Thai Political Situation Impacting Real Estate Sector

Real estate experts have expressed concern over the impact on the sector due to political uncertainty stemming from the May general elections which saw the installation of a new Prime Minister Srettha Thavisin, despite the Move Forward party winning the most votes.

The real estate sector contributes around 10% of Thailand’s GDP, so any negative impact on the launch of new projects and sales has a significant knock-on effect. The impact of the slow economic recovery in China and high-interest rates are also contributing to slower-than-expected investment.

A recent CBRE report predicted a 15% decline in commercial real estate investment which would not see a return to positive growth until mid-2024.

These factors are combined to increase pressure on the new government to introduce stimulus measures to give the real estate sector a much-needed boost.

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