Common factors that have to be taken into consideration before investing internationally are the local regulations, economic conditions as well as political climate of the country in question. We take a look at the somewhat hyped-up controversy behind Thailand’s political unrest of yesteryears and highlight how the country has emerged into a viable destination for overseas investments – void of any threat to the real estate (or any other) industry:
Putting the issue into context
One main concern for many investors is the fact that the country has been constantly reported to have been going through political unrest, with the launching of a coup by the Royal Armed Forces in 2014 that formed the National Council of Peace and Order (NCPO) to run the country.
One should first consider the fact that Thailand is used to coups – this is the 12th time the military has taken over power since the end of absolute monarchy in 1932 – they are by and large peaceful processes compared to those that take place in other countries. Foreign Ministry spokesperson Busadee Santipitaks put things into perspective earlier this year when he stated that Thailand’s ranking and status as a dangerous destination was outdated and biased, and did not reflect the recently improved situation within the country. Many tourists have also mentioned the fact that they feel completely safe while visiting – with their major worries surrounding traffic and extreme sports that the country has on offer.
Proof of the fact that the country is toursist/fereigner friendly and growing from strength-to-strength is found in the fact that the nation’s capital, Bangkok, was the top visited city in the world in 2016 – an astounding accolaide by any measure. The reasons for this are evident- the nation offers an eclectic mix of rich culture, vibrant nightlife, bustling entertainment as well as some of the best cusine that any destination has to offer. Combine all this with one of the friendliest as well as inviting cultures in the world and one is left with is a country that is anything but hazardous.
How the coup has helped
Real estate developments/destinations depend on a multitude of factors that come together to create their success – one of them being surrounding infrastructure. The present government has actually upped its spending on infrastructure projects to the highest level in recorded history which should help boost economic growth rates by about 1 percentage point over the next two years – according to the country’s transport minister. The proposed projects include a Sino-Thai rail project worth 468 billion baht that will cover a total distance of 873 km and connect Nong Khai city on the Thai-Laos border with Bangkok.
The industry moving forward
With investors remaining overly cautious – due to the media’s reporting of events in the country as well as rapid emergence of the nation as a viable investment destination – now is as good as time as ever to tap the strengthening real estate arena in Thailand. It’s only a matter of time before the year-on-year growth of the nation catches the attention of investors and developers alike.