Is Buying Property in Bangkok a Good Investment?

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With attractive property prices, increased rental demand, and tourist numbers on the rise, buying property in Bangkok remains a profitable investment opportunity.

In recent years, Bangkok has been ranked the most-visited city in the world by Forbes; in fact, Thailand’s thriving capital city has stolen the top spot four times in a row. Its vibrant culture, spectacular landmarks, and famously low cost of living combine to create a truly unique and enchanting tourist destination.

In Mastercard’s last Global Destination Cities Index, Bangkok ranked 1st with a total of 22.78 international visitors. The city was placed above beloved destinations such as Paris, London, Dubai, and New York—despite being relatively new on the travel scene.

Looking back: Bangkok on the rise

In the mid-20th century, Thailand began to experience rapid economic growth with the expansion of its manufacturing and agriculture industries.

As a port city, Bangkok found itself at the centre of commercial trade, facilitating imports and exports across Southeast Asia and beyond.

At the same time, Don Mueang Airport was increasing its operations and beginning to drive touristic revenues. The airport, later replaced by Suvarnabhumi Airport, is one of the oldest in the world.

A hotspot for travel and tourism

Flash forward, and Thailand registered an all-time high of almost 4 million visitors in the month of December 2019 (according to recent data from CEIC). Despite being hit by the pandemic, the country’s tourism sector has been recovering quickly; by August it was already welcoming over a million people per month after reopening to the world in May.

At the beginning of October 2022, Thailand lifted the last of its travel restrictions in line with the end of its nationwide Covid-19 Emergency Decree. The country is also expanding the Suvarnabhumi Airport, adding new aeroplane hanger structures and connection tunnels. Phase 2, which will increase passenger capacity from 45 million to 65 million per year, is due to be completed in 2023. Phase 3 will up passenger capacity further to 85 million.

Thailand and its capital city are well-established travel hotspots, having repeatedly topped tables in tourism over the years. This makes Bangkok a safe bet for holiday rentals with guaranteed demand and generous returns.

How do property prices in Bangkok compare to other cities?

Over the past ten years, house prices in Thailand have increased by 50%, yet properties remain extremely affordable compared to other capital cities.

property in bangkok

In Savills Prime Residential World Cities Index, the prime capital value in Bangkok was estimated at €7,880 psm (December 2019). This is very low compared to other cities, with Hong Kong priced at €40,220 psm, London at €18,590 psm, and San Francisco at €14,400 psm.

Other sources estimate that the average house price in Bangkok is 3.4 million THB. This equates to around 80,000 British pounds. To put things into perspective, the average price of a house in London could get you almost six properties in Bangkok.

Domestic demand in the condominium market saw an increase of 27.7% QoQ in the first quarter of 2022 (DOT property). Demand for condo rental properties increased by 20.9% QoQ and nearly 50% YoY. As an increasing number of people return to the capital following the pandemic, buying rental property in Bangkok is becoming an increasingly attractive investment opportunity.

And it isn’t just real estate that’s cheaper; Thailand is renowned for its low cost of living. According to Numbeo, consumer prices in Bangkok are 36% lower than in London and 33% lower than in Tokyo. This not only boosts its appeal as a holiday destination but also attracts expats in their millions from across the globe.

So, whether you’re looking for a rental investment or somewhere to relocate, Thailand’s buoyant capital city is definitely one to consider.

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