Should You Buy Property in Thailand in 2025? Market Insights & Risks

 

Should You Buy Property in Thailand in 2025?

Current Market Situation

Thailand’s real estate market is showing cautious optimism. Property prices are expected to rise 3–7% in 2025, fueled by tourism recovery, infrastructure projects, and growing foreign demand for premium properties. The Bank of Thailand has eased loan-to-value (LTV) rules, offering up to 100% mortgage financing from May 2025 to mid-2026 to absorb oversupply and boost housing activity. However, household debt remains high at 89% of GDP, and domestic mortgage approvals are limited. Recent border conflicts with Cambodia caused economic damage of over ฿10 billion (~$300 million), highlighting vulnerabilities in rural economies. Watch my complete video in Hind with English Sub-titles here: Should you buy a condo in Thailand or not?

Key Market Drivers

Tourism Rebound: Thailand expects around 41 million visitors in 2025, surpassing pre-pandemic levels, driving demand for vacation rentals in hotspots like Phuket, Pattaya, and Chiang Mai.
Infrastructure Growth: Projects like the Eastern Economic Corridor (EEC), high-speed rail (Bangkok–Pattaya–Chiang Mai), MRT extensions, and airport expansions increase property value in transit corridors.
Government Stimulus: Fee reductions, extended LTV, and long-term visa programs for foreigners (Elite Visa, Digital Nomad Visa) attract investment.
New Asset Types: Industrial facilities, serviced apartments, data centers, and green developments are rising, especially near EEC and border zones.

Risks for Foreign Buyers

Legal Ownership Restrictions: Foreigners cannot own land—only condos under the 49% foreign quota. Some try to bypass rules with nominee Thai companies, which is illegal and risky.

Safe Legal Workaround – Long-Term Lease: Leases of up to 30 years are legal and enforceable. Foreigners can build homes on leased land with proper registration and optional renewal.

Market Oversupply: Major cities like Bangkok, Pattaya, and Chiang Mai have unsold condo units, slowing resale potential and rental yields. Buying in prime tourist or transit zones improves long-term appreciation.

Currency Exchange & Repatriation: Purchase funds must be remitted in foreign currency with a Foreign Exchange Transaction (FET) certificate. Proper documentation ensures smooth fund repatriation when selling.

Developer & Quality Risks: Smaller developers may delay projects or provide low-quality construction. Opt for reputable developers (Sansiri, Ananda, SC Asset, Origin) and check building management history.

Rental Guarantees: Be cautious of “guaranteed rental income” schemes; many are unsustainable and include hidden fees.

Ongoing Costs & Hidden Fees: Monthly maintenance fees (CAM) can be high. Request full disclosure before purchase to avoid legal complications.

Limited Legal Recourse: Thai laws favor developers and locals. Disputes can take years, so hire independent property lawyers, not developer-affiliated ones.

Visa & Residency: Owning property doesn’t grant a long-stay visa. Align property purchases with visa strategies like Elite, LTR, or retirement visas.

Resale Challenges: Selling to another foreigner is limited by the foreign quota. Buy in marketable areas to ensure liquidity.

Geopolitical & Economic Risks: Border tensions, political unrest, or global economic shocks can reduce tourism, affecting property demand and value.

 Related Resources for you: 

1. Bank of Thailand: https://www.travelmantoday.com/thailand-visa-rules-2025 
2. Board of Investments Thailand: https://www.boi.go.th/en/index/
3. Thailand Property Laws: https://www.thailand-property.com/ 

Best Practices for Foreign Buyers

• Buy only condos within the foreign quota and ensure registration with the Chanote (Title Deed).

• Use Thai banks for transfers and obtain an FET certificate.

• Hire independent Thai property lawyers for due diligence and contract review.

• Prioritize properties in prime locations with good building management.

• View Thai property as a lifestyle or diversification investment, not a primary wealth-builder.