Thailand Real Estate Market Continues to Demonstrate Resilience
Thailand's real estate market continues to evolve amid a changing global economic landscape. While geopolitical uncertainty, inflationary pressures and tighter financial conditions remain key considerations, the country's property sector continues to demonstrate resilience across residential, industrial, office and investment markets.
Supported by Thailand's strategic location, diversified economy and long-term investment fundamentals, the market continues to attract both domestic and international investors seeking opportunities across multiple asset classes.
Below is an overview of the latest trends shaping the Thailand real estate market in 2026.
Bangkok Residential Market Shows Measured Recovery Amid Continued Economic Uncertainty
Thailand's residential market continued to face a challenging operating environment during the second quarter of 2026, as consumer confidence remained subdued amid ongoing global economic uncertainty. Geopolitical tensions, particularly in the Middle East, continued to influence energy prices and the overall cost of living, leading many Thai households to adopt a more cautious approach to spending.
At the same time, elevated household debt, tighter mortgage approval criteria and the absence of significant new government housing stimulus measures continued to weigh on residential demand, particularly within the condominium market.
Surachet Kongcheep, Head of Research & Consultancy, Cushman & Wakefield Thailand, said that approximately 2,332 condominium units were launched in Bangkok during the second quarter of 2026, representing a 67% decline from the previous quarter. Despite the quarterly slowdown, total new launches during the first half of the year reached approximately 9,501 units, an increase of 42% compared with the first half of 2025.
"We now expect total condominium launches in 2026 to exceed our initial forecast of around 17,000 units. As more developers resume project launches and announce new development plans, total new supply could approach 20,000 units, although continued geopolitical uncertainty and broader economic risks remain key factors to monitor."
Project locations also reflected developers' increasingly selective approach to new supply. Approximately 90% of condominium launches in the second quarter were located along the BTS Sukhumvit Line outside Bangkok's Central Business District (CBD), with the remaining projects situated in outer Bangkok.
As a result, the average launch price increased to approximately THB 150,420 per square metre, representing a 78.4% increase from the previous quarter. The average selling price for condominium launches during the first half of 2026 reached approximately THB 120,360 per square metre, the highest first-half average recorded since 2020.
According to Surachet, higher selling prices do not necessarily reflect stronger market demand but rather developers' deliberate focus on projects targeting higher-income buyers with stronger purchasing power. Given increasingly stringent mortgage lending conditions, developers are prioritising locations with proven demand, particularly sites within walking distance of mass transit stations. The continued expansion of Bangkok's rail network has also contributed to rising land values, supporting higher condominium pricing along these transport corridors.
Market activity also highlighted a growing preference for lower-risk development strategies. Nearly all condominium launches during the first half of 2026 were undertaken by publicly listed developers, with non-listed developers contributing only 68 units out of the total 9,501 units launched. Many small and medium-sized developers have postponed new project launches while monitoring market conditions and awaiting potential government measures to stimulate the housing sector.
Several developers have also shifted towards launching completed, ready-to-move-in projects, typically smaller developments priced above THB 100,000 per square metre. Over the past one to two years, very few new condominium projects have been launched outside Bangkok's mass transit network, reflecting developers' focus on attracting genuine owner-occupiers rather than speculative investors. Many developers have also introduced more flexible purchasing programmes, including mortgage advisory services and deferred payment schemes, to improve transfer rates and reduce financing risks.
Foreign demand remained relatively subdued during the second quarter. Chinese buyers, traditionally the largest international purchaser group in Bangkok's condominium market, continued to decline, while no other nationality has yet been able to fully offset this reduction. Although demand from Myanmar buyers has increased modestly, and Russian buyers remain active in resort destinations such as Phuket and Pattaya, their presence in Bangkok remains limited. Interest from Middle Eastern and other international buyers continues to emerge but has yet to demonstrate sufficient scale to replace previous levels of Chinese demand.
Despite these near-term challenges, Bangkok's residential market continues to demonstrate long-term resilience, supported by strategic project locations, improving product quality and developers' increasingly disciplined approach to new supply.
Thailand Industrial & Logistics Market Continues to Demonstrate Long-Term Growth Potential
Thailand's industrial and logistics real estate market remained resilient during the second quarter of 2026, supported by continued interest from international manufacturers expanding production capacity across Southeast Asia. Although geopolitical tensions in the Middle East, higher energy prices and broader global economic uncertainty have tempered investor sentiment in recent months, Thailand continues to be viewed as one of the region's preferred manufacturing and logistics destinations.
Phongphan Phloiphet, Head of Logistics & Industrial, Cushman & Wakefield Thailand, said foreign direct investment (FDI) approved by the Thailand Board of Investment (BOI) declined during the first quarter of 2026 compared with the same period last year, reflecting a more cautious global investment environment rather than weakening confidence in Thailand's long-term fundamentals.
"Singapore remained Thailand's largest source of approved foreign investment during the first quarter of 2026, accounting for THB 118.9 billion, or approximately 57% of total approved FDI. Much of this investment was driven by large-scale projects valued at more than THB 1 billion, including three data centre developments with a combined investment value of THB 45.3 billion, as well as major printed circuit board manufacturing projects."
China ranked second with approximately THB 24.4 billion, representing 12% of total approved FDI, led by investments in high-density printed circuit board manufacturing and precision machinery components. Japan followed in third place with investment commitments of approximately THB 20.6 billion, accounting for around 10% of total approved FDI.
"Together, these three countries represented nearly 79% of all BOI-approved foreign investment during the quarter. Most projects continue to be located within Thailand's industrial estates, particularly across the Eastern Economic Corridor (EEC). While overall investment has softened compared with last year, this largely reflects ongoing global economic pressures, increased regional competition and the availability of lower labour costs and more attractive tax incentives in neighbouring markets."
Despite the moderation in investment activity, demand for industrial land remains exceptionally strong. Phongphan noted that available land within Thailand's industrial estates has become increasingly limited following several years of sustained acquisition by both foreign and domestic investors.
"Since the end of 2021, the total supply of industrial estate land has expanded by only around 8%, while demand has increased by approximately 18% over the same period. Looking ahead, around 20,290 rai of new industrial estate land is scheduled for completion by the end of 2027, although strong demand is expected to continue absorbing new supply."
As available land becomes scarcer, industrial land prices have continued to rise. The national average selling price within industrial estates reached approximately THB 8.4 million per rai, representing an annual increase of around 7%.
Phongphan also noted that authorities continue to monitor certain foreign investment activities that extend beyond genuine industrial operations, particularly cases where land has been acquired primarily for speculative development or to support businesses serving investors from the same country. While regulatory oversight has increased, continued cooperation between government agencies and the private sector remains important to ensure industrial land is used appropriately and transparently.
Strong investment activity has also supported continued demand for ready-built factories (RBFs) and ready-built warehouses (RBWs). No new supply entered the market during the second quarter of 2026, leaving total RBF stock unchanged at approximately 3.42 million square metres, while total RBW stock remained at approximately 6.05 million square metres.
Overall occupancy continued to improve, with ready-built factories recording an occupancy rate of 89.55%, while ready-built warehouses reached 85.28%, both increasing from the previous quarter despite the absence of new supply.
Steady demand has also supported rental growth. Average rents for ready-built factories increased to THB 196 per square metre per month, up from THB 194 in the previous quarter, while average warehouse rents rose to THB 160 per square metre per month, compared with THB 158 previously.
"The industrial leasing market has now entered a much more stable phase, supported by stronger occupancy and gradually improving rental growth. Market conditions are shifting away from a tenant-favoured environment towards a more balanced market, with well-located, modern industrial facilities increasingly giving landlords greater pricing power."
Looking ahead, Phongphan expects Thailand's industrial and logistics market to maintain positive momentum throughout the remainder of 2026. Limited new supply, particularly within the ready-built factory segment, is expected to support further improvements in occupancy levels, while continued demand from manufacturing, logistics and technology-related industries should underpin steady rental growth across the market.
Bangkok Office Market Moves Towards Greater Stability
Bangkok's office market continued to move towards a healthier supply-demand balance in the second quarter of 2026, as the pace of new office completions slowed significantly. With fewer newly completed office buildings entering the market, competition among landlords to attract tenants through aggressive rental pricing has eased compared with previous years.
Many Grade A office developments completed over the past one to two years have now achieved strong occupancy levels, with several buildings approaching full occupancy. As a result, competition is gradually shifting away from newly completed developments towards older office stock.
Aukit Pronpattanapairoj, Head of Office Leasing, Cushman & Wakefield Thailand, said older Grade A and Grade B office buildings are increasingly facing challenges in retaining tenants due to ageing building conditions and rental rates that have gradually increased over the years. In response, many landlords have begun investing in refurbishment programmes, workplace upgrades and asset enhancement initiatives to improve competitiveness and better meet evolving occupier expectations.
"No new office developments were completed during the second quarter of 2026, leaving Bangkok's total office stock at approximately 9.15 million square metres. Of this, around 5.03 million square metres is located within the Central Business District (CBD), 2.41 million square metres in the city fringe, and 1.71 million square metres in outer Bangkok."
He added that Grade A buildings account for approximately 38% of Bangkok's total office stock, Grade B buildings represent 58%, while Grade C buildings account for the remaining 4%.
"The figures highlight the significant presence of Grade B office buildings across Bangkok. More than half of Bangkok's office inventory comprises Grade B buildings that are over ten years old. In contrast, approximately 78% of office developments completed during the past decade have been Grade A buildings, reflecting developers' continued focus on delivering premium office space."
Looking ahead, approximately 616,130 square metres of additional office space is scheduled for completion between the second half of 2026 and 2031, with further developments and refurbishment projects likely to be announced over time.
Aukit noted that while the CBD continues to account for the largest share of future office developments, emerging office clusters in outer Bangkok — particularly along the eastern Sukhumvit corridor, Bangna-Trad Road and Phaholyothin Road — are also seeing increased development activity compared with previous years. Although these locations are unlikely to match the scale of CBD development, they continue to outperform city fringe locations, where relatively high land prices have limited new office projects. Meanwhile, many CBD developments continue to be supported through long-term leasehold land arrangements or as part of large mixed-use developments.
On the demand side, the vacancy rate for Grade A office buildings in the CBD declined to 21.9% in the second quarter of 2026, improving from 23.3% in the previous quarter. This represents the lowest vacancy level since the first quarter of 2023, supported by the slowdown in new office completions and continued demand for premium office space. Occupier activity has been driven by both companies relocating to newly completed Grade A buildings and existing tenants expanding their office footprints to accommodate business growth.
Average gross rents for Grade A office buildings remained stable at THB 943 per square metre per month during the quarter. Rather than reducing headline rents, landlords have increasingly adopted incentive-based leasing strategies, including rent-free periods, fit-out allowances and more flexible lease terms. These measures have helped reduce overall occupancy costs for tenants while allowing landlords to maintain rental levels.
According to Aukrit, the market continues to be shaped by the "flight-to-quality" trend, with occupiers relocating from older or less competitive office buildings to newer developments offering higher-quality building specifications, enhanced workplace environments, superior amenities and more attractive leasing packages.
"Looking ahead to the remainder of 2026, the office leasing market is expected to remain tenant-driven, as overall vacancy levels across Bangkok remain relatively elevated. Landlords will continue to compete by offering increasingly attractive leasing incentives, enabling occupiers to secure more favourable commercial terms while maintaining healthy leasing momentum across the market."
Capital Markets & Investment: Quality Assets Remain in Focus as Landowners Explore New Strategies
Warat Bank, Senior Manager, Capital Markets & Investment, Cushman & Wakefield Thailand, said Thailand's commercial real estate investment market continues to adjust following the post-pandemic market reset, particularly within Bangkok's land market.
"For decades, land values across Bangkok's Central Business District (CBD) and surrounding areas were largely driven by intense competition among residential developers acquiring sites for condominium development. This sustained demand pushed land prices to record highs. However, the land price peak cycle effectively came to an end during the COVID-19 pandemic, and values have yet to recover to their previous levels."
He explained that the residential sector continues to face several structural challenges, including softer domestic purchasing power, elevated household debt and increasingly stringent mortgage lending conditions. As a result, developers are no longer able to justify acquiring land at the premium prices seen in previous market cycles.
"This shift is clearly reflected in several established locations across Bangkok. Along Sukhumvit Road between BTS Bang Chak and BTS Udom Suk stations, for example, many landowners continue to maintain asking prices of approximately **THB 900,000 to THB 1,000,000 per square Wah, while developers' actual offers are generally **below THB 600,000 per square Wah"
According to Warat, this widening gap between asking prices and achievable market values highlights a significant change in market dynamics.
"This is a clear indication that land prices are no longer on the continuous upward trajectory experienced over the past decade. Landowners who need to sell in the current market may have little choice but to accept prices below their expectations."
Against this backdrop, he believes that **long-term land leasing** offers an increasingly attractive alternative to outright disposal, particularly in what has become a buyer's market.
"Rather than selling valuable land assets at discounted prices, landowners should consider long-term lease structures of 10 to 30 years. This approach enables owners to generate stable recurring rental income while retaining ownership of strategically located land. In addition, putting vacant land into productive use can significantly reduce land and building tax liabilities associated with undeveloped sites, making long-term leasing one of the most effective asset management strategies in today's market environment."
Despite ongoing macroeconomic challenges, investors continue to priorities high-quality assets and strategically located investment opportunities capable of delivering sustainable long-term value. This reflects continued confidence in the long-term fundamentals of Thailand's real estate market and its investment potential.
Outlook for Thailand Real Estate Market
Looking ahead, the Thailand property market continues to present attractive opportunities across multiple sectors. While global economic conditions remain an important consideration, the country's strong economic fundamentals, strategic geographic position and established real estate market continue to support long-term investment confidence.
Investors, occupiers and developers who understand evolving market dynamics will be well positioned to identify opportunities across Bangkok and Thailand's wider commercial and residential property sectors.
Whether you are seeking investment opportunities, leasing advisory, occupier solutions or market intelligence, Cushman & Wakefield Thailand provides expert insight across every stage of the real estate lifecycle.
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