Investing in Student Housing in Thailand

Published on September 30, 2025 and written by Cyril Jarnias

Amid economic and tourism growth, Thailand is attracting increasing numbers of international investors intrigued by the immense potential of its student housing market. Faced with growing demand for student accommodations, primarily concentrated around major cities like Bangkok and Chiang Mai, the student residence sector is emerging as a promising niche. This phenomenon is fueled by the rising number of local and international students seeking modern, affordable, and well-located housing. But are these investments in student residences in Thailand truly a golden opportunity? For potential investors, the question of profitability remains central and requires thorough analysis of economic dynamics, occupancy rates, and rental yields.

Thailand’s Student Housing Market

Analysis of Growing Student Housing Demand

Thailand is experiencing a steady increase in student numbers, particularly international students, attracted by the quality of local universities and relatively low study costs. This dynamic generates strong demand for student housing, especially in major university cities like Bangkok, Chiang Mai, and Phuket.

University Statistics and Student Flows

• Number of universities: Approximately 170 officially recognized higher education institutions.
• Annual intake: Nearly 250,000 new students each year, including approximately 30,000 to 40,000 international students primarily from Asia (China, Vietnam, Cambodia) but also from Europe and the Middle East.
• Annual growth in total foreign student numbers often exceeds 8% in post-pandemic years, increasing pressure on the student rental market.

Available Housing Types & Student Preferences

Housing Type	Description	Preferences
Private Apartments	Furnished studios or 1-2 bedroom units in secure buildings. Often located near campuses.	High among international students seeking comfort & independence
Shared Residences	Single or double rooms within university residences (public/private).	Appreciated for lower cost compared to private apartments
Micro-Apartments	Compact spaces (15-25 m²) optimized with multifunctional furniture. Emerging supply responding to tight budgets.	Growing demand among local students seeking savings without sacrificing central location

Average Price Evolution by Geographic Area (2024)

• Bangkok: 12,000 – 25,000 baht/month (areas near prestigious universities like Chulalongkorn/Thammasat)
• Chiang Mai: 6,000 – 15,000 baht/month depending on standard and distance from city center
• Phuket: 8,000 – 18,000 baht/month; smaller market but developing rapidly with new university infrastructure

Market Outlook 2025-2030

Recovery expected by late 2025 if economic growth continues; momentum enhanced by mass return of tourists/foreign students; increased opportunity for investors focused on short/mid-term rental yields.

Local Regulations Regarding Student Rentals

• Property owners must declare any contract exceeding three months to local authorities.
• Leases under one year are permitted but must explicitly state tenant/landlord rights & obligations.
• To legally rent property held through a foreign company: the company must be locally registered.

Increased controls have recently targeted health/safety standards for collective residences intended for non-Thai residents.

Opportunities for Investors

• High potential gross returns on small units near campuses
• Market structurally supported by university internationalization
• Portfolio diversification accessible even with moderate capital

Major Challenges

• High competition in central areas (mainly Bangkok)
• Annual fluctuations according to incoming flows requiring strategic adaptation
• Regulatory framework likely to evolve rapidly

The student housing segment remains promising in Thailand but requires detailed location/regulation analysis before investment

The Appeal of University Residences to Investors

Investment in university residences in Thailand is attracting increasing numbers of investors due to several economic and social factors.

Economic and Social Factors Making Investment Attractive:

• Continuous real estate market growth, driven by urbanization, infrastructure development, and increasing student population.
• Sustained demand for student housing, particularly in major university cities (Bangkok, Chiang Mai, etc.), where supply remains insufficient against influx of domestic and international students.
• Increasing number of foreign students, with Thailand positioning itself as a regional higher education hub.
• Evolution of student lifestyles: search for secure, modern housing near campuses offering adapted services (Wi-Fi, security, common areas).

Recent Statistics on Demand and Accommodation Capacity:

Indicator	Recent Value (2024-2025)
Number of Students in Thailand	≈ 2 million
Number of Foreign Students	> 40,000
Student Residence Capacity (Estimated)	90% in major cities

Potential Benefits for Investors:

• Attractive rental yields: student residences typically show gross annual returns between 5% and 8% depending on location and property quality.
• Income stability: demand being structurally strong and less sensitive to economic cycles, occupancy rates are high.
• Capital appreciation: urbanization and land scarcity in university areas favor medium-term price increases.
• Legal security: student leases are often short-term, allowing regular rent adjustments to market rates.

Government Policies and Incentives:

Some local measures encourage student housing construction, particularly through administrative facilities or temporary tax exemptions for public interest projects.

Gradual market opening to foreign investors for certain residence types, under conditions.

Regional Comparison (Thailand vs Other Southeast Asian Countries):

Criterion	Thailand	Singapore	Malaysia	Vietnam
Rental Yield	5-8%	3-5%	4-6%	6-8%
Occupancy Rate	> 90%	> 95%	> 85%	> 90%
Regulation	Favorable	Very Strict	Moderate	Evolving
Foreign Student Presence	Strong & Growing	Very Strong	Growing	Growing

Key Takeaway:
Thailand combines growing demand, supply deficit, solid rental yields, and a gradually more open regulatory context, positioning this market as one of the most attractive for university residence investment in the region.

Profitability Study of Erasmus Shared Housing in Thailand

Initial Cost Analysis

Cost Type	Purchase (in THB)	Rental (in THB/month)
3-Bedroom Apartment/Property	4–8 million	20,000–60,000
Notary Fees/Taxes	2–5% of purchase price	–
Furniture/Equipment	150,000–300,000	50,000–100,000
Security Deposit	–	1–3 months rent

Purchase: Buying an apartment or house in a Thai university city (e.g., Bangkok, Chiang Mai) requires significant initial investment, plus transfer fees and furnishing costs.

Rental: Renting reduces initial investment but profitability then heavily depends on occupancy rate and subletting conditions.

Ongoing Maintenance Costs

• Condominium fees: 1,000–3,000 THB/month
• Regular maintenance (cleaning, repairs): 2,000–5,000 THB/month
• Home insurance: 3,000–10,000 THB/year
• Rental management fees (if outsourced): 5–10% of collected rents

Potential Erasmus Shared Housing Income

City	Room Rent/Month (THB)	Target Occupancy Rate	Gross Annual Income (THB)
Bangkok	8,000–15,000	90–95%	288,000–513,000
Chiang Mai	6,000–12,000	85–95%	244,800–410,400
Phuket	8,000–14,000	80–90%	230,400–453,600

Income: Shared rooms for Erasmus students benefit from sustained demand, especially near universities and transportation. Annual occupancy rates frequently exceed 85%, ensuring good income visibility.

Tax and Regulatory Benefits for Investors

• Foreign Ownership: Direct purchase is only possible for condominium units up to 49% of total building area. For houses/land: legal structure via company or leasehold.
• Taxation: Low property tax (0.02 to 0.1% of estimated value), rental income tax (approximately 15%, with possible deductions for maintenance and loan interest).
• Incentives: Some university areas offer temporary tax relief or facilitate procedures for investors targeting student housing.

Profitability Comparison: Shared Housing vs Other Student Accommodation Forms

Accommodation Type	Estimated Net Profitability	Flexibility	Occupancy Rate	Management
Erasmus Shared Housing	5–7%	High	85–95%	Medium
Individual Studio	3–5%	Low	75–90%	Low
University Residence	4–6%	Low	90–98%	Low
Short-Term Rental	6–9%	Very High	60–80%	High

• Shared Housing: Offers best flexibility and allows space optimization, with higher returns than traditional rental.
• University Residences: Less flexible, centralized management, but maximum occupancy rates.
• Short-Term Rental: High potential returns but more complex management and marked seasonality.

Location Impact on Demand

• Immediate proximity to campuses, public transport, shops, and student life areas significantly increases attractiveness and thus profitability.
• Outlying or poorly served neighborhoods experience lower occupancy rates and reduced rents.
• University cities like Bangkok, Chiang Mai, or Khon Kaen show the best occupancy rates for student shared housing.

Recent Market Trends and Case Studies

• Foreign student flows (including Erasmus+) have rebounded since post-pandemic border reopening.
• Example: a 3-bedroom apartment in Bangkok, purchased for 5.5M THB, renovated and rented as shared housing to 3 foreign students at 12,000 THB/room/month, achieves 94% occupancy rate and 6.1% annual net profitability.
• Supply of shared housing suitable properties remains below demand in major university cities, favoring rent stability and reducing vacancy risk.

Medium and Long-Term Financial Viability Assessment

Considering demographic evolution, stability of Erasmus student flows, and high rental demand in major university cities, investing in Erasmus shared housing in Thailand presents an attractive profitability profile (5–7%), flexible management, and limited risk, provided strategic location selection and compliance with local regulations. Medium and long-term economic prospects remain favorable, subject to stable migration policy and clear legal framework for foreign investors.