Types of Real Estate: What Apartments and Houses Are Available in Thailand?
Thailand's real estate market has unique development characteristics shaped by the historical evolution of the region. Cities like Bangkok, and its central districts of Wattana, Khlong Toei, and Huai Khwang, exemplify this. These areas are crossed by major roads, and the real estate sector developed to provide housing near key transportation routes.
In this article, we will delve into Thailand’s real estate market, its key features, and the different types of housing available.
CONTENT:
- Features of the Real Estate Market in Thailand
- Reasons to Invest in Real Estate in Thailand
- Rooms and Studios
- Apartments in Residential Complexes and Condominiums
- Serviced Apartments
- Detached Houses and Townhouses
- Villas and Houses
- Commercial Real Estate
- Land Plots
- The Current Thai Real Estate Market
- Demand and Costs
- Conclusion
- We Will Help You Purchase Real Estate in Thailand
Features of the Real Estate Market in Thailand
In 2020, condominiums made up 86% of the Thai housing market, while detached houses and townhouses accounted for 8% and 6%, respectively. Below, we will take a closer look at each type of property.
Reasons to Invest in Real Estate in Thailand
- Lower prices compared to other tourist destinations
- Attractive mortgage rates (5-7%, depending on the bank)
- Government policy reducing property transfer fees
- Relaxed mortgage lending rules for foreigners by the Central Bank of Thailand (BOT)
- Developer discounts
- The potential to earn rental income
- Opportunity to obtain a long-term visa and work remotely from Thailand
Rooms and Studios
What are the most affordable housing options in Thailand?
- Rooms: Separate living spaces that include a bathroom but typically lack a kitchen.
- Studios: Independent living units with essential amenities, including a combined living room, bedroom, and kitchen. Studios are more spacious than rooms, with some offering up to 100 square meters or more.
Apartments in Residential Complexes and Condominiums
A condominium in Thailand is a multi-story building where apartments are available for rent or purchase.
According to CBRE, a leading real estate consulting firm, the highest share of condominiums in 2021 was in the price range of up to ฿3,500,000 ($104,000). Most of these properties are located in Bangkok’s main districts: Wattana, Khlong Toei, and Huai Khwang.
Apartments in condominiums and regular residential complexes are similar in that both offer multiple housing units for sale or rent, with access to shared spaces and amenities. However, there are notable differences:
- Condominiums have a dedicated management company responsible for property maintenance (landscaping, cleaning, repairs, etc.).
- Utility and management service fees are billed separately.
- Condominiums have strict rules of residence, such as prohibiting the storage of personal items in common areas.
- Waste separation is required in condominiums.
- Pets are generally not allowed in condominium apartments, although exceptions can sometimes be made for small animals like rodents or fish, with the owner's consent.
Important: Foreigners can only buy or sell apartments in condominiums, while residents are free to purchase all types of properties.
Serviced Apartments
If you’re looking for premium comfort, serviced apartments are the solution. These types of properties offer temporary or long-term stays, with contracts ranging from a few days to a year or more. Like hotels, they include services such as weekly cleaning and meal provisions. Serviced apartments come fully furnished and decorated, ready for tenants to move in. This is a great option for those seeking everyday luxury or a short-term stay.
Detached House and Townhouse
A detached house and a townhouse can look similar inside, with both offering between 1 to 4 floors. The primary difference is that a townhouse shares a wall with another house in a row of connected homes, whereas a detached house stands alone with no shared walls.
A detached house is a standalone building with no shared walls.
A semi-detached house/townhouse refers to a structure with two homes separated by a single shared wall. Unlike condominiums, townhouse ownership includes individual ownership of the land it sits on. However, foreigners cannot purchase land in Thailand, making this housing option unavailable to them.
In Bangkok, townhouses are most commonly found in districts like Wattana, Lat Phrao, and Pravet, while detached houses are generally located on the outskirts of business districts such as Pravet, Khlong Sam Wa, and Sai Mai.
Villa and House
Originally, the term «villa» referred to a luxury countryside home in the style of ancient Rome. Today, this definition holds true. Thai villas are the most prestigious housing option, featuring not only spacious, well-furnished homes but also amenities like private swimming pools, gardens, and outbuildings.
While a villa is always a house, not every house is a villa. Real estate agents often use the term «villa» as a marketing tactic. Houses in Thailand come in various sizes and may include multiple floors, terraces, private garages, living rooms, and dining areas. The number of bedrooms varies depending on the house's size.
Commercial Real Estate
Commercial properties in Thailand include office spaces, coworking spaces, warehouses, and industrial areas. While these types of real estate cannot be purchased by foreigners, they can be rented.
Foreigners are generally limited to purchasing office spaces known as strata (or office condominiums) under the Condominium Act.
Land Plots
According to Thai law, foreigners cannot own land in the Kingdom. However, they can lease land for 30 years with the option to extend the lease for up to 90 years. This leased land can be used for personal or commercial purposes, but not for resale.
The Current Thai Real Estate Market
In 2019-2020, the real estate market in Thailand faced a significant downturn due to the COVID-19 pandemic. Lockdowns and travel restrictions halted international tourism, which is closely linked to the housing market.
In 2020, condominium sales dropped to 8,285 units, down from 13,232 units in 2019—a decline of 35.3%.
In the second quarter of 2020, the Thai market hit its lowest point with only 1,162 units sold, a 61.1% decrease compared to the same period in 2019, and transaction values dropped by 54.3%.
By Q3 2020, the situation had improved, with 1,885 condominiums sold to foreigners for ฿9,381,000 ($278,653) and 2,592 apartments for ฿12,703,000 ($377,329).
Despite some recovery in 2021, Thailand's housing sector continued to struggle due to reduced purchasing power.
From early 2021, housing prices fell before stabilizing in December, while the supply index rose. Developers have increasingly focused on building houses and villas. According to Trading Economics, Bangkok saw a 7% increase in supply.
Demand and Cost
Condominium prices have been declining as economic growth slows amid weak purchasing power. Condominiums have been hit hardest by the decline in both local and foreign buyers.
On the other hand, villas, detached houses, and land plots have seen more positive trends. This is largely due to a shift in consumer preferences toward larger living spaces and higher comfort levels—something only these types of properties can offer.
Rising demand in these segments has driven prices up. In 2021, prices for detached houses rose by 10% compared to Q4 2020, while townhouse prices increased by 8%.
Conclusion
As quarantine restrictions in Thailand ease, buyers and investors with high purchasing power are once again exploring the Thai real estate market. According to DD Property analysts, purchasing an apartment in Thailand offers a solid investment opportunity, both for living and for long-term resale value.
We Will Help You Purchase Real Estate in Thailand
Are you looking to buy an apartment in a new development in Thailand? Explore the best deals on Thailand-Real.Estate. Find properties from leading developers and trusted homeowners in Thailand. Our catalog provides detailed photos, descriptions, and current prices for properties you're interested in, along with extensive information about the Thai real estate market.
You can also get advice on renting, buying, selling, and relocating to Thailand from our website’s managers. Our specialists are here to guide you through the entire transaction process.
Serviced Apartments
If you’re looking for premium comfort, serviced apartments are the solution. These types of properties offer temporary or long-term stays, with contracts ranging from a few days to a year or more. Like hotels, they include services such as weekly cleaning and meal provisions. Serviced apartments come fully furnished and decorated, ready for tenants to move in. This is a great option for those seeking everyday luxury or a short-term stay.
Detached House and Townhouse
A detached house and a townhouse can look similar inside, with both offering between 1 to 4 floors. The primary difference is that a townhouse shares a wall with another house in a row of connected homes, whereas a detached house stands alone with no shared walls.
A detached house is a standalone building with no shared walls.
A semi-detached house/townhouse refers to a structure with two homes separated by a single shared wall. Unlike condominiums, townhouse ownership includes individual ownership of the land it sits on. However, foreigners cannot purchase land in Thailand, making this housing option unavailable to them.
In Bangkok, townhouses are most commonly found in districts like Wattana, Lat Phrao, and Pravet, while detached houses are generally located on the outskirts of business districts such as Pravet, Khlong Sam Wa, and Sai Mai.
Villa and House
Originally, the term «villa» referred to a luxury countryside home in the style of ancient Rome. Today, this definition holds true. Thai villas are the most prestigious housing option, featuring not only spacious, well-furnished homes but also amenities like private swimming pools, gardens, and outbuildings.
While a villa is always a house, not every house is a villa. Real estate agents often use the term «villa» as a marketing tactic. Houses in Thailand come in various sizes and may include multiple floors, terraces, private garages, living rooms, and dining areas. The number of bedrooms varies depending on the house's size.
Commercial Real Estate
Commercial properties in Thailand include office spaces, coworking spaces, warehouses, and industrial areas. While these types of real estate cannot be purchased by foreigners, they can be rented.
Foreigners are generally limited to purchasing office spaces known as strata (or office condominiums) under the Condominium Act.
Land Plots
According to Thai law, foreigners cannot own land in the Kingdom. However, they can lease land for 30 years with the option to extend the lease for up to 90 years. This leased land can be used for personal or commercial purposes, but not for resale.
The Current Thai Real Estate Market
In 2019-2020, the real estate market in Thailand faced a significant downturn due to the COVID-19 pandemic. Lockdowns and travel restrictions halted international tourism, which is closely linked to the housing market.
In 2020, condominium sales dropped to 8,285 units, down from 13,232 units in 2019—a decline of 35.3%.
In the second quarter of 2020, the Thai market hit its lowest point with only 1,162 units sold, a 61.1% decrease compared to the same period in 2019, and transaction values dropped by 54.3%.
By Q3 2020, the situation had improved, with 1,885 condominiums sold to foreigners for ฿9,381,000 ($278,653) and 2,592 apartments for ฿12,703,000 ($377,329).
Despite some recovery in 2021, Thailand's housing sector continued to struggle due to reduced purchasing power.
From early 2021, housing prices fell before stabilizing in December, while the supply index rose. Developers have increasingly focused on building houses and villas. According to Trading Economics, Bangkok saw a 7% increase in supply.
Demand and Cost
Condominium prices have been declining as economic growth slows amid weak purchasing power. Condominiums have been hit hardest by the decline in both local and foreign buyers.
On the other hand, villas, detached houses, and land plots have seen more positive trends. This is largely due to a shift in consumer preferences toward larger living spaces and higher comfort levels—something only these types of properties can offer.
Rising demand in these segments has driven prices up. In 2021, prices for detached houses rose by 10% compared to Q4 2020, while townhouse prices increased by 8%.
Conclusion
As quarantine restrictions in Thailand ease, buyers and investors with high purchasing power are once again exploring the Thai real estate market. According to DD Property analysts, purchasing an apartment in Thailand offers a solid investment opportunity, both for living and for long-term resale value.
We Will Help You Purchase Real Estate in Thailand
Are you looking to buy an apartment in a new development in Thailand? Explore the best deals on Thailand-Real.Estate. Find properties from leading developers and trusted homeowners in Thailand. Our catalog provides detailed photos, descriptions, and current prices for properties you're interested in, along with extensive information about the Thai real estate market.
You can also get advice on renting, buying, selling, and relocating to Thailand from our website’s managers. Our specialists are here to guide you through the entire transaction process.