Thailand Real Estate Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 54.90 Billion |
| Market Size (2029) | USD 71.70 Billion |
| CAGR (2024 - 2029) | 5.41 % |
| Market Concentration | Low |
Major Players.webp)
*Disclaimer: Major Players sorted in no particular order |
Thailand Real Estate Market Analysis
The Thailand Real Estate Market size is estimated at USD 54.90 billion in 2024, and is expected to reach USD 71.70 billion by 2029, growing at a CAGR of 5.41% during the forecast period (2024-2029).
The rise in prices due to inflation and economic slowdown affected the market, leading to a decline in property demand. However, the market is expected to recover in the coming years, supported by government policies and other factors. The residential segment is expected to record substantial growth.
Thailand is quickly gaining international recognition with many business and real estate investment options. Thailand attracts investors from all over the world due to its wealth of possibilities. Properties cost more in central Bangkok and other sought-after areas. Rental homes are demanded more by tourists and long-term inhabitants in cities like Bangkok.
Similar high rental rates apply to islands like Koh Samui or Phuket, where real estate is in high demand from locals, foreign visitors, and ex-pats looking for a luxurious getaway from the mainland or city life.
In 2022, the total supply of office space in Bangkok increased to 5.97 million square meters as a new building with a net leasable area of 25,000 sq. m was completed. Additionally, a 1.62 million sq. m of development is projected for the pipeline from 2022 to 2028.
Despite project launches being postponed by developers and consumer sales being delayed, the supply index increased. In contrast, there is still a substantial amount of inventory, particularly for condos. These represent low absorption rates brought on by the prolonged economic slump, making customers fearful of economic uncertainty and delayed purchasing real estate. The market has also lost its appeal to investors and overseas purchasers.
Thailand Real Estate Market Trends
Growth in Tourism is Driving the Market
Thailand showed a gradual economic recovery in 2022 owing to increased international tourism arrivals. In 2024 and 2025, GDP growth is anticipated to accelerate from an estimated 2.5% in 2023 to 3.2% and 3.1%, respectively. The Thai manufacturing sector showed some improvement in its momentum, with the S&P Global Thailand Manufacturing PMI for February 2023 showing a solid expansion.
As border restrictions gradually relaxed in Thailand and in many of the most prominent tourism source countries during 2022, international tourism significantly improved during the second half. In 2022, there were 11.15 million global visitors. The total number of international visits between January and September 2023 alone was around 19.96 million.
International tourism arrivals increased to 6.5 million visitors in the first quarter of 2023, more than half its total international visitor numbers for 2022. Total tourism receipts in the first quarter were estimated at TBH 499 billion (USD 14.28 million), an increase of 127% Y-o-Y in terms of domestic and international tourist spending. In 2023, the Tourism Authority of Thailand set a target to attract 25 million visitors from abroad, more than double the total number of tourists in 2022.
Phuket’s Real Estate Market is Experiencing a Significant Surge in Demand
In 2023, Phuket’s real estate market experienced a significant surge in demand driven by local and foreign investors. The island’s stunning natural beauty, vibrant culture, and thriving tourism industry, as described by Phuket.Net, make it a sought-after destination for property investment. The increasing foreign demand is contributing to a notable boom in the real estate market.
The changing preferences of buyers, impacted by progressing lifestyles and advancing technology, are shaping the demand for specific property types in Phuket.
Phuket is a prime destination for property investment in Thailand due to its natural beauty, strong tourism industry, and well-developed infrastructure. These factors create a desirable living environment, offering benefits and financial returns. The island’s economic stability, infrastructure development, and appealing rental yields enhance its appeal as an investment destination.
The real estate market in Phuket is witnessing a significant increase in growth. One area of interest is Pa Sak-Kok Tanot Road, Thalang, where lands were sold at a premium price of at least TBH 14 million per rai (USD 448,000), with a 20-30% price increase as of 2023. These lands are being developed into luxurious pool villas, which are increasingly in demand among tourists and foreign investors.
Thailand Real Estate Industry Overview
The Thai real estate market, with local and international players, is partially fragmented and competitive. Some of the country's major players include Pruska Real Estate, LPN Development, Sansiri, Supalai, and Ananda Development. In Thailand, property developers use digital technologies to enhance residential sales from local and global demand and tap into a new generation of purchasers providing sales via cryptocurrencies despite a property market slump and travel barriers.
Thailand Real Estate Market Leaders
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Pruska Real estate
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LPN Development
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Sansiri
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Supalai
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Ananda Development
*Disclaimer: Major Players sorted in no particular order
Thailand Real Estate Market News
- January 2024: Sansiri Public Company Limited, a Thai real estate developer, designated Phuket as a strategic location to launch 16 new projects with a total value of THB 15 billion (USD 416.6 million) over the next five years. Sansiri is also expected to establish a new regional headquarters in Phuket to provide excellent after-sales services, reaffirming its commitment to serving both local and international customers.
- December 2023: Saudi Arabia and Thailand collaborated to enhance innovation and entrepreneurship, strengthening their bilateral ties. The bilateral trade relationship witnessed an uptick, with Riyadh hosting a four-day trade show in August featuring over 100 manufacturers and entrepreneurs from Thailand showcasing products across various sectors.
Thailand Real Estate Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Overview of the Thailand Economy and Real Estate Market
4.2 Residential Real Estate Buying Trends - Socioeconomic and Demographic Insights
4.3 Government Initiatives and Regulatory Aspects for the Real Estate Sector
4.4 Insights on Rental Yields in the Residential Real Estate Segment
4.5 Insights Into Affordable Housing Support Provided By Government And Public-private Partnerships
4.6 Insights on Capital Market Penetration and REIT Presence in Real Estate
4.7 Focus On Technology Innovation, Startups And Proptech In Real Estate
4.8 Impact of COVID-19 on the Market
5. MARKET DYNAMICS
5.1 Drivers
5.1.1 The Rise in e-commerce and digitalization
5.2 Restraints
5.2.1 The Complexity of regulations and property ownership
5.3 Opportunities
5.3.1 Growing demand for eco friendly and sustainable properties
5.4 Industry Attractiveness - Porter's Five Forces Analysis
5.4.1 Bargaining Power of Suppliers
5.4.2 Bargaining Power of Consumers/Buyers
5.4.3 Threat of New Entrants
5.4.4 Threat of Substitute Products
5.4.5 Intensity of Competitive Rivalry
6. MARKET SEGMENTATION
6.1 By Type
6.1.1 Residential
6.1.2 Office
6.1.3 Retail
6.1.4 Hospitality
6.1.5 Industrial and Logistics
6.2 By Major Cities
6.2.1 Bangkok
6.2.2 Phuket
6.2.3 Pattaya
6.2.4 Chiang Mai
6.2.5 Hua Hin
6.2.6 Rest of Thailand
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles
7.1.1 Market Concentration
7.1.1.1 Pruska Real estate
7.1.1.2 LPN Development
7.1.1.3 Sansiri
7.1.1.4 Supalai
7.1.1.5 Ananda Development
7.1.1.6 Central Pattana PLC
7.1.1.7 Pace Development Corporation PLC
7.1.1.8 Raimon Land
7.1.1.9 Origin Property
7.1.1.10 JCK International
- *List Not Exhaustive
7.2 Other Companies
8. MARKET OPPORTUNITIES AND FUTURE TRENDS
9. APPENDIX
Thailand Real Estate Industry Segmentation
Real estate is referred to as the land and any permanent, whether natural or artificial, structures or improvements related to the property, such as a house. A complete background analysis of the Thai real estate market, including the assessment of the economy and contribution of sectors in the economy, market overview, market size estimation for key segments, emerging trends in the market segments, market dynamics, geographical trends, and COVID-19 impact, is covered in the report.
The Thai real estate market is segmented by type (residential, office, retail, hospitality, and industrial) and by major cities (Bangkok, Phuket, Pattaya, Chiang Mai, Hua Hin, and Rest of Thailand). The report offers market sizes and forecasts for all the above segments in value terms (USD).
| By Type | |
| Residential | |
| Office | |
| Retail | |
| Hospitality | |
| Industrial and Logistics |
| By Major Cities | |
| Bangkok | |
| Phuket | |
| Pattaya | |
| Chiang Mai | |
| Hua Hin | |
| Rest of Thailand |
Thailand Real Estate Market Research FAQs
How big is the Thailand Real Estate Market?
The Thailand Real Estate Market size is expected to reach USD 54.90 billion in 2024 and grow at a CAGR of 5.41% to reach USD 71.70 billion by 2029.
What is the current Thailand Real Estate Market size?
In 2024, the Thailand Real Estate Market size is expected to reach USD 54.90 billion.
Who are the key players in Thailand Real Estate Market?
Pruska Real estate, LPN Development, Sansiri, Supalai and Ananda Development are the major companies operating in the Thailand Real Estate Market.
What years does this Thailand Real Estate Market cover, and what was the market size in 2023?
In 2023, the Thailand Real Estate Market size was estimated at USD 51.93 billion. The report covers the Thailand Real Estate Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the Thailand Real Estate Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
What are the challenges facing Thailand Real Estate Market?
The challenges facing Thailand Real Estate Market are a) High inventory of condos due to delayed sales b) Economic slowdown and inflation are causing a rise in prices c) The Complexity of regulations and property ownership
Real Estate in Thailand Industry Report
The Thailand real estate market is witnessing significant growth, driven by rapid urbanization, economic expansion, and a thriving tourism sector. This market encompasses various segments including residential, commercial, industrial, and land, each catering to specific audiences and investment needs. A notable trend is the surge in foreign investment, particularly from Asian countries, alongside an increased demand for modern, luxurious properties equipped with advanced amenities. Concurrently, there is a rising preference for sustainable and eco-friendly properties, aligning with a global shift towards environmental awareness.
Government initiatives aimed at attracting foreign investment, coupled with Thailand's stable economy and GDP growth, have created a favorable environment for the real estate sector. Despite challenges such as political uncertainty, complex property laws, and environmental risks, opportunities in sustainable development, smart cities, and affordable housing continue to make Thailand an appealing choice for investors.
The market update reveals a positive outlook, with a comprehensive industry analysis indicating robust market growth. The industry statistics highlight the increasing market value, supported by detailed market data and market forecast. The market predictions suggest continued expansion, with market leaders driving significant industry trends. The market review provides an insightful market overview, emphasizing the importance of market segmentation in understanding diverse consumer needs. The market outlook remains optimistic, supported by thorough industry research and industry reports that underscore the sector's potential.
In summary, the Thailand real estate market is characterized by dynamic growth and promising opportunities. The market analysis and industry information point to a vibrant sector poised for further development. The market forecast and market growth indicators suggest a sustained upward trajectory, reaffirming the market's attractiveness to both domestic and foreign investors.
Real Estate Market in Thailand Report Snapshots
