Political Risks and Impacts to Thailand Real Estate Development Industry

Abstract

This paper aims to better understand the practitioners’ perceptions of political risks in the Thai real estate development sector to report the magnitudes of political risks, understand Thai developers’ perceptions, and search for the appropriate political risk reduction techniques. The research employed the quantitative methodology by classifying the characteristics and quantifying the perceptions towards the magnitude of political risks by using a questionnaire to 200 Thai developers. It was found that political risks involved since the pre-construction stage of real estate projects, which strongly influence decision-makers, especially may delay approving the projects and affecting the project progress. The respondents also addressed that Thailand’s current political situation influences the developers both in terms of the likelihood to occur and the consequences to their businesses, as this factor will upset the consumer confidence in making a decision to purchase the properties and the loan approval process at the financial institutions.