Real estate business direction And important trends of 2024 that small factory owners should know!
Factors that will help the real estate business and small factory industries Improved in 2024
In addition to business operators and various industries having to face the consequences of the epidemic crisis, they must also face the war situation of Russia and Ukraine, which is likely to become more and more severe at the end. Year 2023, which will definitely have an impact on the global economy. Whether it is importing and sending items from many countries around the world. Including Thailand itself. Therefore, updating information of various businesses, especially industrial sectors related to the business of Small and large factories in Thailand are important things you should do later this year. To know the important directions and trends that are about to happen. To apply to your business so that it can operate well through various crises.
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In many of our articles we have already presented many trends in various industrial businesses. In this article, Prime Estate, a small factory for sale, would like to present about the trends of various real estate businesses, especially the industrial estate business (Industrial Estate). Business of allocating land for sale or rent for business operations small factory and large areas of industry and commerce It provides public utilities and utilities such as electricity, water, and flood prevention systems. Central wastewater treatment, etc.
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What are the factors? that affect the direction and important trends of the real estate business in 2024
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Krungsri Research’s perspective The real estate business in 2023-2025 is likely to gradually recover. with the following supporting factors:
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The Thai economy is gradually recovering.
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Progress in public infrastructure investment will support economic activity growth as a result.
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Recovery of the tourism sector It is expected that the number of foreign tourists will return to a level similar to before the COVID-19 crisis by 2025.
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Stimulating measures from the government such as reducing transfer and mortgage fees (effective from 1 January 2023) and pushing Thailand to become a “Second home” for potential foreigners
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As for the industrial estate business, there is a trend of recovery following the trend of expansion of investment in the manufacturing industry. Especially the investment of 3 big brands that are companies producing various parts for EV electric cars, which will support the performance of Industrial Estate, a business that allocates land for sale or rent for operating a small factory. and large to have increased sales and production. causing the land rental business to return to expand well The income of the operators may vary depending on the location of the industrial estate. It can be summarized as follows:
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Industrial Estates in the Eastern Region: Income is likely to grow more prominently than other areas. It is expected that there will be demand for purchasing or renting land. will expand favorably Benefits from infrastructure investment to support EEC projects in 3 provinces (Chonburi, Rayong and Chachoengsao) which will attract the attention of both Thai and foreign investors. Especially the target industries that the government promotes. However, the new supply
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Industrial estates in the central region: Income is expected to continue to grow well. Especially income from utility services and rent. Because industrial estates and small factories and large in the central region have more physical advantages in transportation compared to other areas. Meanwhile, the expansion of business areas is still quite limited. This is because areas with potential for basic information are concentrated in Bangkok, Samut Prakan, Ayutthaya, and Saraburi.
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Industrial estates in other areas: Income tends to be stable. According to the demand for buying or renting land which is still low. Because we still have to wait for driving force from the government. Especially the progress of infrastructure investment, such as transportation routes that connect to neighboring countries and nearby areas. Therefore, it is likely that the industrial estate In this area, growth may still be slower than the 2 areas above.
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This is consistent with the Kasikorn Research Center’s view that Real estate market trends in 2024: Construction costs will increase, including materials and labor costs from external factors. The “Israel-Hamas” war affects oil costs and house prices in the future. If prolonged, it will affect inflation. Make next year the prices of houses and condos will increase by at least 5%, so consumers who want a place to live and have purchasing power You should hurry and make a purchasing decision at the end of 2023.
What factors are there? that will help the real estate business and the small factory industry improved in 2024.
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The confidence of both foreign and domestic investors has increased. : After overcoming various crises, the country was fully opened, allowing foreign investors to come in and carry out various activities more conveniently. This year, the outstanding thing is Investment by 3 companies that produce electric vehicle parts for EVs, which are considered target industries of the Thai government. Combined with the increasing popularity of consumers in purchasing electric cars, in 2024 we believe that the direction of these industries will continue to grow even more. Including investing in real estate. Buying and selling of small and large factories is increasing.
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Foreign entrepreneurs are more likely to move to expand their production base to ASEAN. : To reduce trade tensions between the United States. with China that is expected to continue protracted and the ongoing political conflict between China and Taiwan. Thailand is likely to benefit from such factors. Because our industrial estate has the geographic advantage of being a production base and trade center in the ASEAN region. and has logistics links both by road and rail. which is a driving force for new investment
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Infrastructure investments that are likely to develop and become more fully connected : Especially in the EEC area under the Development Plan, Phase 2 (2023-2027), such as the high-speed rail project connecting 3 airports (Don Mueang-Suvarnabhumi-U-Tapao), the Map Ta Phut and Laem Chabang port development project, Phase 3, the airport project. U-Tapao This will continue to be an important factor in increasing the growth potential of the estate. in the eastern region
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Policies and measures to stimulate investment from the government that are gradually coming out continuously. : Whether it is adding tax privileges to attract investors. Or relaxing regulations to facilitate business should help attract more foreign investors, such as
BOI Investment Promotion Act exempts corporate taxes for up to 13 years (from 8 years)
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The BOI’s Long-Term Resident Visa (LTR Visa) policy provides special privileges to foreign investors or workers residing for a long period of time in Thailand. The goal is to attract a new group of foreigners with high potential. Both skills and expertise in modern technology, especially in 12 groups.
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Small and large factories and industries targeted to come and work in Thailand, such as the modern automotive industry. (Next-Generation Automotive), Intelligent Electronics Industry, High Value and Medical Tourism Industry, Agriculture and Biotechnology (Advanced Agriculture and Biotechnology), Food Processing Industry (Food for the Future), Automated Machinery and Robotics Industry (Automation & Robotics), Aviation and Logistics Industry (Aviation & Logistics), Biofuel and Biochemical Industry (Biofuel and Biochemical), Digital Industry (Digital ), Medical and Comprehensive Healthcare industry, Defense industry, and Education and Human Resource Development.
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However, business growth will be limited by various factors, such as household debt likely to remain at a high level. As a result, financial institutions will increase their strictness in granting loans. Costs of construction materials and energy are likely to remain stable at an average of 5-10% per year, as well as an increase in labor wages and an upward trend in interest rates. This causes consumers to be wary of incurring long-term debt obligations.
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If you are interested in investing in real estate or want to expand your production base. To support the target industries that are likely to grow even more in 2024 in the industrial estates that are the Eastern Economic Corridor Project area. (EEC) Prime Estate Project We sell small factories, warehouses or warehouses with land in many sizes for you to choose from as appropriate for your business. and is located in an important strategic area between Bangkok and the EEC that can be transported through many channels. For convenience in importing and exporting very well.
The Props Company Limited, the leader of Bangkok Land and Houses, would like to thank you very much for the great article from primeestate.
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