Categorized | International

Future is Bright for Thailand Commercial Real Estate

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Thailand has been enjoying a very positive real estate boom over the past few years, and the positive outlook is expected to continue for a few more, particularly in the commercial real estate sector. While Thailand’s government has attempted to slow down the housing growth by restricting credit access to many potential buyers, their actions have not yet had any sort of impact on the market.

In Bangkok alone, there are as many as two hundred condominium and apartment complex projects that are slated to begin in the next year. Even with all of the new construction of commercial properties, the vacancy rate of offices in Thailand has continued to improve year over year. The demand for offices in Thailand is meeting, or even greater than the supply, which is a very strong sign of market growth.

Some economic and real estate analysts are not as confident about the commercial real estate market due to the instability within the country’s political structure. However, the nation’s credit outlook was upgraded this year, and is now considered stable. Thailand has very little public debt in comparison to other countries similar in stature. In addition, Thailand’s banking system is considered to be strong, and able to withstand any potential external threats that may surface.

As long as Thailand can maintain general stability within its political ranks, and can improve the efficiency of their public sector, they may very well have one of the strongest commercial real estate markets for quite some time. The city of Bangkok continues to grow more appealing by the day to commercial real estate investors, and if the current trend continues, it will only get better for the entire country.

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About Nancy Raven

Nancy is the main writer for the International section of the website. Sometimes she also helps Drew out on the Finance/Mortgage section as well.

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