The 30-Year Ground Lease: How Bangkok Landowners Are Unlocking Value Without Giving Up Title

Bangkok landowners are increasingly using 30-year ground leases to unlock value from underutilized properties while retaining freehold ownership. The structure provides predictable, inflation-hedged rental income through scheduled escalations, while transferring development, operational and tax burdens to the lessee. For developers, the 30-year tenure offers sufficient time to justify major capital investments and is the maximum registrable lease term under Thai law. A recent Lumphini transaction generated THB 3.3 billion, reportedly exceeding the land’s THB 2.2 billion freehold value by 50%. However, careful structuring is essential to manage inflation, tenant and contractual risks.

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