Thailand Real Estate - Price Rise, Demand and Forecasts

Thailand Property Market Trends — Results of Previous Years and Prospects for 2025

Known for its picturesque beaches, rich culture and hospitality, Thailand has become one of the most attractive destinations for real estate investment in recent years. Steady economic growth, developed infrastructure and a favorable investment climate are attracting more and more foreign buyers seeking to purchase a home in this tropical country.

Current Market Trends and Results

• One of the main characteristics of the Thai property market in recent years is the steady increase in prices for residential properties, including houses and condominiums. This trend is due to several factors, including:

1. High demand from foreign buyers
2. Development of the tourism industry and infrastructure
3. Government initiatives to stimulate investment in real estate
4. Limited supply of land in popular areas

According to the Bank of Thailand, house prices in Bangkok and its surrounding areas increased by 5.3% in 2022 compared to the previous year. Other major cities and tourist areas such as Pattaya, Phuket and Samui also saw significant price growth.

• The Thai property market saw a significant surge in demand from foreign buyers in 2024, especially on the island of Phuket. This popular tourist destination attracts investors with its picturesque beaches, developed infrastructure and a wide range of properties. According to a report by CBRE Thailand, the luxury villa market in Phuket has seen an unprecedented increase in new listings. In the first six months of 2024 alone, 18% more villas were listed for sale on the island than in the same period the previous year.
• Despite the overall growth of the market, the COVID-19 pandemic has had a certain impact on the Thai property market. International travel restrictions and quarantine measures led to a temporary decline in demand from foreign buyers in 2020-2021. However, thanks to effective government measures to control the spread of the virus and the gradual opening of borders, the Thai property market began to recover in the second half of 2021.
• 2022 saw a significant increase in sales and launches of new projects, especially in the luxury housing segment. According to the Department of Land Management of Thailand, Russia became the leader in demand for real estate in the country in 2024. Russian investors purchased real estate worth $51.8 million, which is 7.8% of the total volume of foreign investments in Thai real estate.
• Russian tourists and expats also have a significant impact on the rental market in Thailand. For example, on the island of Phuket, Russians make up about 90% of renters during the low season.

Popular regions and types of real estate

• Despite the overall high interest in Thai real estate, demand can vary depending on the season. However, experts expect that with the start of the high season at the end of the year, demand will increase again, as many buyers purchase real estate specifically for renting to tourists.
• Phuket Island remains the undisputed leader in popularity among real estate buyers in Thailand. Phuket attracts buyers with its picturesque beaches, developed infrastructure, a wide selection of real estate in different price categories and high rental income potential. Popular locations on the island include the areas of Bang Tao, Kamala, and Surin. Buyers also show significant interest in real estate in Pattaya and Koh Samui.
• These regions attract investors with developed infrastructure, a wide range of entertainment and recreational opportunities. Pattaya, located on the east coast of Thailand, is known for its vibrant nightlife, shopping centers and affordable real estate prices. Many Russians choose Pattaya for permanent residence or as a second home. Koh Samui, located in the Gulf of Thailand, attracts buyers with its white beaches, picturesque landscapes and a calm atmosphere. There is a wide selection of villas and apartments suitable for both permanent residence and rental.

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Preferences in property types

• Investors are interested in various types of real estate in Thailand, including condominiums, villas and houses. The choice depends on individual preferences, budget and purchase goals. According to statistics, most people buy property in Thailand for rental purposes during the tourist season, which starts in December. Therefore, compact condominiums and apartments with 1-2 bedrooms, located near popular tourist locations, are most in demand.
• Wealthy buyers are also interested in luxury villas and houses, especially in Phuket and Samui. These properties are suitable for both permanent residence and long-term rental.

Forecasts for 2025

• Experts predict that in 2025, the Thai property market will continue to show price growth, especially in popular tourist regions such as Phuket, Pattaya and Samui. The following factors will contribute to this:

1. Recovery of the tourism industry after the COVID-19 pandemic
2. Increased demand from foreign investors
3. Development of infrastructure and transport accessibility of regions
4. Limited supply of land in premium locations

According to analysts, the average growth in property prices in Thailand in 2025 will be 5-7%, depending on the region and type of property.

• The revival of tourism and an increase in foreign investment should ensure a stable rental market in Thailand in 2025. Demand for short-term rentals from tourists is expected to increase, especially during the high season. This will create favorable conditions for investors buying real estate for the purpose of generating rental income. The average rental yield for condominiums and apartments in popular tourist areas is expected to be 5-7% per annum.
• Growing demand for real estate in Thailand will encourage developers to launch new projects, especially in the luxury housing segment. A large number of modern condominiums, villas and houses that meet the requirements of foreign buyers are expected to appear on the market in 2025. Developers will pay special attention to the development of infrastructure, the creation of additional amenities for residents and the integration of smart technologies into their projects. This will attract a wider range of investors and increase the attractiveness of Thai real estate in the international market.
• Despite the overall positive forecast, experts note that seasonal fluctuations in tourist demand may affect the dynamics of the Thai real estate market in 2025. In the low season, which usually falls from May to October, one can expect some decrease in investor and tenant activity. However, given the growing popularity of Thailand as a destination for long-term stays and relocation, the impact of seasonality on the real estate market will gradually decrease. Many foreigners, including Russians, consider Thailand not only as a vacation spot, but also as a potential second home or country for permanent residence.

To summarize, the Thai real estate market is showing impressive results and has great potential for further growth. Steady price increases, high demand from foreign investors, especially from Russia, and the development of new projects make Thai real estate an attractive investment option. According to experts, the Thai real estate market will continue to grow in 2025, driven by the recovery of tourism, improved infrastructure, and continued interest from international buyers. Although seasonal fluctuations in demand may have some impact on market dynamics, the overall trend will remain positive.

Investors considering purchasing real estate in Thailand should pay attention to popular regions such as Phuket, Pattaya, and Samui, which offer a wide range of properties and good prospects for rental income. However, it is important to carefully study the market, familiarize yourself with local legislation, and enlist the support of professionals before making an investment decision.