CBRE Thailand, a leading global real estate consulting firm, recognizes the remarkable growth and adaptability of the luxury retail sector in Thailand, which currently has a market value of 147 billion baht. It is projected to grow at an annual rate of approximately 5% until 2028, positioning Thailand at the forefront of the luxury retail market in Southeast Asia and ranking 7th in the Asia-Pacific region.

CBRE Thailand's 2025 real estate market trends report highlights a strong synergy between the tourism and retail sectors, supported by over 35.5 million international tourists expected to visit in 2024 and an increase of over 410,000 square meters of retail space in central Bangkok between 2024 and 2025. This significant expansion presents new opportunities for luxury brand retailers, driven by rising demand from high-income domestic customers and international tourists.

In addition to the benefits from tourism, Thailand has made noticeable progress in attracting high-spending foreign tourists and expatriates through long-term visa programs, as well as its reputation as a "Safe Haven." Furthermore, with airlines resuming regular flights and favorable visa policies, the number of High Net Worth Individuals (HNWI) visiting and residing in Thailand is expected to increase, presenting a great opportunity for retail space developers.

Retail developers are responding to these trends by transforming premier retail spaces in major shopping centers in the central business district, focusing on luxury brands. This includes enhancing the experience by offering fine dining and premium entertainment, as well as redesigning layouts for flagship stores and dedicated luxury zones. Additional services, such as multilingual interpreters and duty-free products, are also being introduced to elevate the customer experience.

Currently, luxury brands entering or expanding in Thailand are meticulous in their location choices, often selecting sites that align with their brand image and customer base. This influences the operational strategies of developers and shopping center managers to target areas with high concentrations of HNWIs. For instance, the growth of the Lumpini area in Bangkok has been driven by investments leading to the renovation and expansion of Central Chidlom and Central Embassy, along with the presence of DIOR Gold House, a concept store by Dior in the area. Similarly, Phuket, which has a high-spending customer base, is witnessing vibrant project developments, such as the renovation and expansion of Central Phuket Floresta and plans for a second Siam Premium Outlet by Siam Piwat.

Location, accessibility, and visibility remain critically important, especially in mixed-use retail projects. For example, The M District by The Mall Group benefits from its connection to public transport, and Siam Piwat's plan to introduce over 15 new luxury brands to Siam Paragon and Icon Siam in 2025 underscores the ongoing strong demand for high-end shopping. The strategic arrangement of complementary stores, along with the creation of superior environments in these shopping centers, is crucial for attracting new luxury brands and significantly enhancing the luxury shopping experience.

Another noteworthy trend is the transformation of traditional retail spaces into experiential retail environments, as brands seek flexible spaces that can create unique experiences for people to engage with and share. The K Village project, currently home to “LV The Place Bangkok” by Louis Vuitton, exemplifies the creation of a multi-dimensional space that integrates retail, dining, and exhibition areas to enhance engagement and brand awareness.

“The evolution of Thailand's luxury brand business is driven by strong tourism, an increasing number of high-net-worth individuals visiting, and the demand for superior retail experiences. Developers and retailers that prioritize location, innovation, and creating impressive environments will be well-positioned to thrive in this new growth phase,” said Ms. Chotika Thangsiriprapha, Head of Project Development Advisory and Market Research at CBRE Thailand.

With the continuous expansion of retail space and an increasing consumer base with purchasing power, competition in the retail business is expected to intensify, driving ongoing innovation. As Thailand moves towards becoming a leading luxury brand market in Southeast Asia, the synergy between the tourism and retail sectors will remain a key factor in shaping the future of this industry.