Pattaya, Thailand; 26 Dec. 2022: In 2021, the global market size of the real estate market was valued at USD 3.69 trillion. The market size of the real estate industry is expected to expand at a Compound Annual Growth Rate (CAGR) of 5.2% in the forecasting period 2020-2030. Considering the increasing population and demand for household space, experts have predicted healthy market growth within the forecasted period. Commercial real estate is the crucial element driving the expansion of the industry.

The market was doing well until the onset of the global pandemic COVID 19. Due to the pandemic, the current real estate market is facing a hard time. The demand for apartments and condos for rent in Pattaya is severely affected by COVID-19. The famous Piti Tantakasem (Director and CEO of TTB bank) has enlisted the seven major factors that influence the real estate market of Thailand.

Factors Influencing the Real Estate Industry in Thailand

According to Piti Tantakasem, the following are the main factors that affect Thailand's real estate: -

Change in Population Structure

The population pyramid has undergone a huge change with the increasing elderly population and decreasing number of working-age people. The population structure has changed and witnessed a shrinking young and working population and an increasing population of elderly people. In simple words, Thailand's population is aging rapidly. Social processes indirectly influence the real estate market.

For instance, the chances of older people purchasing a new home are relatively lower than young people. In addition, the young and working population adjusts and limits itself to small apartments and condos close to their university or office. Besides this, small families prefer small and inexpensive townhouses for their residences. As a result, the demand for large and luxurious houses continuously declines.

Changes in Lifestyle

The global pandemic has significantly changed many people's lifestyles. It has set new trends like working from home in the corporate and public sectors. The employable people got the work-from-home opportunity during the pandemic, which simply means people need office space in their houses. Now people prefer to live in the countryside with an eco-friendly and comfortable lifestyle.

Purchasing Power

Debt has a significant effect on the purchasing power of consumers. And the debt problem of Thailand is not hidden from anyone. The debt problem in households in Thailand remains huge, thus influencing their purchasing power.

Government Initiatives

To stimulate domestic purchasing power, the government took measures in 2022 to help the real estate sector. Moreover, the government measures are temporary and can only affect the purchase of inexpensive real estate. For the foreign indicators, the demand is only decreasing.

Oversupply

Oversupply has always been a problem. However, the oversupply done in the real estate industry has recovered in the last three years.

Construction Cost

The cost of construction also affects the purchasing power and will of people. And the continuously rising construction cost is surely a red flag for the real estate industry.

Increasing Interest Rates

Growing interest rate trends directly impact the real estate sector; that's why the policy interest rate is expected to be adjusted in 2023, leading to a subsequent rate hike.

Final Words

The real estate market will change according to industry trends. If you are looking for apartments for sale in Pattaya, Thailand, then Global Top Group, Co., Ltd. is a reliable place. We help our clients to buy property in Thailand. To know more about us and our services, feel free to explore our official website https://globaltopgroup.com/.