Investing in real estate property overseas is becoming more and more popular with foreigners. But none of them buys blindly and just for the sake of it. Instead, they assess the real estate market, analyze what influences it most, what drives it forward, what can cool it off, and anything in between.
One of the hottest real estate investment spots in Southeast Asia is the Bangkok real estate market. Here we will explain the state of the real estate market at the beginning of 2020, what’s to be expected this year, and in the years to come.
Stable economic growth
According to analysts from the World Bank, Thailand’s economy is set for a stable 3% growth. Bangkok, as the capital of the country and the biggest city, is in the middle of that economic development. It is the place where foreign investors come first when they want to invest in the country. Many of whom decide to invest in Bangkok.
A stable economic growth, along with a stable political situation, makes two prevailing conditions for a healthy real estate market. The general rule is if the economy is doing well, the real estate market will grow as well. That was the default case for the entire country, not just Bangkok, for the last dozen or so years.
Government-issued stimulus package to boost the local economy
Last year the real estate market took a hit with the introduction of tighter lending policies. However, they tried to amend that with an introduction of a set of stimulus packages aimed at the local economy. The real estate market is already seeing the benefits of the new government-issued stimulus packages.
China’s One-Belt-One-Road initiative
Even though many Chinese investors are preoccupied with the trade war against China, they keep on making real estate investments in Bangkok. They see Bangkok as an essential part of China’s One-Belt-One-Road initiative.
That and the fact that Thailand’s government is making heavy investments in improving the city’s infrastructure and connectivity will have a massive impact on Bangkok’s real estate market.
Emerging middle class
Bangkok’s middle class is already a force to be reckoned with, at least in real estate terms. Their buying power is already at a top-level, and they make a significant percentage of the local population. They are the main driving force in the housing real estate market.
Long gone are the days when they were interested only in affordable housing, one or two-bedroom apartments. Nowadays, they look for mid-priced apartments and houses in good locations featuring numerous amenities.
Thanks to the many investment-friendly policies, the number of foreign real estate investors is growing year by year. Foreigners make almost 25% of all upscale real estate investments in Bangkok. The trend is likely to further increase in 2020.
Bangkok’s real estate market has been like a “golden goose” for many investors for more than a decade now. It always provided good ROI, with some segments doing better than the others. All current factors and conditions point to steady growth in 2020 as well. Therefore, investing in Bangkok’s real estate market is no short of a sure winning bet.