The 2025 real estate market in Thailand is set to experience an uneven recovery, with certain sectors poised for growth while others face challenges. According to CBRE Thailand, the hotel and industrial estate sectors are expected to be the driving forces behind the market’s resurgence, fueled by foreign investment and tourism, while the residential and office sectors struggle with sluggish domestic demand and oversupply issues.
Roongrat Veeraparkkaroon, managing director of CBRE Thailand, highlighted the varying degrees of recovery across different sectors, with hotels and industrial estates showing the most promising signs of growth. She attributed this growth to government incentives that have attracted foreign investors and tourists, setting a positive trajectory for 2025.
Chotika Tungsirisurp, head of research and consulting at CBRE Thailand, emphasized the role of foreign tourism in driving the recovery, with a projected increase in tourist arrivals from 35.5 million to 40 million in 2025. This surge in tourism is expected to bolster Bangkok’s hotel sector, with improvements in occupancy rates, average daily rates, and revenue per available room compared to the previous year.
In the industrial estate sector, there has been a notable uptick in demand for serviced industrial land plots and ready-built factories, driven by a surge in presales and occupancy rates. The increase in demand from second- and third-tier suppliers reflects a positive trend in the industrial real estate market, with growth expected to continue throughout the year.
The retail sector also saw significant activity in 2024, with a notable influx of foreign brands, particularly from Japan, China, and Europe. The food and beverage segment attracted the most interest, followed by fashion, accessories, furniture, entertainment, and beauty and wellness categories. The diversification of overseas market entries underscores the international appeal of Thailand’s retail landscape.
However, the office sector is facing challenges, with declining occupancy rates projected for 2025 due to an oversupply of office space in recent years. This oversaturation has led to a steady decline in occupancy rates since 2019, posing a significant hurdle for the sector’s recovery.
Artitaya Kasemlawan, head of residential sales projects at CBRE Thailand, noted a potential slowdown in new condo supply in Bangkok, with fewer units launched in 2025 compared to the previous year. Developers are adopting a cautious approach to new launches, focusing on delivering value for money to attract buyers in a competitive market environment.
As the real estate market in Thailand navigates the complexities of recovery in 2025, the sectoral disparities highlight the need for adaptive strategies and innovative solutions to address the evolving landscape. With opportunities for growth in certain sectors and challenges in others, stakeholders must remain agile and responsive to market dynamics to capitalize on emerging trends and optimize their investments in the ever-changing real estate market landscape.
