In recent years, experts have recorded the growing interest of buyers from other countries to purchase real estate in the Kingdom of Thailand. Increasing both the number of transactions involving foreigners and their financial volumes.
Recovery of the real estate market after the crisis caused by the pandemic
According to the Real Estate Information Center of the State Housing Bank of Thailand, in the first half of 2023, the volume of real estate purchase transactions executed by foreign nationals and companies increased by 14.7% year-on-year. They accounted for 10.8% of all registered transactions.
Even more impressive is the growth of the total value of real estate purchased by foreign buyers. Over the six months it increased by 24.5%, reaching 20.5% of the total market volume. This indicates a recovery in demand after the pandemic downturn.
Shift in the geography of demand by region
Chonburi province leads in terms of foreigner transactions with 43.4%. Bangkok is in second place with 37.7%.
In comparison, Bangkok has traditionally attracted around 49% of foreign buyer demand in 2018-2022.
The third place is Phuket with a share of 6.3%. Together, Chonburi and Bangkok account for over 80% of all real estate purchases by foreigners.
The structure of demand by the country of residence of investors
As before, the most active buyers from China - they account for 47% of transactions and 48.3% of the value.
Investors from Russia are second with 9.6% and 7.3% respectively. Although compared to the pre-pandemic period their share has slightly decreased.
Prospects for further growth in demand for Thai real estate
According to the head of the Real Estate Information Center, the statistics for six months reflects the recovery of interest in Thai real estate from foreign citizens and companies. This is a positive signal about the preservation of its investment attractiveness.
Gradual recovery of the tourism industry
In addition to real estate, Thailand's tourism industry, which was hit hard by the pandemic, is gradually recovering. According to the Ministry of Tourism, 19 million foreign tourists visited the country in the first 9 months of 2023, generating $22.26 billion in revenue.
To attract more visitors, visas for Chinese and Kazakh citizens have been canceled. Particular hopes are linked to increased tourist traffic from the PRC, which has always been a key source of tourists.
The importance of tourism for economic development
Before the pandemic, Chinese nationals accounted for 27.6% of all foreign tourists in Thailand, with numbers reaching 11 million in 2019. Even now, tourism remains one of the most important areas of the economy, providing an inflow of foreign exchange.
In 2023, the authorities hope to attract 28 million foreign tourists and generate $39.2 billion in revenue. Thus, the recovery of tourist traffic is seen as a key factor for Thailand's economic recovery.
Author of the article: Ekaterina Antonova