Thailand’s Economic Growth Attracting Huge Foreign Investment

Thailand’s successful recovery from the devastating Tsunami in December 2004 highlights its steady economic growth, substantial inward foreign investment and the elevated interest in the country as an investment location.

Two and a half years since the devastating Tsunami of the Indian Ocean in December 2004, Thailand has progressively recovered its former economic vigour, strengthened by increased government spending, moderate export growth, real GDP growth of 4.5% (in 2005) and substantial inflows of foreign direct investment (FDI). Recent economic growth in Thailand registered a healthy 4.3% increased growth in the fourth quarter of 2006 and first quarter of 2007, surpassing more moderate predictions of 4%.

In a further illustration of the resurgence of this Asian Dragon foreign investment has played a crucial role in the recuperation of the region, with investment levels serving as a key indicator to whether a country’s economic and political situation is heading in the right direction. Thailand received US$7.9 billion in FDI inflows during 2006, a startling 213% increase on 2005 net figures of US$3.7 billion.

Although investment levels are expected to reduce slightly in 2007, there is continued interest in Thailand as an investment opportunity, partly due to the country’s strength in skill based production, which it holds an advantage over China and Vietnam. Additionally, the Thai Board of Investment has already approved 181 foreign investments equating to US$2 billion between January and May this year. The value of these investments is 65% higher in comparison to the same period in 2006.

Thailand’s solid economy coupled with its renowned reputation as an attractive tourist destination is having a positive affect on the Thai property market, providing some excellent opportunities for the overseas property investor. Particular popularity is currently seen in resort developments, not only with foreign buyers but also Thai residents, both nationals and the thriving Ex-Pat community, giving an inherent exit strategy for those investors looking to buy and sell for pure capital appreciation. Buy and hold investors can be just as confident as rental yields have been steadily growing for apartments and condominiums in key areas and cities.

The country’s significant economic and political stability places Thailand firmly on the radar for further, substantial foreign investment and as a prime destination offering attractive overseas real estate investment opportunities for a broad range of investors.

Warsaw, Poland’s Capital, A Promising Investment Opportunity.

Warsaw, Poland’s historic capital city, located only two hours from London, is presenting itself as a desirable destination for investment for both the buy-to-let and resale markets.

The Polish economy has been registering significant growth recently with an average GDP of over 12% for the last 5 years and a substantial increase in foreign direct investment, around US$6.5 billion for the last few years. Increased investment translates to higher salary job creation, illustrated by a 20% rise in average wages over the last three years and an ongoing 4% increase per year forecast. The effect of higher wages consequently boosts individual buying power, therefore further stimulating demand for property. High demand with a lack of supply in residential property has resulted in property price rises, a trend which looks set to continue for the foreseeable future.

Warsaw is an expanding city, registering the highest salaries and cost of living in the country, and has experienced dramatic price increases over recent years. Last year, the most sought after locations in Warsaw registered price escalations of 30% while less desirable areas grew between 10% and 20%. The Warsaw property market continues to be demand-dominant and yet, despite a growing number of new developments bolstering supply, capital growth predictions for the next decade still stand at 13% year-on-year.

Such an impressive record of price increases in the property market and a confident capital appreciation forecast, present a sure and profitable exit strategy for the resale investor. The consistently growing, well developed rental market, with its high demand for properties in prime locations of high standards, is expected to see further price rises of 5% - 6% over the next year with city centre rentals estimated to average moderate rental yields of approximately 5%.

Warsaw property investment promises a lucrative opportunity with evidence substantiating a shorter term buy for resale approach as the more profitable venture for the investor rather than a buy to let approach. Obelisk International is continually scouring the global real estate markets for unique opportunities in order to create lucrative, tangible, and secure investments to add to the discerning investor’s portfolio.

Thai Currency Rates: Real Estate Investment Profitability

It remains blatantly clear to the property investor that possible fluctuations within the Baht/major currencies exchange rates will have little and limited impact upon investment profitability due to Thailand's progressive policy development and strong economic foundations.
Despite suggestions to the contrary, Thai Finance Minister Chalongphob Sussangkarn dismissed the idea that Thailand's baht currency be fixed to address currency fluctuations, saying they are unjustified under the present global capital movements.

Delivering the government's performance before the National Legislative Assembly, he said many people voiced concern regarding the current baht fluctuation and wanted Thailand's currency exchange rate to be fixed to eliminate the volatility. But in Dr. Chalongphob's opinion, those who came up with such advice should learn a lesson from the economic crisis of 1997 where policy makers fixed the exchange rate and brought all money from the country's coffers to support the move, which finally led to the depletion of international reserves.


"From the lesson, we must realise the currency exchange rate should not be fixed under the global capital movement at present," Thailand News Agency (TNA) quoted Dr. Chalongphob as saying, adding that "it should be allowed to move with a managed float." Dr Chalongphob further stated that foreign investors had now begun to have much more confidence in the Thai economy as the tough monetary and fiscal policy had eased and inflationary pressures had declined.

In December 2006, the Bank of Thailand introduced capital control policies to reduce the pace of the baht appreciation. Although most of these controls proved temporary, the impact on market confidence lingers. "Signals from the Government that there is a coherent plan to address these pressures at their source would help to reassure the market that a re-imposition of capital controls is unlikely," said World Bank Lead Economist for Thailand, Kazi M. Matin.

"The challenges going forward for Thailand is to improve private investor confidence through quick policy actions," Matin commented. "Measures like the signing of the Japan-Thailand economic partnership agreement, modification of the Foreign Business Act amendment to liberalize some key service sectors, and actions to reduce investment climate constraints can turn around private investment situation" and improve the country's economic outlook, he added.

The medium-term prospects for Thailand's growth and development, however, remain strong, thanks to the sound economic fundamentals. The Baht appreciated rapidly during 2006 both in nominal and real terms, however it remained in line with other major currencies within the region. During 2006, the annual average baht to US dollar exchange rate was Bt 37.88 compared to an average rate of Bt 40.22 in 2005. The Baht's NEER (Nominal Effective Exchange Rate, which is the baht's exchange rates against the other major currencies weighted by trade values of Thailand with the respective countries), appreciated by 5.7 percent. Its real rate (Real Effective Exchange Rate or REER) also appreciated by 8 percent.

The year-on-year nominal appreciation saw a marked speed in Q2 2006 where it peaked in December (the average for that month was 13 percent more appreciated than that of December 2005). But during the two year period (2005-06), overall real appreciation of the baht was in line with those of other currencies in the region.

Overall however it is clear that Thailand's real exchange rate, even after the recent appreciation, is stable:

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  The real exchange rate, even after recent appreciation, remains more depreciated than the pre-1997 crisis period.
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  The medium-term appreciation of the baht has been directly in line with other currencies of the region.
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  Thailand continues to demonstrate increasing competitiveness as seen in the sustained, strong export growth as well as 11.6% export volume growth in 06 when baht appreciated rapidly; in fact the GDP share of exports rose from the pre-crisis rate of 45% to more than 65% in 2005.
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  Other real exchange rate studies, including purchasing power parity (PPP) estimates, provide no evidence of deviation from an equilibrium level.

Obelisk International Reveals Their New Website Offering Exciting New Investor Tools

Obelisk International is proud to announce the official release of their new website http://www.obeliskinternational.com/ providing investors with a new tool, the Investment Profit Calculator.

Obelisk International’s official launch date for their new website is Monday 18th June. The new website is intended to provide an information portal imparting an array of information and tools to aid investment choices, and has therefore been divided into a number of key areas including calculating tools for investors and access to free guides and reports.

Possibly the most important feature for investors is the Property Investment Profit Calculator, located under ‘Investor Tools’, which enables the investor to quickly find out the inherent profitability of an investment opportunity by simply completing a number of information fields.

Details regarding not only the current investment projects offered, but also previous projects can be found in the ‘Investments’ section. Previous projects no longer available have been included to illustrate the consistency of the quality and investment potential of all the projects offered by Obelisk International. Full downloadable versions of each project brochure are also available within this section.

Obelisk International compiles comprehensive reports and guides to key investment areas and countries. In the ‘Countries’ section of the website an overview report of each country can be found whilst the ‘Reports’ section gives access to the free, full version of individual country guides and reports.

The purpose of the new site is to facilitate interaction between the company, potential investors and all Obelisk International’s clients. It is the philosophy of Obelisk International to communicate precise, correct and complete information allowing investors to make informed choices and decisions.

For more information on global investment opportunities and to find out about Obelisk International's latest projects, contact Obelisk International 0808 160 0670

About Obelisk International
Obelsik International is a real estate investment company providing global investment opportunities that offer security, tangibility and impressive financial performance. Their service to investors is based upon three main principles: price, profit and performance.

Contact:
Press Contact: Santiago Sanchez-Lozano, Online Marketing Director, Obelisk International, +34 952 820 319, http://www.obeliskinternational.com/

Obelisk International’s Global Project Sourcing Continues in Brazil and Thailand

The continual search for the most innovative and lucrative real estate investment projects worldwide takes Obelisk International to South America and Asia.

Representatives of Obelisk International are currently traveling through Brazil to see first-hand the array of investment opportunities on offer having recently signed contracts for a groundbreaking new real estate venture in Natal: Estrela do Atlântico.

On 13th June Obelisk International attended the ADIT NORDESTE INVEST 2007 conference held in Salvador to increase tourism and investment. The Brazilian Minister of Tourism opened the event and presented the new Tourism Plan 2007-2010 for Brazil, which announced further investment by the federal government of R$ 6,614 billion. A significant portion of this investment will be ploughed into infrastructure, primarily airports to increase annual internal air traffic from 139,5 million in 2005 to 217 million passengers in 2010. Part of the rationale behind this investment is to raise the quality of services to a five-star level as recognised by both local and foreign tourists. The plan also estimated foreign tourist numbers to be 7,9 million by 2010.

This trip to Brazil comes on the tail of a recent project sourcing expedition to Thailand to gain complete knowledge and experience of the working practices of the country, with a view to adding the region to the company’s expanding portfolio. During the visit Obelisk International was able to experience the vast infrastructural improvements taking place, as well as select and negotiate only the best projects available for it's clients.

The exploration of new countries and areas for future property investment falls in line with the company’s commitment to full due diligence that is carried out on all prospective projects. This ensures all projects offered to investors have undergone a vigorous selection process.
For more information on global investment opportunities and to find out about Obelisk International's latest projects, contact Obelisk International 0808 160 0670

About Obelisk International
Obelsik International is a real estate investment company providing global investment opportunities that offer security, tangibility and impressive financial performance. Their service to investors is based upon three main principles: price, profit and performance.

Contact:
Press Contact: Santiago Sanchez-Lozano, Online Marketing Director, Obelisk International, +34 952 820 319, http://www.obeliskinternational.com/

Obelisk International Introduces Its Newest project: Estrela do Atlântico, Natal, Brazil

This latest investment release marks a new collaboration for Obelisk International with three outstanding companies: ECOCIL, BI&DI Group and Abreu Imoveis.

These new collaborations for the Estrela do Atlântico project support the excellence that Obelisk International is proud to provide in bringing to its clients only the most lucrative property investment opportunities, and those of the highest quality.

ECOCIL, a pioneering company in Brazil construction, has changed the parameters of public construction in Rio Grande do Norte, the site of Obelisk International's newest project. Continually awarded for outstanding work, ECOCIL is also recognised for its strong social responsibility, investing in innovative technologies and procedures, diligence in site location to protect nature and the environment and local community programmes. The collaboration with such a successful constructor attuned to the local area of Rio Grande do Norte, ensures confidence is inherent in the quality, standards and reputation of the Estrela do Atlântico project.

The BI&DI Group, the developer of the project, has achieved great success and reputation in the international real estate market, widely renowned for its innovation and stringent standards. The company adds value by evaluating the international real estate market, carefully selecting boom areas for future projects. This analysis and forecasting of new market trends fits with Obelisk International's service to clients and is one of the reasons that we are proud to partner with BI&DI Group.

Abreu Imoveis is internationally recognised as an influential and respected developer and real estate agent, with a reputation and credibility that makes them a household name in Brazil. Ethics, professionalism, qualified staff and immense knowledge of the sector guarantee secure and successful investments. With the largest volume of real estate and rental potential within the local market, they are firmly committed to both the provision of rental opportunities to long term investors as well as the re-sale marketing of all units at the Estrela do Atlântico project on behalf of all Obelisk International clients.

We have chosen the area of Natal as a prime site for investment due to the substantial growth the region has experienced in tourism and investment, the superb location, the security of the investment and simplicity of the purchase process, as well as a true resale demand providing a simple and effective exit strategy. All these factors, as well as the collaboration of top quality companies make the Estrela do Atlântico project destined for success.

For more information on global investment opportunities and to find out about Obelisk International's latest projects, contact Obelisk International 0808 160 0670

About Obelisk International
Obelsik International is a real estate investment company providing global investment opportunities that offer security, tangibility and impressive financial performance. Their service to investors is based upon three main principles: price, profit and performance.

Contact:
Press Contact: Santiago Sanchez-Lozano, Online Marketing Director, Obelisk International, +34 952 820 319, http://www.obeliskinternational.com/