Foreign buyers are playing an increasingly prominent role in the Thai real estate market amid weakening domestic demand. Foreign interest has become a critical source of liquidity for developers, especially in resort areas.
According to the Real Estate Information Center of Thailand, foreigners bought 14,899 condominiums in 2025.;(an increase of 2.2% compared to last year). However, the total value of these transactions fell by 10.7% to 60.92 billion baht, indicating a shift towards smaller or more affordable apartments.
Chinese buyers remain the largest group, followed by buyers from Myanmar and Russia. The Russians have increased their presence in Phuket and Pattaya (partly due to geopolitical shifts since 2022), and the share of investors from Taiwan and Europe has increased.
Foreigners usually come to the Thai market in two ways:
1. Purchase of a freehold condominium within the legal foreign quota of up to 49% of the total selling area of the building.
2. Long-term lease (leasehold) is usually for 30 years for houses on the land, such as villas.
Phuket is becoming a global residential hub
Among the markets of Thailand Phuket stands out as the most internationally oriented and increasingly important for developers.
Developers such as Sansiri, Ananda Development, Origin Property and AssetWise have come to Phuket to gain access to a wide range of buyers from abroad. Currently, Phuket has more than 40,000 residential units under development; the Bang Tao area of Chengtalai on the fashionable west coast (known for its beach clubs, resorts and luxury villas) has more than 18,000 units, being the epicenter of activity.
The popularity of the island is promoted by 13 international schools (some of them are under construction), five large marinas and a wide range of resort accommodation. An important role is played by European "migratory birds" (customers who spend the winter months in warm climates), which have become one of the key customer segments.
Branded residences
Branded residences (projects related to international hotel and lifestyle brands) are one of the fastest growing segments of the Thai market. These projects are aimed at a different category of buyers, those who compare prices with global markets rather than with their local counterparts.
An example is Etro Residences Phuket (an ultra-luxury project in the Gardens of Eden area near Bang Tao Beach, completed in 2027). Prices there reached 830,000 baht per square meter, almost four times higher than the average for branded residences on the island (197,745 baht, and in premium areas 212,113 baht per square meter). To attract foreign money, developers are going beyond traditional sales models, linking the purchase of real estate with long-term residency programs. For example, AssetWise and Rhom Bho Property have implemented a comprehensive model for servicing foreigners by combining real estate investments with visa processing services.
Thus, the Thai real estate market is becoming more and more segmented. Resort areas supported by foreign demand are showing relative resilience, while domestic segments remain sluggish.
Source: Business Times
