Residential Real Estate - Thailand

Thailand

The Residential Real Estate market market in Thailand is expected to reach a value of US$2.08tn by 2024.
This projection indicates a potential annual growth rate (CAGR 2024-2028) of 0.95%, which would result in a market volume of US$2.16tn by 2028.
When compared to other countries, China is predicted to generate the highest value in the Real Estate market, with an estimated worth of US$117.40tn in 2024.
Thailand's residential real estate market is experiencing a surge in demand due to the country's attractive investment opportunities and relaxed foreign ownership regulations.

Key regions: Europe, Asia, Australia, United States, Germany

Market

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Analyst Opinion

The Residential Real Estate market in Thailand has been experiencing significant growth in recent years.

Customer preferences: Thai customers have shown a strong preference for residential properties due to the stability and potential return on investment they offer. The desire to own property is deeply ingrained in Thai culture, as it is considered a symbol of financial security and social status. Additionally, many Thais view real estate as a long-term investment that can be passed down through generations.

Trends in the market: One major trend in the Thai residential real estate market is the increasing demand for condominiums. This is driven by several factors, including urbanization, changing demographics, and lifestyle preferences. As more people move to cities for work and educational opportunities, the demand for housing in urban areas has skyrocketed. Condominiums offer an attractive option for urban dwellers, as they provide convenience, security, and access to amenities. Another trend in the market is the rise of mixed-use developments. Developers are increasingly integrating residential, commercial, and recreational spaces into a single project. This trend is driven by the desire for convenience and the need to optimize land use in densely populated areas. Mixed-use developments offer residents the opportunity to live, work, and play in the same location, reducing the need for long commutes and enhancing quality of life.

Local special circumstances: Thailand's thriving tourism industry has also had a significant impact on the residential real estate market. The country's natural beauty, rich cultural heritage, and affordable cost of living have made it a popular destination for both short-term and long-term visitors. Many foreigners are attracted to Thailand's real estate market, either as vacation home buyers or as investors looking to capitalize on the growing tourism industry.

Underlying macroeconomic factors: Thailand's strong economic growth has played a key role in driving the residential real estate market. The country's GDP has been steadily increasing, leading to rising incomes and a growing middle class. This has fueled demand for residential properties, as more people are able to afford homeownership. Additionally, low interest rates and favorable government policies have made it easier for individuals to obtain mortgages and invest in real estate. The Thai government has implemented various initiatives to stimulate the housing market, such as tax incentives for first-time homebuyers and foreign investors. In conclusion, the residential real estate market in Thailand is experiencing robust growth due to customer preferences for property ownership, the increasing demand for condominiums and mixed-use developments, the impact of the tourism industry, and favorable macroeconomic factors. These factors are likely to continue driving the market's growth in the coming years.

Methodology

Data coverage:

Figures are based on total and average value of residential real estate, residential estate transactions and leases.

Modeling approach:

Market size is determined by a combined top-down and bottom-up approach. We use national statistics, international organizations, and industry associations to analyze the markets. To estimate the market size for each country individually, we use relevant key market indicators and data from country specific industry associations such as GDP, price level index, household wealth, household size, number of renter and owner households, housing consumer spending per capita.

Forecasts:

We use a variety of forecasting techniques, depending on the behavior of the market, for instance, exponential trend smoothing. The main drivers are GDP per capita, population, number of renter and owner households, price level index, housing consumer spending per capita.

Additional Notes:

Data is modeled using current exchange rates. The market is updated twice per year in case market dynamics change. The impacts of the Russia-Ukraine war are considered at a country-specific level.