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Commercial Real Estate Market In Thailand Market Size (2024 - 2029)

The Thailand commercial real estate market is poised for significant growth, driven by the resurgence of the tourism sector, the expansion of manufacturing industries, and a growing investor preference for quality and sustainable assets. Despite global economic uncertainties, the market's resilience is supported by domestic policy initiatives and a strong local market. Strategic infrastructure developments and a focus on enhancing Grade A real estate in Bangkok are expected to further influence the market's scale. The introduction of numerous mixed-use projects in Bangkok's Central Business Area is set to transform the real estate landscape, making it a prime destination for investors and multinational corporations.

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Market Size of Commercial Real Estate Industry In Thailand

Thailand Commercial Real Estate Market Summary
Study Period 2020 - 2029
Base Year For Estimation 2023
Market Size (2024) USD 17 Billion
Market Size (2029) USD 22.72 Billion
CAGR (2024 - 2029) 5.97 %
Market Concentration Low

Major Players

Thailand Commercial Real Estate Market Major Players

*Disclaimer: Major Players sorted in no particular order

Thailand Commercial Real Estate Market Overview

The Commercial Real Estate Market In Thailand Market size is estimated at USD 17 billion in 2024, and is expected to reach USD 22.72 billion by 2029, growing at a CAGR of 5.97% during the forecast period (2024-2029).

  • The Thai commercial real estate market has been set for a robust performance in 2024. This growth can be attributed to the revival of the country's tourism industry, expanding manufacturing sectors, and a notable trend of investors seeking quality and sustainability in prime assets.
  • The Thai real estate market will exhibit resilience in the coming year. This resilience is expected to counterbalance the uncertainties of the global macroeconomic landscape, owing to a range of domestic policy initiatives and a confident domestic market.
  • Statistics from 2023 underscored the vibrancy of Thailand's real estate landscape. Investments in targeted manufacturing industries surged by an impressive 66% Y-o-Y. Tourist arrivals, surpassing the government's projections, soared by 152%, underscoring a robust rebound in the hoslity sector. Also, the demand for prime office spaces in Bangkok's Central Business Area (CBA) remains strong, particularly among multinational corporations.
  • In 2024, the Thai and Southeast Asian real estate market will witness a significant impact from strategic infrastructure enhancements and a focus on elevating the quality of Grade A real estate in Bangkok.
  • The real estate landscape in Bangkok is poised for a notable transformation, driven by a slew of world-class mixed-use projects. These projects, comprising 10 distinct precincts, are projected to add to the city's landscape by 2028 substantially. Specifically, they will contribute over 900,000 sq. m of Grade A office space, 300,000 sq. m of retail centers, 5,400 luxury condominium units, and 5,900 luxury hotel rooms, all concentrated in Bangkok's Central Business Area (CBA). This surge in premium real estate offerings makes Bangkok an attractive destination for investors, multinational corporations (MNCs), and talented individuals seeking prime opportunities.

Thailand Commercial Real Estate Industry Segmentation

Commercial real estate (CRE) is a property used solely for business or a workspace rather than residential. Commercial real estate is often leased to tenants to conduct income-generating activities.

The Thai commercial real estate market is segmented by type (office, retail, industrial and logistics, hospitality and others) and key cities (Bangkok, Chiang Mai, Hua Hin, and Koh Samui). The report offers market size and forecast in value (USD billion) for all the above segments. The report also covers the impact of COVID-19 on the market.

By Type
Office
Retail
Industrial and Logistics
Hospitality
Others
By Key Cities
Bangkok
Chiang Mai
Hua Hin
Koh Samui
Rest of Thailand
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Commercial Real Estate Market In Thailand Size Summary

The Thai commercial real estate market is poised for significant growth, driven by a resurgence in tourism, expanding manufacturing sectors, and a growing emphasis on quality and sustainability in prime assets. The market is expected to demonstrate resilience against global economic uncertainties, supported by domestic policy initiatives and a strong local market. Bangkok's Central Business Area is set to experience a transformation with the introduction of world-class mixed-use projects, enhancing the city's appeal to investors and multinational corporations. The retail sector is also anticipated to grow, fueled by increased consumer confidence and government stimulus measures, with a focus on expanding shopping mall developments in various city locales.

In 2024, the Thai commercial real estate market is expected to attract considerable attention from developers, investors, and occupiers due to the influx of prime-grade office and retail offerings. The market's fragmentation is evident with key players like Central Pattana PLC and Raimon Land PCL driving growth. The demand for office spaces and the ongoing trend of "flight-to-quality" are influencing rental and occupancy dynamics, with newer developments commanding premium rates. As older commercial buildings face challenges, there is a noticeable shift towards renovations and securing ESG certifications to maintain competitiveness. The market's growth trajectory is supported by continued economic expansion and increased demand for commercial real estate in metropolitan areas.

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Commercial Real Estate Market In Thailand Market Size - Table of Contents

  1. 1. MARKET DYNAMICS

    1. 1.1 Market Drivers

      1. 1.1.1 Overall economic growth driving the market

      2. 1.1.2 The growth of business and industries driving the market

    2. 1.2 Market Restraints

      1. 1.2.1 Fluctuating economic conditions hindering the growth of the market

      2. 1.2.2 Difficulty in landownership and leasing rights affecting the market

    3. 1.3 Market Opportunities

      1. 1.3.1 The rise in ecommerce sector driving the market

    4. 1.4 Industry Attractiveness - Porter's Five Forces Analysis

      1. 1.4.1 Threat of New Entrants

      2. 1.4.2 Bargaining Power of Buyers/Consumers

      3. 1.4.3 Bargaining Power of Suppliers

      4. 1.4.4 Threat of Substitute Products

      5. 1.4.5 Intensity of Competitive Rivalry

    5. 1.5 Current Market Scenario

    6. 1.6 Value Chain/Supply Chain Analysis

    7. 1.7 Government Initiatives and Regulatory Aspects for the Commercial Real Estate Sector

    8. 1.8 Insights on Existing and Upcoming Projects

    9. 1.9 Insights on Interest Rate Regime for General Economy and Real Estate Lending

    10. 1.10 Insights on Rental Yields in the Commercial Real Estate Segment

    11. 1.11 Insights on Capital Market Penetration and REIT Presence in Commercial Real Estate

    12. 1.12 Insights on Public-private Partnerships in Commercial Real Estate

    13. 1.13 Insights on Real Estate Tech and Start-ups Active in the Real Estate Segment (Broking, Social Media, Facility Management, Property Management)

    14. 1.14 Impact of COVID-19 on the Market

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Type

      1. 2.1.1 Office

      2. 2.1.2 Retail

      3. 2.1.3 Industrial and Logistics

      4. 2.1.4 Hospitality

      5. 2.1.5 Others

    2. 2.2 By Key Cities

      1. 2.2.1 Bangkok

      2. 2.2.2 Chiang Mai

      3. 2.2.3 Hua Hin

      4. 2.2.4 Koh Samui

      5. 2.2.5 Rest of Thailand

Commercial Real Estate Market In Thailand Market Size FAQs

The Commercial Real Estate Market In Thailand Market size is expected to reach USD 17 billion in 2024 and grow at a CAGR of 5.97% to reach USD 22.72 billion by 2029.

In 2024, the Commercial Real Estate Market In Thailand Market size is expected to reach USD 17 billion.

Commercial Real Estate Market in Thailand Report Snapshots

Thailand Commercial Real Estate Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)