Real Estate - Thailand | Statista Market Forecast

Thailand's Real Estate market market is expected to witness a significant surge in value, reaching a projected amount of US$2.51tn by 2024.
Within this market, Residential Real Estate holds a dominant position, with a projected market volume of US$2.09tn by 2024.
Furthermore, the market is anticipated to display a steady annual growth rate (CAGR 2024-2029) of 1.64%, resulting in a market volume of US$2.73tn by 2029.
When compared on a global scale, United States is set to generate the highest value in Real Estate market, projected to reach a staggering US$132.0tn by 2024.
Thailand's real estate market is experiencing a surge in demand for luxury condominiums in popular tourist destinations.

Definition:

The real estate market refers to the transaction of properties, including residential properties (such as houses and apartments) and commercial properties, such as office buildings and industrial properties. Apart from property sales, this market includes leases and the value of real estate.

Structure:

The real estate market comprises residential and commercial real estate. The residential real estate market covers real estate transactions and leases, and residential real estate leases are divided into apartment and house leases.

Additional information:

The market contains the following KPIs: real estate value aggregated for all countries and regions, average real estate value, real estate transaction revenue, number of real estate sold, number of leased and owned real estate, average room per resident, and dwelling type shares. The dwelling type shares comprise the share of the population that lives in houses and apartments. These shares are displayed for real estate owners and real estate renters as well.

Residential real estate (houses and apartments)
Commercial real estate (office buildings, retail spaces, warehouses, industrial properties)

Real estate agencies
Construction companies
Accommodation services, such as Airbnb
Commercial real estate leases and transactions
Publicly owned buildings used by the local government
Buildings used for public health care services

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

Customer preferences: One of the key customer preferences in the Thai Real Estate market is the desire for modern and luxurious properties. Thai buyers are increasingly seeking high-end condominiums and houses with state-of-the-art amenities and facilities. Additionally, there is a growing demand for properties located in prime locations, such as city centers or popular tourist destinations.

Trends in the market: One of the major trends in the Thai Real Estate market is the rise of foreign investment. International buyers, particularly from China and other Asian countries, are increasingly investing in Thai properties. This trend can be attributed to factors such as the attractive prices of Thai real estate compared to other countries in the region, as well as the relaxed regulations for foreign property ownership in Thailand. Another notable trend is the increasing popularity of sustainable and eco-friendly properties. Thai buyers are becoming more conscious of environmental issues and are actively seeking properties that incorporate green features, such as energy-efficient appliances, solar panels, and green spaces. Developers are responding to this trend by incorporating sustainable design elements into their projects.

Local special circumstances: Thailand's thriving tourism industry is a key driver of the Real Estate market. The country attracts millions of tourists each year, creating a strong demand for short-term rental properties, such as vacation homes and serviced apartments. This has led to the emergence of a lucrative rental market, with investors capitalizing on the opportunity to earn rental income from their properties. Another local special circumstance is the government's efforts to promote foreign investment in the Real Estate sector. The Thai government has implemented various policies and incentives to attract foreign buyers, including tax breaks and streamlined processes for property ownership. These initiatives have contributed to the growth of the market and have made Thailand an attractive destination for international investors.

Underlying macroeconomic factors: Thailand's stable economy and strong GDP growth have played a significant role in the development of the Real Estate market. The country's growing middle class has fueled demand for residential properties, while the expanding tourism industry has driven the demand for commercial properties, such as hotels and resorts. Additionally, low interest rates and favorable financing options have made it easier for buyers to enter the market and invest in properties. In conclusion, the Real Estate market in Thailand is experiencing growth and development due to customer preferences for modern and luxurious properties, the rise of foreign investment, the popularity of sustainable properties, the thriving tourism industry, government initiatives to attract foreign buyers, and the country's stable economy. These factors have created a favorable environment for the Real Estate market in Thailand, making it an attractive destination for both local and international investors.

Data coverage:

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

Modeling approach / Market size:

Market sizes are determined by a combined Top-Down and Bottom-Up approach, based on a specific rationale for each market segment. As a basis for evaluating markets, we use data from international organizations and industry associations. Next we use relevant key market indicators and data from country-specific associations such as GDP, price level index, household wealth, household size, number of renter and owner households, housing consumer spending per capita. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. For example, 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:

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.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

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Real Estate - Thailand

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