Property prices in Thailand are predicted to rise in 2025

The projected growth of property prices in Thailand in 2025 is causing optimism among experts and potential homebuyers. After a predicted decline of 4.4% in 2024, demand for housing is expected to increase again due to a number of factors, such as economic growth, measures to reduce household debt and support for vulnerable groups. The main influence on the market recovery will be the recovering tourism sector, which is expected to reach levels close to pre-pandemic levels. Kamonpop Weerapala, President of the State Housing Bank and Acting CEO of the Real Estate Information Center, predicts that property prices will grow between 2.8% and 3.0% in 2025, which will create a positive backdrop for an increase in the number of transactions.

Additional factors supporting the growth include increased government spending with a significantly higher budget for 2025, growth in private consumption, as well as a possible reduction in interest rates, which will make mortgage lending more affordable for the population. The government also plans to extend the transfer and mortgage fee reduction initiatives, which could attract new buyers to the market. According to REIC, the number of housing transfer transactions in 2024 is expected to be 350,545 units, down 4.4% from the previous year. However, there is a projected increase to 363,600 transactions in 2025, indicating a recovery in interest in home ownership.

Although the housing market experienced negative dynamics in the third quarter of 2024, the decline was less significant than at the beginning of the year. This indicates a possible strengthening of the market position ahead of the long-awaited recovery. It is very likely that, given the projected growth and government support, the property market in Thailand will be able to regain investment attractiveness and meet the growing demand from both local and foreign buyers.

According to experts, several factors could negatively affect the property market in 2025. These include high household debt, which could limit housing affordability for many families, as well as the lack of relaxed credit conditions and stricter lending policies by banks. All of this could lead to a decline in purchasing activity and complicate the further recovery of the sector.