Thailand’s Economy and Real Estate Market in 2025
Thailand’s Economy in 2025: What’s Behind the Growth and How It Affects the Real Estate Market
In the second quarter of 2025, Thailand's economy grew by 2.8% compared to last year. The forecast had been more modest — 2.5%. While the difference may seem small to the average person, for a country that relies on external trade and tourism, this is a signal: the situation is stable.
However, the overall forecast for the entire year has been revised downward: instead of a 2.5–3% growth, expectations are now 1.8–2.3%. This means growth will be more moderate. But for homebuyers, what's more important is that the real estate market in Thailand typically grows faster than the economy as a whole.
How the Economy is Connected to Housing
Thailand’s economy is driven by three pillars — exports, tourism, and construction. When money flows into the country, it immediately reflects on demand for housing. Tourists rent homes, businesses lease offices and apartments for employees, and locals are also more active in purchasing.
Over the last five years, housing prices have increased by about 16%. In simple terms: a seaside apartment that cost 3.5 million baht in 2020 is now priced at 4 million and above. And the owner has also been earning rental income during this time.
Over the last five years, housing prices have increased by about 16%. In simple terms: a seaside apartment that cost 3.5 million baht in 2020 is now priced at 4 million and above. And the owner has also been earning rental income during this time.
Tourism: The Main Driver of the Market
In 2024, Thailand welcomed around 30 million tourists, and in 2025, this number is approaching 35 million. This means the demand for rental properties is not declining.
Rentals in Thailand operate seasonally:
A simple calculation: a studio by the sea rents for 18,000–20,000 baht per month. A one-bedroom apartment goes for 25,000–35,000 baht. A two-bedroom apartment starts at 40,000 baht and higher.
To put this in perspective: a cup of coffee costs 70 baht, lunch in a cafe is 150 baht, and the monthly rental for a motorbike is 3,500 baht. The income from an apartment covers all these expenses and still leaves a margin.
Rentals in Thailand operate seasonally:
- Winter — High influx from Europe and Russia, prices rise;
- Summer — More tourists from China and neighboring countries;
- Autumn and Spring — “Mid-season,” but even during these months, apartments rarely stay empty.
A simple calculation: a studio by the sea rents for 18,000–20,000 baht per month. A one-bedroom apartment goes for 25,000–35,000 baht. A two-bedroom apartment starts at 40,000 baht and higher.
To put this in perspective: a cup of coffee costs 70 baht, lunch in a cafe is 150 baht, and the monthly rental for a motorbike is 3,500 baht. The income from an apartment covers all these expenses and still leaves a margin.
What to Expect from the Market by the End of 2025
Even if the economy slows down, real estate will continue to rise in value. The reasons are clear:
On average, new properties rise in price by 1–2% per month. An apartment purchased at 4 million baht will be worth 5 million baht or more after three years when the building is completed.
- Infrastructure: A new U-Tapao airport and a high-speed rail line to Pattaya are being built as part of the Eastern Economic Corridor. These projects make the region more accessible and increase the value of land.
- Building Materials: The cost of construction materials is rising, and developers factor in price increases during the building phase.
- Demand: Locals are becoming more active in real estate investment. Previously, most buyers were foreigners, but now Thais make up about half of the buyers in some projects.
On average, new properties rise in price by 1–2% per month. An apartment purchased at 4 million baht will be worth 5 million baht or more after three years when the building is completed.
Pattaya or Phuket: Different Strategies
Pattaya — A more affordable market. New apartments here cost from 4.5 to 5 million baht. The city is chosen by those who want to invest with a smaller budget and make a profit by reselling in a couple of years. Thanks to its proximity to Bangkok and convenient transport, demand remains steadily high.
Phuket is more expensive. Here, starting prices range from 9 to 10 million baht, but rental income is higher. In areas like Bang Tao or Karon, apartments rent for 25,000–35,000 baht per month. In peak season, the rates are even higher. For investors, this represents a stable flow of foreign currency.
Both locations are attractive. The difference is whether you prefer quick capital growth (Pattaya) or stable rental income (Phuket).
Phuket is more expensive. Here, starting prices range from 9 to 10 million baht, but rental income is higher. In areas like Bang Tao or Karon, apartments rent for 25,000–35,000 baht per month. In peak season, the rates are even higher. For investors, this represents a stable flow of foreign currency.
Both locations are attractive. The difference is whether you prefer quick capital growth (Pattaya) or stable rental income (Phuket).
How Much Can You Earn?
Let’s take a look at an example:
A 30 m² studio in Pattaya, priced at 3.5 million baht (~9 million rubles):
Total profit over three years: more than 1 million baht (~2.6 million rubles).
In Phuket, rental income is higher, but the entry price is also more expensive. If you rent a one-bedroom apartment for 30,000 baht per month, you could earn nearly 1.1 million baht in pure rental income over three years, plus an additional increase in property value.
A 30 m² studio in Pattaya, priced at 3.5 million baht (~9 million rubles):
- Rent: 20,000 baht per month (~52,000 rubles)
- Income per year: 240,000 baht (~630,000 rubles)
- Price increase over 3 years: +20% (~700,000 baht)
Total profit over three years: more than 1 million baht (~2.6 million rubles).
In Phuket, rental income is higher, but the entry price is also more expensive. If you rent a one-bedroom apartment for 30,000 baht per month, you could earn nearly 1.1 million baht in pure rental income over three years, plus an additional increase in property value.
FAQ
Will property prices continue to rise?
Yes. New properties are increasing by 1–2% per month. Apartments by the sea are rising the fastest.
What is the minimum budget required?
The minimum is a deposit of 100,000 baht (around 260,000 rubles). The down payment starts from 20% of the property price.
Can I buy property remotely?
Yes. Half of all transactions now happen online: selection, video tours, contracts, and property registration.
What is the rental yield?
On average, 7–12% per year. In Phuket, rental yields are higher than in Pattaya.
Are there risks for foreigners?
The main risk is an unreliable developer. If the project is verified and the documents are properly filed, there should be no issues.
Yes. New properties are increasing by 1–2% per month. Apartments by the sea are rising the fastest.
What is the minimum budget required?
The minimum is a deposit of 100,000 baht (around 260,000 rubles). The down payment starts from 20% of the property price.
Can I buy property remotely?
Yes. Half of all transactions now happen online: selection, video tours, contracts, and property registration.
What is the rental yield?
On average, 7–12% per year. In Phuket, rental yields are higher than in Pattaya.
Are there risks for foreigners?
The main risk is an unreliable developer. If the project is verified and the documents are properly filed, there should be no issues.