Russians start buying up property in Thailand and Indonesia

Since the beginning of 2023, the activity of Russians in the Thai property market has more than tripled, and in the Indonesian market it has more than doubled. Many see property in Asian countries as an investment: with the revival of tourism and the opening of China's borders, demand for buying and renting property will increase.

Source: Kommersant, a Russian business and politics newspaper, with reference to relevant players in the market

Details: Meanwhile, Russians’ interest in property in Türkiye has fallen significantly, Kommersant wrote.

According to Tranio, Russians’ interest in property in Thailand in the first quarter of 2023 increased by 57% year-on-year, and by 39% in Indonesia. Barnes International Moscow reported a 30% year-on-year increase in demand for property in Thailand and Indonesia. These countries now account for 20% of the total demand for overseas property.

According to Prian.ru, the demand for property in Thailand increased by 3.4 times year-on-year, and by 2.2 times in Indonesia in January–March 2023. Filip Berezin, Prian.ru editor-in-chief, said these countries currently account for 95% of the demand for properties in Southeast Asia.

Berezin explained that the interest in Thailand and Indonesia was shaped by Russians’ desire to invest abroad and the simultaneous reduction in the number of countries where they could do so.

According to Yelena Milishenkova, Tranio’s sales director, those who were planning to buy property in Türkiye, for example, have likely shifted to Asian markets. "New complications in the procedure of obtaining a residence permit, soaring prices at resorts in Antalya [a major destination for tourists in Türkiye – ed.], and earthquake-related fears have forced investors to expand their search," she explained.

Many buyers consider property in Asian countries as an investment, Berezin said. "With the revival of tourism and the opening of China’s borders, the demand for both buying and renting will increase," he predicted.

According to Prian.ru estimates, rental income in these countries could reach 7-9% per annum, with up to 40-50% earned due to price increases during construction.

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