Thailand Unveils 99-Year Land Lease Policy to Attract Investors
In a significant effort to boost foreign investment, Thailand is planning to extend its land lease terms from 30 to 99 years. Deputy Prime Minister and Finance Minister Pichai Chunhavajira announced this proposal at the CEO Econmas Awards 2024, signalling a potential paradigm shift for global investors looking at long-term ventures in Thailand.
This proposal aligns with Thailand’s 2025 strategic vision, which aims to unlock opportunities and foster economic growth. With more than 300 million rai of land and a population of 67 million, Thailand offers vast potential for development.
The upgraded policy focuses on providing security for investors by guaranteeing various rights such as land use, trade, and loan leveraging. Once the 99-year lease period concludes, the assets will revert to the state, with plans to redistribute them to benefit low-income families, thus highlighting the government’s commitment to balancing economic gains and social welfare.
Further, the Treasury Department and the State Railway of Thailand aim to make idle state land available in prime urban locations like Silom and Sukhumvit for affordable housing. These 99-year leases will be priced at 30% below market rates, catering to low-income residents and easing their access to central job opportunities by reducing commuting costs.
While this bold move has generated enthusiasm among investors, it has also sparked debate. Land rights are a sensitive topic in Thailand, and the proposed changes have led to spirited discussions. With the government eager to implement these plans, there remains uncertainty over whether they will become law. The matter is under scrutiny, as the impact on both the economy and the local population could be profound.
Source: Asean now
