The conflict in the Middle East has begun to prompt expatriates working in the region, as well as buyers from affected countries, to seek ready-to-move residential units in beach destinations, particularly Phuket.
Phattarachai Taweewong, research and communication director at property consultancy Colliers Thailand, said the company has started to see enquiries this month from foreign buyers seeking luxury residences in Phuket for relocation from the Middle East.
"They are looking for ready-to-move units, particularly condos, but most of the available supply is still under construction," he said. "Some are also considering villas priced from 30 million baht."
"However, Thailand has yet to become a preferred destination for ultra-wealthy Arab buyers, who tend to favour London and New York, or Australia, or Hong Kong and Singapore if in Asia," Mr Phattarachai added.
Pairoj Wattanavarodom, managing director of SET-listed developer Eastern Star Real Estate, said billionaires from the Middle East are not yet active buyers in Thailand's property market, but tend to visit for medical treatment at international hospitals.
"Thailand still lacks residential products that meet the expectations of those who prefer cities like London and New York," he said. "However, the middle-to upper-end segment is starting to emerge, and we have begun engaging agencies in Dubai to assess demand."
The company has started to see interest from foreign buyers in countries affected by the conflict, such as Turkey and Israel, who are seeking a safe place to live overseas, particularly in Thailand.
These buyers are typically end-users looking for mid-priced homes for residence.
Over the past two weeks, the company has received enquiries from buyers in Germany, Turkey, Israel and Australia seeking single detached houses in Rayong priced at around 10 million baht, to use as a safe haven.
SHORT-TERM SOLUTION
Surachet Kongcheep, head of research at property consultancy Cushman & Wakefield Thailand, said Thailand is not yet a primary destination for ultra-wealthy individuals seeking long-term residence.
"Thailand tends to serve as a short-term safe haven during periods of unrest, pandemics or other disruptions affecting daily life in their home countries, which are often temporary situations," he said.
He added that the unrest in the Middle East has affected property prices in several cities in the region, particularly in Dubai, where the Dubai Financial Market Real Estate Index dropped by more than 30% in March.
Although prices partially rebounded after the attacks subsided, concerns over safety rose sharply as missile strikes targeted airports and infrastructure linked to military operations, despite Dubai not being a direct conflict zone.
"Heightened concerns have prompted some people to leave Dubai, while others see it as an opportunity to invest, snapping up properties at discounted prices of 15-30% as developers rush to clear inventory," Mr Surachet said.
He said capital outflows from Dubai do not necessarily mean investors will redirect funds to other property markets, as many may choose to hold cash or shift to alternative assets. Thailand is therefore unlikely to be a primary substitute for investment.
However, expatriates working in Dubai may choose to relocate quickly, either returning to their home countries or moving to destinations perceived as less affected by the conflict, including Thailand.
"Still, the scale of such inflows is unlikely to offset the decline in demand from Chinese and Thai buyers. The longer-term impact remains uncertain, with current signs largely based on anecdotal feedback from developers," Mr Surachet added.
