The enforcement measures are not expected to significantly affect overall foreign demand for these properties in Thailand, it said in its analysis report, reports the Bangkok Post.
The government’s enforcement campaign has raised concerns among some market observers that foreign demand for villas in destinations such as Phuket and Samui could weaken amid heightened regulatory scrutiny.
However, the impact has so far been limited, with enforcement measures yet to significantly alter market behaviour or dampen foreign demand in these resort property segments.
“The crackdown seems to focus on people working illegally in Thailand rather than expats living in villas,” said Kashif Ansari, co-founder and group chief executive of Juwai IQI.
“The rules haven’t changed. They’re just stepping up enforcement. Anyone who has followed the law will have no problem.”
Mr Ansari said foreign buyers generally welcome greater transparency and legal certainty, as this helps to protect long-term investments.
“Ultimately, buyers like to operate in well-regulated, transparent markets where their investment is protected. We find Thailand’s focus on compliance reassuring,” he said.
BUYERS SEEK CLARITY
While the crackdown has not triggered a withdrawal of foreign demand, it has prompted more enquiries about ownership structures.
“Our agents are getting more questions about legal arrangements than they did in the past,” Mr Ansari said. “Some buyers want to clearly understand in advance how it will work, just to make sure they’re not getting into trouble. We think that’s a good thing.”
He added that the company has not seen foreign buyers walk away from pending purchases or abandon deposits because of the enforcement measures.
“Buyers work with good lawyers and agents and make sure they’re doing things legally,” he said. The company has also not observed existing foreign villa owners rushing to sell assets ahead of possible audits.
STRONG RESORT DEMAND
According to Juwai IQI’s estimates, foreign participation remains dominant in Thailand’s luxury villa market.
"There isn’t an official figure for foreign villa ownership because foreigners can’t hold land in their own name and long-term leases aren’t tracked by nationality," Mr Ansari said.
“Our best estimates are that, in Phuket, around three in five property transactions involve a foreign buyer or lessee,” he said.
In Samui and Pha-ngan, foreign demand is even more pronounced. It estimates that of every 10 villa buyers, more than nine are foreign.
It also believes that between 2,400 and 3,000 villas in Phuket, and a similar number across Samui and Pha-ngan, are ultimately foreign-owned or leased.
Mr Ansari stressed that the figures refer primarily to the luxury resort villa segment rather than conventional housing, which remains overwhelmingly Thai-owned.
CHINESE DEMAND STRONG
The company said Thailand continues to rank among the most attractive overseas property destinations for Chinese buyers.
According to Juwai IQI enquiry data for the first quarter of 2026, Thailand was the second-most popular destination globally among Chinese property seekers.
“Chinese buyers rank Thailand as their second-most popular destination globally,” Mr Ansari said.
More than half of enquiries were for homes valued at US$750,000 or below, while 27.5% targeted properties priced above $2 million.
“Nine in 10 Chinese buyers say their purchases are both for their own use and for investment,” he said.
Within Thailand, Bangkok remains the most popular destination, followed by Phuket, Chiang Mai, Pattaya and Hua Hin.
The company said it has not observed any meaningful shift of Chinese capital from Thailand to competing destinations such as Malaysia.
“Malaysia is certainly an attractive market, but we haven’t noted any shift in buyers from Thailand to Malaysia, or the other way around,” Mr Ansari added.
LEGAL ROUTES IN FOCUS
Mr Ansari said foreign buyers currently have three main options: purchasing condominium units under freehold ownership, buying villas structured under condominium ownership, or entering long-term leasehold agreements.
“No buyer should believe that their lease can be automatically extended for 90 years,” he said.
“Also, never enter into a nominee arrangement where Thai shareholders hold the land but you actually control it. That is exactly what the authorities are enforcing against now.”
He added that the government’s ongoing consideration of reforms to increase the foreign ownership quota in condominiums from 49% to 75% and extend leasehold terms from 30 years to 99 years could further strengthen Thailand’s competitiveness.
“My own view is that some version of these changes could arrive in the next 12 to 24 months,” he said.
PHUKET MARKET RESILIENT
Market sentiment in Phuket remains positive, despite the heightened scrutiny.
Nasupha Suwansri, vice-president of IQI Phuket, said demand for luxury villas remains strong across the island.
“Foreign buyers don’t come to Phuket expecting to break the law when they buy a home. They want to follow the rules, and therefore the crackdown isn’t worrying them,” she said.
Ms Nasupha said Phuket’s appeal extends well beyond tourism, attracting long-term residents seeking an international lifestyle.
“Phuket is no longer just a holiday destination. It has become a truly international place to live, with a strong mix of Thai culture and global communities,” she said.
Many foreign families are drawn by international schools, quality healthcare, wellness facilities, marinas, golf courses, and direct international air connections.
She noted that demand remains particularly strong for pool villas priced between B15-30 million near international schools, while investors and second-home buyers typically seek properties worth B30-70mn in areas such as Bang Tao, Layan, Laguna, Kamala and Rawai.
“The crackdown is not stopping serious buyers,” Ms Nasupha said. “It is making them ask better questions and work more carefully with agents and lawyers. Foreign buyers want to follow the rules, and Phuket remains one of the strongest lifestyle and investment destinations in Asia.”