Despite concerns about potential oversupply in Thailand’s office sector, particularly in Bangkok, property experts remain optimistic. JLL Thailand allayed concerns, highlighting that strong demand is successfully absorbing new properties coming to market.
According to Michael Glancy, Managing Director of JLL Thailand, Indonesia, Philippines and Vietnam, supply in Bangkok is starting to match the rising demand that has exceeded expectations in the wake of the pandemic. Net office absorption in Bangkok has been three times higher than average over the past two years, indicating continued strong demand for quality space despite increased supply. Attractive rental rates and a growing Grade A office market make Thailand competitive with other countries in the region, attracting multinational companies. Thailand’s status as a popular tourist destination with a livable environment also contributes to its appeal to expatriates.
According to a comprehensive report by JLL, Thailand’s property market in 2025 will be driven by four key trends, with the country’s role as a beneficiary of the “China+1” strategy standing out. The rise of generative AI and growing global demand for semiconductors are turning Thailand into a key market for high-tech industries.
Investment incentives provided by the Board of Investment and other government agencies are attracting large foreign manufacturers looking to diversify risk and strengthen their position in Southeast Asia. The rapid expansion of data centers, driven by the infrastructure needs of AI and digital transformation, is fundamentally changing the structure of Thailand’s industrial property market. Optimistic investment sentiment in the Asia-Pacific region, where investment is expected to grow by 23% in 2024, especially in the office segment, demonstrates significant potential for the development of the Thai property market.
According to Michael Glancy, Managing Director of JLL Thailand, Indonesia, Philippines and Vietnam, supply in Bangkok is starting to match the rising demand that has exceeded expectations in the wake of the pandemic. Net office absorption in Bangkok has been three times higher than average over the past two years, indicating continued strong demand for quality space despite increased supply. Attractive rental rates and a growing Grade A office market make Thailand competitive with other countries in the region, attracting multinational companies. Thailand’s status as a popular tourist destination with a livable environment also contributes to its appeal to expatriates.
According to a comprehensive report by JLL, Thailand’s property market in 2025 will be driven by four key trends, with the country’s role as a beneficiary of the “China+1” strategy standing out. The rise of generative AI and growing global demand for semiconductors are turning Thailand into a key market for high-tech industries.
Investment incentives provided by the Board of Investment and other government agencies are attracting large foreign manufacturers looking to diversify risk and strengthen their position in Southeast Asia. The rapid expansion of data centers, driven by the infrastructure needs of AI and digital transformation, is fundamentally changing the structure of Thailand’s industrial property market. Optimistic investment sentiment in the Asia-Pacific region, where investment is expected to grow by 23% in 2024, especially in the office segment, demonstrates significant potential for the development of the Thai property market.
Demand for premium space is being driven by several key factors, most notably the changing dynamics of work. The shift away from hybrid models, where companies insist on employees returning to the office for most of the week (3-4 days on average), is significantly increasing the need for high-quality office space. This trend is particularly noticeable in mixed-use developments that offer a wide range of amenities. Companies that were previously downsizing are now looking for additional space to accommodate returning employees, which is driving expansion in the market.
Office quality is becoming an increasingly important factor in choosing to work, forcing landlords and tenants to invest in upgrades to attract and retain employees. This is evidenced by the fact that rents for Class A+ office space in the central business district are growing significantly faster than the overall market growth rate. In this regard, asset upgrades are becoming critical to maintain competitiveness, while the number of certified office spaces (LEED, WELL, WiredScore) remains relatively low, opening up opportunities for further improvement.
There is an influx of investment into high-value-added industries, which is also impacting Bangkok’s office market, along with a recovery in the tourism sector approaching pre-pandemic levels.
The hospitality sector in Thailand is in a state of dynamic transformation, fueled by significant investment and the evolving expectations of modern travelers. While optimistic forecasts predict continued growth in hotel business figures, experts foresee a more moderate pace compared to the impressive recovery of recent years. Particular emphasis is placed on the expansion of the MICE (Meetings, Incentives, Conferences, and Exhibitions) segment and weddings, indicating a diversification of offerings. Investor strategies are also changing, shifting towards high-end assets in prime locations, including rental properties in Bangkok’s elite areas and popular beach resorts.
The hotel sector’s transaction volume is expected to exceed 13 billion baht by 2025, outpacing the average over the past decade and confirming Thailand’s continued attractiveness as a promising investment destination. Moreover, Thailand is consolidating its position as a key regional investment hub, particularly in high-tech sectors such as electronics and semiconductors. This is evidenced by the huge increase in investment in digital industries, which jumped from 10 billion baht in 2023 to 243 billion baht in 2024, as well as a projected 300% increase in data centre capacity by 2030.
Office quality is becoming an increasingly important factor in choosing to work, forcing landlords and tenants to invest in upgrades to attract and retain employees. This is evidenced by the fact that rents for Class A+ office space in the central business district are growing significantly faster than the overall market growth rate. In this regard, asset upgrades are becoming critical to maintain competitiveness, while the number of certified office spaces (LEED, WELL, WiredScore) remains relatively low, opening up opportunities for further improvement.
There is an influx of investment into high-value-added industries, which is also impacting Bangkok’s office market, along with a recovery in the tourism sector approaching pre-pandemic levels.
The hospitality sector in Thailand is in a state of dynamic transformation, fueled by significant investment and the evolving expectations of modern travelers. While optimistic forecasts predict continued growth in hotel business figures, experts foresee a more moderate pace compared to the impressive recovery of recent years. Particular emphasis is placed on the expansion of the MICE (Meetings, Incentives, Conferences, and Exhibitions) segment and weddings, indicating a diversification of offerings. Investor strategies are also changing, shifting towards high-end assets in prime locations, including rental properties in Bangkok’s elite areas and popular beach resorts.
The hotel sector’s transaction volume is expected to exceed 13 billion baht by 2025, outpacing the average over the past decade and confirming Thailand’s continued attractiveness as a promising investment destination. Moreover, Thailand is consolidating its position as a key regional investment hub, particularly in high-tech sectors such as electronics and semiconductors. This is evidenced by the huge increase in investment in digital industries, which jumped from 10 billion baht in 2023 to 243 billion baht in 2024, as well as a projected 300% increase in data centre capacity by 2030.
