The Investment

The homes at Krihaat Lakeside have been planned to give their owners decades of service as beautiful and functional residences. A home is also an investment and we are committed to sustaining and increasing the market value of its properties.

2008 was an extremely challenging year for Thailand’s economy, particularly for the tourism and real estate industries. The combination of a slumping global economy and a wave of political unrest that culminated in a week-long blockade of major airports took a heavy toll: tourist arrivals were on track to total 14.6 million in 2008 and were expected to reach 15.6 million in 2009, but current expectations have dropped to 13.8 for 2008 and may be reduced to under 13 million in 2009. The airport closures may ultimately cost the Thai economy 290 billion baht, or 3 percent of 2009 GDP, with the tourism sector the hardest hit.

Despite the immediate challenges, Thailand remains one of the world’s most attractive destinations for real estate buyers, particularly in the RSH (retirement and second home) category. Thailand has rebounded from crisis before, after the tsunami in 2004, the SARS outbreak in , and the Asian economic crash in 1997, and the real estate sector has always been a leading driver of recovery. This is because the appeal of Thai real estate lies in fundamental value, and value will always attract buyers, especially in tight economic times. The underlying demographic drivers of real estate buying remain unchanged: the baby boom generation is fast approaching retirement age. Thailand’s appeal to retirees remains unchanged: the country offers first world-standard infrastructure and health care and a standard of safety and general quality of life that no other emerging market approaches. Tropical beaches, superb golf courses, luxurious restaurants and spas, uninhibited nightlife, sailing, fishing, and a wide array of other attractions are available at a fraction of what they would cost in Europe or the US. In the final analysis, a retiree in Thailand can live like royalty on a budget that would barely allow for survival in the developed world, and that’s a value proposition that will continue to attract attention. The current challenges have done investors a service by providing an attractive entry point: real estate prices, which had been trending steeply up, have paused and in some cases even receded, providing an excellent opportunity to hold a piece of a market that will inevitably rise in value as the volume of retirees swells.

Thailand’s appeal is strongest and most durable, in the resort center of Pattaya, and the surrounding areas of Jomtien, Chonburi, and Rayong. This area has seen rapid appreciation in real estate values, with growth of over 30 percent in the last two years. Global real estate analyst CB Richard Ellis Inc notes that:

“Thailand… is already well recognized as a tourist paradise and this is favorable to it positioning itself as the preferred location in Asia for persons wishing to own a second home… The quality of living has improved rapidly in many favored holiday destinations in Thailand while the cost of acquiring property and general living expenses are significantly lower than those of developed countries. Thailand now has the necessary infrastructure to satisfy many foreign retirees, long-staying tourists and second home purchasers.”

The resort center of Pattaya and the surrounding areas represent the single strongest real estate investment opportunity in Thailand. Bangkok’s new airport has cut travel time from entry to destination from two hours to less than one hour. The regional tourism business is increasingly focused on upscale arrivals, with major international hotel and resort chains have flocked to the region , driving a projected 50% increase in 5-star room inventory over the next 3 years. The area features an extensive array of world-class golf courses, yacht clubs, spas, restaurants, hotels, and night life, making the area one of the world’s most appealing and fastest growing leisure centers. World class international schools and world-class health care facilities round out a highly attractive relocation package. Easy access to port and airport facilities and freedom from Bangkok’s traffic and congestion have drawn local and international business and industrial investment to the Pattaya’s real estate market is thus driven simultaneously by RSH buying, demand from expatriate investors, and an influx of well-off local buyers, a more diverse and stronger base than that supporting some markets drawing purely on resort appeal.

Krihaat Lakeside combines secure ownership of a rapidly appreciating asset with solid annual rental returns and a luxurious getaway in a prime tropical resort region, a luxury retreat and a secure asset-backed investment blended in a single affordable package.