Real estate in Thailand - statistics & facts
From sky train-connected condominiums to single-family homes in the suburbs, many Thais plan to buy residential estates within the next five years. Despite some setbacks from the COVID-19 pandemic which caused demand fluctuations, commercial and industrial real estate in Thailand pulled through. Now, given the back-to-office policy, office rental space is more in demand in 2023, the real estate industry contributed around 460 billion Thai baht or about 10 percent of Thailand’s GDP. The value the real estate industry has been growing over the past decade, making it one of the most important sectors of the Thai economy.
The majority of the new Bangkok condominium supply was in the Bangkok suburbs. However, purchase demand for condominiums in the BMR contracted in the first quarter of 2024 due to home buyers’ economic challenges, such as increased asking prices, high household debts, and low debt payment ability. Despite that Bangkok condominiums still appear alluring to foreigners and locals because of the convenient locations and the influx of people seeking career opportunities within the most populous city in the country. On the other hand, among island real estate hubs in Thailand, Phuket saw substantial increase in residential units sold in the first quarter of 2024.
With new condominiums and office buildings constantly changing the cityscape, the rebound of Thailand’s economy is reflected in the spike in demand for both office space and residential estates. This demonstrates the country’s growing prospects as a major Southeast Asian real estate market.
The residential real estate landscape in Thailand
Some of the most popular types of residential properties in Thailand include townhouses, condominiums, and detached and semi-detached houses. A 2024 survey found detached homes most desirable among Thai respondents who intended to purchase a house. Nevertheless, the market for high-rise residential buildings has gained popularity in the past decade, especially in the Bangkok Metropolitan Region (BMR). In 2023, the number of newly constructed condominiums exceeded the number of townhouses and detached houses twofoldThe majority of the new Bangkok condominium supply was in the Bangkok suburbs. However, purchase demand for condominiums in the BMR contracted in the first quarter of 2024 due to home buyers’ economic challenges, such as increased asking prices, high household debts, and low debt payment ability. Despite that Bangkok condominiums still appear alluring to foreigners and locals because of the convenient locations and the influx of people seeking career opportunities within the most populous city in the country. On the other hand, among island real estate hubs in Thailand, Phuket saw substantial increase in residential units sold in the first quarter of 2024.
Commercial and industrial real estate in the BMR
Most of the office space in Thailand is in the BMR, accounting for more than 80 percent of the entire office space in the country. As of October 2024, nine major office building projects were expected to be completed with more than 500,000 square meters of lettable area in BMR, and another six upcoming projects aimed to be finished in the following year. As for retail space in the BMR, most of the retail space is distributed in the suburban area of the region. Undoubtedly, commercial and industrial real estate in Thailand has also been affected by the repercussions of the COVID-19 pandemic. Many companies downsized by implementing work-from-home policies and reducing their operating spaces. This resulted in a drastic decrease in the growth rate of sold and rented industrial estates in Thailand. However, by 2022, the leases and sales of industrial real estate have recovered.With new condominiums and office buildings constantly changing the cityscape, the rebound of Thailand’s economy is reflected in the spike in demand for both office space and residential estates. This demonstrates the country’s growing prospects as a major Southeast Asian real estate market.
