Pattaya’s realty and travel markets will increase by 5% and 10%, respectively this year, careless of the political status, says Jugkarut Ruangratanakorn, vice-president of Ratanakorn Asset Co Ltd, a real estate company in the seaside resort city.

The Pattaya realty market displayed last year and will remain sluggish in 2010 because of political stresses, he told. But he hopes the market to retrieve from 2011 to 2014.

Pattaya realty hit a trough last year after enjoying yearly increment of between 10% and 15% from 2004 to 2008.

Tourism has also struggled because of the global recession and concern about Thailand’s political contention. Traveler arrivals to Pattaya dropped by 22% last year and income from touring dropped by 35% because of lower expanding per head and shorter stays.

Realty and touring in Pattaya still confront many risks, Mr Jugkarut said. Hotel occupancy could decrease by more than 40% due to an oversupply in hotel rooms. The realty market also keeps heavily subordinate on foreign demand, while foreigners’ buying power has been hit hard by the baht’s strength.

The condominium market faces an oversupply that will take from three to six years to absorb, while realty is overpriced and exceeds demand, he said.

Another risk is a lack of confidence. Purchasers dread projects may be discontinue. Buyers may also be incapable to accomplish payments.

He said developers should sell when Purchasers want to purchase and always prompt to arrange the project when needed.

While size and capital are inconsiderable, intimacy with a tourism location is a bonus.

Land accumulation is another benefit as it accounts for 30-35% of evolution cost. And networking is important.

Mr Jugkarut said developers should evolve their long-term competitiveness by making a strong product character, collecting capital and prime land plots, expanding to other supporting businesses and establishing proficiency in a particular product or market. “For Pattaya realty, wealth is waiting ahead,” he said at a seminar held by Real Estate Information Centre last week.

If investors are interested in the Pattaya realty market, they should know the purchasers profiles. Most of the city’s property buyers are foreigners from 15 or 20 countries.

“Foreigners from each country gather into a group, clearly inhabit in a different area and don’t live outside the area,” he said. “For example, Russians stay in Wong Amat, Germans stays in Na Klua and British stay in Khao Pra Tamnak.”

They also purchase property from companies from their countries or from salesman who speak their languages.