Types of Thailand property investments
Those who want to invest in Thailand real estate should understand the various types of property ownership that are suitable for foreign investment.
1. Condominium ownership
Buying a condominium unit is a legal option for foreign investors looking to invest in Thailand’s real estate. A condo in Thailand is a worthwhile investment due to high rental demand, potential for appreciation, convenience, and lower maintenance costs compared to single-family homes.
Section 19 of the Condominium Act states that foreigners are allowed to purchase condominiums. However, the total foreign ownership in a condominium must not exceed 49% of the total units in that particular building.
2. Leasehold in Thailand
Foreigners cannot directly own land in Thailand, but may enter into lease agreements to rent property for up to 30 years. A leasehold agreement provides the right to occupy and use the property while the landlord retains ownership. Leasehold is cheaper than freehold, as there are fixed rent payments and no obligation to pay property taxes, making it a more affordable option for foreigners who want to invest in Thailand’s real estate.
3. Building a structure on leased land
In Thailand, a house or structure can be owned separately from the land on which it is built. This means that the land and the structure may have different owners. If a foreigner has a lease agreement for the land, they can construct a house on that land if permission is outlined in the contract. However, when entering into a long-term lease for construction, it is always important to follow the correct procedure to ensure legal ownership of real estate in Thailand is established.
4. Thai Limited Company
Foreigners can also invest in Thailand’s real estate through a company. The Thai Limited Company is a popular structure for foreign investors, although it is typically limited to 49% foreign ownership. Under the company’s name, foreigners can buy and use land for business purposes.
5. Board of Investment (BOI) company
A BOI-promoted company in Thailand is a foreign-owned business entity that holds a promotion certificate from the Board of Investment (BOI) for engaging in key industries, such as manufacturing, industrial production, healthcare, and technology. BOI companies are offered several benefits, including tax exemptions, 100% foreign ownership, and the ability to purchase land.
Rental investment opportunities
Thailand’s average gross rental yield is 6.17% as of Q1 2025. This is a slight decrease from 6.27% recorded in Q3 2024. These figures are significantly higher than those of Singapore, the closest highly developed city-state to Thailand. It has an average gross rental yield of 3.40% (Q4, 2024) and 3.22% (Q2, 2024). This makes Thailand a better location for rental investments.
Largest Airbnb markets in Thailand
Buying an apartment in Thailand and turning it into an Airbnb can be lucrative. Here are the top locations where you can start an Airbnb.
| Rank | Location | No. of listings | Average occupancy rate | Average daily rate | Revenue |
|---|---|---|---|---|---|
| 1 | Bangkok | 16,357 | 68% | ฿ 1,667 ($49.58) | ฿ 385,757 ($11,472) |
| 2 | Phuket | 12,086 | 67% | ฿ 2,668 ($79.35) | ฿ 640,582 ($19,051) |
| 3 | Pattaya | 9,382 | 61% | ฿ 1,630 ($48.48) | ฿ 374,861 ($11,148) |
| 4 | Chiang Mai | 7,149 | 67% | ฿ 1,408 ($41.87) | ฿ 344,658 ($10,250) |
| 5 | Koh Samui | 4,300 | 67% | ฿ 4,706 ($140) | ฿ 1.09 million ($32,361) |
Best locations to invest in Thailand
Let’s take a look at the best locations to invest in real estate in Thailand.
Bangkok
Buying a property in Bangkok is a sound financial decision. The Bangkok property market is vibrant, with 93,000 residential units sold in 2023, and strong foreign interest in condominiums.
Several key investment areas in Bangkok include:
- Silom: Financial hub, luxury condos.
- Sathorn: Business-residential blend.
- Sukhumvit: Expat-friendly, upscale properties.
- Lat Krabang and Min Buri: Affordable, near transport, and the airport.
Phuket
Phuket is an excellent location for investing in Thai real estate. Phuket is Thailand’s largest island and a top tourist destination, welcoming over 11 million visitors in 2023, generating ฿ 388 billion ($11.54 billion) in tourism revenue.
Top areas in Phuket to invest in include:
- Phuket Town: Affordable condos, villas.
- Rawai & Nai Harn: Quiet, expat-friendly.
- Kata & Karon: Beachside, high rental demand.
- Kamala: Family-friendly, peaceful.
- Surin & Bang Tao: Luxury resorts & villas.
Chiang Mai
Chiang Mai is the largest city in northern Thailand and the country’s third-largest city. It is famous for its mountainous landscapes, offering a variety of outdoor recreational activities. Beyond that, Chiang Mai is excellent for real estate investment.
Key locations in Chiang Mai to consider:
- Nimmanhaemin: Trendy, artsy, expat-friendly.
- Hang Dong: Luxury villas with an upscale lifestyle.
- Santitham: Quiet, family-friendly, traditional homes.
- Mae Rim: Great for families, schools, and healthcare.
- Chang Phueak: Multicultural, modern condos and houses.
Koh Samui
Investing in Thailand’s real estate is best here in Koh Samui. Its property market benefits from strong tourist demand, offering high rental potential and appealing to expats and digital nomads who choose to stay for extended periods. The island is primarily known for its stunning beachfront properties, featuring white-sand beaches, crystal-clear waters, and some of the best sea views in Thailand.
Best Koh Samui areas to buy property:
- Chaweng: Lively, tourist-centric, strong rental market.
- Lamai: Similar to Chaweng but more laid-back.
- Lipa Noi: Quiet, luxury beachfront homes.
- Bophut: Fisherman’s Village, cultural charm, upscale.
- Maenam: Peaceful, popular among retirees and long-stay expats.
Other notable aspects to consider
Investing in Thailand’s real estate requires understanding and consideration. Here are some aspects you must know to determine the right real estate investment:
- Wellness tourism: Thailand is a top destination for wellness tourism, blending traditional practices with luxurious facilities and diverse experiences. The country’s wellness offerings include traditional Thai massage, yoga and meditation retreats, detox programs, and specialized wellness retreats.
- Infrastructure development: New railways and airports boost property values in surrounding areas, such as the ongoing expansions of Bangkok’s mass transit systems, including the BTS Skytrain and MRT subway.
- Agricultural sector: Thailand has a robust agricultural industry, which is a key contributor to the economy. This strength, combined with the global rise in organic farming, makes rural property investment in Thailand an attractive option.
Valuable insights and practical advice, distilled from years of expertise and real-world experience.
Frequently Asked Questions (FAQs)
Can US citizens buy property in Thailand?
Yes, U.S. citizens can buy property in Thailand, including condominiums; however, the Land Code Act restricts foreign ownership of land.
How much does it cost to buy a house in Thailand?
The cost of buying a house in Thailand varies widely depending on location, size, and type.
Is Thailand good for property investment?
Yes, Thailand is a good location for property investment, with low real estate costs, high rental yields in both tourist and business hubs, good economic growth, and an increase in foreign demand, particularly in cities like Bangkok, Phuket, and Pattaya.
Can foreigners invest in Thailand’s real estate?
Yes, foreigners can invest in Thailand’s real estate. Specifically, foreigners can buy condominiums, lease properties, and purchase land through a Thai limited or BOI company.
Is buying an apartment in Thailand worth it?
Yes, buying an apartment in Thailand can be a good idea from both an investment and personal use standpoint. Foreigners can legally own condominiums, up to 49% of a building. Prime locations, such as Bangkok, Phuket, and Pattaya, offer high rental returns and excellent resale potential.
