Real Estate Crisis in Thailand:

Foreigners Facing a New Wave of Opportunities

A Deep Crisis, Prices in Freefall

In 2025, Thailand is experiencing a real estate crisis of unprecedented magnitude since the Asian financial crisis or the post-COVID period. The housing sector, heavily affected by a drop in domestic demand, is seeing a spectacular decline in sales and prices.

The number of property transfers dropped by around 32% in the first quarter of 2025 compared to the same period the previous year, marking a sudden collapse in sales volumes—particularly in major cities and tourist areas such as Bangkok, Phuket, and Pattaya. Pre-sales of new real estate projects have also fallen by more than 30%, reaching their lowest level since the global financial crisis of 2009.

This drop in transactions is accompanied by strong downward pressure on prices, especially for condominiums, which represent the majority of purchases made by foreigners. High-end properties such as luxury villas or sea-view residences are also experiencing significant declines, with discounts of 10 to 30% off listed prices. This trend also affects boutique hotels and mini-resorts struggling to find buyers.

To stimulate demand, developers are offering unprecedented promotions: cash discounts, free furniture, notary fees covered, payment facilities, or even preferential-rate loans. Some high-end developers add extra perks such as access to private clubs or free property management services for foreign investors.

This situation is reminiscent of the post-COVID period, when many hotels, guesthouses, and family resorts in Phuket or Koh Samui were sold at bargain prices. At that time, foreign or expatriate investors were able to acquire establishments at highly attractive rates. The current crisis is multiplying this type of opportunity, but on a larger scale, with mainstream properties also heavily affected.

Thus, in 2025, Thailand is undergoing its most severe real estate crisis in over 20 years—marked by a massive drop in transactions, notable price declines, and a surge in incentives for cash-ready foreign buyers. This presents exceptional opportunities for savvy investors.

Why This Decline?

The downturn in Thailand’s property market in 2025 is due to a combination of several key factors:

1. Weakening Domestic Demand

Household consumption in Thailand is declining due to slower economic growth and persistent inflation.
Many Thais are postponing or canceling property purchases, preferring to hold onto their savings or wait for better times.

2. Difficult Access to Credit

Thai banks are tightening their criteria for granting home loans, making it harder for a large part of the population to buy property.
The rising cost of living, combined with stagnant or lower incomes for some groups, limits household borrowing capacity.

3. Oversupply

In recent years, numerous real estate projects have been launched, leading to excess supply—especially in major cities and tourist areas.
The glut of unsold apartments and new units hitting the market is putting additional pressure on prices and encouraging discounts.

4. Impact of the Global Context

Global economic instability, financial market volatility, and competition from other Asian destinations are discouraging some foreign investors.
The tourism sector—which traditionally boosts demand for condos and villas—is facing slow recovery periods, further weighing on investments.

5. Changing Expectations and Purchasing Power

After the pandemic, many households have not regained their previous purchasing power, and the profile of potential buyers has shifted—more selective and seeking bargains.
Investors often wait for the lowest prices or favorable reforms before entering the market.

6. Pressure on Developers

Developers are forced to slash prices and offer exceptional benefits to sell, which intensifies the overall downward trend.

In Summary

The collapse of Thailand’s property market is the result of a chain reaction—declining demand, financing difficulties, oversupply, and an unfavorable global context. This combination is driving prices down and pushing market players to multiply attractive offers to revive activity.

Parallel with the Post-COVID Period: Hotels, Resorts… at Slashed Prices

Hotels and Resorts Sold at Bargain Prices after COVID

Struggles for Family-Run Establishments and Small Hotels

Many family-owned hotels, guesthouses, and small resorts located in tourist areas such as Phuket, Koh Samui, or Pattaya were severely affected by the collapse of international tourism during successive lockdowns.
This situation led some owners to put their properties up for sale quickly or to transfer ownership to avoid bankruptcy—often at prices well below their real market value. As a result, these assets became available at highly advantageous prices.

Buyouts by Foreign Investors and Private Groups

These tourism assets were purchased at discounted rates by new groups of foreign investors, expatriates, or wealthy individuals who saw in this crisis an opportunity to acquire strategic properties in full ownership or through long-term leases.
Some later renovated or repositioned these establishments to benefit from the tourism recovery.

Could We See the Same Thing Again?

Yes—it is entirely possible that the 2025 real estate crisis in Thailand could lead to a similar scenario to the post-COVID period in both the tourism and residential sectors.

Why an identical scenario could unfold:

• Prolonged drop in demand: As after COVID, weak domestic demand and a slowdown in international tourism leave many properties unsold, forcing owners to accept prices far below their initial value.

• Cash flow pressure on local stakeholders: Owners and developers facing bank repayments or high maintenance costs are sometimes forced to sell quickly—often at a loss—to avoid sinking further into financial trouble.

• Multiplication of discounted offers and incentives: During a crisis, below-market sales, massive discounts, attractive packages, and innovative financing become standard, making the sector especially advantageous for buyers with available cash or the ability to invest quickly.

• Massive arrival of foreign investors: As during the post-pandemic recovery, foreigners seeking profitable investments, seasonal rentals, or direct ownership of tourist assets will take advantage of this bearish market to acquire hotels, resorts, high-end apartments, or luxury villas at discounted prices—sometimes with the aim of reselling for a profit during a future recovery.

Potential Outcome:

If the crisis persists, we are likely to see:

• Hotels, resorts, or guesthouses sold far below their real value.

• Apartments and villas benefiting from significant discounts.

• Foreign investors or expatriates acquiring strategic properties under very favorable conditions.

This scenario is even more probable given that Thailand, in an effort to revive its economy and attract capital, is multiplying incentives and making it easier for foreigners to purchase property, while also making the tax system more attractive.

Falling Prices and Abundant Choices

The drop in domestic demand, coupled with a slowdown in tourism, has created an oversupply in the real estate market—particularly in Phuket, Pattaya, and Bangkok:

• Apartment and villa prices have fallen, sometimes by 20–30%.

• Developers, to attract foreign buyers, are offering immediate discounts, free furniture, reduced or waived notary fees, as well as staggered payment plans or preferential-rate loans.

• The abundance of unsold properties allows foreigners to choose from a wide range of apartments, often located in high-end complexes or with sea views.

Who to Contact:

1. Internationally Specialized Real Estate Agencies
Look for reputable agencies with a physical presence and experience serving foreign clients in Bangkok, Phuket, Pattaya, Chiang Mai, etc.
Examples of active international groups: CBRE Thailand, Knight Frank Thailand, Century 21 Thailand, Remax.

2. Local Law Firms Specializing in Real Estate
Hire law firms specialized in Thai property law and transactions for expatriates.
Search for “law firm real estate Thailand” or “avocat immobilier Thaïlande” to find firms such as Belaws, Silk Legal, Juslaws.

3. Chambers of Commerce and Expat Networks
Reach out to the French-Thai Chamber of Commerce (FTCC), British Chamber of Commerce Thailand (BCCT), or the German-Thai Chamber of Commerce to obtain lists of recommended professionals.
Visit forums such as Expat.com Thailand, FrenchVisa.fr, or join French-speaking expat Facebook groups to exchange recommendations.

Tips Before Choosing:

• Favor specialists who speak your language or English.

• Verify their legal existence (registration, official website).

• Meet them in person before making any financial commitment.

• Ask to see their professional licenses and client references.

⚠ Warning: Never go through informal intermediaries or unknown developers. For every purchase, always involve a local lawyer to verify the property titles and the sales contract.

Legal Restrictions to Be Aware Of

Even though the crisis makes the market favorable to foreigners, certain limits imposed by Thai law must be respected:

• A foreigner can buy an apartment (“condominium”) in full ownership, but only up to 49% of the total units in the building. The rest must be owned by Thai citizens.

• Foreigners are prohibited from directly owning land or standalone houses. Alternatives include:

  • Long-term leasehold: leases of up to 30 years, renewable.

  • Purchase via a Thai company: a complex, risky, and regulated procedure (the company must be majority-owned by Thai nationals).

Before buying, it is essential to verify the accuracy of property titles, compliance with the foreign ownership quota for condominiums, and transparency regarding all transaction-related fees.

Caution: Beware of Scams

During a crisis, the market attracts unreliable intermediaries and struggling developers:

• Be wary of overly tempting offers and false promises of returns: some projects are unfinished or abandoned.

• Common risks: hidden fees, disputed property titles, non-compliance with the foreign ownership quota, excessive commissions.

Practical advice: always work with a reputable professional, request a legal review of documents, choose well-established developers, and demand full transparency on fees and taxes.

Reforms and Incentives: Increasing Openness

1. Relaxation of Rules on Foreign Ownership

The government is considering raising the foreign ownership quota in condominium buildings. Currently limited to 49% of the total units in a building, this quota could be increased (e.g., to 60% or more), making apartment purchases more accessible and straightforward for foreigners.

Another possibility under review: allowing certain qualified foreign investors to own property directly—particularly for large-scale projects or when the investment amount exceeds a set threshold.

2. Long-Term Visas and Special Programs for Investors

The Thailand Elite program offers long-term residence visas (up to 20 years), with benefits for property buyers considered “significant investors” or wealthy retirees.

New Smart Visas or Long-Term Resident Visas include incentives for those investing in real estate or with high incomes, with fewer renewal constraints and easier settlement in Thailand.

3. Tax Incentives and Administrative Facilities

Thailand has recently abolished income tax on foreign-sourced income for tax residents (over 180 days in Thailand), encouraging expatriates to repatriate funds or invest without fear of double taxation.

Property transfer fees, stamp duty, and registration taxes are often reduced, especially for purchases of new-builds or acquisitions above a certain value.

The state is planning streamlined administrative procedures, faster formalities for foreigners, and rental management support to encourage buy-to-let investments.

4. Support Plans and Guarantees for Major Investors

For property purchases above certain amounts (often several million baht), there are specific benefits: access to long-term visas, special administrative assistance, and sometimes reductions on certain taxes.

Large investors can also receive extra support, including consulting services, legal assistance, and even opportunities to acquire shares in innovative projects (Smart Cities, luxury complexes, etc.).

Summary

Thailand is multiplying reforms to attract foreign capital: higher quotas, easier residency, favorable taxation, and simplified procedures offer a unique context for international investors—whether targeting a residence purchase, a rental apartment, or large-scale projects.

Taxation: Thailand Ends Tax on Certain Foreign Income

End of Taxation on Repatriated Foreign Income

Tax exemption: Individuals who are tax residents in Thailand (over 180 days per year in the country) are no longer taxed on income earned abroad, provided the funds are transferred into Thailand within the time frame specified by law.

Types of income concerned: This includes salaries, investment income, pensions, dividends, interest, rental income, capital gains on securities or real estate, and even income from digital assets or cryptocurrencies—provided the income is not generated locally.

Objective: The measure aims to attract more international capital, encourage expatriates to transfer their wealth or pensions, and boost real estate and financial investment.

Precautions to Know

• Tax residency requirement: Only residents (present >180 days/year) can fully benefit from this exemption. Non-residents remain under the standard tax regime.

• Transfer deadline: Income must be repatriated during the current fiscal year; income kept abroad for too long may not qualify for the exemption.

• Possible exceptions: Certain categories of income or specific cases may still be taxed (e.g., income from work performed locally, Thai-sourced business revenue).

• Evolving legislation: As Thailand frequently adjusts its tax laws, it is essential to consult a tax adviser or lawyer for each personal case to avoid unpleasant surprises.

Impact for Expatriates and Investors

This reform is particularly attractive for European retirees, property or financial investors, digital nomads, and holders of passive income who want to live in Thailand without double taxation on foreign resources.

It encourages the repatriation of funds for property purchases or local investments with a significantly lighter tax burden.

In Summary

By eliminating most foreign income tax for residents, Thailand positions itself as one of the most tax-attractive destinations in the region for those seeking to combine quality of life, a tropical climate, and tax optimization.
However, it is crucial to confirm the applicability of the rules to your personal situation on a case-by-case basis.

2025: A Favorable Period for Foreigners Looking to Invest or Settle in Thailand

Falling prices, simplified procedures, and favorable tax reforms are creating a prime window for investment—provided buyers remain informed, surround themselves with experts, and proceed with caution in the face of “too good to be true” crisis deals.

FAQ – Buying, Renting, and Investing in Real Estate in 2025

What are the steps to buy property in Thailand or abroad?

Buying property involves searching (through a real estate agency or directly), verifying land titles, signing before a notary, and securing financing through a mortgage or suitable property loan.

How do you assess the price per square meter before buying?

The price per square meter depends on location, whether the property is new or old, amenities, and the local market. Real estate agencies and notaries provide reliable benchmarks.

What are the tax benefits of the Pinel law or rental investment?

The Pinel law allows tax reductions on a new-build rental investment, subject to limits on rent and tenant income.

How can you finance a real estate project with a loan?

Financing is obtained through a property loan or mortgage. Monthly payments depend on the rate, term, and down payment. An SCI or civil company can also carry the loan.

What is “nue-propriété” in rental property?

“Nue-propriété” (bare ownership) is buying a property without the usufruct (rental income). It’s a wealth strategy to optimize your assets and reduce tax on rental income.

How do you calculate capital gains when reselling?

Capital gains on property are the difference between the resale price and the purchase price, after deductions (fees, works). They are taxed under the capital gains regime.

New-build or old property: which is better for your real estate portfolio?

New-builds offer guarantees, potential tax benefits (Pinel), and fewer repairs. Older properties can provide better rental yields per square meter.

What is an SCPI and how does it diversify your rental income?

An SCPI (Real Estate Investment Company) allows you to invest in properties managed by a property company and earn rental income without managing tenants directly.

What are the main opportunities for real estate investors in Thailand in 2025?

Due to the housing-market slowdown, property prices have dropped sharply. Real estate investors can buy a property—whether primary residence, investment property, or commercial real estate—at discounted rates, often with favorable lending terms.

How have interest rates and lending conditions changed for foreign buyers?

Lenders in Thailand have tightened criteria, but some banks and private lenders still offer fixed rate or variable rate mortgages for qualified foreign buyers. Interest rates remain competitive for those with strong financial profiles.

What types of rental properties are in high demand?

Apartments in prime locations, family homes near schools, and commercial real estate in tourist areas remain attractive to renters. Long-term leases are popular, but seasonal rentals still generate strong gross yields in some regions.

How do property taxes work for foreign owners?

Property taxes (property-tax assessments) in Thailand are relatively low compared to many countries. Landlords should account for local tax rates, possible deductions, and property-tax deadlines.

What deductions can landlords and real estate investors claim?

Rental property owners can often deduct expenses such as maintenance, mortgage interest, property taxes, depreciation, and management fees from taxable income. Consult a local estate-agent or tax adviser for precise rules.

Are there capital gains tax implications when selling?

Gains tax applies when selling a property at a profit. However, certain deductions and exemptions can reduce the taxable amount. Real estate investors should also factor in the applicable tax-rate for non-residents.

What risks should landlords watch for in the current housing-market?

The main risks include high vacancy rates, changes in interest rates, unstable rents, and delays in property sales. Landlords should maintain a cash buffer to handle vacancies or unexpected repairs.

How can commercial real estate investors benefit from the current crisis?

The downturn has lowered prices for hotels, office space, and retail units. REITs and private investors are buying distressed commercial real estate at reduced prices, aiming for long-term appreciation and rental income.

What should foreign buyers check before signing with a lender or estate-agent?

Verify the lender’s licensing, check the estate-agent’s credentials, review lending terms carefully, and ensure the property’s title is clean. Use reputable realtors familiar with foreign investment rules.

Is depreciation a useful tax tool for investment property owners?

Yes. Depreciation allows landlords to reduce taxable income by deducting the wear and tear on rental properties over time—helping to offset property taxes and other costs.