Thailand Real Estate Market: Overview, Prospects, Opportunities
Dcember 2025
Real Estate Market Indices of Major Cities
Property prices in Thailand have been steadily rising for the past 10 years. A decline in activity was observed only during the COVID-19 restrictions period. A distinctive feature of the Thai real estate market is the frequency of cycles, driven by periodic minor corrections.
Price per Square Meter Dynamics
Bangkok has retained its leadership in price per square meter, although Phuket is now closing in rapidly.
Number of Transactions and Share of Foreign Buyers
At the same time, the share of foreign buyers remains relatively small compared to the total number of real estate transactions in the country. According to official statistics, it accounts for around 3–4%. However, in reality, the share of transactions involving foreigners is higher, as some buyers register property through local nominees or domestic legal entities. The actual share of foreign buyers is estimated at around 10–12% nationwide and significantly higher in tourist regions.
Foreign Demand
The share of foreign buyers in total transaction volume has been steadily increasing for the past four years, but has not yet returned to pre-COVID levels.
Foreign Demand
Chinese nationals are the most active buyers of real estate in Thailand, accounting for approximately 45% of all foreign purchasers. They demonstrate a particularly strong interest in property across neighboring Southeast Asian countries.
Market Dynamics
After the lifting of COVID-19 restrictions, the market faced pent-up demand and a shortage of supply. However, by 2023, mass demand in the mid-price segment had declined. In the economy segment, prices remained largely unchanged, driven by tighter credit policies for the local population. As of 2025, Thailand’s residential market remains in a phase of structural imbalance: demand is stabilizing, while the supply of new developments continues to contract.
Monetary Policy of the Country
In 2025, Thailand’s macroeconomic environment is characterized by low inflation alongside a relatively elevated policy rate, which constrains domestic housing demand while enhancing the market’s overall macroeconomic stability.
Thailand imposes restrictions on direct property ownership by foreigners: by law, foreigners are allowed to own no more than 49% of a condominium, while land ownership is not permitted at all. Foreigners may own a house through a 30-year lease or via a local legal entity, but not the land beneath it. However, the importance of registering ownership in one’s own name is often systematically downplayed by many real estate agents.
Rental Yield
Samut Prakan and Nonthaburi show the highest returns in foreign currency terms due to supply shortages in these regions. In contrast, Phuket—being the primary hub for foreign demand—demonstrates one of the weakest performances. In certain individual projects, returns may be significantly higher; however, these figures refer to average market levels.
Government Policy
Until 2025, the Thai government generally pursued a consistent, investor-friendly, and predictable policy toward foreign investors. The country’s regulatory environment remains one of the most open in Southeast Asia: low property ownership taxes, the absence of strict rental controls, and the ability to freely repatriate capital, provided the source of foreign currency used for the purchase is properly documented.
At the same time, in 2025, a number of structural risks—previously perceived by the market as secondary—became more pronounced. In particular, a significant number of leasehold property owners faced difficulties in renewing lease agreements, once again highlighting concerns over the legal protection of foreign investors.
An additional negative factor was the escalation of tensions with Cambodia, including several armed border incidents. Although localized, the resulting media coverage temporarily affected tourist flows, particularly in border and resort regions—an important factor for markets heavily reliant on short-term rental demand.
If the current course toward liberalization continues—including the proposed increase in the foreign ownership quota in condominiums from 49% to 75%—Thailand is likely to maintain its status as one of the most open markets in the region for private investors.
However, based on data from January–February 2026, investment risk models should be adjusted to reflect accumulated imbalances and the structural limitations of the market.
Until 2025, the Thai government generally pursued a consistent, investor-friendly, and predictable policy toward foreign investors. The country’s regulatory environment remains one of the most open in Southeast Asia: low property ownership taxes, the absence of strict rental controls, and the ability to freely repatriate capital, provided the source of foreign currency used for the purchase is properly documented.
At the same time, in 2025, a number of structural risks—previously perceived by the market as secondary—became more pronounced. In particular, a significant number of leasehold property owners faced difficulties in renewing lease agreements, once again highlighting concerns over the legal protection of foreign investors.
An additional negative factor was the escalation of tensions with Cambodia, including several armed border incidents. Although localized, the resulting media coverage temporarily affected tourist flows, particularly in border and resort regions—an important factor for markets heavily reliant on short-term rental demand.
If the current course toward liberalization continues—including the proposed increase in the foreign ownership quota in condominiums from 49% to 75%—Thailand is likely to maintain its status as one of the most open markets in the region for private investors.
However, based on data from January–February 2026, investment risk models should be adjusted to reflect accumulated imbalances and the structural limitations of the market.
Risks
The key systemic risk of Thailand’s real estate market remains the widespread use of the leasehold structure. A significant portion of buyers, particularly foreign investors, underestimate 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 under the ownership of a legal entity, while the buyer acts as a tenant. This means that any legal, financial, or tax-related issues affecting the owning company directly translate into risks for the leaseholder. Such properties may be encumbered, subject to creditor claims, or involved in legal disputes, while the formal protection mechanisms available to tenants remain limited.
These risks materialized during the COVID-19 period, when hundreds of foreign investors faced a loss of control over their properties amid financial difficulties experienced by developers. From a long-term investment perspective, leasehold structures are generally advisable to avoid, focusing instead on assets where direct ownership (freehold) can be secured.
An additional risk for 2025–2026 is the structural oversupply of housing and the elevated level of vacant inventory. Despite a slowdown in new project launches, the market continues to face a significant overhang of accumulated supply, particularly in the mass segment and peripheral locations. This puts downward pressure on the secondary market, rental yields, and the liquidity of individual projects.
The key systemic risk of Thailand’s real estate market remains the widespread use of the leasehold structure. A significant portion of buyers, particularly foreign investors, underestimate 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 under the ownership of a legal entity, while the buyer acts as a tenant. This means that any legal, financial, or tax-related issues affecting the owning company directly translate into risks for the leaseholder. Such properties may be encumbered, subject to creditor claims, or involved in legal disputes, while the formal protection mechanisms available to tenants remain limited.
These risks materialized during the COVID-19 period, when hundreds of foreign investors faced a loss of control over their properties amid financial difficulties experienced by developers. From a long-term investment perspective, leasehold structures are generally advisable to avoid, focusing instead on assets where direct ownership (freehold) can be secured.
An additional risk for 2025–2026 is the structural oversupply of housing and the elevated level of vacant inventory. Despite a slowdown in new project launches, the market continues to face a significant overhang of accumulated supply, particularly in the mass segment and peripheral locations. This puts downward pressure on the secondary market, rental yields, and the liquidity of individual projects.
Summary
Thailand’s real estate market remains one of the most attractive in Southeast Asia; however, an investment approach requires a high degree of selectivity and professional analysis. Despite the presence of compelling niche opportunities, it is also one of the most complex markets in the region: returns on projects located in similar areas can vary dramatically.
The market contains a significant number of properties where the gap between primary and secondary market prices reaches 30–50% immediately after completion, reflecting the effects of oversupply and speculative pricing from previous years.
The rapid price growth in Phuket during 2023–2025 is creating conditions for a potential correction phase.
The region’s high dependence on foreign and tourism-driven demand increases volatility. In the short term (2025–2026), investment returns in Phuket may be higher; however, in terms of stability and predictability, the Bangkok market appears more reliable.
Amid global geopolitical shifts, interest from Chinese companies in establishing offices and regional headquarters in Bangkok is increasing. This factor may provide long-term support for both residential and commercial real estate demand in the capital region, helping to mitigate the effects of current market imbalances.
Thailand’s real estate market remains one of the most attractive in Southeast Asia; however, an investment approach requires a high degree of selectivity and professional analysis. Despite the presence of compelling niche opportunities, it is also one of the most complex markets in the region: returns on projects located in similar areas can vary dramatically.
The market contains a significant number of properties where the gap between primary and secondary market prices reaches 30–50% immediately after completion, reflecting the effects of oversupply and speculative pricing from previous years.
The rapid price growth in Phuket during 2023–2025 is creating conditions for a potential correction phase.
The region’s high dependence on foreign and tourism-driven demand increases volatility. In the short term (2025–2026), investment returns in Phuket may be higher; however, in terms of stability and predictability, the Bangkok market appears more reliable.
Amid global geopolitical shifts, interest from Chinese companies in establishing offices and regional headquarters in Bangkok is increasing. This factor may provide long-term support for both residential and commercial real estate demand in the capital region, helping to mitigate the effects of current market imbalances.
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