Real estate market trends in Thailand

For foreign investors, Thailand remains a hot spot for property acquisition, whether for yield or residential purposes.
With the acceleration of urbanization, cities such as Bangkok, Chiang Mai and Phuket are experiencing a surge in demand for residential and commercial property.
Here’s a quick look at the factors driving real estate market development in late 2024 and early 2025.  

Growth in the Thai market and economic recovery

Thailand’s real estate market is set for remarkable growth between 2024 and 2025.
The main drivers of the recovery are expected to focus on three main areas:

– Economic growth:

The Thai economy is expected to grow by around 2.4% in 2024, according to World Bank data for July 2024, an increase of 0.5% compared with the figures for 2023.
Inflation is also expected to fall from 1.3% to 0.7% this year.
Economic growth combined with lower inflation means greater purchasing power for Thais and expatriates alike.

– Increased public spending:

Public spending on infrastructure, particularly transport, is another important factor.
New transport projects can make certain areas more accessible, increasing demand for real estate along these new routes.
For residents, it becomes easier to live away from their place of work.
For foreign visitors, new areas that were previously difficult to access may open up to tourists.

– Tourism upturn:

Tourism is also rebounding.
In 2024, 36.1 million tourists are expected, well above the 28.2 million in 2024.
In 2025, 41.1 million visitors are expected, surpassing 2019 figures.
The increase in tourist numbers translates into a rise in demand for second homes and rental investments, particularly in popular areas such as Phuket and Koh Samui.
The increase in the number of expatriates working and investing in Thailand is another positive sign, as they are often looking for long-term rental properties and buying villas to European standards, increasing demand on the market.   The improvement in the local and global economy should lead to an increase in buyers’ purchasing power, meaning that more people could start purchasing property in Thailand again, supporting overall market growth.
Challenges remain, however.
Unsold inventory from previous years can slow market growth, as sellers may lower prices to get rid of old units before selling new ones.
Despite this, recent statistics show a year-on-year increase in real estate transactions, underlining the market’s dynamism.
Proactive government policies, such as the Eastern Economic Corridor (EEC) initiative, are contributing to this growth by attracting international companies and investors.
As Thailand continues to modernize its infrastructure and improve connectivity, the next few years promise exciting opportunities for those looking to capitalize on emerging real estate markets.  

Foreign investment in Thailand

Foreign investment in the Thai real estate market has been performing well for the first 7 months of 2024, with a total by foreign companies on its soil of 2.66 Million USD.
Various factors are contributing to the development of FDI:

– Favorable investment policies :

The Thai government has introduced several policies to attract foreign investors, including allowing foreigners to own freehold condominiums.
These policies make it easier and more attractive for foreigners to invest in the real estate market.

– A resilient tourism sector :

With millions of tourists visiting Thailand every year, there’s a strong demand for rental properties in popular locations such as Bangkok, Phuket, Pattaya or Koh Samui.
This regular influx of tourists makes investment in rental property very lucrative and provides regular rental returns.

– A growing expatriate community:

Thailand’s urban centers are home to a growing number of expatriates.
This trend has created a robust rental market targeting expatriates looking for comfortable living spaces or lucrative investments.   We can therefore expect to see increased interest in residential property, particularly in cities and tourist hotspots.
High rental yields and the potential for property appreciation make this sector attractive to foreign investors.
Demand for office and retail space will increase as businesses grow and tourism recovers.
Mixed-use projects combining residential, retail and commercial space are particularly attractive.
Investors are capitalizing on these opportunities to diversify income streams.

The advantages of real estate in tourist areas

The steady increase in the number of tourists to Thailand is boosting demand for hotels and vacation rentals.
Government policies encouraging foreign tourism are also playing a crucial role in this resurgence.
Infrastructure improvements, such as new transport links and mixed-use developments, are making tourist areas more accessible.
This improved connectivity attracts more visitors, which increases demand for rental accommodation.
Investors interested in short-term rentals and vacation homes can expect attractive returns thanks to high occupancy rates.   As a result, new hotels and residences are emerging to meet growing demand.
But with increasing competition, establishments will have to stand out for the quality and excellence of their services.
Real estate agents can provide invaluable advice on investments that are likely to offer high returns.   Residential properties in tourist hotspots are also attracting interest from foreign buyers.
Phuket and Koh Samui are particularly popular because of their breathtaking scenery and lifestyle.
Investors looking for vacation homes or rental properties should keep these regions in mind.
Demand for commercial properties, such as stores and restaurants, should increase with the return of tourists.
Tourism and real estate professionals will strive to create unique experiences to attract visitors.
This can lead to increased footfall and, consequently, better business performance.
Professional real estate agents such as Osiris Investissements and its partners on the ground in Thailand, will advise and guide you in your acquisition, whether to live or invest in Thailand. Don’t hesitate to contact us