Purchasing for Resale in the UAE and Thailand: Which is More Profitable?

Purchasing for Resale in the UAE and Thailand: Which is More Profitable?

When it comes to property investment, potential investors are presented with plenty of opportunities across the globe. Among the most popular and appealing destinations are the UAE and Thailand—two markets that attract significant interest from investors.

The UAE entices with its developed infrastructure, high standard of living, and favourable business conditions, including the absence of property and capital gains taxes. Dubai, in particular, is renowned thanks to its rapidly growing economy, high demand for luxury properties, and steady price increases in both completed and off-plan projects, making it one of the leading global hubs in real estate investment. A wide selection of freehold areas adds to its appeal among international players.

Thailand, on the other hand, offers somewhat more affordable property prices as well as attractive conditions for long-term residence and rental opportunities. The country is known for its stable economy, expanding tourism sector, and strong rental demand. Thai law allows foreigners to own condominiums, making this market accessible to overseas investors.

Before making a final decision, it is crucial to carefully examine the differences between these markets. The choice depends on the investor’s objectives, planned budget, how much risk they are willing to take, and desired returns.

Thailand for foreign investment: pros and cons

One of the most notable differences between the UAE and Thai markets is real estate pricing. However, it is difficult to establish a single trend in this regard. It is clear that apartments in Dubai, particularly in prestigious locations like Dubai Marina and the Palm Jumeirah, and in Phuket can be nearly comparable in price. Conversely, in areas that are not major resort destinations, property prices will be lower in both countries.

Investing in Thai real estate offers several significant advantages:

  • The Thai market is stable. The country’s strong economy creates a predictable environment, providing peace of mind for buyers.
  • A steady increase in tourist numbers supports high rental demand.
  • Foreign investors can directly own condominiums, simplifying the purchase process.
  • A wide selection of reasonably priced properties enhances the appeal of investments.

However, there are some drawbacks, especially when compared to the UAE’s largest hub, Dubai:

  • Legal protection for investors in Thailand may be less robust than in the UAE.
  • Dubai offers more modern and advanced infrastructure.
  • As a global financial centre, Dubai provides greater opportunities for rapid capital appreciation.

UAE for foreign investment: advantages and disadvantages

Most investors considering the Emirates as an investment destination typically choose Dubai. The city, a flagship destination, attracts interest with its rapid development, offering a comfortable environment for life and business. Investing in real estate in Dubai offers numerous benefits, making it one of the most sought-after locations for buyers from around the world.

One of the key advantages is the absence of property taxes. When purchasing an apartment or villa in Dubai, the owner is exempt from paying annual property taxes, which is particularly beneficial if the property is not intended for immediate resale.

The country offers international buyers a wide range of properties, including villas and houses, apartments and serviced units, duplexes and penthouses, hotels and offices. Additionally, it is possible to purchase land plots, which is prohibited in Thailand.

A significant advantage of the UAE is the presence of numerous freehold areas where foreigners can buy property with full ownership rights. Most of the most prestigious and luxurious communities hold this status: central Downtown Dubai and Business Bay, the resort areas of Dubai Marina and the Palm Jumeirah, Arabian Ranches, Jumeirah Lakes Towers (JLT), Jumeirah Village Circle (JVC), Emirates Hills, and Meydan. All these areas offer outstanding infrastructure for living, leisure, work, and entertainment, which also affects real estate prices.

Freehold properties can also be found in the UAE’s capital, Abu Dhabi, and other emirates. This gives the country a significant advantage over Southeast Asia and Thailand, where freehold ownership is generally limited to apartments, and even this option is not universally available. For those looking to save, affordable freehold purchases remain an option in the Arab state.

The UAE has established favourable conditions for conducting transactions. The legal framework supports transparency and the protection of property owners’ rights, which facilitates the buying and selling process and minimises investment risks.

By investing a minimum of AED 750,000 (USD 204,000) in Dubai real estate, foreign buyers can obtain a long-term residence visa for 2 years. With an investment of AED 2 million (USD 544,500), a 5-year Golden Visa becomes available. However, it is important to note that to renew this visa, maintaining the investment is crucial. If the investor decides against reselling, owning a second home in a prosperous country is never a bad option.

The only downside is that premium properties in the UAE may cost more than those in Thailand. However, the budget segment in off-plan developments does not show significant price differences. The final cost depends not only on the specific project’s characteristics and location but also on the comfort level of the development, the quality of finishes, the availability of additional amenities, and other factors.

Real estate markets of Thailand and the UAE in numbers

CountryStarting PricePrice Growth During ConstructionConstruction DurationMinimum Down PaymentMortgage Availability
Thailand From USD 100,000 30% 2 years 30–35% with interest-free instalments available Mortgages are unavailable to foreigners
UAE From USD 110,000 20–30% 2–5 years From 10% with interest-free instalments available Mortgages are permitted

Summary

The choice of investment destination depends on numerous factors, including personal circumstances and preferences, making it difficult to determine a single most attractive option. Currently, off-plan properties in Thailand show slightly higher growth rates, but investments in development projects in Dubai offer greater security due to state-level protection. Other advantages of the UAE include a wide selection of freehold properties, a low minimum down payment, and the possibility of purchasing with mortgage financing. The UAE’s economy is demonstrating stable growth, which supports positive market prospects. Investors can expect not only short-term profits from reselling but also long-term benefits from investing in this rapidly developing region.

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