The ultimate goal in real estate investing is to make a big return. This can be done by strategically selecting properties in places that are slated for urban development. Here are three ways to identify areas that might not yet have a lot going for it, but will grow in demand and desirability over the next ten years.
Upcoming Transportation Additions
People need to get places and the more convenient a location is, the more valuable it becomes. With Bangkok’s quickly expanding rapid transit system, there are many areas around the city that are projected to boom with development as soon as the train stations are ready. These stations are what will literally expand the city outward, encouraging surrounding areas grow, as they will become accessible to those who don’t have cars (or the patience to sit in them during Bangkok’s consistent traffic).
Investing in property anywhere along the newly announced BTS or MRT stations before they are built (or anywhere along the path of the predicted high-speed rail connecting Thailand to China) will maximize your appreciation rates. It’s the concept of buying low and re-selling for much, much higher once the area develops around the stations.
Attractions and Shopping Malls
Upcoming attractions (think the recently built water park in Hua Hin or the upcoming Asiatique Two) are great places to invest nearby, before they are built. If you hear that a major developer is in the process of building something that will regularly attract large amounts of people, look into the properties available right away. If you buy a property there, once the attraction is built you will have a coveted property to satisfy the demand for rental units.
Similarly to big attractions, shopping mall development is great to follow. In Thailand there’s an exceptional number of shopping malls going up, which could be a result of a real demand for the malls, or a Build it and They Will Come attitude. Either way, if you hear a shopping mall is entering an area, you can usually trust that the developer has investigated in the area and made a calculated decision on the area’s potential. This is a good sign for investors.
Specific Areas of Nearby Towns and Suburbs of Big Cities
Chiang Rai, nearby Chiang Mai is a great area to invest in now as it will soon grow as a result of Chiang Mai growing into a bigger and more international city. Similarly, so are Samut Prakan, NonTaburi and Pathum Thani; all just outside of Bangkok. But don’t just invest anywhere within these towns. Take time to investigate new properties in places that have incoming big businesses, such as new grocery stores, shopping centres, etc. While the aforementioned towns themselves will be desirable to people who want to have the convenience and accessibility but not the hassle of a big city, they will not be completely full with prospective buyers and rental tenants. But choosing a property that’s nearby conveniences in these places will ensure you get the ones who are looking.
In conclusion: Be smart about where you want to buy property, then get the property while prices are still low.
