Buying Property in Thailand: Types, Challenges, Prices, and Regulations
Thailand offers not only a fantastic holiday experience but also an attractive opportunity for real estate investment. Known as the Land of Smiles, it is the most visited country in Southeast Asia, welcoming 11.15 million tourists in 2022. Despite rising prices, real estate in Thailand remains relatively affordable compared to Western countries. This article will guide you on how to purchase an apartment with a pool and gym at a competitive price, as well as what foreign investors should be aware of when buying property in Thailand.
CONTENTS:
- Available Properties
- Who is Selling
- How to Purchase
- Price Overview
- Potential Challenges
AVAILABLE PROPERTIES
Thailand's real estate market offers a range of options, including condominiums, houses, and villas, all at reasonable prices. It’s possible to buy property in Thailand for as little as USD 20,000, especially when purchasing directly from the developer during the construction phase.
A condominium, or «condo,» consists of privately owned units within a community that shares common areas. Condos typically feature pools, gyms, and parking spaces, with some offering additional amenities like shops, cafes, and playgrounds. Check our website for up-to-date prices on off-plan properties—many development projects in Thailand are very affordable.
Private houses can also be quite economical in Thailand. However, foreign nationals cannot own the land on which these houses stand. Instead, foreigners usually purchase the building and lease the land for a set number of years. More details on land and property ownership rights for foreigners are provided below.
Villas are larger, more luxurious residences, often featuring a garden, private pool, and designer interiors. Villas are the most expensive type of real estate in Thailand, popular with tourists for short-term rentals. During the low season, rental prices for basic villas start at around USD 100 per night, increasing during the high season.
WHO IS SELLING?
Most residential properties are developed by foreign investors, while Thai nationals tend to focus on commercial real estate, which is generally more valuable. There are numerous off-plan projects available across Thailand, particularly in major cities and resort areas such as Bangkok, Pattaya, Hua Hin, Phuket, Chiang Mai, and Koh Samui. Pattaya and Phuket, in particular, offer many new condominium projects that are popular with international buyers from countries such as China, the US, France, and Russia.
How to Buy Property in Thailand
Apartments in Thailand can be purchased through international agents. Working with Thai realtors can be unpredictable, and the chances of a successful experience may not be high. To select a suitable investment property on your own, you’ll need to speak the local language and have a solid understanding of local laws. It’s often easier and safer to work with an experienced real estate broker who has access to a large database of verified properties and the necessary expertise.
When buying property in Thailand, foreigners can opt for one of two ownership types: freehold and leasehold. Freehold offers permanent ownership, allowing the property to be sold, gifted, inherited, or mortgaged. If you purchase a unit in a condominium, you also gain partial ownership of the land the building is situated on, with the plot size proportional to the area of your unit. However, foreign ownership is restricted to 49% of all units, while the remaining 51% must be owned by Thai nationals.
Leasehold, on the other hand, is a long-term lease where the buyer owns the property but leases the land. This is common for private houses and villas. Typically, the land is leased for 30 years with the option to renew twice. During this period, the owner has full rights to the property and can manage it as they see fit.
For those interested in purchasing land in Thailand, it is necessary to register a legal entity. However, keep in mind that even in this case, foreigners can only own 49% of the company’s shares. It’s important to note that the Thai government is wary of inactive companies, and you will need to pay ongoing taxes.
Price Overview
When selecting apartments in Thailand’s development projects, location is key. A beachfront property doesn’t necessarily guarantee a peaceful living environment, as tourist areas can be lively with frequent parties and events. Consider quieter neighborhoods instead. Here are some examples:
- A studio in Pattaya for USD 17,500
- A two-bedroom apartment in Kathu for USD 72,700
- A two-bedroom duplex in Koh Samui for USD 110,500
Pitfalls
It’s essential to remember that buying property in Thailand doesn’t grant any visa advantages on its own. Any foreigner can purchase real estate, but property ownership doesn’t provide special rights for staying in the country. However, there are programs that offer simplified visa procedures for significant investments in the Thai economy. For instance, purchasing high-value properties may grant the buyer extra benefits, such as long-term residency under the Thailand Elite program, allowing up to 20 years of stay.