2022 Thailand Real Estate Market Outlook
With no new projects launched in the Bangkok downtown condominium market in almost three quarters for the first time in history, strong demand for low-rise housing continues as buyers’ preferences shift to low density, larger and more adaptable spaces. This year, developers will cautiously consider new projects which have to cater for domestic real demand.
Clearer guidelines that match with the hybrid working model in today’s workplaces will have to be put in place to ensure the efficiency, cost control and engagement of employees. The change in office space utilization will mean that many older office buildings will no longer be suitable for the modern workplace and talent retention/attraction.
Being one of the most affected sectors by COVID-19, the Thai retail industry will have to continue to evolve together with these constraints. Tenants must determine how best to adapt, as omnichannel and the changes that come with it impact their brick-and-mortar strategy.
Industrial & Logistics
Logistics facilities will have greater ESG focus on the operational side, such as on-site safety and wellness programs concentrating on employees’ welfare. The frequency and complexity of the shift in travel restrictions will have an adverse effect on site inspections, contract signings and delay decision-making for new site acquisitions and leasing activities.
Over 7,400 keys are planned to be completed by the end of 2022 which will increase the supply of hotel keys in Bangkok by 6.7%. The current situation and demand drivers will put a big question mark to developers as to whether it is the right time to fully open, partially open or if the projects should be put on hold.
CBRE expects to see a narrowing of the pricing gap and more potential for investment transactions, helped by the expectation that 2022 will be the start of the recovery. As price expectations change, there will be an increased interest from overseas investors. Developers will look for joint venture partners to help finance their new projects.