Major developers parading ideas to build residential projects in provincial markets have been in the spotlight recently. What are the key driving factors and where are the next up-and-coming opportunities for the real estate business?
The Bangkok Metropolitan Region (BMR) has been the prime market for major residential developers for more than three decades given its hefty market size and continued demand growth. The attractiveness of the BMR lies in the fact that it accounts for 17% of the country's total population, 44% of gross domestic product, and an average monthly household income of approximately 42,000 baht, almost double the average income nationwide.
With such attractions, why are so many prominent real estate developers now looking toward provincial areas? Two obvious reasons are the likelihood of a weakening BMR market and a strengthening of regional development.