Real estate boom in Thailand: high demand despite uncertainties!

Real estate boom in Thailand: high demand despite uncertainties!

Amid economic uncertainties, the used property market in Thailand remains strong. Demand for single-family homes remains unbroken, particularly in tourist regions such as Phuket, Chonburi, Pattaya and Chiang Mai. Loud today.line.me Around 3,600 transactions worth 9.2 billion baht per year have been carried out over the past five years. The popularity of the locations is reflected not only in the sales figures, but also in the preferences of buyers. The majority of annual property transfers, 55%, are for used properties, with single-family homes reaching as high as 70%.

The high demand for residential properties also attracts international buyers. Chinese buyers remain in the lead, while Russian buyers' interest is focused on 2-bedroom apartments in the 5-16 million baht price segment. American buyers prefer smaller one-bedroom apartments along the subway line, while Indian buyers are particularly interested in one-bedroom apartments in the 3-4 million baht price range. A positive forecast for 2025 is that condo ownership transfers are expected to increase by 2%.

Market development and price increases

Property prices in Thailand increased by an average of 3.5% in 2024, as greenacres.com reported. In popular holiday regions such as Phuket and Chiang Mai, price increases were between 4 and 6%. This development is further supported by a growing middle class and the stable tourism sector, which is seen as a driver for luxury real estate. Australia and Asian countries have also invested in holiday homes and apartments, which is further fueling the dynamics in the market.

Particularly noteworthy is BAM's market dominance, which plays a key role with 22% and around 14,000 properties for sale. Banks even hold 63% of the entire market with around 39,000 properties. At the same time, government measures to reduce transfer and mortgage fees are expected to have a positive impact on the market, especially for properties under 7 million baht.

Challenges and prospects

However, there are also challenges that investors face. Economic uncertainties, slow household growth and market saturation in certain areas may be a hindrance. Despite these challenges, the market is showing remarkable resilience, with experts predicting annual growth of around 8% for single-family homes and up to 10% for condominiums through 2025. Buyers looking to enter this market must familiarize themselves with local conditions and legal frameworks in order to be successful.