Since Thai law forbids residential properties from offering short-term leasing, property developers have turned to a more flexible rental option
Condotels used to comprise just a small part of the country’s real estate sector, up until recently when tourists in Bangkok, Pattaya, and Phuket started to embrace this alternative short-term leasing option, reported Bangkok Post, citing the 2019 market outlook research conducted by JLL in Thailand.
“Our research shows condotels are becoming an increasingly popular development option and are likely to grow in number over the next few years,” said Chakkrit Chakrabandhu Na Ayudhya, executive vice-president for investment sales at JLL’s Hotels and Hospitality Group.
By the end of 2021, condotels will exceed the 3,000-unit mark in Phuket, which will constitute more than 30 percent of the total number of new hotel rooms.
Just recently, Blue Horizon Developments began construction on Best Western Plus The Beachfront Rawai, a 189-room condotel development project. They are also planning to launch five more projects with over 1,500 units within three years.
Pattaya, on the other hand, will welcome 1,100 units by 2021.
Habitat Group is the region’s leading developer, with two development projects, X2 Pattaya Oceanphere and X2 Vibe Pattaya Seaphere Residence, already operating. They are also planning to open four new projects by 2022.
Although the capital city does not have a lot of condotels that comply with industry regulations, Siamese Asset remains to be the main player among the local developers, having introduced Blossom Condo @ Fashion in the Bangkok scene.
The property development firm has already set two more projects in motion, The Siamese Exclusive and The Collection, where half of the overall number of units will be condotels.
Other international brands operating condotels in the country are Wyndham, Best Western, and Boutique Hotel Management Asia.
Condotels are defined as condominium development projects that have obtained a hotel licence to operate as a hotel, offering daily or weekly leases, which is prohibited by Thai law for regular condominiums.
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