The Property Market in Thailand - Green Door Enterprises

The Property Market in Thailand

Thailand's Property Market Is Poised To Remain Strong Despite Global Economic Concerns 

Talk of an uncertain future for the world economy is everywhere these days, If you watch the evening news or read the Sunday paper, you will hear terms such as "double dip recession", "austerity measures" and "euro-zone debt crisis". With all the negative reports floating around, a positive forecast regarding Thailand's economic future is welcome news for investors and real estate developers. Despite struggling economies in Europe and North America, the future remains bright for Asia. 

property in Thailand remains a solid investment for foreign investors

While investors appear to be pulling out of Europe, they may be looking at Asia as a more attractive place to bank on in the future. Leading the way are India and China, with the world's fastest growing economies, Thailand looks to benefit from it's geographical location between these emerging economic giants. The Thai economy has shown resiliency despite a rocky road in recent years, holding strong through challenging hurdles such as an unstable political climate, a global economic crisis in 2008, and a devastating natural disaster with the Tsunami in 2004.

Experts agree that if Thailand can sustain a stable political climate, the sky is the limit for economic growth. Following the recent election, consumer confidence is at an all time high, as the new government is expected to bring stability after years of political turmoil. Investors showed confidence in the newly elected government as the Thai stock market surged by 5% on the first day of trading after the election. The earthquake in Japan as well as flooding in Northern Thailand has prompted the Asia Development Bank to slightly downgrade a positive forecast for 2012, however a growth of 4.5% in GDP is still expected. 

A healthy economy, a rise in construction costs and increase in mortgage lending has resulted in an increase in the cost of housing in Thailand. According to The Bank Of Thailand, the cost of residential land has gone up by 13.4% since 2009. As demand for residential property increases, the rental market for condominiums and townhouses is growing rapidly. An increase in the number of annual tourists visiting Thailand will only strengthen the demand for rental units in places like Phuket, Pattaya and Bangkok. Thailand remains attractive to retirees and expats from around the world, with a relatively low cost of living and a warm climate year round, it is difficult to compete with what Thailand has to offer. With more foreign expats retiring from their posts around Asia, in places like Singapore, Hong Kong, Tokyo and other major business hubs, Thailand looks like an attractive place for these people to hang their hat. 

Leading the way are the beach resort areas such as Phuket and Pattaya, with world class golf courses, legendary nightlife and some of the world's best beaches, it is no wonder so many people choose to settle down in Thailand. While the cost of property in Thailand has skyrocketed over the past decade, it remains relatively affordable compared to Europe and The United States. Property value in Thailand looks to be on the rise in the future, as growing demand shows no signs of slowing. Despite global economic uncertainty, property in Thailand remains a solid investment for foreign investors.