Visakhapatnam: Due to skyrocketing property prices, less returns and lower appreciation, many people these days prefer to buy flats in Thailand rather in areas like Madhurawada, which is touted as “New Vizag”.
There are more than 5,000 flats lying unsold since two years in a cluster between Sagar Nagar and Kommadi, but Vizagites prefer to invest in cities like Pattaya and Bangkok in Thailand.
Apart from tourism, Thailand has become a new destination for Vizagites to invest in real estate. Easy returns due to high rentals in Thailand and better appreciation in that country over other Asian countries are prompting locals to buy flats there.
A 340 sq. ft in Pattaya costs Rs 30-40 lakh, which is enough to buy a 1,500 sq. ft flat in Vizag. However, the rentals in Thailand are at least three times more.
Due to the tourist inflow, rent from a property in Thailand that costs around Rs 30 lakh is around Rs 30,000 per month. Most of these flats come with plush interiors and ultra modern facilities.
An apartment venture in Pattaya by a Vizag builder evoked good response among locals. Most of the flats were bought by Vizagites.
“With the same money I get a smaller flat in Thailand, but the monthly returns are more when compared to the local market. The appreciation on property is also good in Thailand. I have visited Thailand so many times until now as a tourist and from now it will be a business trip for me apart from pleasure,” said a businessman from Vizag who wished not to be named.
Optimum utilisation of space, trade treaty, low construction costs are prompting Vizag builders to eye the Thailand market.