Long-stay visa is not a key driver for foreign condominium buyers

Thailand’s renewable long-stay visa scheme for foreign condominium buyers is unlikely to be a decisive factor in attracting overseas investment, according to a property market expert, saying that decisions are driven more by lifestyle, education and regulatory clarity.

Laurent Richer, Chief Financial Officer of an online property platform, Fazwaz, said the visa policy acts as an enabler rather than a core incentive.

“Long-term visas can support the market, but they are not the main driver. Foreign buyers prioritise lifestyle, education and stability. Reforms to foreign ownership rules, particularly the 49% freehold quota for condominiums, would have a greater impact on investment decisions,” he added.

Thailand allows foreign buyers who purchase a condominium worth at least 3 million baht to apply for a renewable one-year visa, as part of broader efforts to stimulate both tourism and the property sector.

However, the real estate market is facing its slowest growth in nearly three decades, with around 400,000 unsold residential units nationwide, risky levels not seen since the 1997 Asian financial crisis.

Richer said much of the unsold inventory is concentrated in Bangkok, particularly in the 5–10 million baht price range, reflecting weak domestic demand amid economic headwinds.

A property consultancy, CBRE, forecasted in January 2026 that new condominium launches in Bangkok will continue to decline, falling below 40,000 units this year and dropping further to around 20,000 units in 2027.

Despite geopolitical tensions in the Middle East, Richer noted that high-net-worth investors from the region tend to favour markets such as Europe and Australia, where regulatory frameworks are more predictable.

“Investors are expanding their portfolios in Europe or Australia for stability. Some also remain in Dubai due to tax advantages. Thailand is seen more as a diversification option rather than a core investment destination,” he emphasised. 

He added that clearer rules on ownership, transfer and inheritance would be critical in attracting more foreign capital, particularly from Middle Eastern investors who prioritise transparency.

In contrast, demand from neighbouring countries ,such as Myanmar, rises due to political instability, prompting buyers to shift assets into Thailand’s property market.

Richer also explained that the property market also comprises of foreign demand. 85% of condominium were transferred by domestic buyers, while foreign transfers account for 15% in 2025. 

“When we look at the 15% for the foreigners, this part is actually much more resilient. And we have actually seen some growth in number of units transferred with foreign buyers over the last couple of years, in number, not necessarily in value, or lesser growth in value,” he noted.