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The Three Key Areas of Chiang Mai - A Look into the Future of Chiang Mai's Real Estate Market

Business Information, Thailand / Author:" BEYOND360 PROPERTY

Thailand has always been one of the top countries in the world for foreign retirees buying property. Bangkok, Pattaya, and Phuket have frequently been chosen as popular retirement holiday cities. So, how is the market situation in Chiang Mai, known for its reputation as the "Rose of the North"?

Buying property in Thailand has always been an unavoidable topic for friends investing or settling in Thailand. Especially after the impact of the COVID-19 pandemic, property prices in Thailand have noticeably slowed down, leading many to believe that now is the best opportunity to invest in the Thai real estate market—a rare chance in the last decade or so. Driven by this trend, major developers in Thailand have also launched online sales and social media promotions to help buyers better understand the property market, achieving great results.

However, any investment comes with risks, and buying property in Thailand is no exception. Although the current online sales of real estate utilize mature technological means like VR property viewings to assist buyers in making decisions, it is still crucial for buyers to explore and understand the surrounding areas themselves. For someone looking to buy property in Thailand, the value of the property itself is important, but location is equally critical. A good location may offer a rich living environment or have a promising future supported by favorable policies. Of course, prime locations in Thailand also tend to come with the highest prices, so choosing a location with potential is key to maximizing investment returns.

Chiang Mai Real Estate Area Situation: Old City of Chiang Mai, Nimman Road, and the East Bank of Ping River."

Speaking of property prices in Chiang Mai, they are actually not very high, and they vary depending on the distribution of areas. The main areas for real estate in Chiang Mai are: the Old City, Nimman Road, and the eastern bank of the Ping River. From the performance of the real estate market in these three key areas, one can clearly see the Chiang Mai government's future plans for the ancient city and its potential for appreciation.

Chiang Mai Real Estate - Old City of Chiang Mai:

The Old City area of Chiang Mai is the heart of Chiang Mai and one of the must-visit spots for tourists arriving in the city. Historical temples, ancient city walls, and the famous weekend night market are all located within the Old City. There are virtually no new apartments or residences within the Old City, as new housing and apartments are primarily found in the Thapae Gate area just outside the east gate of the Old City. This area has seen significant price increases, with rising rents and high rental yields, making it a typical golden business district.

Due to its advantageous central location, the Old City area has attracted a significant number of investors, resulting in rising property prices. The area is densely packed with businesses and sees heavy foot traffic. Initially, the average property price was around 12,000 yuan per square meter. However, with the increase in investors, property prices in the area have surged, with starting prices now reaching approximately 17,000 to 22,000 yuan per square meter.

Chiang Mai Real Estate - Nimman Road:

Nimman Road in Chiang Mai is the financial street of the city, featuring many world-renowned brands and a wide variety of offerings, making it a shopper's paradise. The thriving commercial activities and bustling foot traffic have led to a rapid increase in real estate developments in the area, with property prices rivaling those in the Old City business district. Nevertheless, this has not dampened investors' enthusiasm.

Additionally, because Nimman Road is close to the university town, the surrounding area is filled with various restaurants and emerging shops. Coupled with its proximity to Chiang Mai University, it has secured a stable source of long-term tenants. The soaring rental prices and convenient lifestyle are attracting more investors to this area. Property prices in the Nimman Road region vary depending on specific locations; properties farther from the central area have an average price of around 10,000 yuan per square meter, while those in better locations approach approximately 20,000 yuan per square meter.

Chiang Mai Real Estate - East Bank of Ping River:

The eastern bank of Ping River belongs to Chiang Mai's new urban area. While the foot traffic in this area is not as high as in the first two, it boasts the largest commercial center in Chiang Mai. The investment prospects here are very promising, making it a currently developing area. Due to its high investment value and positive outlook, property prices in this area are around 10,000 yuan per square meter.

Chiang Mai Real Estate: Key Advantages Summary

The housing prices in Chiang Mai are mostly regulated by the market. The real estate market is relatively standardized and does not easily fluctuate, ensuring that property prices maintain a stable upward trend, with the prices of apartments in the central areas increasing by about 10% annually. Therefore, the most significant advantage of the housing market here is its stable growth and high investment return rate.

Currently, Chiang Mai is increasingly favored by overseas investors. The accurate positioning of the property market and extremely high investment returns are key factors contributing to the steady growth of property prices. Additionally, stable rental returns further attract overseas investors in a very tangible way.

Chiang Mai Real Estate - Market Outlook