Thailand in real estate fever: Foreigners are investing in luxurious condos!

Thailand in real estate fever: Foreigners are investing in luxurious condos!

There is a lot going on in the real estate market in Chiang Mai! According to a survey recently released, a whopping 61% of participants favor living in condos, while 39% prefer a single-family home. For foreigners, condos remain the only legal option as they are not allowed to purchase land in Thailand, which makes this style of living particularly attractive. The demand for condominiums is on the rise not only in Chiang Mai but also in other cities such as Phuket and Pattaya. This shows that the real estate landscape here is becoming more and more popular. In Phuket, 9% of respondents are interested in real estate, in Chiang Mai it is 7%, and in Pattaya only 5%. Bangkok also remains the clear leader among the most desirable cities for foreign buyers, but other regions are also seeing strong growth. Let's note the cozy advantages of condos - security systems, comprehensive amenities and good access to public transport are a decisive criterion for many when buying or renting.

Many foreign buyers have a clear picture of what they are looking for. The preferred size for condos is between 30 and 100 square meters, and the price range is from 3 to 10 million baht. Rents are also attractive in Chiang Mai, with average prices ranging from 10,000 to 30,000 baht per month. Buyers and tenants are enthusiastic about well-designed spaces that offer a clear work area for home offices. Balconies as well as fully equipped fitness centers and swimming pools are also very popular. Despite some demand for pet-friendly projects, the majority of foreigners show less interest in these offerings, further reinforcing the focus on other qualitative characteristics.

New laws for foreign owners

There are exciting changes in Thai politics that could significantly improve the investment landscape for foreign buyers. A new proposal calls for extending ownership rights to 99 years, which, together with increasing foreign ownership of condominiums from 49% to 75%, should also attract foreign investors. The planned legal adjustments aim to increase the security and value of investments in Thailand's real estate market and offer new perspectives, especially for developers. Experts expect higher property rights to boost competition at the international level.

Real estate associations and industry leaders such as Mr. Isara Boonyoung support these proposals to realize the market's potential. A switch from “building to sell” to “building to rent” could be an important strategy to compensate for the currently declining purchasing power domestically. The foreign rental market could prove to be a solid pillar of the Thai real estate market, not only protecting local economic interests but also creating fundamental incentives for international investors.

Real estate market on the rise

Thailand's real estate market is developing rapidly and attracting expats and international investors. Bangkok is seen as a modern economic center, while places such as Pattaya with its attractive leisure activities and Phuket and Chiang Mai are considered cultural treasures that impress with their affordable prices. The appeal of these different regions is crucial for real estate investors. The overall attractiveness of the market is underpinned by stable rental yields of 4 to 8% annually and the potential for appreciation in high-growth areas.

For potential buyers and renters in Chiang Mai, this means they are faced with a wealth of options. Whether as a holiday home or as a long-term investment - the future of the real estate market in Thailand sounds like a promising tune. It remains exciting to see how the new legal changes affect the current market situation and whether Chiang Mai can continue to assert itself as a hotspot for foreign investors and new residents.

In summary, the region offers an interactive and livable environment in which both buyers and renters can find what they are looking for. The current trends in the real estate sector could not only improve the quality of life of residents, but also provide an economic upswing. So anyone who is considering Chiang Mai as a location now has an excellent opportunity to get a taste of it and find their own happiness.

For more information, see Nation of Thailand, Own Property Abroad and Weekly flash.