Thursday 8 May 2008

Real Estate is one of the most regulated industries in Thai country.

Even if strict system makes very much sense for an industry that has a direct impact on the lives of people, excessively stringent rules could violate their growth and prosperity.

Strict zoning regulations, issued in 2006, the development of new projects more expensive and more time to complete. These arrangements include the floor area ratio; gross building area per area ratio; open space ratio and open space per gross building area ratio.

Meanwhile, the Environmental Investigation Agency has tightened. This change in attitude is a lot of residential projects, because the environmental impact assessment (EIA) approval process is time consuming. This can lead to a significant reduction in the IRR for the project.

If the developers are required yield, the increased costs are finally to the customer.

The natural resources and environment committee also the laws for environmental investigation agency. The main differences are:

-- The new EIA criteria applies to all buildings with more than 2000 square meters.

-- The new criteria applies to projects that more than 10000 sq. m.

-- Projects with 250 sites or more, or an area more than 100 rais are also included in the EIA.

We recommend the establishment of a "one-stop service for a shortening of the periods for which a permit can be granted, and under which a ageancy submission of the EIA can take place. These measures will be the process more convenient and reduce the cost of construction . It is already a proven example of one-stop service within country with the Thai Industrial Estate Authority of Thai country.

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