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What is happening in Thailand’s real estate market? Are prices on the rise or decline? Is Bangkok still a magnet for international investors? How are Thailand’s government policies and taxes shaping the real estate landscape in 2025?
These are the questions we hear every day from professionals, buyers, and sellers across Thailand, from Chiang Mai to Phuket and beyond. Maybe you’re curious about the same things.
We know this because we stay closely connected with local experts and individuals like you, exploring the Thai real estate market daily. That’s why we crafted this article: to offer clear answers, insightful analysis, and a comprehensive view of market trends and dynamics.
Our aim is straightforward: to make sure you feel informed and confident about the market without needing to search elsewhere. If you think we missed the mark or could improve, we’d love to hear your feedback. Feel free to message us with your thoughts or comments, and we’ll strive to enhance this content for you.
How this content was created 🔎📝
Fact-checked and reviewed by our local expert
Attaya Suriyawonghae 🇹🇭
Real Estate Broker, Zest Real Estate
1) Chinese buyers will keep dominating Thailand's foreign property market
Chinese buyers are a powerhouse in Thailand's property market, especially when it comes to condos.
In 2023, they made up almost half of all condo transfers to foreigners, both in terms of units and transaction value. This isn't just about numbers; it's about the huge economic impact they're having on the market.
Fast forward to 2024, and interest from Chinese buyers has only intensified. Inquiries have jumped by nearly 50% compared to the previous year. Why? Thailand offers attractive investment returns and lower living costs, making it a top pick for Chinese nationals eager to invest abroad.
Looking ahead, potential changes in Thai government policies could make the market even more appealing. Think about extending leasehold periods and increasing foreign ownership limits in condos. These moves are likely to draw even more Chinese investors into the fold.
Meanwhile, the decline in China's property market has shifted attention to Southeast Asia. Thailand stands out as a prime choice for Chinese property developers looking for new opportunities.
Sources: The Diplomat, Ocean WWP, Silk Estate, Bangkok Post
2) Foreign buyers will increasingly target Thailand’s property market due to favorable exchange rates
Foreign buyers are increasingly interested in Thailand's property market due to favorable exchange rates.
In 2023 and 2024, the Thai Baht experienced fluctuations against major currencies like the US Dollar and Chinese Yuan, making it cheaper for foreign investors to buy property in Thailand. This has turned the country into an attractive option for international buyers.
During these times, there was a noticeable surge in property transactions involving foreign buyers. For example, in the first quarter of 2023, condominium transfers by foreigners in Thailand jumped by 79.2% compared to the same period in 2022. This boom was largely fueled by buyers from China and Russia, who seized the opportunity presented by the favorable exchange rates.
Real estate agencies have reported a rise in inquiries from foreign investors whenever the exchange rates are advantageous. Agencies like Find Thai Property have seen a significant increase in interest from Chinese buyers, drawn to the market by these favorable conditions.
This trend is expected to continue, as economic reports suggest that foreign currencies will remain strong relative to the Thai Baht. This ongoing strength keeps Thailand's real estate market appealing to international buyers.
Sources: Thailand Business News, Bangkok Post, Find Thai Property
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Thailand versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you’re planning to invest there.
3) Relaxed foreign ownership laws will draw more international investors
The relaxation of foreign ownership laws in Thailand is making the country a hotspot for international investors.
In 2023, foreign direct investment in Thailand saw a remarkable surge, reaching $18.6 billion, which was a 72% jump from the previous year. This boom was further fueled by a five-year high in investment applications, totaling $23.8 billion.
By mid-2024, the momentum continued with a notable rise in FDI applications and promotion certificates issued by the Board of Investment (BOI). These applications amounted to $257 billion across 257 projects, showcasing a 107% year-over-year growth. This clearly indicates a strong and growing interest from international investors.
Thailand's strategic location and favorable policies are catching the eye of investors. The possibility of 100% foreign ownership in certain sectors is particularly attractive. The Thai government is actively promoting foreign investment by offering full ownership in specific sectors like manufacturing, services, and tourism-related activities.
These proactive measures by the government are enhancing Thailand's appeal. Investors are drawn to the country's strategic position and the potential for full ownership in key sectors, making it a prime destination for international capital.
With these changes, Thailand is positioning itself as a lucrative market for global investors, offering opportunities that are hard to find elsewhere.
Sources: Thai Embassy, Deloitte, JLL
4) Property prices in Bangkok's central business district will dip slightly due to oversupply
Bangkok's central business district is seeing a shift in its property market due to high vacancy rates in new developments.
In the latter half of 2023, there were 30,974 houses priced over 10 million baht, but only 23,657 sold, leaving many unsold. This oversupply is causing a ripple effect in the market. Real estate agencies report that condominium prices in the CBD dropped by 0.61% in the fourth quarter of 2023, hinting at a market adjustment.
Adding to this, the number of construction permits has surged, with seven new office projects set to complete in 2024. This influx of new supply could saturate the market, potentially pushing property prices down. Developers are feeling the pinch, as surveys show a slight dip in sales during the second half of 2023.
Rising interest rates are making it tougher for buyers, contributing to the slowdown. Rental yields in the CBD are also not as lucrative, hovering between 4% to 5%, which might be another sign of oversupply. This situation is creating a challenging environment for both buyers and investors.
For those considering buying property in Bangkok's CBD, it's crucial to understand these dynamics. The market is currently in a state of flux, with potential opportunities for savvy investors who can navigate the oversupply.
Sources: Knight Frank Thailand Research Forecast 2024, Jones Lang LaSalle (JLL) Research, Sansiri Rental Yield Comparisons
5) Pattaya's rental yields will rise as international tourists return
With international tourists flocking back, Pattaya's rental yields are set to soar.
In 2023, Pattaya welcomed 23 million visitors, and the local tourism authority is aiming for 27 million in 2024. This surge in tourists is a boon for the rental market, attracting digital nomads, expatriates, and long-term visitors who are on the lookout for both short-term and long-term stays.
Short-term rentals are in high demand, with 8,167 active Airbnb listings in Pattaya as of September 2024, enjoying a 60% average occupancy rate. This bustling activity signals a thriving rental property market. Investors are seeing the benefits, with the average gross rental yield for apartments in Pattaya at 6.25% in Q3 2024.
Government initiatives, like visa exemptions for nationals from 93 countries, are giving tourism a further push, making Pattaya a key player in Thailand's tourism scene. The Tourism Authority of Thailand is optimistic about growth, with Pattaya expected to be a major contributor. This trend is likely to continue, boosting rental yields as more tourists opt for rental accommodations over hotels.
Sources: REM Thailand, Bangkok Post, Airbtics, The Investor, Global Property Guide
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6) Bangkok rents will increase as expatriates return
Bangkok's rental market is buzzing with activity as more people are looking for homes.
In the past few years, the demand for rental properties in Bangkok has surged, with the rental demand index climbing from 100 in 2018 to 176 in 2023. This means a lot more people are interested in renting homes in the city, and it's not just locals.
Expatriates are making a big comeback to Bangkok, with 174,991 expatriates living in Thailand in 2023. Many of them are choosing popular neighborhoods like Pathum Wan and Watthana, where rental prices have jumped by 16% year-on-year. This influx is a major factor pushing up rental demand in these areas.
Bangkok's appeal isn't just about the lifestyle; it's also about the economy. The Thai economy has been on a steady rise, attracting international businesses and their employees back to the city. This economic growth, coupled with government policies that encourage foreign investment, makes Bangkok a hotspot for expatriates looking to live and work.
With more international businesses setting up shop, there's a higher demand for housing, especially in areas that are easily accessible by metro lines. This is where the city's infrastructure plays a crucial role, making it convenient for expatriates to settle in and commute.
Sources: Benoit Properties, Bangkok Post, Krungsri Research
7) Chiang Mai’s rental market will stay stable with a slight upward trend
Chiang Mai's rental market is on the rise, with an 8% increase in demand in 2023.
This growth is fueled by steady population increases, thanks to both local and international newcomers. Chiang Mai's charm as a cultural and educational hotspot, along with its lower cost of living compared to Bangkok, makes it a magnet for many.
Government projects are boosting the city's appeal, with improvements in transportation, healthcare, and education making it more livable. The expanding tourism sector is also expected to push up demand for homes and business spaces.
Digital nomads and expatriates are flocking to Chiang Mai, drawn by its modern amenities and city center convenience. This influx is driving up condo rental prices, especially in popular areas like Hang Dong and Chang Klan.
These neighborhoods have low vacancy rates, showing just how much new residents are eager to settle in. The city's blend of tradition and modernity continues to attract a diverse crowd, ensuring a stable rental market.
Sources: Bangkok House, FazWaz
8) Rural property prices will rise more slowly than in urban centers
In Thailand, more than half of the population now lives in urban areas, a trend that's been growing steadily.
As people move to cities, the demand for housing in urban centers has surged, especially in places like Bangkok. This shift is largely because cities offer more job opportunities and amenities, making them attractive to many. As a result, property prices in Bangkok have risen significantly compared to rural areas.
The Thai government is also playing a role by investing heavily in urban infrastructure. These improvements make city life even more appealing, which in turn drives up property prices. In contrast, rural areas see fewer such investments, leading to slower price increases there.
Real estate experts point out that urban areas generally experience stronger growth in property values. This is due to the combination of increased demand, better amenities, and ongoing infrastructure development. Consequently, property prices in cities rise faster than in rural regions.
For those considering buying property, it's important to note that rural areas will likely see a slower price increase compared to urban centers. This could mean more affordable options for buyers looking outside the city.
Understanding these dynamics can help potential buyers make informed decisions about where to invest in property. Urban centers offer rapid growth but come with higher prices, while rural areas provide a more stable, albeit slower, market.
Sources: Statista, Silk Estate, Trading Economics
We have made this infographic to give you a quick and clear snapshot of the property market in Thailand. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
11) Phuket's rental prices will drop as landlord competition intensifies
Phuket's rental market is buzzing with new developments, especially in hotspots like Bang Tao and Laguna Phuket.
With all these new properties popping up, landlords are facing stiff competition to fill their units. This means more empty apartments and lower rental prices as they try to attract tenants.
Landlords are getting creative, offering perks like discounts for early payments or rewards for paying on time. These incentives show they're feeling the heat to keep their properties occupied.
Tenants are now leaning towards newer, more modern places, leaving older properties struggling to keep up. This shift is pushing landlords of older units to drop their prices to stay in the game.
In this competitive market, landlords are under pressure to offer better deals, which is great news for anyone looking to rent in Phuket.
Sources: Sunway Estates, The Thaiger, Our Villas
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12) Townhouses will become more popular for their affordability and spaciousness
Townhouses are gaining popularity in Thailand, and this trend shows no signs of slowing down.
Back in 2023, there was a 42% increase in sales of low-rise housing, which includes townhouses, compared to the previous year. This surge highlights a growing demand that even surpasses pre-COVID-19 levels. Townhouses are becoming the go-to choice for many, especially as they offer a balance of affordability and space.
One of the key reasons for this trend is their affordability. Townhouses are generally more budget-friendly than single-family homes or condos. A significant portion of unsold housing units priced below THB 3 million are townhouses and condos, making them an attractive option for mid- to lower-income groups who are feeling the pinch from rising living costs and higher interest rates.
Besides being affordable, townhouses offer more space and privacy, which is increasingly important to buyers. People are drawn to the spacious living arrangements that townhouses provide. This preference is driven by lifestyle changes and a growing interest in energy-efficient and environmentally friendly homes.
Consumer surveys reveal that buyers are looking for homes that offer both comfort and sustainability. Townhouses fit the bill perfectly, providing a blend of modern living with the added benefit of being more environmentally conscious. This shift in consumer preference is a significant factor in the rising popularity of townhouses.
Sources: Krungsri Research, Data Insights Market, Silk Estate, Krungsri Research
13) Demand for affordable housing will rise as the middle class expands
The growing middle class in Thailand is driving demand for affordable housing.
With the Thai economy on the rise, GDP grew by 2.3% in the second quarter of 2024, up from 1.6% earlier. This economic boost is expected to continue, making it easier for the middle class to invest in homes. In Bangkok, the housing market is booming, with new units increasing by 80.6% since 2021. This surge is thanks to the post-pandemic recovery and government infrastructure projects.
Government policies are also making a difference. The Board of Investment (BOI) is offering perks like tax breaks for developers who focus on affordable housing. This is a big incentive for builders to cater to the middle class's needs. The result? More affordable homes popping up across the country.
In the Bangkok Metropolitan Region, the demand for housing is particularly strong. The area has seen a significant increase in new housing units, driven by both economic growth and strategic government initiatives. This makes it a hot spot for potential buyers looking for affordable options.
For those considering buying property in Thailand, now might be a good time. The combination of a growing economy, government incentives, and a rising middle class means more affordable housing options are becoming available. This trend is expected to continue, offering more opportunities for homebuyers.
Sources: NESDC, Krungsri Research, Tilleke & Gibbins
14) Young professionals will drive up demand for co-living spaces
Young professionals are increasingly choosing co-living spaces in urban areas like Bangkok and Phuket.
With over half of Thailand's population living in cities, the trend of urban migration continues to rise. As these young professionals flock to bustling cities for job opportunities, they seek housing that is both flexible and affordable.
The high cost of traditional home ownership in these urban centers is a major factor driving this shift. Property prices keep climbing, making it tough for young professionals to buy homes. Co-living spaces offer a budget-friendly alternative, often bundling utility bills and furniture into the rent, which helps young people manage their finances better.
The rise of remote work has also reshaped housing preferences. Many young professionals now want homes that accommodate their flexible work styles. Co-living spaces provide the amenities and community vibe that remote workers desire, offering a social environment that appeals to Millennials and Gen Z.
These younger generations value social interaction and engagement, making co-living spaces particularly attractive. The sense of community they offer is a big draw for those who prefer not to live in isolation.
As urbanization continues, the demand for co-living spaces is expected to grow, especially among young professionals seeking a balance between work, affordability, and social life.
Sources: JLL Thailand, Thammasat University Thesis Archive, Statista
We made this infographic to show you how property prices in Thailand compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
15) Demand for retirement-friendly properties will rise due to an aging population
Thailand's elderly population is on the rise, with 13.2 million citizens over 60 as of January 2024.
As people enjoy longer lives, with a life expectancy nearing 80 years, there's a growing need for retirement-friendly homes. These homes are designed with features like wheelchair-accessible entrances and in-house medical care, making them ideal for older adults.
The Thai government is actively encouraging the development of retirement and healthcare facilities. Through the National Economic and Social Development Council, policies are being pushed to enhance benefits and healthcare for seniors, which in turn boosts demand for these specialized properties.
Real estate developers are stepping up by creating senior living communities and wellness-focused developments. These properties offer not just comfort and convenience but also make retirement living in Thailand appealing for both locals and international retirees.
With the aging population, there's a noticeable shift in the real estate market. Developers are increasingly focusing on wellness and community-oriented projects to cater to the needs of older adults.
As Thailand's senior population continues to grow, the demand for retirement-friendly properties is expected to rise, making it a promising market for potential buyers. Investing in these properties could be a smart move for those looking to tap into this expanding sector.
Sources: Nation Thailand, Nestopa
16) Samui will emerge as a prime location for wellness-focused residential communities
Samui is set to become a prime spot for wellness-focused residential communities.
In recent years, Thailand has seen a boom in wellness tourism, with a 36% annual growth rate from 2020 to 2022. This surge in interest isn't just about vacations; it's influencing how people want to live, making wellness a key factor in choosing a home.
Samui is already home to several wellness retreats and resorts, like The Beach Samui, which offers cannabis-integrated therapies. This trend is part of a larger movement, as the global wellness economy continues to expand. In Thailand alone, the wellness economy is approaching £27.5 billion and is expected to grow by nearly 10% each year.
The real estate market in Koh Samui is catching on, with a noticeable increase in wellness-oriented properties. In 2023, 1,500 villa units were sold, and the market is projected to grow by 5-7% annually over the next few years. This reflects a strong demand for luxury living that prioritizes health and well-being.
Developers are responding by creating eco-friendly and sustainable infrastructure, which aligns with the wellness lifestyle. This approach not only attracts buyers but also enhances the island's reputation as a luxury wellness destination.
With these developments, Samui is becoming a magnet for those seeking a lifestyle that combines luxury with wellness, making it an attractive option for potential property buyers.
Sources: Global Wellness Institute, Globetrender, Kalaraco
18) Virtual reality tours will become standard for property viewings
Virtual reality tours are now a staple in property viewings, and there's a good reason for it.
Globally, the use of VR in real estate is booming. By 2025, the market is projected to surpass USD 3 billion, with the Asia Pacific region, including Thailand, leading the charge. This surge highlights a strong interest in VR for real estate, both globally and regionally.
People's preferences are shifting too. Over half of adults have already taken a virtual tour, and most home buyers now favor listings that offer one. Properties with virtual tours get more views and longer engagement, showing that buyers find them incredibly useful when checking out potential homes.
Thanks to advancements in VR technology, it's now more accessible and affordable for everyone. This means more people can use VR headsets to explore homes without leaving their couches. Real estate companies are seeing the benefits, reporting up to 67% increases in bookings and conversion rates when they use virtual tours.
Imagine being able to walk through a house in another country without ever stepping on a plane. That's the power of VR in real estate today. It's not just a trend; it's becoming a necessity for anyone serious about buying property.
As VR technology continues to evolve, expect even more immersive experiences. Soon, you might be able to feel the texture of a wall or the warmth of sunlight streaming through a window, all from your living room.
Sources: Rocket Driver, PhotoUp, Market.us
While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility.