Thai investors are not backing down

These measures were designed to "cool down" the irrepressible growth of the country's real estate market. In recent years, the increasing level of foreign investment in real estate in Thailand has greatly worried the Government of the country. Therefore, it was decided to raise interest rates to 2.0% per annum.
However, experts state that money from abroad still comes to the market, and the profitability of real estate has changed very insignificantly.

Developers are buying plots for the construction of new residential buildings. And residential real estate that brings a stable income is still interesting to investors.
A dozen of Thailand's largest developers have signed pre-sales deals with a total value of about one and a half billion US dollars since the beginning of the year. Comparative data show that pre-sales have increased several times compared to last year. Then in the first quarter, their cost was only $ 29.7 million.

Analysts explain this unprecedented growth by the strengthened economy and the stability of the political situation in Thailand.
Cottages and townhouses were in particular demand. The demand for condominiums is still quite high, but its growth has slowed down a bit. The reason is simple – not so many have been built since the beginning of the year. More than half of all pre-sales were for townhouses.

The measures of the Bank of Thailand, which limited mortgage lending to apartment buildings by 90%, have not yet affected the popularity of such housing. After all, the full cycle from the first installment to the commissioning of the building takes one and a half to two years, the advance payment (the first installment) is only 10% of the total cost and the vast majority of buyers have such an amount even without bank lending.
The level of value of Thai real estate compared to European is quite low with the same quality of infrastructure. Prices for luxury residential real estate here do not exceed average housing prices in Moscow. In the pre-crisis years, there was no frenzied growth in the value of real estate in this country, as in most countries.

If a project in Thailand costs more than the bulk of others, it is only because of the higher cost of construction. But these are isolated, we can say exclusive projects.
Foreign investors are attracted to Thailand, in addition to the relative cheapness of real estate, also the speed and ease of concluding transactions on it.

It is also important that many attractive projects involve purchase in installments provided for the entire construction period – the bulk of payments are made only after the construction is fully completed, and this is about 70% of the total cost of residential real estate.
The Asian real estate market is developing very fast now. Analysts consider it the most promising to date.

As for the real estate market of Thailand itself, investors from China, who are much more numerous than Europeans or other foreigners, are making a big revival in it.