Information on Leasehold Land for Rent in Bangkok It is becoming more common for landowners to offer their land for rent in Bangkok, allowing them to retain ownership while a third party develops the land under a lease contract. The benefit for landowners is that they are able to generate recurring income from the land without any capital outlay, while retaining ownership of the land. The new Land and Building Tax Act 2019 requires land and building owners to pay tax based on the government assessed value of their land and building. The rates vary depending on use, with the highest rates reserved for vacant non-agricultural land. This is another reason why more land owners are considering offering land for rent in Bangkok and other parts of Thailand. Land for Rent Listings Leasehold land rights can be sold or transferred to third parties. Short-term lease agreements are typically 3-year renewable leases, whereas land for rent in Bangkok can be leased long-term, for up to 30 years, and in some specific cases for commercial development, land can be leased for 50 years. The length of the lease granted on land depends on the motivation of both the land-owner and the tenant, as it is a private negotiation. If the land-owner wishes to hold the land long-term and is seeking to obtain as much financial gain as possible, they can do this by granting a long-term lease giving a developer or tenant enough time to generate a financial return during the lease. However, the land needs to be of sufficient quality in terms of location, size and shape to allow for a development that would generate a significant return during the long-term lease. Ultimately developers are looking to generate long term income returns and, in some cases, sell the project to a Real Estate Investment Trust or REIT. If the landowner wants to maintain some flexibility and not commit to a long-term lease (20 to 30 years), they may prefer to lease the land on renewable short-term leases. Again, depending on the location, size and configuration of the land, there may be demand for short-term land for lease in Bangkok, particularly in the retail industry. Any lease in excess of 3 years must be formally registered at the land department, offering additional protection to the lessee. As land prices have risen in Bangkok, it has become financially unviable to buy freehold land to develop some commercial projects. However, there are opportunities for developers who are willing to consider land for lease in Bangkok. There has been a trend for developers to rent land long-term to develop hotels, serviced apartments, office buildings and retail malls. In addition, oil companies and large space retail businesses continue to rent land to expand in prominent roadside locations throughout the country. As residential communities grow, there has also been an increase in the development of retail community malls providing convenient shopping closer to residential neighborhoods. For more information about land for rent in Bangkok, please contact CBRE.