Entrepreneurship: Investing in Land in Thailand

One of the hottest investment concepts in Thailand today has been to establish your own small hotel near the beach. The reason why this is so popular is due to the sheer amount of foreign tourists that enter into the country on a monthly basis looking for affordable places to stay. With lots of land for sale online via sites like DDProperty, starting your own small hotel business is not that far-fetched. However, establishing a hotel is not the only possible use of land that you can go for.

There have been plenty of entrepreneurs that have been focusing on creating retirement communities for foreigners near beaches. With the sheer popularity of Thailand as a resort and retirement location, there has been a significant increase in the amount of people looking to retire near the beach .

What to Look For in a Parcel of Land

The first factor that you have look for is that it must have easy access to the beaches and various water sports based activities. This is one of the reasons why people come to Thailand in the first place; if you purchase land far away from the beach, it is highly unlikely that anyone would even stay in the hotel. The property must also be situated at least 15 minutes away from Phuket via boat which draws in thousands of tourists every year.

If you can find a parcel of land with these properties then you’ve definitely got a winner on your hands. These combined factors result in the hotel being placed in a potentially lucrative business location that you can leverage to make your hotel a good stop over destination before foreign visitors go to the more popular locations in the country. The operational structure of your mini hotel can be somewhat similar to your average hotel with a front office, kitchen staff, various support services etc. but on a very small scale.

Other Potential Land Investments

While this article has so far emphasized that purchasing land near the beach would be an excellent investment, there are some alternative that you can take into consideration. For example, Bangkok is also a popular tourist destination due to its sheer cultural heritage. Since it is located near several national landmarks and temples, people often stay in small hotels in Bangkok while taking local methods of transportation to get to the nearby tourist destinations. As such, investment in land within a good location in Bangkok is also a viable alternative if you think that building a hotel near a beach is not for you.

What to Look for in Parcel of Land

Purchasing a parcel of land within the city is all about location. It has to be near the transportation depots that tourists use to get to the local temples. If a hotel is close to these areas, it is likely that guests would choose your hotel over others that are farther away since this helps them to avoid traffic as well as make it on time when it comes to the bus schedule.

Land Banking

If you are the sort that doesn’t want to own their own hotel but likes the concept of investing in land, then there is always the option of land banking. Land banking is basically the process of purchasing parcels of land to developed later on. What you could potentially do is look for various empty lots within major cities like Phuket, transform them into temporary parking spaces for cars and bikes, then sell the land later on to a developer that is interested in the property. This is actually a very common business strategy within Thailand due to the sheer amount of motorcycles and mopeds that are popular within the country.

Mini Town House Communities

Another popular use for land within Thailand has been the creation of mini townhouse communities. What happens is that lots that are roughly 1,500 sqm are bought and are then divided into 250 sqm each. Multi-story townhouses are then built on each 250 sqm lot which maximizes the amount of space. This enables a small time developer to create a series of townhouses in good locations that people would definitely want to buy.


While the idea behind establishing hotels is a good one, the current problems within the global economy has created a noticeable impact on hotel guests at the present wherein many have been reluctant to spend as much as they used to. As such, investing in just land for future sale does present some stable means of protecting your investments for the long term. Thailand has numerous opportunities when it comes to land use and what a smart entrepreneur can do with them. All you need to do is examine what is present, how you can use it and what problems to potentially avoid.