Although Thailand is a developing nation, any intelligent investor knows that quick development usually equates to numerous opportunities. Still, Thailand is a challenging market to get into, and any foreign investment requires careful consideration. Thailand has had a reliable GDP growth ever since 1997. Thais are becoming wealthier each year. However, this economic growth is not enough to mean great real estate and housing. What else is offered by the Thai market?
Thailand’s best real estate market strength is its resilience, tried and tested through the years. Its land values and property demands have rebounded from numerous crises during the last 3 years. It has weathered through everything from a great political upheaval to August 2015’s tragic bombing. Even with its shaky economy still recovering from the 2009 financial crisis, its ability to bounce back is an attractive quality for any intelligent investor.
In addition to its capability to bounce back from any setback, the Thai real estate market is one of the most reliable growing markets. The prices are showing continued growth year after year, across every sector of the market. Since 2008, the condominiums have acquired around 5% – 12% yearly price growth each year. Even the luxury properties, worth 10 million baht or more than $300,000, a sluggish market segment before, are presenting growth as well as attracting the foreign investment dollars since 2013.
After about 2 years where no recent luxury property was developed in Phuket, there were 53 new ones that went on the market last 2015. However, Bangkok still has more with almost a thousand recent units available. The Thai real estate market is reliable at keeping this steady increase of price.
Infrastructure Growth and Investment
Since still a developing nation, Bangkok experienced infrastructure issues. However, it is set to be the main hub for the Southern Asia train system that connects multiple Southeast Asian nations, financed by Thai and Chinese governments. They are also extending their mass transport investments with plans for the local rail systems and motorways.
Although there are still disadvantages to consider, such as restrictions regarding foreign ownership of properties and a steep competition on rentals, that are making profit a challenge, Thailand’s resilient market and growing infrastructure make the investment a comparatively stable one. As always, it is best for any investor to seek for legal advice from a reputable company like Frank Legal and Tax in Thailand especially for decisions relating to investment and money.