The Impact of Currency Fluctuations on Cross-border Real Estate Investments in Thailand

Abstract

This research investigates the effects of currency fluctuations on cross-border real estate investments in Thailand, zeroing in on how changes in the Thai Baht (THB) against key currencies like the US Dollar (USD) and Euro (EUR) shape investor strategies and influence outcomes. Thailand, known for its expanding economy and relatively stable property market, has become a highly attractive destination for foreign investors. Yet, the fluctuating value of the THB introduces a unique risk. This study’s primary aim is to understand how shifts in currency impact acquisition costs, financing approaches, and investment returns, and to pinpoint effective risk management strategies that investors rely on to handle these variations.
To pursue these aims, the study used a qualitative research approach, conducting semi-structured interviews with 15 seasoned professionals in the field, including real estate investors, financial analysts, and legal experts who are well-versed in the Thai market. These participants shared valuable insights into how currency volatility affects their investment choices and outlined the specific strategies they use—such as currency hedging, portfolio diversification, and timing capital deployment—to mitigate the risks associated with exchange rate changes.
The study’s findings indicate that currency volatility has a direct impact on the profitability of real estate investments. It affects key aspects like the repatriation of profits, acquisition expenses, and debt repayment, underscoring the need for strong risk management practices. Additionally, broader economic factors like inflation and interest rates, coupled with Thailand’s political stability, significantly drive the THB’s volatility, further influencing investor confidence and decision-making.
In summary, this research highlights the importance of implementing solid currency risk management strategies when investing in international real estate markets. Investors can shield their assets from currency fluctuations more effectively by adopting practices like hedging and diversification. Moreover, the study suggests that policymakers should focus on enhancing economic stability and transparency, creating a more favorable and reliable investment environment in Thailand.

Keywords: currency fluctuations, cross-border investment, real estate, risk management, Thailand, Thai Baht

6617193024, , Maurice Pascal Karle, Advisor: ดร.วรางค์รัตน์ นิติวนะกุล – Dr.Warangrat Nitiwannakul, สารนิพนธ์ (Independent Study), – The Impact of Currency Fluctuations on Cross-border Real Estate Investments in Thailand, นำเสนอในที่ประชุมวิชาการ (Conference), , ปริญญาโท (Master’s Degree), บัณฑิตวิทยาลัย (Graduate School), บริหารธุรกิจมหาบัณฑิต (บธ.ม.) – Master of Business Administration, การจัดการการเงิน การธนาคาร และการลงทุน – Financial, Banking and Investment Management, Siam University, Bangkok, Thailand – มหาวิทยาลัยสยาม กรุงเทพมหานคร ประเทศไทย

Online Publication Date 12/6/2025, 12:18:35