Analysis of the Thailand Real Estate Market

Recent Analysis of the Thailand Real Estate Market (Last 6 Months)

The Thai real estate market has demonstrated remarkable resilience over the last six months (Q2 and Q3 2025), characterized by nationwide price growth, primarily driven by construction costs and strong demand in specific tourist areas, particularly Phuket.

1. General Price Trends (National Data)

Preliminary figures from the Bank of Thailand (BOT) indicate a steady, albeit moderate, growth in residential property prices nationwide.

Indicator                                                                     Period         Change (Year-on-Year)              Source

Nationwide Residential Property Price Index       Q2 2025                     +2.71%                     Bank of Thailand

Single-Detached House Prices                                  Q2 2025                     +2.64%                    Bank of Thailand

Townhouse Prices                                                          Q2 2025                     +4.88%                   Bank of Thailand

This growth is underpinned by rising land and construction costs, which continue to push prices upward. Industry experts forecast that housing prices could increase between 2% and 7% throughout 2025.25 [1].

2. Geographical Focus: Phuket (The Luxury Market)

Phuket remains the engine of market growth, especially in the luxury segment, thanks to strong interest from foreign buyers, particularly Russian and European investors.

• Luxury Villa Price Surge: Villa prices in prime areas of Phuket have seen a significant increase, with some estimates indicating growth of up to 18% year-on-year (as of August 2025) [2].

• Foreign Demand: Demand is particularly high for luxury villas (priced from 25 million to over 100 million THB) and high-end condominiums.

• New Launches: Despite rising prices, the market is buoyant with new launches, although there is a noted saturation in the condominium segment, with an estimated supply of 10,000-15,000 units expected by 2027.

3. Geographical Focus: Bangkok (The Condominium Market)

Bangkok, while maintaining a central role, shows more complex dynamics, particularly in the condominium sector.

• Condominium Prices: Average condo prices in central Bangkok are around 140,000–150,000 THB per square meter (2025 data), with top luxury projects exceeding 200,000 THB/sqm.

• Subdued Demand: Housing demand was described as "subdued" in Q2 2025, with developers focusing on clearing excess inventory before launching large-scale new projects.

• Commercial Investment: Bangkok led the real estate investment market in Thailand, accounting for nearly 50% of the total volume, followed by Phuket and Chiang Mai.

4. Key Trends and Outlook

• Branded Residences: The luxury market is increasingly dominated by branded residences, projects developed in collaboration with luxury hotel brands, offering resort-style amenities and highly sought after by international buyers .

• Macroeconomic Factors: Thailand's GDP growth in Q2 2025 was 2.8% year-on-year, a slight slowdown from 3.2% in Q1, suggesting a general caution in the economy that is reflected in non-explosive domestic demand.

• Legal Volatility: A factor of uncertainty, especially for foreign villa buyers, is the continued focus by Thai authorities on ownership structures that circumvent land ownership laws (such as the use of Thai companies with nominee shareholders), a topic that has resurfaced with recent government changes.

The Thai real estate market over the last six months has been a two-speed market: extremely dynamic and strongly growing in the luxury segment and tourist locations like Phuket, but more cautious and focused on inventory management in urban areas like Bangkok.