Visakhapatnam builders foray into Thailand
Visakhapatnam Builders Foray Into Thailand. High cost of land, low returns from ventures like construction of apartments, coupled with legal hassles, have pushed local builders to venture into Thailand with a hope to secure higher returns.
Offer flats on Pattaya Beach for a song
Visakhapatnam: High cost of land, low returns from ventures like construction of apartments, coupled with legal hassles, have pushed local builders to venture into Thailand with a hope to secure higher returns.
A consortium of builders has launched their first venture at Soi Chayapruek on Jomtien Beach in Pattaya, Asia’s premier tourist destination. The eight-storey building, coming up on 1,860 square yards, will have 143 studio apartments, each measuring 355 sft and 48 single-bed room apartments, each 89 sft.
The builders have already purchased land and hoped to get all clearances from the Land Office by end of January next year. Unlike in India, Thailand sticks to time schedule and sanctions approval without causing any inconvenience to the entrepreneurs.
A building, with all amenities, can be completed in eight months from the date of approval, which normally takes two to two and half years in India. Foreigners can buy property just by producing photo copy of passports. The registration process takes a few minutes. The document (called Blue Book) will be written both in Thai and English.
``We have already sold four studio apartments in Kolkata and two in New Delhi. Seven people in Visakhapatnam have expressed their interest,’’ said Shannu, a partner of the company.
The company is to maintain flats by offering Rs 3 lakh per annum to each studio apartment and increase it by 10 per cent every year. Owners can spend their time in apartments for 15 days a year, free.
Chinese, Koreans and Europeans are planning their dwellings in Pattaya, which has been swelling with tourists every year.
``With direct flights planned from Vizag to Bangkok, more people from north coastal Andhra and East and West Godavari districts would be visiting Pattaya,’’ Shannu said.
Return on investment in properties in Pattaya is second highest in the world. The average annual rate of return on property investment is 19 per cent. The average rental yield is 10-12 per cent, which is considered the highest in the world. Thailand tourism accounts for 17 per cent of the GDP.
By KMP Patnaik