THAILAND – The nation’s property sector is sounding the alarm and calling for radical reform: developers and industry executives are urging the extension of the maximum leasehold for foreign buyers from 30 to 99 years as a vital means to attract foreign capital amid slowing growth and mounting household debt.
Grim economic outlook
Industry leaders speaking at the “Thailand Economic Outlook 2026” seminar painted a bleak picture. Growth is forecast to be below 2 percent this year, they said, as private consumption is squeezed by household indebtedness, exports are hampered by a strong baht, and private investment remains weak. The combination has left traditional growth engines faltering.
Household debt and consumer squeeze
“The problem of household debt is a major drag on the property sector,” said Pasu Liptapanlop of Proud Real Estate. High debt burdens reduce purchasing power and disposable income, limiting demand for new homes. Government measures such as the “Kon La Khreung” spending subsidy provide temporary relief for consumers’ cash flow but do little to generate sustained income growth.
The 99-year lease proposal
With domestic demand constrained, developers argue they must court international buyers. Their central proposal: raise the maximum foreign lease term from 30 to 99 years — a tenure already used in several neighboring countries. Proponents reject accusations of “selling the country,” noting that land would revert to the state at the end of any lease term. They also point to demographic and labor trends that they say make foreign investment and workers increasingly necessary.
Tourism: quality over quantity
Panelists also warned that tourism can no longer carry the economy on visitor numbers alone. Where tourism once contributed around 20 percent of GDP, the emphasis must shift to increasing per-capita spending — currently about 50,000 baht per visitor, well below figures in markets like Singapore or Japan. Speakers urged a focus on higher-value offerings such as wellness and longer-stay experiences, while acknowledging longstanding structural constraints: inadequate infrastructure, traffic congestion and waste-management issues in destinations such as Phuket hinder higher-value tourism.
New business models and digital opportunities
Developers are already adapting: branded residences with integrated hospitality services and luxury partnerships are emerging as key differentiators. Sustainability is now a baseline expectation rather than a luxury — some 70 percent of Generation Z travelers prioritize sustainable destinations. At the same time, digital innovations could reshape capital-raising: regulatory changes permit fractionalization of property ownership, enabling purchases from as little as one square meter, and digital tokens are being discussed as alternative financing channels for developers.
Reform or risk falling behind
The sector describes a crossroads: either Thailand opens up further to international investors through measures such as 99-year leases, or it risks losing competitiveness in the region. With rivals already offering long-term tenure models and aggressive investment incentives, industry leaders say time is short.
The debate ahead
Critics warn that longer lease terms raise political and sovereignty questions, and any reform would require careful legal and public-policy safeguards. Supporters counter that long leases can be structured to protect national interests while providing the foreign capital needed to modernize infrastructure and sustain the property market.
Reform or risk — policymakers, developers and the public now face a choice about how far to recalibrate property law to address an economy under strain. Source: The Nation