Overseas property investors interested in Thailand but worried about annual flooding problems may wish to look at the up and coming destination of Krabi on the west coast of southern Thailand.
As a relative newcomer when it comes to property development, Krabi has seen the effects of poorly planned building and is able to learn from the mistakes made in Bankok, Phuket and Samui. Infrastructure has been well thought out in anticipation of potential flooding from monsoon rains, with roads, electricity and water supplies facing stringent regulation.
The flooding has also stimulated development companies into taking the initiative and incorporating additional strategies to mitigate environmental effect in their properties. Although issues regarding water management such as drainage and supply remain high on the list, it has been noted that reducing energy bills is also appealing to investors.
However, despite the current buzz around Krabi, local development companies have been conscious to prevent the loss of the area’s beauty, taking care not to destroy the views which are the main selling point.
As a result of the flooding, real estate demand in Thailand is now concentrated around condominiums as opposed to individual properties, with their assurance of flood safety a key driver in their popularity. They are seen to offer better security to wealthy investors, and can be cost effective in prime locations. They also offer attractive rental opportunities for investors who wish to branch out overseas.
Warnings have been voiced regarding the fact that prime real estate locations in Krabi are likely to become few and far between as its popularity grows. With the importance of retaining the area’s natural beauty, the tourism market is forced to play a delicate balancing act between meeting demand and also ensuring that the reason for that demand still remains. Krabi’s attractive environment could easily be spoiled by over development.
The natural beauty of Krabi makes it an obvious choice for tourists and developers as Thailand gains popularity. The floods that crippled the north of Thailand represent a lesson to those building infrastructure and the recovery of the country is likely to have impact on future investment locations, with places like Krabi leading the way.