>CBRE Thailand, a leading global real estate consultancy, announced that "The Thai real estate market in 2025 is starting with continued investment in large mixed-use projects. While some sectors are facing decreased demand and increased oversupply, other sectors are benefiting from government initiatives that continuously attract investment and foreign tourists."

Ms. Rungrat Veerapakarn, Managing Director of CBRE Thailand, stated, "The trends in the hotel and industrial space markets this year are very positive. Leasing transactions in the commercial real estate market are expected to remain strong, but for the residential market, oversupply will lead to a gradual recovery in 2025. Overall, we expect domestic demand and financial liquidity to improve throughout the year, creating positive confidence and increased activity in all markets."

"The real estate market in Bangkok continues to develop, creating opportunities from new supply and challenges that require developers to adjust their strategies. As Bangkok remains a city that attracts global attention, we anticipate that 2025 will be another year filled with interesting developments in the real estate market," Ms. Chotika Thangsirithap, Head of Research and Consulting at CBRE Thailand, added.

Residential Market

The residential market in Bangkok is primarily driven by domestic demand. However, difficulties in obtaining loans for both developers and buyers have led to a decrease in the number of new project launches and sales.

Additionally, the weak economic conditions have further complicated this issue, and many publicly listed Thai developers have announced limited plans for new project launches in 2025. Most developers have launched numerous condominium and housing projects in recent years, focusing on managing their backlog and selling completed units that are still available.

"Preliminary signs for 2025 indicate increased activity in the downtown condominium market, particularly in the luxury and super-luxury segments, including branded residences and other types. The target audience will be a mix of domestic buyers looking for personal residences and foreign buyers seeking second homes, especially from Asian countries. Many of these projects have already been informally launched in 2024 and will officially launch this year as developers gain confidence from pre-launch marketing campaigns," Ms. Atithya Kasemlawan, Head of Residential Project Sales at CBRE Thailand, stated.

Office Space Market

The office space market in Bangkok continues to see new supply of high-quality office spaces entering the market, significantly exceeding demand levels. This new office space has a substantial impact on the overall market, allowing companies to choose between staying in their existing office space or moving to new locations. In 2024, net take-up for office space reached its highest level in five years, driven by a mix of new office setups and relocations from older buildings to newly completed offices that meet international standards and have ESG certifications.

With expected higher vacancy rates, competition to retain and attract tenants will lead landlords to adapt in what is considered a 'tenant's market,' influenced by tenants seeking both quality and value. Therefore, many existing office buildings will need to reduce rental rates and invest in building improvements to retain existing tenants and increase occupancy rates.

"It is crucial for office building owners to assess their asset management strategies, both in the medium and long term, for their office buildings, as new buildings entering the market offer higher quality spaces, increasing competition," Mr. Nicholas Wettevinkele, Senior Director of Research and Development Consulting at CBRE Thailand, stated.

Retail Space Market

The retail space market in Bangkok remains vibrant and continuously adapting, with downtown shopping centers consistently developing their spaces to attract high-spending foreign tourists and enhance performance. With new supply expected to enter the market in 2025, the retail space market will continue to thrive. Additionally, there will be a continuous increase in enclosed mall supply throughout Bangkok in the coming years.

Many international brands see this growth potential, leading to expectations that demand for retail space in prime downtown locations will remain high in 2025, particularly in the food and beverage sector, with Japanese and Chinese brands leading the way. European brands continue to be strong in fashion and jewelry. Furthermore, CBRE anticipates further expansion from health and entertainment sectors integrating into retail formats.

Hotel Market

2024 has been another strong year for Thailand's service sector. For 2025, it is expected that the number of foreign tourists will increase further, approaching the record high of 2019. The increase in flights accommodating more tourists and the government's ongoing initiatives to ease travel restrictions are contributing factors to this confidence. In 2024, citizens from 93 countries could enter Thailand without a visa, positively impacting overall hotel occupancy rates, leading to record-high average daily rates (ADR) and revenue per available room (RevPAR) for hotels in Bangkok.

CBRE forecasts that several new hotel brands will enter the market, particularly in the upscale and luxury hotel segments, enhancing Bangkok's appeal as one of the world's most visited cities. With government initiatives to attract both tourists and long-stay guests through long-term visa programs, CBRE expects to see more mid-term and long-term accommodation brands opening in Bangkok.

Industrial and Logistics Space Market

Demand remains strong in the industrial space market, primarily in the Eastern Economic Corridor (EEC) and neighboring provinces. Additionally, government initiatives aimed at attracting foreign companies through targeted incentives continue to yield positive results, particularly in land sales within industrial estates, leading to ongoing demand for ready-made factories from second and third-tier suppliers.

CBRE has also observed strong demand from various industries and countries, including domestic demand. Furthermore, the logistics market is experiencing increased competition as new developers enter the market, providing modern and high-quality spaces to meet growing demand.

Read the full report at CBRE Thailand's website