Rising from the rubble: Thai commercial real estate anticipated to bounce back in 2024

The Kingdom’s property landscape is undergoing a dynamic change

Over the next four years, Bangkok is poised to witness a substantial increase in grade A office spaces, prime retail malls, and more. VideoFlow/Shutterstock

Thailand’s commercial real estate industry is looking to gear up for a formidable performance in 2024, bolstered by a series of positive developments and strategic initiatives. 

According to JLL, as reported by Hospitality Net, the sector is expected to show resiliency, driven by the country’s recovering tourism market, burgeoning manufacturing sectors, and a shift towards prime assets in core sectors. This optimism is rooted in compelling 2023 statistics, including a 66 percent year-on-year growth in investment for targeted manufacturing industries and a 152 percent increase in tourist arrivals. 

Adding to this promising outlook, Bangkok Post reports an influx of new property supply from 10 world-class mixed-use development projects in Bangkok’s central business district (CBD). Michael Glancy, country head at JLL, notes that these projects will propel Bangkok to have some of the finest and most affordable commercial real estate in the Asia-Pacific region. 

Over the next four years, Bangkok is poised to witness a substantial increase in grade A office spaces, prime retail malls, luxury condos, and luxury hotels, significantly contributing to the flight-to-quality trend. 

Related: The 19th PropertyGuru Thailand Property Awards unveil exciting new categories to honour ESG champions and resilient developers

Further contributing to this upward trajectory, Colliers highlights that despite a surge in new office spaces, demand saw an uptick reaching 176,000 square meters in 2023. The total office supply stood at 9.89 million sqm, with an additional 1.3 million sqm anticipated in the next three years. This indicates a healthy balance between supply and demand in the Thai real estate market, with landlords advised to adapt their rental offerings and developers urged to proceed cautiously with future large-scale projects. 

Thailand’s excellence in real estate was also celebrated at the 18th PropertyGuru Asia Property Awards Grand Final 2023 where Thai developers and projects received prestigious accolades. Andaman Asset Solution was named Best Boutique Developer (Asia), while KingBridge Tower by KingBridge Tower Company Limited achieved multiple awards, including Best Office Development (Asia), Best Office Architectural Design (Asia), and Best Office Interior Design (Asia). Furthermore, Rawayana by Phuket9 clinched the Best Mixed Use Architectural Design (Asia) and Best Commercial Landscape Design (Asia). 

Ultimately, Thailand’s commercial real estate market is on a remarkable trajectory towards growth and innovation. The combination of a revitalising tourism sector, the influx of high-quality mixed-use developments, and strategic policy initiatives positions Thailand’s real estate market as a leading player in the Asian region, ready to face the challenges of an uncertain global macroeconomic environment. 

Know any award-worthy residential, commercial, or industrial projects in the Kingdom? Nominate them for the 19th annual PropertyGuru Thailand Property Awards on or before 5 July 2024. To know more, visit AsiaPropertyAwards.com/Award/Thailand/. 

Gynen Kyra Toriano, Digital Content Manager at PropertyGuru, wrote this article. For more information, email: [email protected].