Thailand real estate boom: Chinese and Russians lead demand

22.12.2023
Thailand real estate boom: Chinese and Russians lead demand

In recent years, Thailand has experienced a real boom in real estate sales to foreign buyers. The demand for apartments and condominiums in the most popular tourist destinations of the kingdom has grown especially strong. Experts name several key factors that account for this trend.

Chinese and Russian buyers are leading the market

According to the Real Estate Information Center of Thailand, managed by the State Housing Bank, in the first 9 months of 2022, the Chinese and Russians led the ranking of foreign buyers of condominiums in the kingdom.

The Chinese purchased nearly half of all housing bought by foreigners during the period. Russians came in second place. Next on the list are citizens of the United States and Taiwan.

In total for 9 months in Thailand was sold more than 10 thousand properties for a total of 1.5 billion dollars. This is a third more than for the same period in 2022.

The main demand from foreign buyers is observed for apartments and apartments in Bangkok and popular resorts like Pattaya and Phuket. These are the places where tourist activity in Thailand is traditionally concentrated.

Reasons for the rapid growth in demand

According to experts, the demand for Thai real estate is growing both from investors and buyers of second homes for recreation and tourism. This is facilitated by a complex of factors.

First, the Thai government in recent years actively stimulates the development of the tourism industry, which forms about 12% of the country's GDP. Visa formalities have been simplified for citizens of China, Russia and other key tourist donor countries. Air communication with them is also intensively expanding.

Secondly, after the removal of covid restrictions, there was a rapid recovery of tourist traffic to Thailand. In 2023, the authorities expect to receive 35 million foreign tourists. This will contribute to further growth in demand for real estate, especially in tourist hubs.

Thirdly, according to experts, Thai real estate prices in general have not yet reached the ceilings set for foreigners. This means that there is a potential for growth in the cost of housing and return on investment in it.

In the coming years, analysts predict a continued high level of demand for Thai real estate from foreign buyers. This trend will contribute to the further development of the construction sector and the Thai economy as a whole. However, the authorities need to monitor the balance of the market and prevent a sharp rise in prices amid the influx of foreign investment in real estate.

Author of the article: Ekaterina Antonova