Opening borders and relaxing mortgage requirements will have a positive effect.
The Real Estate Information Center of Thailand (REIC) provides a forecast for the recovery of the Thai housing market to pre-pandemic levels by the end of 2023. In particular, experts called on the Thai authorities to make housing much more affordable for foreign nationals.
More about the situation:
- In November, the Central Bank of Thailand relaxed mortgage requirements to revive the real estate market, which currently employs 2.8 million people and accounts for about 10% of the country's GDP;
- Preliminary forecasts predicted a market recovery in 2025-2027, but with new measures, this may happen earlier;
- The source also reports a 35% drop in home sales by the end of 2021 and a subsequent doubling of transactions;
- According to the Minister of Finance of the Thai Kingdom, in 2022, the Thai economy should grow by 4%;
Easing mortgage conditions for foreign nationals should increase the volume of loans by $1.5 billion per year. However, Thai banks are still cautious about lending to non-residents.