’

Electronics such as computer hard discs and other office related machinery make up the next most prominent manufacturing sector in the capital. The government also has plans to increase a focus on 21st century technologies via its ‘Thailand 4.0’ strategy. The goal of this new direction is to transition toward production of newer products like robotics, biofuels and biochemicals, smart electronics, and medical devices.

2. Service Sector Investment in Bangkok

Service sector investments in Bangkok, particularly through high-end tourism and medical tourism, represent another strong investment space in Bangkok. As a whole, tourism revenue represented 21.9% of Thailand’s total GDP.

When imagining tourists to the Thai capital, the picture that comes to mind for many is of thrifty backpackers. However, luxury tourists make up an increasingly large portion of the visitors, taking their wallets to the top shopping malls in Bangkok and entertainment districts.

The City of Angels hosts several luxury hotels that complement these booming areas, such as 5-star options like Capella Bangkok, Waldorf Astoria Bangkok, and Four Seasons Bangkok at Chao Phraya River.

Medical tourism in Thailand is another growing sub-section of the service sector. There are private hospitals in Bangkok that specialize in this market, priding themselves on top-level care and facilities catering to specific surgeries and even staffing translators in foreign languages.

3. Real Estate Investment in Bangkok – Property Investment

Real estate investment in Bangkok has been a profitable sector, surviving multiple economic crises and providing strong returns for investors. Prices dipped during the pandemic, but post-covid recovery is well underway, making property investment an attractive space.

In 2023, land and building transactions across Thailand increased by 26% for a total of $22.38 billion USD. In Bangkok alone, house prices grew by 4.1%, condo prices rose by 4.8%, townhouse prices increased by 3.7%, and land prices also grew by 3.8%.

Given Thai restrictions on foreign ownership of land, condominiums are the easiest target when searching for property in Bangkok as they can be owned outright in accordance with the Condominium Act of 2008.

What are the Prime Locations for Property Investment in Bangkok?

There are several locations in Bangkok that offer a combination of safety, entertainment options, access to public transit, and high-quality facilities. The prime locations for property investment with expectations for land valuation returns in Bangkok are:

1. Central Bangkok

Central Bangkok is made up of several districts, including Phra Khanong, Watthana, and Khlong Toei. Watthana and Khlong Toei were once a single district but split in 1998 to better serve the residents. It’s now divided by Sukhumvit Road, one of the most famous roads in Bangkok.

The City of Angel’s central districts are known for luxury shopping malls such as EmQuartier, theCOMMONS, Emporium, and Gateway Ekamai. There are also several other entertainment landmarks and various nightlife options as well as embassies from countries such as Norway, China, and India.

The area is well served by mass transit, with the BTS Sukhumvit Line running through the center of these districts and MRT Blue Line adding several more stops.

Summary of Central Bangkok

2. Lumpini

Lumpini is a sub district within Pathum Wan district famous for Lumpini Park. Lovers of green spaces flock to this section of Bangkok to enjoy the lush trees surrounding a manmade lake. There are also several luxury condominium towers nearby and embassies from prominent countries such as the USA, Japan, and Australia.

In addition to having nature at your fingertips, Lumpini has access to shopping centers such as CentralWorld, Siam Paragon, and MBK Center. The immediate park is served by the Sala Daeng Station (BTS Silom Line) and two MRT stations along the Blue Line (Lumpini and Si Lom Stations).

Summary of Lumpini

3. Sathorn

Sathorn is known as Bangkok’s central business district and has plenty of fine dining, luxury hotels, and entertainment options. There are also many luxury properties in Sathorn with growing property values.

The area is known for its fine dining and boasts several Michelin star restaurants and rooftop dining options. It also offers easy access to plenty of sightseeing options such as nearby Thai temples and the Blue Elephant Cooking School. Sathorn is served by the BTS Silom Line, giving it convenient access to other parts of Bangkok.

Summary of Sathorn

4. Riverside

Riverside includes the area around the Chao Phraya River Delta, particularly around Charoen Krung road and Charoen Nakhon. Its most famous attraction is Asiatique The Riverfront, a quaint entertainment and shopping area located right along the river.

There’s a more relaxed atmosphere in this section of BKK, but with a large number of hotels that attract large numbers of tourists every year. Unfortunately, public transportation options are mostly limited to buses and ferries.

Summary of Riverside

Looking to get your property investment journey started in Bangkok? Contact one of PropertySights Real Estate’s seasoned experts today and get advice on the best options for you.