Thailand’s real estate market has undergone notable adjustments over the past 2–3 years, shaped by economic conditions, foreign investment flows, and evolving occupier demands. Each sector presents distinct dynamics and growth opportunities.
Residential Sector
The residential market in Thailand remains active, largely supported by foreign buyers—particularly Chinese investors—who continue to play a key role in the condominium segment. Sales to Chinese buyers, both direct and via brokers, have shown steady growth.
Looking ahead to 2026, the market is expected to remain reliant on foreign demand, as domestic purchasing power may remain constrained. New project launches are limited, with developers increasingly focusing on high-end units priced above THB 100,000 per square meter. Data-driven strategies are being adopted to optimize marketing, project planning, and long-term operational costs.
Nevertheless, household debt levels and political stability remain critical risk factors that could influence future purchasing decisions.
Industrial and Logistics Sector
In Q4 2025, Thailand recorded approximately 3.42 million square meters of leased factory space, with a vacancy rate of around 9.53%, declining from the previous quarter. Ready-built warehouse (RBW) supply totaled about 6.05 million square meters, with a vacancy rate of 15.23%, also showing improvement.
Demand for industrial land, factories, and logistics facilities continues to rise, reinforcing Thailand’s position as an attractive investment destination. Despite early-year challenges such as U.S. import tariffs, international investment momentum remains strong.
U.S. investments in AI, advanced manufacturing, energy, and supply chain technologies present significant opportunities for Thailand to strengthen its role as a regional manufacturing and logistics hub.
Retail Sector
Bangkok’s retail market is expected to experience limited structural changes. Major shopping malls operated by Central Group and The Mall Group continue to enhance their assets, particularly prime spaces on levels 1–2 and areas connected to BTS stations, catering to anchor tenants and global brands.
Conversely, suburban community malls and some hypermarkets are facing occupancy pressure, leading to space rationalization and rental adjustments to remain competitive. Economic and political uncertainties remain key factors influencing the retail sector’s outlook.
Bangkok Office Market in 2025
The Bangkok office market continues to show positive momentum in 2025. A slowdown in new office completions, particularly in CBD locations, has supported higher rental rates and declining vacancy levels for Grade A offices.
Approximately 262,400 square meters of new office space are expected to enter the market this year, accounting for around 44.3% of future supply. Demand for Grade A offices remains robust, driven by multinational corporations and tenant expansions.
Flexible office solutions, including serviced offices and coworking spaces, continue to gain traction as businesses seek adaptability and cost efficiency. Average Grade A rental rates have increased to approximately THB 943 per square meter per month, while vacancy rates continue to trend downward—signaling a balanced and sustainable market outlook.
Source: Research & Consulting Cushman & Wakefield Thailand
