This year, Thailand has seen many floods. In February 2011, Krabi made headlines with mudslides caused by heavy rainfall. The current floods in North Thailand and Bangkok are also still a daily news item. Any disaster of this magnitude will have consequences. Krabi will be a popular destination for Bangkok residents who want to move. Read more now on real estate in Phuket
What impact will this have on Thailand’s real estate market?
It’s too early to reflect on this latest flood, but we know that it won’t be the last. Thailand, a tropical nation in the monsoon region, has always experienced high levels of seasonal rainfall. Whether the extremes we are experiencing now are due to climate change or just an occurrence that happens every year is up for debate. It is clear that we should learn from these past events and plan for the future. The majority of damage caused in Bangkok, and throughout Thailand in general, was the result of bad planning. The unrestrained housing development means that common sense is no longer a priority. So, perhaps the silver lining of all these current problems will be that the public’s attention will now be drawn to the developments that adhere to regulations and away from those that have ignored them.
Krabi is a relatively young area in terms of property development. This gives it the advantage of hindsight. Local authorities have taken lessons from Phuket and Samui, and are making significant progress in the design of infrastructure for the future. The roads, water and electricity supplies and the development of all are well planned. Planning regulations are also enforced. If the authorities continue to follow this path, Krabi will have a bright future.
Many companies also learn from their past mistakes and realise the marketing potential in incorporating additional strategies into their development. Water management is high on the list, as are drainage and local water supplies. But, also energy management, such as solar power and good design for reducing energy consumption, is becoming a major selling feature, since potential customers are beginning to place more emphasis on energy costs, and, most importantly, environmental concerns.
Local development companies have also been encouraged to take a proactive approach to the development of Krabi and its unique geography. The views are protected to avoid losing the beauty that is its main attraction as an international tourist destination.
The flooding in Thailand has led to a greater demand for condominiums than single-family homes. It makes sense, as you are assured of safety against flooding. They are also more efficient in terms of resource use, offer better security, are more cost-effective and are ideal for rental. This trend is likely to be seen throughout Thailand, not just in the Bangkok market.
Prime real estate in Krabi will become increasingly difficult to secure and find. We must be cautious to make sure that the condominium development does not reduce Krabi’s appeal to tourists. Tourism is driving the growth, but tourists can be fickle and fragile.
Krabi is a city with a bright future. Its natural beauty, its unique geography, and modern infrastructure will ensure that it grows. The lessons nature sends to Krabi’s developers and customers will help them grow. It is important to learn from the flooding that occurred in North Thailand. How Thailand recovers after the recent floods in Bangkok, and in the North of Thailand, will have a direct impact on the number of tourists and investors.