Thailand was among the countries hardest hit by the last December's tsunami. Yet to think about this country only in terms of the natural disaster and its aftermath will be an oversimplification. Several economic, political, ethnic and health problems have plagued the course of its recent development and yet it has survived and overcame them all. Despite the obvious problems the country continues to attract foreign interest and investors. Generally speaking, Thailand has plenty of opportunities to join the group of middle-income nations in not so distant future.

Although under strong influence of European powers and especially of Great Britain, Thailand (Siam) has remained formally an independent kingdom unlike most of Asia throughout its modern history. During the Cold War it has remained firmly in the Western camp despite the numerous attempts by the communist camp to undermine the pro-American regime in Bangkok. Taking over Cambodia and Laos was the last frontier the communists were able to reach in South-East Asia. Beginning in 1980s the erosion of the communist systems became obvious and Thailand could focus on its economic and social development.

1980s were also years Thailand became famous among the western investors with the region of Phuket becoming synonymous to luxurious pastime during the Christmas holidays. The country itself was experiencing robust economic growth fueled by strong exports, close distance to many Asian "tigers" and relatively cheap and abundant labor. By mid-1990s Bangkok became a regional Hong-Kong-style business hub. The upper and upper-middle classes already enjoined living standards similar to those of the middle class in the most developed western countries. The Asian financial crisis of 1997-1998 put a temporary brake to the economic growth, but with the global environment changing for better since 2001 the growth has resumed.

The real estate market in Thailand remains strong and promising with two major areas of interest located around the capital city and the southern sea resorts. In both areas the houses start at $100,000 and may easily get over $1,000,000. The condominium market is divided to follow the class divide in the country. The upper-middle class is interested in properties starting at $75,000; the less affluent customers go for properties falling in the range of $30-60,000. The foreigners have to overcome many bureaucratic obstacles in order to buy properties. The two most common ways to bypass these difficulties are by marrying a local resident or by establishing a company in Thailand.

The tsunami of last December didn't affect significantly the real estate market around Phuket. The foreign interest is strong, especially among the western nationals. Some Asian nationals still prefer to stay temporarily away fearing the ghosts of dead persons. The local realtors complain about the CNN-effect that has made more damage to the image of the country than the tsunami itself.

Thailand country profile:

• Area: 514,000 sq km
• Population: 65.4 million (July 2005 est.)
• Population growth rate: 0.87% (2005 est.)
• Life expectancy at birth: 71.57 years
• Total fertility rate: 1.88 children born/woman (2005 est.)
• HIV/AIDS adult prevalence rate: 1.5% (2003 est.)
• Ethnic groups: Thai 75%, Chinese 14%, other 11%
• Religions: Buddhism 95%, Muslim 3.8%, Christianity 0.5%
• Languages: Thai, English (secondary language of the elite)
• GDP per capita: purchasing power parity $8,100 (2004 est.)
• Distribution of family income (Gini index): 51.1 (2002)
• Labor force by occupation: agriculture 49%, industry 14%, services 37% (2000 est.)
• Main trading partners: US, Japan, China, Malaysia, Singapore.
• Internet users: 6,971,500 (2003)

(Source: CIA - World Factbook 2005)

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See also the directory of companies providing real estate services in, and general real estate information of Thailand.