The Thai real estate market is poised for a mixed recovery in 2025, with the hotel and industrial estate sectors expected to drive growth. However, other areas, particularly residential and office spaces, are likely to continue struggling due to weaker domestic demand and oversupply, according to property consultancy CBRE Thailand.
Roongrat Veeraparkkaroon, Managing Director at CBRE Thailand, noted that the property market’s recovery will not be uniform across all sectors, with the hotel and industrial estates standing out. She explained that both sectors have experienced substantial growth since last year, fueled by government initiatives that have attracted foreign investment and tourism—a trend expected to persist in 2025.
Chotika Tungsirisurp, CBRE Thailand’s Head of Research and Consulting, highlighted that foreign tourism to Thailand is projected to reach 40 million arrivals in 2025, up from 35.5 million last year. In particular, Bangkok’s hotel sector is set for further improvement, with anticipated increases in key performance indicators: an average occupancy rate of 77%, an average daily rate of 4,300 baht, and a revenue per available room (RevPAR) of 3,315 baht. These figures mark an upward trend from 2024’s rates of 74.8%, 4,201 baht, and 3,157 baht, respectively.
Meanwhile, the industrial estate sector has seen notable performance. Presales of serviced industrial land plots outpaced transfers by 87.5% in 2024, with 4,500 rai sold compared to 2,400 rai transferred. This marked an improvement over 2023, where the sales-to-transfers ratio stood at 66%. The demand for ready-built factories is also increasing, leading to higher occupancy rates for industrial estates, which are expected to rise to 91.2% in 2025, up from 88% in 2023.
The retail sector also experienced a surge in activity, particularly from foreign brands. Japan, China, and Europe led new market entries, with Japan accounting for 29% of the total. The majority of these new arrivals were in the food and beverage category, followed by fashion and accessories, furniture and home decoration, entertainment, and beauty and wellness.
However, the office sector is facing challenges, with occupancy rates expected to decline further, dipping to 78% in 2025 from 81% in 2024. The influx of new office space in recent years has led to a steady decrease in occupancy rates, which were once as high as 93% in 2019.
In the residential market, new condominium supply in Bangkok is expected to fall to a four-year low in 2025, with only 24,000 units anticipated to launch, down from 28,532 in 2024. Artitaya Kasemlawan, Head of Residential Sales Projects at CBRE, remarked that many developers have paused or delayed new condo projects due to unfavourable market conditions over the past two years. As a result, new developments this year will need to offer compelling value propositions to attract buyers.
As Thailand’s real estate market grapples with these varying trends, it is clear that while some sectors are poised for robust growth, others will continue to face significant challenges in the coming year.
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