Bangkok’s tourism rebound has been dramatic. In 2024 Thailand welcomed 35.5 million international visitors (up from 28.2 million the previous year), sustaining strong demand for unique accommodations beyond hotels. At the same time, travelers and expatriates increasingly seek spacious, residential-style lodging. Both Thai and foreign travelers are now “seeking residences for vacation homes or planning for retirement,” and the rise of the “workation” trend means they want homely spaces with room to relax and work. This growing interest in home-like rentals comes as traditional lodging stock is tight – new condominium supply in Bangkok hit a 15‑year low in 2025 – pushing some investors to rethink property use.
Bangkok’s skyline offers few vacancies: A 2025 report notes Bangkok condo launches at the lowest level in 15 years, even as demand for longer stays rises. Investors are now eyeing low-rise houses (often in quiet sois) as an alternative.
Leisure travelers now crave the extra space that an old Bangkok house can provide, especially for families or long-staying nomads. Unlike high-rise condos – where juristic regulations often ban Airbnb-style rentals – old standalone houses can be legally marketed as holiday homes if they meet safety criteria. These investors renovate traditional houses (sometimes 3–7 small suites under one roof) and list them on platforms like Airbnb. The appeal is clear: guests get an authentic Thai living experience with separate bedrooms and kitchens, while owners tap into a new revenue stream.
“Condominiums are designated as residential properties, and short-term rentals (less than 30 days) are generally prohibited unless the building has a hotel license,” explains local property counsel. In effect, most Bangkok condos ban Airbnb. Instead, entrepreneurs are converting houses and townhouses. With the new 2023 Hotel Act rules, any building up to 7 bedrooms (8 or more requires a license) is exempt. This policy means multiple-unit homes in Bangkok’s suburbs can be legally rented to tourists without official hotel status.
“Under the updated Hotel Act, up to eight rooms and 30 guests are now exempt from license requirements,” notes a Bangkok real-estate lawyer. “For operators with 7-room setups, there is essentially no need for a hotel permit.”
Investors leverage this change by subdividing older properties. Typically these homes aren’t on major thoroughfares, but tucked down side-streets (sub-sois) near transit. The transformation often involves adding modern bathrooms and kitchens inside, but preserving character (traditional woodwork, Thai decor). Quiet lanes near trendy districts – for example Ari, Phra Khanong or on Sukhumvit’s sois – are now dotted with guesthouses instead of empty villas.
Furthermore, Bangkok’s city center is running out of single-family plots. With new condo projects scarce, land prices for houses have climbed, but older houses (often inherited or held for decades) can be bought for renovation. Investors find that even without a hotel permit, each rented room can generate comparable income to a condo rental. Anecdotally, short-term rental yields (especially in Bangkok) are often cited around 3–6% annually for condos, with 6–10% possible in more vacation-oriented towns – figures that attract return-hungry investors despite the effort.
“Both Thai and foreign consumers are seeking residences for vacation homes,” reports one real-estate analyst, highlighting a new “workation” trend. These holiday homes cater exactly to that market.
In practice, owners establish businesses to manage bookings and cleaning. They maintain fire-safety equipment and register with local authorities when required, to comply with the letter of the law. By staying at 7 rooms or fewer, they sidestep Thailand’s hotel-license rigmarole entirely. Marketing is often done through Airbnb or local guesthouse networks; some even partner with professional management agencies.
This niche is growing quietly but noticeably in 2025. Lower-tier properties in leafy lanes of Watthana or Bang Rak, once overlooked by big developers, are now repurposed. The new legal framework has essentially green-lit these ventures. Industry experts point out that small-scale accommodations without permits (like villas and homestays) have a “unique chance to attract tourists and contribute to local communities,” giving hosts “a significant advantage”. Indeed, Bangkok’s short-term rental scene is expanding beyond condos and hotels, embracing these spacious, local-flavor homes.
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When considering investment in this space, owners should still do due diligence: check zoning rules, comply with tax requirements, and ensure building safety. It’s wise to consult a specialist real-estate partner on commercial property. (For example, Lazudi’s commercial team offers guidance on converting legacy properties into compliant rental homes.) Those looking to tap this trend will find an opening market: supply of holiday homes is still limited, demand is rising, and the law now expressly permits small-scale rentals below the 8-room ceiling.
Read next: Thailand: From Vacation Paradise to Your Second Home
Sources: Bangkok Bank – Thailand Economic Outlook (Q4 2024); Ministry of Tourism and Sports, Thailand – tourism arrival data (2024–25); The Thailand Advisor archives.
