The real estate sector is hoping for a recovery in2023.

In 2022, Thailand's real estate sector did not fully recover due to the economic downturn and the consequences of the war between Russia and Ukraine, as well as rising inflation and interest rates. However, despite the lack of the expected recovery, the overall outlook offers new hope for 2023.

The improvement in the Consumer Confidence Index, which has been rising for six consecutive years, currently stands at 47.9, the highest level in the last 20 years, indicating a recovery in consumer trust regarding spending. Another factor supporting the real estate sector is the ongoing policy of the Bank of Thailand to ease lending conditions (Loan-to-Value: LTV), which will soon come to an end. This policy has successfully encouraged customers with genuine demand to purchase real estate.

When making a decision to purchase a home, buyers prioritize location, according to a report from the leading real estate website DDproperty. According to the latest consumer sentiment survey in Thailand conducted by DDproperty from January to November 2022, 53% of respondents stated that they are looking for a project with access to public transportation, and 50% said that location is the main factor in their purchasing decision. The study also showed that surrounding provinces have surpassed key tourist destinations in housing preferences. Bangkok remains at the top of the list for homebuyers, followed by Nonthaburi, Samut Prakan, Pathum Thani, and Chonburi, respectively. Well-known tourist spots such as Chiang Mai (6th place), Prachuap Khiri Khan (7th place), and Phuket (8th place) did not make it into the top five. Location and transportation also play a crucial role here.

Thanks to the planned and completed train routes connecting the city of Bangkok with Greater Bangkok (Nonthaburi and Pathum Thani), the surrounding provinces have become more attractive to real estate buyers. It is particularly noticeable that transportation is an important factor for specific locations in Bangkok, which is why the Suan Luang area on the eastern side of the city is now a leading preferred spot.

Of these popular areas, Khlong Tan Nuea is the most interesting for apartment buyers, while Bangchak, easily accessible by Skytrain, is the most desirable neighborhood for rental housing. This area has also developed a multicultural community, and although land prices continue to rise, some apartments and rental units are still within an affordable price range.

In 2022, apartments remained the most sought-after type of real estate, with more than half of potential buyers (55%) preferring them, followed by single-family homes (28%) and townhouses (17%). 42% of potential apartment buyers want to purchase housing in the price range of 1 to 3 million baht, while potential home buyers are willing to pay a maximum of 10 million baht for a single house. This indicates that 42% of home buyers are looking for an affordable price for their first home, while 36% of those wanting to buy a house prefer a luxury option, and 20% are looking for relatively affordable housing in the price range of 3 to 5 million baht per unit. In terms of price, townhouses are on par with apartments, with 48% of potential buyers willing to pay between 1 and 3 million baht per unit. Potential renters, on the other hand, are looking for something in the range of 10,000 to 20,000 baht per month.