JLL launches residential project from Frankfurt in Thailand for the first time
The firm expects strong interest from high-net-worth Thais looking for investment opportunities in one of the world’s safe heavens
JLL is introducing Eden, one of Frankfurt’s iconic condominium development projects, to prospective buyers in Thailand. The development marks the first residential project from Germany’s finance hub that JLL has marketed in Thailand.
“Generally, most Thais looking for opportunities to invest in overseas residential property show exceptional interest in the UK, the US and Japan that they may be more familiar with, says Ms. Napapat Wanitcharat, Director of International Residential at JLL. “The launch of Eden in Thailand will unveil to Thai investors the strong investment potential of Frankfurt’s residential market, another major safe heaven for overseas investors,” she continues.
Eden is one of the most talked-about condominium development projects in Frankfurt, due to its exceptional location in the heart of the city, amenities, and spectacular architectural design. The project has been developed by Immobel, one of the fastest growing property development firms in Europe. Eden is marking the firm’s first footprint in Germany, the region’s largest and most stable economy that accounts for 20% GDP of the EU.
Upon completion in 2021, the project will feature a 27-storey tower with 263 residential units sized from 30 sq.m to 194 sq.m and priced between 358,200 € (THB 12 million) and 3,134,700 € (THB 105.3 million).
“Buyers in Frankfurt’s residential market comprise both locals and foreigners who have purchased units for own use or as an investment. Studios and one-bedroom units are most popular among investors as the two unit types typically enjoy the healthiest rental demand in the vicinity of Frankfurt’s business districts,” says Ms. Napapat.
“Investors purchasing a unit Eden and put it up for rent can expect investment yields ranging between 3%-4% per annum. However, most buyers put a greater focus on a potential capital gain on the long term as residential prices in Frankfurt are likely to rise further,” she adds.
According to data from JLL, Frankfurt’s residential prices have been on the rise for more than a decade and are likely to grow further as the city’s residential market has remained undersupplied. With about 736,000 residents, Frankfurt has a housing shortage of about 50,000 units and a very tight residential vacancy rate of 1.5%.
“With the current uncertainties in the world, coupled with more challenging conditions in Bangkok’s condominium market, we expect Eden to be well received by Thai investors who are looking for new opportunities in less volatile markets such as Frankfurt, Germany’s finance hub and Europe’s most important financial center,” says Ms Napapat.
JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. Our vision is to reimagine the world of real estate, creating rewarding opportunities and amazing spaces where people can achieve their ambitions. In doing so, we will build a better tomorrow for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $16.3 billion, operations in over 80 countries and a global workforce of nearly 92,000 as of June 30, 2019. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com