Real Estate Market in Thailand during The Pandemic
COVID-19 has truly left a mark in the world especially in the real estate industry!
Due to the unprecedented effect of the global pandemic, many industries have been severely affected including the real estate industry. Since 2020, several firms have been forced to stop operations, retrench employees and withhold ongoing projects.
The Downside
Travel restrictions have played a major impact on the decrease of revenue in real estate. During the start of the outbreak, tourists and foreign investors were only limited to zero entry to Thailand. This means that leisure properties including hotels and condominiums have seen an expected decline in revenue. In effect, developers were forced to pause ongoing projects and even stop those which were still in their beginning stages.
As it has been projected, developers of condominiums and other properties suffered severe losses considering the halt of project launches. In a report published by the Agency for Real Estate Affairs, in Bangkok alone, there has been a documented drop by 21% year-on-year, reflecting 1% growth in landed property and a 27% drop in condominiums. The value of new projects sold dropped by 21%: landed properties were down 11% and condominiums by 39%.
The Silver Lining
Amid all these however, there seems to be a glowing light at the end of the tunnel. As Thailand has been able to effectively contain the spread of the virus, the country is now beginning to bounce back and open its borders to the world.
Currently, the perfect getaway are the properties found in one of Thailand’s gems, the province of Phuket. Towards the end of 2020, investors from neighboring Asian countries have begun investing in real estate properties such as condominiums and villas in Phuket. Several real estate agencies have seen a growth in the number of potential buyers as the province has become a haven for a pandemic escape.
As to the business side of it, the season has been seen as the “perfect time” to invest. To compensate with losses, developers have strategized in qualitative and quantitative terms to keep the industry afloat and sustain commercial competition. Several developments have been integrated in new projects to integrate health and wellness measures to combat the health implications of the pandemic. Most importantly, discounts and services on properties have become evident to attract investors from all over the globe. For investors, this is an opportunity to find good properties to invest in as things are beginning to better shape and improve.
The wisest thing to do is to keep yourself updated with the real estate market in Thailand especially in Phuket where business is set to boom in the years to come. You can reach us as we would gladly assist you on anything real estate-related. Visit our website at https://ibgproperty.com and let us help you invest well!
Do not hesitate to reach us!
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