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Property prices in Thailand have risen steadily over the past 10 years. A decline in activity was observed only during the COVID-19 restrictions. A distinctive feature of the Thai market is the frequency of its cycles, driven by periodic small corrections.
Price per square metre dynamics
Bangkok retained the lead in price per square metre, although Phuket is closing in fast.
Transaction volumes and the share of foreign buyers
At the same time, the share of foreign buyers remains relatively small compared with the total number of real estate transactions in the country. Official statistics put it at around 3–4%. In reality, however, the share of transactions involving foreigners is higher, since some buyers register property through local nominee owners or domestic legal entities. The actual share of foreign buyers is estimated at roughly 10–12% nationwide and is significantly higher in tourist regions.
Foreign demand
The share of foreign buyers in total transactions has grown steadily over the past four years, but has yet to return to pre-COVID levels.
The most active buyers of property in Thailand are Chinese nationals, who account for around 45% of all foreign purchasers. They show particularly persistent interest in real estate in neighbouring Southeast Asian countries.
Market dynamics
After the COVID-19 restrictions were lifted, the market faced pent-up demand and a shortage of supply. By 2023, however, mass-market demand in the mid-price segment had weakened. In the economy segment prices barely moved, owing to tighter lending policies towards local residents. As of 2025 Thailand's residential market remains in a phase of structural imbalance: demand is stabilising while the supply of new projects continues to shrink.
The country's monetary policy
In 2025 Thailand's macroeconomic environment is characterised by low inflation alongside a relatively elevated policy rate, which restrains domestic housing demand but improves the market's overall macroeconomic resilience.
Thailand imposes restrictions on direct property ownership by foreigners: by law, foreigners may own no more than 49% of a condominium, and land ownership is not permitted at all. At the same time, the importance of registering ownership in one's own name is systematically downplayed by many real estate agents.
Rental yield
Samut Prakan and Nonthaburi show the highest yields in currency terms because of the shortage of supply in these provinces. Phuket, by contrast — the main hub of foreign demand — is among the weakest performers. Yields in individual projects can be considerably higher, but these figures reflect average market levels.
Government policy
Until 2025 the Thai government broadly pursued a consistent, investor-friendly and predictable policy towards foreign capital. The country's regulatory environment remains one of the most open in Southeast Asia: low property ownership taxes, no strict rent controls, and the ability to repatriate capital freely provided the source of the currency used for the purchase is documented.
In 2025, however, a number of structural risks previously seen by the market as secondary became more clearly apparent. In particular, a significant number of leasehold owners encountered difficulties extending their lease agreements, which again brought the legal protection of foreign investors to the fore.
A further negative factor was the escalation of tensions with Cambodia, including several armed incidents on the border. Although local in nature, the accompanying media coverage temporarily affected tourist flows, especially in border and resort regions — an important factor for markets heavily dependent on short-term rentals.
If the current course towards liberalisation continues — including the proposed increase in the foreign ownership quota in condominiums from 49% to 75% — Thailand will probably retain its status as one of the region's most open markets for private investors.
However, based on the data for January–February 2026, investment risk models should be adjusted to account for the accumulated imbalances and structural constraints of the market.
Risks
The key systemic risk of Thailand's real estate market is the widespread use of the leasehold structure. A significant share of buyers, particularly foreign investors, underestimates the fundamental difference between ownership (freehold) and long-term lease rights. In many cases this distinction is deliberately blurred by sellers and agents.
In practice a leasehold property remains the property of a legal entity, with the buyer acting as a lessee. This means that any legal, financial or tax problems of the owning company translate directly into risks for the lessee. Such properties may be encumbered or become the subject of creditor claims or litigation, while the formal mechanisms protecting lessees are limited.
These risks materialised during the COVID-19 period, when hundreds of foreign investors lost control of their properties amid developers' financial difficulties. From a long-term investment perspective, leasehold structures are generally best avoided in favour of assets where direct ownership (freehold) can be secured.
An additional risk in 2025–2026 is the structural housing surplus and the elevated level of unsold inventory. Despite the slowdown in new project launches, the market continues to carry a substantial overhang of accumulated supply, especially in the mass segment and in peripheral locations. This weighs on the secondary market, rental yields and the liquidity of individual projects.
Thailand's real estate market remains one of the most attractive in Southeast Asia, but an investment approach requires high selectivity and professional analysis. Despite the presence of compelling niche opportunities, it is also one of the region's most complex markets: returns on projects located in similar areas can differ radically.
The market contains a substantial number of properties where the gap between primary and secondary market prices reaches 30–50% immediately after completion, reflecting the effect of excess supply and the speculative pricing of previous years. The rapid price growth in Phuket in 2023–2025 creates the conditions for a possible correction phase.
The region's heavy dependence on foreign and tourist demand increases volatility. In the short term (2025–2026), returns on investment in Phuket may be higher, but in terms of stability and predictability the Bangkok market looks more reliable.
Against the backdrop of global geopolitical shifts, Chinese companies are showing growing interest in opening offices and regional headquarters in Bangkok. This factor could provide long-term support for demand for both residential and commercial property in the capital region, softening the effects of the current market imbalances.
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