Thailand rental returns: average at best

Thailand rental returns have been identified in a new crowd-sourced survey as standing at 3.76 percent gross in the city centre.

Returns can only be described as being mediocre at best, and rank the Thai capital in a distinctly average 64th place of the 89 global countries that form the survey.

Thailand’s ranking, based on data from users of the popular comparison and information sharing website www.numbeo.com, lists gross city centre property rental returns as being similar to those in the United Kingdom, Bangladesh, Finland and Malaysia.

Topping the list was the United States, the United Arab Emirates and South Africa – the only countries to achieve double-digit city centre gross rental returns.

For gross rental returns outside of the city centre, Bangkok fairs even worse with a figure of 3.62 percent – ranking it in a lowly in 75th place of the 89 surveyed countries.

Of course, these are country averages and actual Thailand rental returns will vary from location to location and from property to property.

Perhaps most worryingly for Thailand is that the kingdom is ranked in third place globally in the ‘Price to Income’ metric.

This is a measure of purchase affordability in the local market, and Thailand is only headed by China and Hong Kong.

In the metric that looks at ‘mortgage as a percentage of income’, Thailand is ranked 15th of the 89 countries.
Numbeo uses real data from real people, so these negative rankings do need to be factored into any Thailand property purchase and investment.