Distributors of building supplies and residential developers claim that Thailand’s robust tourism recovery had a favorable effect on house demand and property renovation in popular tourist sites in the first quarter of 2023.
Increased Investment Spending
Spending on home restorations and enhancements increased as a result of the tourism boom, particularly in well-known tourist locations like Phuket and Pattaya. As a result, as compared to other provinces, a number of firms saw tremendous growth. Home Product Center Plc, one of these businesses, saw its revenue rise by 9.5% to 18.3 billion baht in the first quarter of 2023. HomePro is a home improvement and furnishing retailer.
As a result of increasing rental revenue in branches located in popular tourist areas, rental revenue grew by 16% to 477 million baht. Due to the inauguration of three new branches of the Mega Home department store for building supplies, the southern region experienced an especially high growth.
A Growing Demand for Renovations
Not only existing properties were in demand for renovations and enhancements. To meet the demands of the expanding tourism industry, several property owners also wanted to build additional properties. In Phuket and Pattaya, high-end hotels and resorts geared toward international travelers were among the most prevalent constructions.
During this time, provincial markets saw an increase in demand for residential developers like Supalai Plc. Pre-sales for the company totaled 9 billion baht in the first quarter of 2023, with Phuket, Chon Buri, Songkhla, and Rayong being the key drivers.
Tax Breaks Encourage Spending
The “Shop Dee Mee Khuen” tax incentive was a further reason in the boom in property renovations. This payback program promoted purchasing and boosted HomePro’s revenue through both offline and online sales channels.
How Renovations Can Benefit Property Owners
We gathered some first advice for property owners wishing to capitalize on the revived tourism boom and improve their property. Renovations not only boost rental revenue but also raise property prices and draw in better-quality renters. Here are some pointers for home owners thinking about Thai renovations:
Prioritize improvements that will increase the value and appeal of your home, such as renovating the kitchen and bathroom, improving the landscape, and replacing the fixtures and finishes.
Use a dependable contractor: To guarantee that your renovations are finished on schedule and to a high degree, use a reputable and experienced contractor.
Be aware of the laws: To ensure compliance, familiarize yourself with regional rules and legislation governing home improvements.
Budget carefully: Set up enough money for your renovation project, and refrain from over-capitalizing on upgrades that could not generate a sizable return on investment.
Conclusion
A definite indication of the favorable effect that revived tourism has had on the housing industry is the spike in home renovations in Thailand during Q1 2023. Property owners can profit from the booming tourism industry by making modifications and renovations, which will boost their income and possibly raise the value of their properties.
If you’re interested in learning more about the booming real estate market in Pattaya and Bangkok. Don’t forget to leave a comment or share this blog post with others who might find it useful.
