Comparison of Thai Baht and Turkish Lira
-
- Burak Pehlivan
- 11/06/2024
How have these two currencies changed over the years?
The appreciation of the Thai Baht is an important factor in real estate purchases. While the value of the property you purchase increases, you also make a profit from the exchange rate. Turkish investors in particular can benefit from both the increase in property value and the increase in exchange rates thanks to this increase in the value of the Baht.
1. Annual Change Examples
2023:
Let's say you bought a 100,000 Baht property in Thailand. While the value of the Baht against the TL was 0.76 TL last year, it is currently 1.03 TL.
• 2022: 100,000 Baht x 0.76 TL = 76,000 TL
• 2023: 100,000 Baht x 1.03 TL = 103,000 TL
• Increase: 103,000 TL - 76,000 TL = 27,000 TL gain
• Change Percentage: 27.00076.000×100≈35.53%\frac{27.000}{76.000} \times 100 \approx 35.53\%76.00027.000×100≈35.53%
In this case, your gain on the exchange rate alone would be 35.53%.
2. Three-Year Change
2021:
The value of Baht against TL was around 0.11 TL.
• 2021: 100,000 Baht x 0.11 TL = 11,000 TL
• 2022: 100,000 Baht x 0.76 TL = 76,000 TL
• 2023: 100,000 Baht x 1.03 TL = 103,000 TL
Total Earnings:
• Increase from 2021 to 2023:
• 103,000 TL - 11,000 TL = 92,000 TL
• Change Percentage: 92.00011,000×100≈836.36%\frac{92,000}{11,000} \times 100 \approx 836.36\%11,00092,000×100≈836.36%
3. Five-Year Change
2019:
The value of Baht against TL was around 0.09 TL.
• 2019: 100,000 Baht x 0.09 TL = 9,000 TL
• 2021: 100,000 Baht x 0.11 TL = 11,000 TL
• 2022: 100,000 Baht x 0.76 TL = 76,000 TL
• 2023: 100,000 Baht x 1.03 TL = 103,000 TL
Total Earnings:
• Increase from 2019 to 2023:
• 103,000 TL - 9,000 TL = 94,000 TL
• Change Percentage: 94,0009,000×100≈1044.44%\frac{94,000}{9,000} \times 100 \approx 1044.44\%9,00094,000×100≈1044.44%
4. Additional Earnings on Property Value
In addition to these foreign exchange earnings, we should also consider the growth of the real estate market in Thailand.
For example:
• Real Estate Price Increases: In 2023, real estate prices in Thailand have increased by 10% overall. This means that the value of the property you buy in TL will also increase.
• Sample Scenario: If you buy a property worth 100,000 Baht in 2021, the value of this property may increase by 10% to 110,000 Baht in 2023. This will provide additional income in TL.
Conclusion:
This increase in the value of the Thai Baht against the Turkish Lira shows how profitable real estate investment can be for Turkish investors. The value increases recorded in annual, three-year and five-year periods offer a great opportunity, not only with foreign exchange gains but also with the increase in property value.
Turkish investors should consider investing in real estate in Thailand in order not to miss this opportunity and to make profits in the future.