Thailand’s real estate sector is expected to face potential turbulence in 2025 due to the complex interplay between a looming trade war and rising foreign investment. According to an analysis by experts at the Thailand Development Research Institute (TDRI) and Asia Plus Securities, US trade policies, especially in the event of a second Trump presidency, pose a significant risk to the Thai and global economies.
Since Thailand has a trade surplus with the US, it could be the target of trade measures that may require the country to adjust its trade policies, such as increasing imports from the US. However, these geopolitical tensions also create a unique investment opportunity for Thailand, especially in the Eastern Economic Corridor (EEC), which has attracted significant foreign direct investment. The EEC is expected to receive a significant boost, offering significant potential for real estate development following industrial investment.
A resurgence in tourism, bolstered by a projected influx of up to 40 million foreign visitors, is expected to boost condo demand, reminiscent of pre-pandemic trends. However, developers need to address oversupply before fully capitalizing on the momentum.
Despite the expected decline in new projects, existing projects under development remain significant. From a global perspective, escalating trade tensions are a concern as they could disrupt supply chains and reduce consumer purchasing power, exacerbated by Thailand’s limited fiscal and monetary policy options.
Many real estate companies rely heavily on corporate bonds for funding, requiring prudent liquidity management despite the current low-interest rate environment.
The industry’s success in 2025, experts say, hinges on continued government support measures and positive economic trends, as a sales slump in 2024 highlights the need for stimulus initiatives to ensure a sustainable recovery.
Since Thailand has a trade surplus with the US, it could be the target of trade measures that may require the country to adjust its trade policies, such as increasing imports from the US. However, these geopolitical tensions also create a unique investment opportunity for Thailand, especially in the Eastern Economic Corridor (EEC), which has attracted significant foreign direct investment. The EEC is expected to receive a significant boost, offering significant potential for real estate development following industrial investment.
A resurgence in tourism, bolstered by a projected influx of up to 40 million foreign visitors, is expected to boost condo demand, reminiscent of pre-pandemic trends. However, developers need to address oversupply before fully capitalizing on the momentum.
Despite the expected decline in new projects, existing projects under development remain significant. From a global perspective, escalating trade tensions are a concern as they could disrupt supply chains and reduce consumer purchasing power, exacerbated by Thailand’s limited fiscal and monetary policy options.
Many real estate companies rely heavily on corporate bonds for funding, requiring prudent liquidity management despite the current low-interest rate environment.
The industry’s success in 2025, experts say, hinges on continued government support measures and positive economic trends, as a sales slump in 2024 highlights the need for stimulus initiatives to ensure a sustainable recovery.
