According to The Nation Thailand, economic difficulties, slowing growth, high household debt levels and tightening credit conditions are forcing market participants to seek customers outside the country. Daruni Rungruangphol, Secretary General of the Association of Real Estate Communities of Thailand, notes that real estate agencies are forced to reconsider their strategies, relying on international clients from Bangkok, Phuket, Pattaya and Krabi.
In addition to high rental rates, Thailand attracts investors with its favorable cost-quality-of-life ratio, well-developed medical infrastructure and international schools. Of particular interest are ultra-luxury projects in prestigious areas of Bangkok, which indicate a shift in the market towards expensive real estate for wealthy buyers. In the first half of 2026, sales in the luxury segment of the capital increased by 300% year-on-year, while demand in Phuket increased by 45%, with foreigners accounting for 67% of transactions.
New market players and the redistribution of demand
Interestingly, the structure of foreign demand is undergoing changes. Data for the first quarter of 2026 show an overall 17% decrease in condo sales to foreigners, both in volume and value. However, this drop is not due to the departure of all foreign buyers, but to a change in their composition. The traditional driver, Chinese buyers, reduced the volume of purchases by 38.8% due to domestic economic problems in China.
They are being replaced by Russian investors: transactions with them have increased by 33% in number and 68.7% in value, with demand shifting towards luxury housing in Phuket and Pattaya. This confirms the general trend of the market: the volume of high-end residences in popular tourist areas is growing, and foreigners are becoming key buyers in this segment.
Strategy for investors and legal risks
Realtors working with foreigners note the need for a change of approach. Instead of the "supply first, then customer search" model, experts recommend switching to a strategy where demand precedes supply: first, the needs of specific groups of investors are studied, and then objects are selected to meet their needs. This is especially important because buyers from different countries may have different goals, from generating passive income to buying a second home for a family.
However, investors should exercise caution. In Thailand, control over compliance with the law when buying real estate by foreigners is being tightened. In particular, the government and the Land Department have launched a large-scale review of land and house transactions for the use of "fake" Thai holders (nominee owners) to circumvent the ban on land ownership. Transactions starting from 5 million baht, as well as companies with foreign founders and Thai nominee shareholders, are under close attention.
Experts recommend that foreign buyers of real estate in Thailand pay attention to condominiums, the ownership of which for foreigners is clearly regulated by a quota of 49% of the total building area, and for long-term rentals (30 years). These tools are considered legally safe, unlike schemes with nominal owners.
Source: The Nation Thailand
