On June 23 of this year, The United Kingdom voted to leave the European Union. While it could be up to two years from the date of leave before the UK officially withdraws from the EU.
(UPDATE: Teresa May, the British PM has indicated triggering article 50, to withdraw from the EU in March 2017 – meaning a likely breakaway from the EU by mid-2019).
The nation’s economy, and the global economy as a whole, took an immediate hit following the vote. On June 24, global stock markets took a $2 trillion hit. The value of the pound decreased to a 30-year low. These effects, as well as other economic factors, have caused a drop in spending and a rise in prices. The real estate market in the UK is in a particularly precarious position.
What Brexit Means for Thailand’s Economy
While Brexit had immediate effects on the global economy, most Asians countries felt relatively little impact. Cities and nations that do large amounts of trade with the UK, such as Hong Kong and India, felt the most impact, but have since recovered. But other nations actually stand to benefit from the backlash following Brexit. One such nation is Thailand.
Even before the vote was cast, experts were predicting a positive impact on Thailand’s trade economy, as restrictions on trade with Britain would be relaxed following its exit from the European Union. Prior to Brexit, less than 2 percent of Thailand’s exports were connected to the UK, possibly because of such restrictions.
Brexit’s Impact on Foreign Investment in Thailand
Instability in the global market may actually cause an increase in foreign investments in Thailand. Many of the foreign companies that are already invested in Thailand are multi-national, and past trends suggest that during instability, multi-national companies tend to invest further revenue in their assets. Thailand’s economy has also strengthened significantly in recent years, and increasing amounts of infrastructure growth, particularly in Bangkok, are also likely to draw new investments in the coming months and years.
Possible Effects of Brexit on Bangkok Real Estate Market
Residents of the UK looking for affordable real estate property to invest in may find Thailand’s affordable, growing market attractive. The real estate market in Bangkok is particularly popular among foreign investors from around the world. Those considering buying or renting property in Bangkok are often drawn to the city because of its history, exotic culture, and growing infrastructure, including recent and continuing additions and improvements to the city’s public transit system,
A number of new condominium developments have sprung up throughout the city, with options ranging from the affordable to the luxurious. With the economy of Thailand expected to continue to improve, growth in the city is likely to continue. That makes now a great time to invest, as demand is likely to increase rapidly, raising the value of properties across the country.
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