Authored by the expert who managed and guided the team behind the Thailand Property Pack
Everything you need to know before buying real estate is included in our Thailand Property Pack
Are you considering investing in Thailand's real estate market by 2025? Curious about the trends that could shape property values and opportunities? Wondering how economic shifts might impact your potential investment?
We will lay down recent insights, providing a clear picture of the future landscape. Here, no guesswork, we rely only on solid data.
Actually, we know this market inside and out. We keep tabs on it regularly, and all our discoveries are reflected in the most recent version of the Thailand Property Pack
Fact-checked and reviewed by our local expert
Attaya Suriyawonghae 🇹🇭
Real Estate Broker, Zest Real Estate
1) Foreign buyers will target eco-friendly developments as environmental awareness grows
In Thailand, there's a growing trend towards eco-friendly real estate.
Back in 2019, Bangkok had just 17 green-certified buildings, but by 2024, that number had jumped to 48, with expectations to reach 85 by 2029. This shift highlights a strong move towards sustainable construction. Companies like SHERA Public Company Limited are at the forefront, offering eco-friendly building materials to meet this demand.
People's preferences are changing too. Many in Thailand now expect their office spaces to be fully green-certified by 2030. In Bangkok's central business district, 80% of new leases for top-tier office spaces are going to buildings that meet ESG standards. This shows a clear preference for sustainability in the workplace.
The Thai government is also playing a role by offering incentives to promote green building practices. This support, along with global trends in sustainable real estate, is making eco-friendly developments more appealing to international buyers.
Foreign investors are increasingly drawn to these sustainable projects, recognizing the long-term benefits and the growing demand for environmentally conscious living. As environmental awareness grows, eco-friendly developments are becoming a key focus for those looking to invest in Thailand's real estate market.
Sources: JLL, 6Wresearch, Nestopa
2) Chinese investors will dominate Thailand's foreign buyer market focusing on urban and tourist areas
Chinese investors are a major force in Thailand's real estate market, especially in urban and tourist areas.
In the past, they made up nearly half of the property transactions and total transaction value among foreign buyers. Over the last 15 years, more than 100 billion baht has been invested in key cities like Bangkok, Pattaya, and Phuket. This influx of capital has significantly shaped the landscape of these areas, making them vibrant hubs for both living and tourism.
Flight connectivity between China and Thailand has improved, with numerous airlines offering direct flights. This ease of travel has kept Chinese interest in tourism and real estate strong. The frequent flights make it convenient for investors to visit and manage their properties, further fueling their enthusiasm for Thai real estate.
Government policies are also a big draw. The extension of the leasehold period for foreigners and proposed increases in foreign ownership ratios in condominiums are expected to attract even more Chinese investors. These changes make the Thai property market more appealing and accessible to them, aligning with their investment strategies.
Chinese investors prefer urban centers like Bangkok and tourist hotspots such as Phuket and Pattaya. They are particularly interested in luxury properties and high-end condominiums, which match their investment patterns. With an expected influx of over 8 million Chinese tourists by the end of 2024, interest in Thailand remains high for both leisure and investment opportunities.
Sources: The Diplomat, Travel and Tour World, Khaosod English, Nation Thailand
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3) The Eastern Economic Corridor will increase property prices in Chonburi and nearby areas due to more business activities
The Eastern Economic Corridor (EEC) is transforming Chonburi and nearby areas, driving up property prices due to increased business activities.
In 2023, 99 out of 317 foreign companies approved for investment in Thailand focused on the EEC, bringing a wave of foreign capital. This influx is largely due to major players like Alibaba, which invested $320 million in an e-commerce digital hub, making the region even more attractive. As a result, Chonburi has seen a surge in new business registrations, with companies eager to establish operations in the EEC.
Infrastructure upgrades are a big part of this boom. The EEC project is enhancing logistics and transportation, including high-speed trains linking three international airports and double-track railways connecting major ports. These improvements make the area more accessible and appealing to businesses. Plus, the new motorway from Bangkok to Rayong cuts travel time and costs, further boosting business activity.
Chonburi has even outpaced Bangkok as the top spot for foreign property buyers in early 2024, thanks to Thailand’s tourism recovery and the EEC's economic growth. This has prompted major developers to launch new property projects, with 1,000 new units expected in 2025, showing strong demand for residential properties.
Local insiders note that the EEC's focus on technology and innovation is attracting a diverse range of industries, from automotive to aerospace, which is expected to create numerous job opportunities. This economic diversity is a key factor in sustaining long-term property value growth in the region.
With the EEC's ongoing development, Chonburi is not just a hotspot for investors but also a promising area for those looking to settle in a region with a vibrant economy and improved infrastructure.
Sources: Open Development Mekong, Greater Mekong, Nation Thailand
4) Regulations will favor foreign buyers and boost international investment
Thailand is becoming more inviting for foreign property buyers.
In 2023 and 2024, the Thai government proposed changes to property laws, allowing foreigners to own a larger share of condominiums, increasing the limit from 49% to 75%. This move aims to make Thailand more appealing to international investors. The idea is to open up the market and attract more global interest, making it easier for foreigners to own a piece of paradise in Thailand.
The Ministry of the Interior is also looking into extending property leaseholds to up to 99 years. This is part of a broader strategy to boost foreign ownership opportunities in Thailand's real estate market. By making these changes, the government hopes to simplify the process for foreign property purchases, making it more straightforward for international buyers to invest in the country.
On top of that, the Thai government has rolled out urgent economic measures to breathe new life into the economy through the real estate sector. These measures include proposals to relax regulations and attract substantial foreign investments. The focus is on infrastructure development, especially in expanding smart cities, which is expected to draw in foreign businesses and property developers.
Thailand's push to develop smart cities is a big part of this strategy. By enhancing infrastructure and creating more modern urban areas, the country aims to attract not just tourists but also long-term investors and businesses. This development is expected to make Thailand a more attractive destination for international property buyers.
With these changes, Thailand is positioning itself as a prime location for foreign investment in real estate. The government's efforts to make regulations more favorable for foreign buyers are likely to lead to increased international investment, making it an exciting time for those looking to buy property in the country.
Sources: Nation Thailand, ILCT, Kaohoon International
5) Rental yields in Bangkok will decline due to market saturation with new developments
Bangkok's real estate market is buzzing with new residential developments popping up everywhere.
By the end of 2024, the city will have added ten new prime residential projects, totaling 2,000 units. This influx is creating a surplus of rental properties, making it a renter's market. With so many options available, property owners are finding it increasingly challenging to secure tenants.
The apartment vacancy rate in Bangkok has climbed to 5.2% in 2023. This uptick in empty units is a clear sign that the market is becoming saturated. As more properties sit vacant, landlords may need to rethink their strategies to attract renters.
While rental prices for prime condos have held steady with a 5.0% yield, the growing supply of rental properties is starting to influence the market. This could mean that rental prices might face downward pressure, which in turn would affect rental yields.
For those considering buying property in Bangkok, it's essential to understand that the market dynamics are shifting. The abundance of new developments is likely to continue impacting rental yields as the market becomes more competitive.
Sources: Real Estate Asia, JLL
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6) Properties in secondary cities will offer higher rental yields attracting young professionals
Young professionals are increasingly drawn to secondary cities, boosting rental yields.
In 2023 and 2024, cities like Nonthaburi and Samut Prakan offered average gross rental yields of 6.25% and 5.79%, outpacing Bangkok's 4.88%. This shift is largely due to young professionals seeking better job opportunities and quality of life outside the capital.
The Thailand Migration Report 2024 highlights this movement as a key factor in the country's socioeconomic development. The Thai government is also playing a role by investing in infrastructure in these secondary cities, making them more appealing to both young professionals and businesses.
These infrastructure investments, combined with lower property prices, are creating a perfect storm for higher rental yields. Young professionals are finding these cities not only affordable but also vibrant and full of opportunities.
As these areas grow, they offer a lifestyle that combines urban amenities with a more relaxed pace, attracting a demographic eager for balance. This trend is making secondary cities a hotspot for property investors looking for higher returns.
With the ongoing development and increasing attractiveness of these cities, the potential for rental income is significant, making them a smart choice for those looking to invest in property.
Sources: Global Property Guide, ILO Thailand Migration Report 2024, Silk Estate, Global Property Guide
7) Government incentives for green building will drive sustainable real estate development in Thailand
Government incentives are driving sustainable real estate development in Thailand.
In recent years, particularly in 2023 and 2024, the Thai government has been actively pushing for greener building practices. They rolled out the Clean Energy Finance and Investment Roadmap, which is a strategic plan to boost funding for energy-efficient and renewable power projects. This roadmap is a big deal because it includes significant funding for green building projects, making it easier for developers to go green.
There's also a noticeable shift towards green building certifications. According to a JLL ESG survey, a whopping 96% of Thailand-based occupiers are aiming for fully green-certified office spaces by 2030. This is a huge jump from just 17% in the past. The Thai Rating of Energy and Environmental Sustainability (TREES) certification is gaining traction, with the number of certified buildings rising from 17 before 2019 to 48 today, and expectations to hit 85 by 2029.
Tax incentives are another big motivator for developers. The Thai government offers tax breaks for eco-friendly businesses, including corporate income tax exemptions on net profits from selling carbon credits. The Board of Investment (BOI) sweetens the deal with substantial incentives for renewable energy projects, like 8-year corporate income tax exemptions and non-tax perks for solar, wind, biomass, biogas, and waste-to-energy projects.
Sources: OECD, JLL, Lexnova Partners
8) Rents in Bangkok's central business district will rise due to limited supply and high demand
Bangkok's central business district is seeing rising rental prices despite recent fluctuations.
Even with a slight dip in early 2024, the demand for Grade A office space remains strong because businesses are flocking to premium buildings. This is especially true for companies in consulting, insurance, and finance, which are drawn to the prestige and convenience of these locations.
New property developments are limited, and land scarcity in central Bangkok is a major hurdle. This scarcity not only makes it tough to find space for new projects but also drives up land and construction costs, which inevitably impacts rental prices.
Adding to the demand is the steady influx of expatriates and foreign workers. As Bangkok continues to be a key business hub in Southeast Asia, more multinational companies are establishing their presence here, further fueling the need for office and residential spaces.
Vacancy rates are another piece of the puzzle. While there was a slight increase in early 2024, the market is still tightening as businesses snap up available spaces. This trend is expected to continue, keeping the pressure on rental prices.
In short, with limited supply and high demand, rents in Bangkok's central business district are poised to keep climbing. The combination of these factors makes it a challenging yet potentially rewarding market for property investors.
Sources: Bangkok Post, Jones Lang LaSalle, Knight Frank
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9) Rents in tourist areas will fluctuate seasonally, creating opportunities for short-term rental strategies
Rents in tourist hotspots like Thailand fluctuate with the seasons, offering great chances for short-term rentals.
In places like Bangkok, the vacation rental market changes with the tourist seasons. From November to February, when tourists flood in, occupancy rates soar, hitting 87% in February 2024. This means property owners can enjoy higher monthly revenues during these months.
Platforms like Airbnb have seen rapid growth in tourist areas. Even though Bangkok's share is smaller compared to other cities, the number of listings shot up in 2023 and 2024. This shows a growing demand, making it a prime time for property owners to jump into short-term rentals.
Thailand's strategy to boost tourism in 2024 includes promotions and more flights, especially in the fourth quarter. This is a clear signal for property investors to prepare for a busy season.
With the right approach, property owners can capitalize on the seasonal tourist influx, maximizing their rental income during peak times.
Sources: Thailand Business News, Hospitable, Bangkok Post
10) Urban migration will increase city housing demand
In 2023, 53.61% of Thailand's population lived in urban areas, highlighting a strong urbanization trend.
Big cities like Bangkok, Chiang Mai, and Phuket are buzzing with growth. Bangkok alone houses over 5.6 million people and draws millions of visitors each year, pushing up the demand for housing, especially high-rise condos.
Many folks from the countryside are eyeing a move to the city. With fewer agricultural jobs and limited rural opportunities, urban centers are becoming economic hotspots, driving up the need for housing.
Government projects like Bangkok's high-speed rail are making city life more appealing. Expanding public transport networks make it easier to move around, encouraging more people to migrate to urban areas.
Real estate reports show a surge in demand and rising prices for city homes, particularly in places like Chonburi, Chiang Mai, and Phuket. This is due to strong housing markets and expected growth in new housing supply.
City life offers better access to schools and healthcare, making it attractive for those seeking improved services. Migration patterns reveal a steady flow from rural to urban areas, pointing to a lasting urbanization trend.
Policies and incentives from the government are boosting urban development and housing projects, further encouraging city migration. This isn't just a Thai trend; it's part of a larger movement seen across Southeast Asia.
Sources: Statista, Krungsri Research, IOM Thailand Annual Report
11) Thailand's aging population will boost demand for retirement-friendly properties with healthcare facilities
Thailand is experiencing a notable shift with its aging population rapidly increasing.
By 2024, 19.5% of Thailand's population was aged 60 or older, and this trend is expected to continue, with predictions suggesting that by 2040, nearly a third of the population will be senior citizens. This shift is largely due to rising life expectancy, a phenomenon seen worldwide.
Recognizing this change, the Thai government took action by establishing the ASEAN Centre for Active Aging and Innovation in 2018, aiming to promote healthy aging and address the needs of its older citizens. This initiative highlights the country's commitment to adapting to its demographic changes.
In response to the growing number of seniors, the Real Estate Information Center has identified a significant demand for senior-friendly housing, estimating a need for around 80,000 senior homes by 2040. This has prompted developers to innovate, creating retirement villages and senior-friendly condo complexes.
These new developments are not just about housing; they offer a lifestyle, with healthcare services and recreational activities designed to cater to the needs of older adults. This makes them attractive options for those looking to retire in comfort and with peace of mind.
For potential property buyers, this trend means that investing in retirement-friendly properties could be a wise decision, as the demand for such homes is only expected to grow. The combination of healthcare facilities and community living is becoming increasingly appealing.
Sources: Statista, Nestopa, Bangkok Post
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12) Bangkok luxury condo prices will drop as supply exceeds demand
The luxury condo market in Bangkok is seeing a potential price drop because there's a lot more supply than demand.
As of 2024, the number of unsold luxury condos jumped by 14.5% to 84,556 units, with a total value of 379.5 billion baht. This means developers might have to lower prices to move these properties. The market is flooded, and buyers are not biting as much as before.
In the second quarter of 2024, sales for high-end properties in Greater Bangkok fell by 8.4% year-on-year. Specifically, condo sales dropped by 3.4%. This shows a clear dip in interest, adding to the oversupply problem. People are holding back, and it's making the market sluggish.
Real estate agencies are noticing this oversupply, and some developers are being cautious. Even with a decent absorption rate, the leftover supply and new supply increase in late 2023 are making things tough. Developers are feeling the pinch and are wary of launching new projects.
Despite some demand from foreign buyers, the market is still struggling. The luxury segment is particularly hit, with developers trying to offload existing units. The situation is creating a challenging environment for those looking to invest in Bangkok's high-end real estate.
Sources: Bangkok Post, Thailand Business News, Knight Frank
13) Phuket's luxury villa market will slow due to environmental concerns and regulations limiting new developments
Phuket's luxury villa market is facing a slowdown due to increasing environmental concerns.
Locals and tourists are now more aware of how these developments impact the environment, leading to public opposition against new projects in sensitive areas. This shift in awareness is making it tougher for developers to get new constructions approved.
The government has stepped in with stricter regulations to protect the environment. For example, the Ministerial Regulation Regarding City Planning in Phuket has divided the land into zones with specific rules. In areas like the "Forestry Reservation," only a small portion of land can be used for non-agricultural purposes, which limits space for new luxury villas.
On top of that, the market is seeing a surge in supply, but sales aren't keeping up. In the first half of 2023, 541 luxury villas were launched, but only 213 were sold, leaving a lot of unsold inventory. This suggests that demand might not be as strong as supply, adding to the potential slowdown.
These factors are creating a challenging environment for developers, who are finding it increasingly difficult to push forward with new projects. The combination of environmental regulations and market dynamics is reshaping the landscape of Phuket's luxury villa market.
Sources: Bangkok Post, Duensing Kippen, Knight Frank
14) Rural property prices will stay stable as urbanization draws people to cities
In 2023, 53.61% of Thailand's population lived in urban areas, highlighting a strong trend of urban migration.
With the Thai government investing 652 billion baht in urban infrastructure, including high-speed railways, cities are becoming even more appealing. This influx of resources into urban areas is a magnet for people seeking better opportunities and amenities.
As younger generations lean towards city life, fewer people are moving to rural areas. This trend helps keep rural property prices stable since the demand isn't skyrocketing.
Rural property prices have seen minimal growth, with farm real estate rising by only 5% and cropland by 4.7% since 2023. This slow pace of growth suggests a stable market for rural properties.
Despite the urban shift, agriculture remains a steady contributor to Thailand's GDP, indicating that rural economies are holding their ground. This economic stability supports the steadiness of rural property prices.
In 2023, most real estate transactions occurred in urban regions, with a 26% increase in transaction value, underscoring the growing demand for city properties.
Rural populations in Thailand are either declining or stable, reinforcing the urbanization trend and its impact on rural property demand.
Sources: Statista, Esteri, Land Network
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15) Single-person households will drive demand for smaller affordable apartments
Single-person households in Thailand have skyrocketed from 6.4% in 2012 to 26.1% in 2022.
As more people opt to live solo, the demand for smaller, more affordable apartments is on the rise. In 2023, over half of Thailand's population was living in urban areas, with cities like Bangkok seeing the most growth. This urban shift means more folks are eyeing city life, which often means smaller living spaces.
Thailand's real estate market is already adapting, focusing on affordable housing to meet this demand for compact living. The development of studio and one-bedroom apartments has surged, with single individuals making up a significant portion of condominium owners in 2023.
In bustling Bangkok, the trend is even more pronounced. Many young professionals and expats are choosing to live alone, driving the need for smaller, budget-friendly apartments. This shift is reshaping the city's housing landscape, making it a hotspot for real estate investment.
Developers are keenly aware of this trend, and they're responding by building more compact, efficient living spaces. These new developments cater to the lifestyle of single urban dwellers, offering amenities that suit their needs and preferences.
For potential buyers, this means a wealth of options in the market. Investing in smaller properties could be a smart move, as the demand for such spaces is only expected to grow. The rise of single-person households is reshaping the real estate scene, offering new opportunities for both buyers and investors.
Sources: Nation Thailand, Statista
16) Working from home will boost demand for properties with office spaces
In Thailand, 76% of professionals were working remotely by 2023, a significant increase from 50% in 2020.
This shift was largely due to the Thai government's Work from Home Bill, which clarified remote work rules and made it easier for people to work from home. As a result, sales of home office furniture and equipment surged, with platforms like Alibaba offering a wide range of options for setting up comfortable home workspaces.
Many employees, according to a 2022 survey by Michael Page Thailand, preferred hybrid work arrangements, valuing a better work-life balance. This often meant having a dedicated workspace at home, which became a priority for those working remotely.
Real estate markets quickly adapted to this trend. Property listings began to emphasize features like dedicated office spaces and high-speed internet, appealing to buyers who needed homes that supported their work-from-home lifestyle.
Developers started advertising these features, recognizing the growing demand for homes that could accommodate remote work needs. Media coverage also highlighted the benefits of home offices, such as improved work-life balance and increased productivity, which likely swayed consumer preferences.
Sources: AustCham Thailand, ASEAN Briefing, Alibaba
17) Rayong's coastal areas will experience a property demand surge from new industrial growth and better infrastructure
The coastal areas of Rayong are buzzing with increased property demand thanks to new industrial developments and better infrastructure.
Chinese investors are snapping up land in Rayong's industrial zones, aiming to build electric vehicle plants and related industries. This has caused land prices to soar, especially in places like Nikhom Pattana and Pluak Daeng, where prices have jumped 2.3 times since 2015. The influx of investment is transforming these areas into bustling hubs of activity.
Government initiatives like the Eastern Economic Corridor (EEC) and expanded mass transit systems are also playing a big role. These projects are making Rayong more accessible, with improved transportation links such as highways, eastern railways, and U-tapao airport. Areas like Ban Chang are now prime spots for residential development, attracting more buyers and boosting property demand.
Tourism in Rayong is bouncing back, with 36.1 million tourists expected in 2024 and even more in 2025. This influx of visitors is fueling demand for vacation homes, especially in popular spots where investors are enjoying strong rental yields and capital appreciation. The local real estate market is set for steady growth, driven by economic recovery, foreign investment, and a booming tourism sector.
Rayong's property scene is heating up, with the coastal areas becoming increasingly attractive for both investors and homebuyers. The combination of industrial growth, improved infrastructure, and a thriving tourism industry is creating a perfect storm for property demand. As these elements come together, Rayong is poised to become a key player in Thailand's real estate market.
Sources: Bangkok Post, Horizon Homes Samui, Bangkok Post
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18) Bangkok's outer suburbs will gain popularity as new transport links make commuting easier
Bangkok's outer suburbs are becoming increasingly popular due to improved transportation links.
The Thai government is heavily investing in infrastructure, focusing on projects like the Phran Nok - Phutthamonthon Sai 4 route, which makes commuting to the city center much easier. This is a game-changer for those who want to enjoy suburban life without sacrificing city job opportunities.
New mass transit lines are extending into these areas, enhancing connectivity and making it more convenient for people to live in the suburbs while working in the city. This improved accessibility is a big draw for many residents who are tired of the hustle and bustle of central Bangkok.
Property values in the outer suburbs are on the rise, partly due to these new transportation routes. The luxury home market in Western Bangkok is booming, showing a clear shift in demand towards these suburban areas. People are starting to see the value in these once-overlooked neighborhoods.
With these developments, the outer suburbs are not just a place to live but a smart investment. The combination of affordable living and easy access to the city is hard to resist. It's no wonder more people are looking to make the move.
Sources: Knight Frank, Statista, PR Newswire
19) High-speed rail expansion will boost property values in connected cities and towns
The expansion of high-speed rail networks is set to boost property values in connected cities and towns.
Imagine cutting your travel time in half. That's what high-speed rail does, making places like Bangkok and Nakhon Ratchasima more appealing for living and investment. Improved connectivity means higher property values, as seen in other countries like Japan and South Korea.
Research backs this up. A study from Thammasat University found that high-speed rail significantly influences property values by enhancing accessibility. The Thai government and Krungsri Research also predict economic growth and increased property values in areas with better connectivity, such as the Eastern Economic Corridor.
Look at Europe for proof. Cities like Lyon and Milan have seen economic revitalization and higher property values thanks to high-speed rail. Surveys show strong buyer interest in properties near new rail lines, especially among wealthier individuals and overseas buyers seeking hybrid workplaces.
It's not just about homes. Increased commercial development is driving up property values too. The high-speed rail project is expected to boost freight transport and economic activity, making connected cities more attractive for investment.
Experts agree. Urban planners and economists believe that infrastructure-driven growth will enhance the Thai economy. High-speed rail is expected to improve connectivity and stimulate economic activity in regions served by the rail network.
Sources: Krungsri Research, Railway Supply, Thammasat University Study, Bangkok Post
This article gives you valuable insights, but remember, it’s not and will never be investment advice. We pull data from a range of sources to provide you with the most accurate picture possible, yet we can’t guarantee complete accuracy. Markets are difficult to predict. Make sure to do your own research and consult a professional before making any financial moves. Any risks or losses are your own responsibility.