The economies of Asia-Pacific are likely to take a significant hit in 2020, with the IMF’s recent Global Economic Outlook predicting a contraction in output across the region for the first time in 60 years.

With the advent of the Covid-19 pandemic, there has been a significant impact on movement, and trade, real estate activity. Under a compromised situation with uncertainty prevailing in the supply chain, it becomes quite difficult to manage cash flows in the struggling months of 2020. 

Highlights of the present situation has led to : 

• Investment volumes were down 50% YoY in Q1 2020.
• Tenant friendly conditions are witnessed overall in office, industrial and residential markets as the market shrinks in terms of transactions and requirements. 
• With the uncertainty of global demands, many international buyers are postponing deals that have been severely compromised. Within such an uncertain environment, concerns about cash flow and supply chains, together with the difficulties in conducting inspections have all contributed to a fall in demand for most types of property.
• Although there is a trend for repricing and lower interest rates amongst mid-range properties, the higher end prime assets remain resilient in their own accord to withstand the present economic slowdown.
• there is likely to be a flight to quality, with well-leased prime assets likely to see values remain resilient in their own 
• We notice a rise in e-Commerce logistics in several markets including Southern China and India.

Thailand has withstood many economic challenges in the past and has always bounced back with greater intent to prove solidarity in the real estate sector. We are expecting this continuing process of resilience towards a thriving economy in the next couple of years. Market recovery is expected as early as the end of 2020 or early 2021.

2020-21 will witness a significant change in Bangkok’s property market, with slow growth in many sectors and incoming waves of new supply. Increasing land prices and scarcity of freehold lands in prime locations are key factors for urban development hit back after the pandemic. However, with new regulations on the horizon, developers are taking a step back to assess the situation.

High property prices of condominiums seem to be a new norm with an average prevailing rate of THB 250,000 per square meter. However, there will be winners and losers in the market, depending on their product positioning and price. It is a buyer’s market now and they will have several options to choose from in each segment. Unsold units in completed projects are being offered at discounted prices to clear the inventory.

By the last quarter of 2020, the new projects would start to bounce back and continue competing with added unique propositions like home automation, rental management schemes, and mixed-use developments. Buyers will be able to choose from a wide variety of properties with value-added services and selection can be made with the right blend of price and lifestyle.

• Market conditions are expected to improve alongside the slow and steady growth of the Thai economy. The Thai government is investing a lot in infrastructure development that would stimulate demand for new properties and bring adequate confidence to foreign investors. In the coming years, the real estate sector will deploy higher technologies in its construction operations which will help to build more trust in the real estate business.
• Large Real Estate developers would continue to dominate the market as they are well equipped to adjust themselves in the changing circumstances. They enjoy strong financial footing and able to raise capital through the stock market and get the advantage of lower costs of financing. 
• Small and medium-sized developers will face higher levels of constraints to struggle for sustainability because of their lack of flexibility to adjust their business operations in this shrinking market demands. Capital and market loans may show a distinct decline than in the past. 
• As for the trends of condominiums at the center of Bangkok and alongside rapid mass transit lines will be mostly dominated by large developers who have requisite capabilities in project management, marketing, and financing, not mentioning their easier access to land for development.
• Small and Mid-sized players would focus more on developing low-rise condominiums (8 floors or below) is less potential urban areas than building detached houses or townhouses in the same area.

Thailand has a huge real estate market growth waiting to be nurtured even more. If you are really looking forward to earning a fortune in the Thailand real estate market, then you must consider these few things before investing.

Research about Thai condos  

There some government-imposed restrictions on the purchase of property in Thailand as a foreigner. Therefore you can research about condos or apartments. Unlike a plot of land, you can own 100% of a condo or an apartment in Thailand. This is probably one of the easiest ways of owning a property in this country. This has been backed by the 1979 Thailand Condominium Act which states that as long as the main building is owned 51% by a Thai citizen, a foreigner can own 100% of the condo. Legal assistance is available from Startup in Thailand should you require it.

Getting a loan  

When you are planning to buy a property in Thailand, you may require a loan. In a general perception, it is fairly difficult to secure a loan from a Thai bank for foreigners. But not impossible. With a bit of patience a determination in, you will be able to get enough backing for doing business in Thailand in the real estate market. Remember that if you do not have any prior history of working or even living in Thailand, then it is a better option to take the loan in your own country. When the property is going to be declared under a foreigner’s name, the money needs to come from the overseas country for conversion.

Zero Property Charges  

Yes! You read that absolutely right. Unlike many other countries, Thailand does not impose any proper taxes. It is absolutely zero. Foreigners who own a condo, for instance, do not have any property taxes applied to their purchase. The owner of the main building the one who will be responsible for the tax. But there are other taxes that you need to clear, for example, while selling your property you will have to clear the transfer fees, documentation fees, etc. But the main advantage that you get is the zero property charges.

So here are some of the key points that you should remember always before you invest in the real estate market in Thailand. The Thailand real estate market has a huge potential to grow in the future and has already shown promising numbers in recent years. But the market is volatile as well and that is why every decision you take needs to be accurately planned and strategized.

If you are planning to invest in the Thailand real estate market then it is important that you consult different professional Startup Consulting firms. Before you plan and strategize all your business planning, it is very crucial that you know about the laws, legal aspects, and various other things of the country. So if you think that you will not be able to tackle so many things at once, you will need to consult all these vital points with a Thai real estate agency.

Taking suggestions and advice from real estate consultants provides you with much better decision making abilities. You will be able to carry out all the transactions and deals in the real estate sector without any hassles. One of the biggest benefits of consulting such an agency is to get hold of some reasonable and strategic real estate locations in different parts of Thailand.