Thailand is now reeling from the effects of the worst floods it has experienced, in the last 50 years. The damage it has caused could have a long term effect and may alter the current picture of the real estate market. The floods started around October 2011, which led to the closure of industrial plants, the abandonment of housing projects and the destruction of houses. Even though clear up efforts may provide some momentary relief for construction companies, reports warn that Thailand’s economy is likely to see a drop 2012.

Thailand is now reeling from the effects of the worst floods it has experienced, in the last 50 years. The damage it has caused could have a long term effect and may alter the current picture of the real estate market. The floods started around October 2011, which led to the closure of industrial plants, the abandonment of housing projects and the destruction of houses. Even though clear up efforts may provide some momentary relief for construction companies, reports warn that Thailand’s economy is likely to see a drop 2012.

Where The Opportunity Lies

• The recent flood has motivated many buyers to look for areas unaffected by the flood and properties that are equipped with facilities that will ensure safety and provide their needs in case worse floods come along.
• Overseas investors and local developers have shown a lot of interest in the Pattaya area. Its close proximity to Bangkok and good value for money has maintained strong demand for new projects and holiday properties in the area.
• The newly instated Pheu Thai government is trying to boost long-term investor confidence, as the political instability of the past dwindles away.
• The recent decision of China to cool off properties will most likely push investors towards other Asian countries. Thailand’s close proximity to China provides the potential of drawing a huge number of Chinese investors.

Where the Risks Are

• There is still some political unrest and it might take longer than expected given the pressures for Thailand to recover economically after the flood.
• There seems to be no significant increase in office space in 2011.
• The continuous efforts of neighboring countries, such as Vietnam, to strengthen their policies to attract more foreign investors could also threaten Thailand.

With all the efforts the government is putting on the rehabilitation efforts, it won’t take long for Thailand to bounce back and like any other country who has been damaged, the recovery will most likely be richer.