Real estate recovery drives wider green energy push

Thailand’s real estate sector is beginning to show signs of recovery, following a 12% expansion in real estate lending during the first half of the year, says Finance Minister Ekniti Nitithanprapas. 

Speaking at the opening of the 50th House and Condo Expo, Mr Ekniti said on Thursday the real estate sector underpins Thailand’s economic growth and stability, as it is closely linked to a wide range of related industries such as construction, labour, building materials, financial institutions and lending services.

Sustainable growth in real estate is an important indicator of the overall strength of the economy, he noted.

Given the challenges posed by geopolitical conflicts driving up energy costs and climate change directly affecting people’s livelihoods and businesses, Mr Ekniti said the government is focused on policies that combine economic stimulus with efforts to promote sustainability.

 In terms of real estate, the government’s recent policy to cut property transfer and mortgage registration fees has begun to deliver clear results. Property transfers surged 17% year-on-year in the first half of 2026, while real estate lending expanded by 12%, reflecting renewed confidence among both the public and property developers, he said.

Government and state financial institutions have launched lending programmes to help people purchase homes, particularly the “Baan Khon La Lung Plus” scheme through Government Housing (GH) Bank. The programme offers low-income earners preferential interest rates, starting at 2.6% for the first two years, in line with borrowers’ risk profiles.

The administration is also prioritising environmental and energy-saving policies, particularly green finance, which is shifting from an optional choice to an economic necessity because natural gas accounts for 60% of Thailand’s electricity generation, noted Mr Ekniti. 

When imported energy prices rise, they increase costs and cause capital to flow out of the country.

In response, the government launched the household solar power programme to accelerate the transition to clean energy.

Under the scheme, the government offers a fixed subsidy of 50,000 baht per household to 1 million households for solar panel installation.

Three state-owned financial institutions — Government Savings Bank, the Bank for Agriculture and Agricultural Cooperatives and GH Bank — are also offering low-interest loans for solar panel installation at rates of roughly 2.5%.

“These measures aim to transform consumers into energy producers. In addition to reducing household expenses, any surplus electricity can be sold back to the grid to generate supplementary income,” he said.

To prevent contractors from abandoning solar installation projects or installing substandard equipment in people’s homes, vendors and service providers are required to post a 50,000-baht security deposit for each installation project, noted Mr Ekniti.

 This requirement could put an excessive financial burden on solar installation businesses, particularly smaller operators, so he said he had instructed the Thai Credit Guarantee Corporation to help establish a bank guarantee mechanism to provide credit guarantees.

The guarantee fee would be capped at 1% per year, equivalent to just 500 baht annually for a guarantee of 50,000 baht.

The government is also providing special financing to support small operators and businesses throughout the supply chain, enabling them to obtain loans to invest in the equipment needed for solar installations, said Mr Ekniti.