While the political crisis in Thailand was and still is expected to have adverse effects on many industries, the real estate industry’s niche sector of luxury properties is actually benefiting.
As a direct result of the political turmoil; a postponed election, daily protests, halted traffic, etc., the Thai baht has depreciated. While this may not help the average Thai person buy, rent or sell a property, it is helping Thai real estate agents who sell luxury properties to foreign investors.
As the Thai baht continues to loses strength, more foreign buyers are capitalizing on the situation. With the lowered cost of luxury properties, foreign investors realize that they have about ten percent more buying power than they did in Q3 of 2013, before the political unrest began to take hold of the country. As Thailand is centrally located and attracts foreigners from all over the world, it is appealing to investors aside from the fact that they can now get much more for their money.
Because the political situation is volatile and could even out at any time, investors are acting quickly and purchasing bigger, better and more expensive properties than what originally fit into their budgets. The luxury property sector is actually doing so well right now that the demand is exceeding the supply, reports The Nation. Fragrant Group CEO James Duan stated that Thailand’s political instability has actually helped in stabilizing their sales.
