How much income can you expect from Thai real estate in 2025?
Whether you’re planning to invest in a Bangkok condo or a beach villa in Phuket, understanding rental yields is key to making smart real estate decisions in Thailand.
🔍 What Is Rental Yield?
Rental yield is the return you earn on your property investment from rental income. It’s usually expressed as a percentage of the property’s purchase price.
📊 Formula:
vbnetCopyEditRental Yield (%) = (Annual Rental Income ÷ Property Price) x 100
📘 Example:
If you buy a condo for ฿4,000,000 and earn ฿240,000 per year in rent:
→ Yield = (240,000 ÷ 4,000,000) x 100 = 6%
🏙️ Average Rental Yields by City (2025)
City | Typical Property Type | Average Gross Yield |
---|---|---|
Bangkok | Condos (CBD areas) | 4% – 6% |
Phuket | Villas, holiday condos | 6% – 10% |
Pattaya | Pool villas, sea-view condos | 5% – 8% |
Chiang Mai | Mid-range condos | 4% – 6% |
Koh Samui | Luxury villas, Airbnb homes | 6% – 9% |
Hua Hin | Gated villas, golf properties | 3% – 5% |
Note: Gross yield does not account for expenses like taxes, maintenance, or management fees.
📉 Net Yield vs. Gross Yield
Type | Description |
---|---|
Gross | Yield before expenses (e.g., rental income ÷ property price) |
Net | Yield after deducting costs like management fees, repairs, tax, etc. |
Typical Costs That Reduce Net Yield:
- Property management (10–20% of rent)
- Common area/maintenance fees
- Government rental tax (approx. 5% of income)
- Repairs and furnishings
👉 In most cases, net yields are 1.5%–2% lower than gross yields.
💰 Factors That Influence Rental Yield
Factor | Impact |
---|---|
Location | Tourist areas or CBD zones = higher rent demand |
Property type | Villas earn more with Airbnb; condos suit long-term |
Occupancy rate | Higher = more income |
Pricing strategy | Smart pricing on Airbnb can boost returns |
Management quality | Poor management = more vacancies or low reviews |
🧭 Long-Term vs. Short-Term Rental Yields
Rental Strategy | Pros | Cons |
---|---|---|
Long-Term | Stable income, less wear & tear | Lower returns (4–6%) |
Short-Term | Higher income potential (6–10%+) | More effort, regulation risk, seasonality |
📌 Investor Tips to Maximize Yield
- ✅ Buy in high-demand locations (near BTS, beach, attractions)
- ✅ Choose fully furnished, ready-to-rent units
- ✅ Use professional rental management for Airbnb
- ✅ Avoid over-supplied condo buildings
- ✅ Invest in properties with low common fees
📍Where to Look for High-Yield Properties?
Goal | Best Cities |
---|---|
Airbnb income | Phuket, Koh Samui, Pattaya |
Stable long-term tenants | Bangkok, Chiang Mai |
Expat family rentals | Hua Hin, East Pattaya |
Capital growth + rental | Bangkok (CBD), Phuket West Coast |
📎 Conclusion
Rental yields in Thailand are attractive compared to global averages, especially in resort zones with Airbnb-style demand. While short-term rentals can offer higher returns, they require hands-on management or professional services.
📘 Always calculate both gross and net yields, and factor in occupancy risks before investing.