Buying real estate in Thailand?

We've created a guide to help you avoid pitfalls, save time, and make the best long-term investment possible.

18 strong trends for 2025 in the Thailand property market

Last updated on 

Authored by the expert who managed and guided the team behind the Thailand Property Pack

buying property foreigner Thailand

Everything you need to know before buying real estate is included in our Thailand Property Pack

Are you considering investing in Thailand's property market by 2025? Curious about the emerging trends that could influence your decision? Want to know which areas are set to boom and what factors will drive property values?

We will lay down recent insights, ici 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

photo of expert attaya suriyawonghae

Fact-checked and reviewed by our local expert

✓✓✓

Attaya Suriyawonghae 🇹🇭

Real Estate Broker, Zest Real Estate

As a Thai Real Estate Broker based in Phuket, Attaya possesses deep knowledge of the Thai market. Her insider perspective and local connections provide invaluable insights for investors seeking to navigate the island's dynamic real estate landscape.

1) Chinese buyers will dominate 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 flock to Thailand's property market driven by 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

Everything you need to know is included in our Real Estate Pack for Thailand

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 drop 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 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

Get fresh and reliable information about the market in Thailand

Don't base significant investment decisions on outdated data. Get updated and accurate information with our guide.

buying property foreigner Thailand

6) Bangkok rents will increase with expatriates returning to the city

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 rise

Chiang Mai's rental market is on the rise, with an 8% increase in demand in 2023.

This growth is fueled by the city's appeal to both locals and expatriates, who are drawn to its cultural and educational offerings and a cost of living that's lower than Bangkok's. The steady influx of new residents naturally boosts the demand for rental properties.

Government projects have made Chiang Mai even more attractive by improving transportation, healthcare, and education. These enhancements, along with a thriving tourism sector, are likely to keep the demand for residential properties strong.

Digital nomads and expatriates are flocking to Chiang Mai for its modern amenities and vibrant city life, which is driving up condo rental prices. The city's well-located condominiums are particularly popular among foreigners and younger people.

With its blend of modern conveniences and cultural richness, Chiang Mai continues to be a magnet for those seeking a balanced lifestyle. This ongoing interest from diverse groups suggests that the rental market will remain stable with a slight upward trend.

Sources: Bangkok House, FazWaz Advice, Chiang Mai Real Estate Market Blog

8) Rural property prices will rise slower than urban property prices

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

Everything you need to know is included in our Property Pack for Thailand

9) Coastal property prices will rise significantly due to tourism recovery

Coastal property prices in Thailand are on the rise, thanks to a tourism comeback.

Tourist numbers are bouncing back, with Thailand expecting 41.1 million visitors by 2025, surpassing the 2019 record. This surge is fueling demand for properties in hotspots like Phuket, Pattaya, and Koh Samui. These areas are seeing increased interest in vacation homes as more tourists flock to their shores.

Hotels and resorts in these coastal regions are experiencing higher occupancy rates, which is a clear sign of tourism recovery. As more people visit, the need for accommodation grows, leading to higher property values and rental yields. This is especially true in popular destinations where the tourism sector is thriving.

Government efforts are also boosting tourism in these areas. Initiatives like the "travel sandbox" in Phuket and waived visa fees for visitors from China and India are making it easier for international tourists to come to Thailand. These measures are helping to increase interest in coastal properties as more people discover the country's stunning beaches and islands.

For those considering buying property in Thailand, now might be a good time to look at coastal areas. With tourism on the upswing, these regions are becoming more attractive for investment. The combination of government support and a growing number of tourists is creating a favorable environment for property buyers.

As tourism continues to recover, expect coastal property prices to keep climbing. The demand for vacation homes and rental properties is likely to remain strong, driven by the steady influx of tourists. This trend is set to continue, making coastal areas a promising option for potential buyers.

Sources: Osiris Investissements, Horizon Homes Samui, Fortune

10) New tax incentives for first-time homebuyers will boost the market

New tax incentives for first-time homebuyers in Thailand are set to give the real estate market a much-needed boost.

Back in 2011, a tax deduction for homes under 3 million baht led to a noticeable increase in first-time homebuyers, which in turn boosted the residential real estate market. Fast forward to 2016, and a reduction in registration and transfer fees also played a significant role in increasing property sales.

These examples highlight how tax incentives can make owning a home more affordable, encouraging more people to take the plunge. In 2019, a personal income tax deduction of up to 200,000 baht for first-time buyers showed how such measures can stimulate the market by easing the financial burden on new homeowners.

Now, the Thai government is planning to offer support through reduced fees and tax breaks on purchases up to $42,000. This move is expected to boost domestic demand, following a global trend where similar programs have increased home sales and modestly raised prices, as seen in the United States.

Additionally, the proposed increase in the loan-to-value ratio is likely to lead to more mortgage applications from first-time buyers, indicating a probable rise in market activity. This aligns with the government's strategy to encourage more people to enter the housing market and stimulate economic growth.

These initiatives are not just about numbers; they reflect a broader effort to make homeownership accessible to more people, especially those buying their first home. By reducing costs and offering financial incentives, the government aims to create a more vibrant and dynamic real estate market in Thailand.

Sources: Forvis Mazars, Bangkok Post, Brookings, Afrikavantage

11) Phuket rental prices will drop due to more landlord competition

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

Don't buy the wrong property, in the wrong area

Buying real estate is a significant investment. Don't rely solely on your intuition. Gather the right information to make the best decision.

housing market Thailand

12) Townhouses will become popular for their affordable price 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) The middle class growth will boost demand for affordable housing

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 in Thailand

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

Everything you need to know is included in our Pack for Thailand

15) Aging population boosts demand for retirement-friendly properties

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 be a top destination 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

17) Property buyers will prioritize health and wellness amenities

Thailand is becoming a hotspot for health and wellness tourism.

In 2023, medical tourism alone brought in US$9 billion, with visitors from around the globe. This trend is expected to grow, with health-related tourism revenue potentially reaching 760 billion baht by 2025. Thailand's appeal lies in its unique blend of traditional and modern wellness practices, making it a top choice for those seeking rejuvenation.

Thailand is also a global leader in wellness retreats and spas. The country's pool and spa market is thriving, driven by booming tourism and a rising interest in health. Wellness retreats here offer a mix of ancient traditions and modern innovations, attracting visitors who are keen on holistic health experiences.

On a global scale, the wellness real estate market is booming, with an expected annual growth rate of 15.8% from 2023 to 2028. This surge is largely due to a growing awareness of health and wellness, especially after the COVID-19 pandemic, which has made people more conscious of their living environments and the importance of wellness amenities.

Property developers are catching on, investing heavily in wellness infrastructure like spas and fitness centers. This isn't just about meeting current demand; it's also about boosting property values. Reports indicate that wellness amenities can significantly impact property prices, making them a smart investment for developers.

For potential property buyers, this means that health and wellness amenities are becoming a priority. As the demand for these features grows, properties with such amenities are likely to see increased value and appeal. This trend is reshaping the real estate landscape, making wellness a key factor in property investment decisions.

Sources: Tractus Asia, Construction Shows, Beauty Matter, Nation Thailand, Wellness Tourism

Make a profitable investment in Thailand

Better information leads to better decisions. Save time and money. Download our guide.

buying property foreigner Thailand

18) Virtual reality tours will dominate 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

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.