Who buys real estate in Thailand?
As of the first half of 2022, the Thai real estate market is gradually recovering from the impact of the pandemic, which had led to halted construction and a decrease in demand for homes from both local and foreign buyers. The market is now bouncing back as new trends in customer preferences emerge.
Thai buyers are currently opting for spacious homes with ample personal space and private land. The pandemic forced many to spend more time at home, creating a need for workspace. There is a high demand for low-rise homes such as townhouses, duplexes, and villas. Developers have responded by launching new low-rise projects.
In addition, many developers are focusing on the younger generation—individuals who need their first home close to work. More and more young Thais are moving away from the tradition of living with older family members and are eager to start their own households. For this group, developers are creating projects featuring affordable studios. In Bangkok, these studio apartments in new residential projects, fully managed by property management companies, start from 1 million baht.
Who are the property buyers in Thailand?
According to official statistics, in 2019, before the pandemic, foreign buyers purchased 13,232 condominium units in Thailand, totaling 52.07 million baht. When the borders were closed in 2020, the number of purchases dropped by 35.3% to 8,285, the lowest on record. The total value of foreign purchases in 2020 was 37.716 million baht, 25.5% less than in the previous year. In the second quarter of 2020 alone, 1,162 apartments were sold, a 61.1% decrease compared to the same period in 2019.
During the pandemic, Thailand imposed strict entry restrictions, deterring foreign investors. Before the pandemic, the leading foreign buyers in Thailand were from China, the USA, Russia, the UK, and France. Russian buyers mainly invested in resort cities, while buyers from other nations preferred properties in Bangkok, resort areas, and the northern regions. The primary foreign buyers in resort areas like Pattaya and Phuket were Russians and Chinese.
More than half of the apartments in Bangkok are bought by foreigners. In the Chonburi Province, 24.9% of apartments were sold to foreigners, making it the leading area for foreign buyers. In Phuket, foreigners own 5% of the apartments, with a greater preference for villas in that area. Other popular locations for foreign buyers include Samut Prakan, Chiang Mai, Hua Hin, Pathum Thani, Rayong, Nonthaburi, and Chiang Rai.
However, the situation is expected to change soon. China has yet to reopen its borders, significantly reducing its share of investors. The political situation and sanctions against Russia have also decreased the number of Russian buyers. Meanwhile, demand is growing among buyers from Arabian and Indian nationalities.
Foreign demand is particularly strong for homes priced under 5 million baht.
Most foreigners purchasing real estate in Thailand are individuals working or running businesses in the country, as well as families seeking to live in a warmer climate. Many start by spending winters in Thailand and eventually decide to move there permanently.
It’s important to note that foreigners are not allowed to own land in Thailand and can only own up to 49% of a condominium building. These regulations control and limit foreign ownership in the country.