With millennials currently taking the world by storm, the Baby Boomers and previous generations are getting older and starting to retire. It’s no wonder that both overseas and local elders have increased the demand for Thailand property investments fit for a peaceful retirement home.
In Thailand, the number of elderly people over the age of 65 has risen sharply in recent years. The World Bank report stated that in 2016, 11% of Thailand’s elderly population was aged 65 and above. Meanwhile, the number of elderly people was expected to increase by 17 million (more than 25% of the total population) in 2040. As a result, Thailand real estate developers are taking this opportunity to launch local luxury projects such as Thailand condos and homes for wealthy overseas and local retirees.
Suphin Mechuchep, managing director of Jones Lang LaSalle-Thailand, said “The Thai luxury market is now smaller, but it has a lot of room for growth.” She also pointed out that Thailand’s good living environment, low cost of living, and high-quality care services are what attracts a lot of overseas investors to stay and buy a Thailand property investment.
International Life magazine released its annual rankings of the “World’s Best Places to Retire”. Mexico ranked first place followed by mostly Central American countries like Panama, Ecuador, Costa Rica, and Colombia. The only Asian country included in the top ten was Malaysia placing sixth in the list. Thailand placed 12th but came as the second Asian country in the rankings.
Annual Global Retirement Index | Chart Source: International Life
However, Dexter Norville, director of property management at Jones Lang LaSalle, pointed out that Thailand’s luxury retirement property market still faces a big challenge. Local developers have little knowledge about the market in order to make quality developments, operations, managements, and marketing. He’s hopeful that Thai real estate developers can work with relevant international experts to improve their knowledge and quality Thailand property investments for the elderly.
At the same time, several local real estate developers have identified seniors as target markets of their Thailand real estate market projects. For instance, Toyota Tsusho Thailand has announced a multi-purpose property project for the elderly in Bangkok. The property includes not only Thailand homes and flats but also clinics to cater for the daily medical needs of the elderly.
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