The Russian-Ukrainian crisis hit oil prices hard, causing construction costs to rise. Real estate developers are expected to raise prices by 5% in the second quarter of this year.
The conflict between the two countries has an impact on geopolitics and the economy around the world. The main factor that the world has its eyes on is the trend of rising oil prices.
At the moment, the real estate sector in Thailand has not yet felt the impact of the crisis, but rising oil prices will increase the cost of the construction process in the future. Also, transport costs and transit times for some materials and imported equipment, such as steel and other materials, will have an impact on construction expenses.
Sittiporn Suwannasut, the Honorary Prime Minister of Thailand’s Home Builder Association (HBA), said that the situation in the Thai real estate market began to improve in early 2022. Many developers have resumed their activities; buyers carry out real estate transactions. However, if the international conflict escalates and continues, the global economy will suffer. Thailand won’t be an exception.
There is reason to believe that the economic outlook for the Thai property market is likely to stall and shrink again in the second half of the year.