Thai Unrest Bad News For Property Investors

Property experts believe that the current unrest in Thailand may have a negative impact on the country’s real estate market. The street battles in Bangkok are likely to put tourists off from visiting the country meaning that tourism jobs in Thailand may be lost. This may then filter down and affect the property market in the country.

The demonstrations in Thailand have already prompted a number of countries to advise nationals not to travel to Thailand and the pictures of gun fights on Thailand’s streets between protestors and troops has put some potential tourists off.

Up to 200,000 jobs are expected to be lost thanks to the demonstrations. 2 million people are currently employed in the tourism sector and the industry accounts of 5% of the GDP of Thailand. The Thai tourist industry has had a couple of hard years thanks to the SARS outbreak and the tsunami which devastated parts of the country, so the fighting comes as a further blow to the beleaguered industry.

Should the number of tourists drop, rental rates are likely to go down meaning property investors are less likely to make a decent ROI and are therefore less likely to want to invest in the country. With less property investors interested in real estate in Thailand, demand will decrease therefore property prices may also decrease in price. Whether this happens on not will very much depend on how quickly the country can repair it’s tarnished image to tourists.

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