Thailand real estate market price overview and forecast for 2024

Thailand real estate market price overview and forecast for 2024

The year 2023 witnessed unprecedented growth in the local housing market in Thai. In Bangkok, real estate prices rose by a record 10%, and on the popular tourist island of Phuket, they rose by 5%.

Content:

The Kingdom also saw increased demand for residential property in Thailand from foreign investors and buyers. There are several reasons, including:

  • The cost of housing in Thai is lower than in the UAE and most European countries.
  • Good liquidity indicators for properties in the country's resort areas.
  • Consistently high rental yields: the average rental yield for apartments or houses in Pattaya and Bangkok reaches 10% per annum, while properties in the resort areas of Phuket can yield up to 12% per annum.

Today, the Thai economy and infrastructure are developing dynamically, inflation is within acceptable limits, and the local currency exchange rate has remained stable many years. All of this, combined with the recovery of the tourism sector after the pandemic, gives reason to believe that the market will continue to grow through 2024.

Real estate market Thailand

The Thai real estate market attracts investors from all over the world. This is due to the relatively affordable house prices in Thailand compared to other countries, as well as the stable political situation in the country.

To encourage foreign investment in the Kingdom, programmes are gradually being introduced to ease property ownership rules for citizens of other states. There is also a systematic development of investment funds and the creation of free economic zones.

Today, foreign citizens have the right to purchase apartments in condominiums. At present, land plots and private houses on them can be acquired only with the right to long-term lease. The regulated term of ownership is 30 years, which can be extended twice on the basis of 30 years each, making a total of 90 years. Despite the lease, the owner has the right to sell, lease or inherit the property.

It is not excluded that the Kingdom's government will review these rules in the future and provide more opportunities to foreigners. This initiative was already mentioned in October 2022, when the Cabinet approved a resolution allowing the sale of construction land to certain categories of wealthy foreigners.

The Kingdom's developing economy, the active expansion of local infrastructure, and the rise in global energy prices are all stimuli for the growth of housing prices in Thai in 2023. Inflation also has a direct impact on the increase in the cost of construction materials, labor, and imported components.

The growth of the Thai housing market is driven by the following factors:

  • Increasing demand due to active urbanization and demographic growth, especially in major cities such as Bangkok and Chiang Mai.
  • Favorable government policies to attract foreign investment.
  • Expansion of the industrial sector, stimulated by the government's Eastern Economic Corridor project and the creation of a manufacturing and logistics hub in the eastern part of the country.
  • Increasing commercial real estate demand, especially in the office and retail segments, driven by the active development of e-commerce and rising consumption levels.

Legislation in Thailand

One of the main challenges for foreigners buying apartments or villas in Thailand is the rather complex requirements to obtain visas and other permits to work and stay legally.

Obtaining permanent residency is quite challenging, requiring language proficiency, extended stay in the country, and compliance with several other conditions. Most foreign citizens reside in the Kingdom on non-immigrant or tourist visas, which must be renewed annually. In addition, if a foreigner wishes to work legally, he or she must obtain a work permit.

The situation may improve soon as the government aims to attract foreign investment, which will have a positive impact on the economy. The first steps have already been taken. In 2022, a Long-Term Visa (LTR) program was launched for wealthy foreigners. The visa is valid 5 years and can be extended to another 5 years. Eligible categories of citizens include:

  • Investors who invest $500,000 in government bonds or physical assets and who can prove an annual income of $80,000 and total assets of at least $1 million.
  • Freelancers or remote workers with an annual income of $40,000.
  • Retirees 50 years of age or older with an annual income of $40,000 during the last 2 years.

Real estate prices in Thailand after the crisis

The increase in apartments in Thailand prices in 2023 is driven by the growing apartments demand in major cities and resort areas. Demand is increasing due to active urbanization, overall economic growth, low interest rates on loans, and the promotion of affordable housing policies.

Experts also note gradual growth in the commercial sector. The government's encouragement of foreign investment is leading to increased interest in office, warehouse, and industrial space. Properties located near major seaports, airports, and major highways are particularly popular. Rental rates of such space continue to rise due to limited supply and high demand.

If we track the changes in real estate prices in Thailand since 2020, we can observe a steady increase in the apartment in Thailand price in both the primary and secondary markets. Here are the cost statistics in dollars for 2022 and 2023. In 2022, the cost of 1 sq. m of an apartment was $1,436, and in 2023, it was $1,784. The cost of new developments has also increased significantly. In 2022, the cost of 1 sq. m in a new residential complex was $2,259, and in 2023, it rose to $3,883.

However, the rent of a 1-bedroom apartment decreased from $607 per month in 2022 to $596 in 2023.

Real estate market outlook 2024: Price forecast

Recently, the Thai real estate market has witnessed a noticeable increase in interest in quality properties with added amenities in the middle and elite segments. This has been attributed to the gradual improvement in the standard of living of the local population and the active attraction of wealthy foreign investors to the Kingdom.

A major factor contributing to the growing popularity of elite segment properties is the improvement in construction quality and the creation of new projects that consider current environmental trends. Many modern buildings are equipped with solar panels, energy-efficient lighting systems, electric vehicle charging stations, bicycle parking, and other options as part of sustainable development programs. Such properties are eagerly purchased by foreign investors and wealthy Thais.

Based on projected trends, prices are expected to continue to rise through 2024. Factors contributing to this include:

  • Increased demand from foreign buyers
  • Improvement in housing quality
  • Implementation of government programs to attract foreign investment

Among the macroeconomic factors influencing the cost of housing in Thai, notable ones include:

  • Stable economy
  • GDP growth
  • Growing middle class
  • Recovering tourism industry

Will prices fall in 2024? Considering real estate in Thailand price trend and economic indicators, a decrease in the cost of Thai housing is not expected in the near future. This indicates that today is a suitable time to invest in an apartment or a house.

Home prices in Thailand

How much is real estate in Thailand? The cost of real estate in Thai is currently determined by several factors, including:

  • Location
  • Type of condominium (elite, economy, middle class)
  • Availability of amenities at the building or condominium site: pool, restaurant, spa center, gym, etc.
  • Year of construction and quality of finish

Elite apartments and villas on the west coast of Phuket and in central Bangkok are the most expensive. More affordable options can be found in the coastal city of Pattaya. Cheap housing is concentrated in regions far from the sea and the capital.

Foreign investors usually consider buying apartments and studios in condominiums. Such properties may be privately owned. Small apartments in a good complex with amenities in Phuket are valued at an average of $100,000. Cheaper options are available, but they are often only sold on the basis of long-term ownership of 30 years. Villas and townhouses are a more expensive category of housing. On Phuket, a house can cost the buyer $300,000 and up.

It is worth mentioning the off-plan properties separately. Today, developers offer the purchase of apartments, villas and townhouses in residential complexes at the foundation stage. By the time such a residential complex is completed, the cost of the object increases by up to 30%.

Let us help you buy real estate in Thailand!

To find out the cost of real estate in Thailand and explore the current market offers, visit the catalog on our website. We have collected numerous listings with of apartments, villas, townhouses, and commercial properties from verified real estate agencies and developers. We work directly with sellers and do not charge commissions to our clients.

The site offers the ability to view real estate price in Thailand now in euros, dollars, and other popular currencies, helping you quickly navigate the market. Thanks to a convenient search with sorting by location, number of bedrooms, area, property type and other parameters, you can quickly find a suitable property. If necessary, you can seek assistance from our specialist who will help you understand all the nuances of property selection and acquisition in the Kingdom.

Share
Subscribe to newsletter
Subscribe