Who buys real estate in Thailand?

Property in Southeast Asia is in demand both among investors and those purchasing a second home by the sea. The target audience is diverse: foreigners account for up to 40% of all property sales in Phuket, Samui, and Pattaya, and as much as 70% in the premium segment. In the Thai capital, Bangkok, the majority of buyers are locals – 92%, while foreigners account for just 8%, mostly acquiring premium new-build condominiums.

The share of foreign buyers in the Phuket real estate market is significant and continues to grow. In the first half of 2025, there was a record increase in transactions with foreigners of +12% compared to the previous half-year. Here are the key figures and trends based on current statistics:

Among foreigners buying real estate in Phuket and other resort locations in Thailand, the most numerous groups are Russians (32%), who often purchase villas on the west coast of Phuket, preferring properties under construction. The Chinese (25%) are also active buyers, often choosing completed condominiums for leisure and investment purposes. Every year, the diversity of investor nationalities increases, with the most active growth in the number of buyers from Myanmar, the United States, Taiwan, India, the UAE and Europe. Americans, Taiwanese and UAE residents focus on the premium segment.

Property types and pricing

Thailand offers all major formats: seaside villas, apartments in condominiums, and hotel units in resort areas. In Bangkok, apartments and penthouses in high-rises are the most popular.
On our platform, you will find curated listings of Phuket, Samui, Pattaya, and Bangkok projects, with full details on developers, pricing, layouts, visual materials, and presentations (ready to share with clients), as well as maps with project locations and nearby infrastructure. Deals can be closed independently or with the assistance of Intermark brokers, with offices in Phuket and Bangkok.

Pricing for real estate objects is quite affordable: the cost of apartments or hotel rooms with a yield in resort locations starts from $100,000 per unit. This will be a fully finished and equipped object in a mid-rise residential complex (usually 4–7 floors). An instalment plan is available with a 30% down payment, followed by quarterly payments or payments linked to the stages of construction. The cost of premium apartments within walking distance of the sea and with good views starts from $250,000 per unit. Villas can be purchased starting from $250,000, premium projects will be from $350,000 per villa. 
This price allows to offer Thai properties to your clients who cannot afford to move to Dubai but have enough financial resources to purchase a liquid property for investment and leisure in one of the most beautiful places on the planet.

Why do clients invest in Thailand?

Thailand is consistently among the most popular destinations in the world: in 2023, the country was visited by 28 million tourists, in 2024 – already 35 million, and the forecast for 2025 exceeds 38 million. Passenger traffic at Phuket Airport in 2019, before the pandemic, was 10,3 million people. This was followed by a decline due to restrictions. Now, tourist traffic has exceeded pre-pandemic levels, reaching 10,6 million people in 2024. Tourism forms a direct correlation: the higher the flow of visitors, the higher the demand for rentals and, accordingly, the cost of real estate.

Villas, hotel rooms and apartments can be rented for various periods. Short-term rentals are popular with international and domestic tourists, medium-term rentals are prevalent among Europeans and Russians who come to spend the winter (3–6 months), and long-term rentals are used by locals, expats and digital nomads.

Stable demand and liquidity are supported, among other things, by the affordable cost of real estate (entry price – down payment of 30% starting from $30,000), which is much lower than in Europe or the Middle East. At the same time, the market shows stable price growth and high rental yields. Sales to foreigners are carried out through agents, with attractive commission fees ranging from 5% to 10% of the transaction value.

Rental yields are in line with global indicators and exceed many countries. Depending on the location and format, real estate generates from 5 to 12% per annum. Capitalisation during the construction cycle is +20–30%, and the average construction period for complexes does not last more than two years (due to low-rise development). Premium-class villas show higher figures due to limited supply and demand in resort areas.

Investment strategies in Thailand:

Rental strategy: Buy apartments in a condominium for short-term tourist rentals or long-term leases. A steady and stable yield that can grow over time as rents increase.

• +15% p.a. capital growth from presale to completion
• +3–5% p.a. capital growth on the secondary market
• 5–12% p.a. average rental yield

Second home: Purchase for personal use 3–6 months a year and rent out when absent. The owner uses the property for ‘wintering’ (for residents of countries with cold winters) or during the summer months (for residents of countries with hot summers)

• +15% p.a. capital growth from presale to completion
• +3–5% p.a. capital growth on the secondary market
• Up to 7% p.a. rental yield (depending on personal usage)

How is the property managed to generate rental yield?

There are three types of rental management in Thailand: hotel management, independent management company, and self-management. International hotel brands like Accor, The Standard, JW Marriott, Ramada by Wyndham, and Sansiri are widely present, alongside local operators. For the client, this means a completely turnkey format: the property is rented out, serviced and generates income without the need for personal presence.

Hotel management:

The property is managed by a professional hotel operator (sometimes an international chain) within a hotel or condominium. Management can be carried out using the Rental Pool system (the income from all units is added up and divided among all owners) or individual management (you get income from your unit to start from). The management company is responsible for marketing, bookings, cleaning and service.
Proportion of income distribution between the owner and the management company:
From 50/50% to 40/60% of gross income (% of management company includes all expenses). From 80/20% to 70/30% of net income (% of management company from gross income minus all expenses).

Independent management company:

The investor hires an independent management company that is not affiliated with the developer or hotel. The management company takes care of marketing, bookings and service for 10–30% of the income. The investor selects the management company and agrees on the terms.
Proportion of income distribution between the owner and the management company:
From 90/10% to 70/30% of gross income (% of management company includes all expenses).

Self-management:

The investor finds tenants themselves through platforms (Airbnb, Booking), manages bookings, cleaning and maintenance. The investor receives 100% of the revenue minus all expenses (marketing, cleaning, utilities).

Legal framework

It is easy to complete a transaction in Thailand. As a rule, an MOU is signed, and the transaction can be completed entirely remotely through lawyers or Intermark. Payment can be made by bank transfer, through payment agents, or by other means agreed upon by the seller and buyer. Transparent ownership mechanisms are provided for foreigners: freehold, where the investor obtains full ownership of an apartment in a condominium, and leasehold – a long-term lease of land or a villa for 30 years with the possibility of extension.

Advantages of Leasehold:

• Market price is 5–10% lower than freehold
• Registration fee is 1–2% (5% lower than freehold)
• The property is on a long-term lease, so it is not subject to tax and does not need to be declared

Disadvantages of Leasehold:

• lease term of 90 years (extension every 30 years)
• Need to get the Freehold owner's consent to sell real estate or land

Additional expenses:

• Registration fee – 1–2%
• Stamp duty – 0,1%
• The transaction is registered with the local authorities

Advantages of freehold:

• Full control over the property: you can gift, sell or bequeath it
• No extensions

Disadvantages of freehold:

• Registration fee 6–7% (5% higher than leasehold)
• Freehold is property that is declared and taxed
• Maintenance of a Thai company if registered as a legal entity
• No possibility of registering land as property for an individual, only as a legal entity

Additional expenses:

• Registration fee – 6–7% (usually divided equally between the buyer and seller)
• Stamp duty – 0,5%

Alnair allows you to earn additional revenue on top of your current income stream. We create a simple modular system that helps agents expand their offering without changing their usual approach to work.