Sales of foreign apartments have surpassed the levels seen before the Covid pandemic.

In 2023, Chinese and Russian buyers topped the list of foreign apartment purchasers in Thailand. The cancellation of visas and geopolitical conflicts have driven the growth in demand for real estate, surpassing pre-pandemic levels. According to the Real Estate Information Center (REIC), 14,449 apartments worth 73.2 billion baht were sold to foreigners over the year. This is a 25% increase compared to 2022.

Chinese and Russians are in first place.

The Chinese purchased 6,614 apartments, accounting for nearly 46% of the total, for a sum of 34.1 billion baht, according to the Center, citing real estate registration data. Russia took a distant second place with 1,260 purchased apartments, followed by buyers from Myanmar and the United States. The Center notes that the highest average price per square meter is 6.6 million baht, attributed to foreigners from Myanmar.

Sales distribution by region

About 41% of the sold apartments were located in Chonburi, where the resort city of Pattaya is situated, as well as several industrial zones. Bangkok contributed to 38% of sales to foreigners, according to the Center. Apartments priced at no more than 3 billion baht accounted for almost 50% of the total number of sold properties.

Factors influencing sales

The temporary suspension of visas for tourists from China and some other countries last year, along with the permanent agreement with Beijing from March 1, has accelerated sales, reports REIC. The report also mentions geopolitical conflicts, such as the war between Russia and Ukraine and political unrest in Myanmar. "This shows that foreign purchases of apartments are improving and returning to a normal state," said Vichai Virakthapan, the executive director of REIC.

Last year, apartment sales to foreigners were 13% higher than sales in 2019, when 12,798 apartments were sold for a total of 50.6 billion baht, according to REIC.

Tourism and economic growth

Prime Minister Srettha Thavisin is counting on tourism to support the country's slow economic growth. The tourism sector directly accounts for about 12% of GDP and nearly one-fifth of jobs. Last year, the government lifted visa requirements for travelers from China, Russia, Kazakhstan, India, and Taiwan, and also instructed airlines to open new routes and streamline operations at airports to reduce waiting times. The Tourism Authority of Thailand expects the number of visitors to recover to 35-40 million this year, including 8.2 million from China. This will bring the country closer to the record of nearly 40 million visitors set in 2019, the year before the pandemic.