Press Release
Thailand's Real Estate Market in 2026
Balancing Risk and Reward
January 21, 2026
Media Contact
Charinya Youngprapakorn
Head of Marketing and Communications, Thailand
CBRE Thailand, the leading international property consultant, revealed that as we look ahead to 2026, real estate developers and investors will need to balance risk and reward in another year of uncertainty. Despite challenging market dynamics, opportunities remain to introduce fresh concepts through new development and asset enhancement of existing properties.
Ms. Chotika Tungsirisurp, Head of Consulting and Research at CBRE Thailand, stated that this is particularly true in the retail sector. “Bangkok offers a wide range of high-quality retail formats, from large-scale enclosed malls in prime locations to smaller, community-focused retail in established and emerging neighborhoods,” she said. “Retail developers continue to invest not only in new projects but also in upgrading existing malls, balancing expansion into new areas with reinvestment into their existing assets to meet the changing needs and lifestyles of consumers.”
Many overseas retailers entered the Thai market in recent years, bringing greater variety to the domestic market and familiarity for international visitors, who remain an important customer base for mall operators, particularly in the downtown areas.
The hospitality market in Bangkok faces similarly strong competition. A steady stream of new supply has introduced additional brands and concepts, making asset enhancement essential for existing hotels to remain competitive. After a disappointing year, with fewer than 33 million international tourist arrivals, Thailand remains well positioned to attract visitors seeking medical care, wellness services and leisure travel, assuming improved stability and sentiment.
“As more travelers combine business and leisure, there are few countries in Southeast Asia better placed to serve the affluent “bleisure” visitor than Thailand. While government agencies continue to focus on overall tourist arrival numbers, hotel operators recognize the need to balance demand across segments and diversify their source markets and income beyond room revenue alone,” Ms. Chotika added.
Hotel owners and operators are therefore continuing to look beyond occupancy and average daily rates by enhancing their assets, expanding offerings to generate diversified revenue streams and managing operating costs more effectively.
The residential condominium sector has balanced risk and reward for several years, and we expect 2026 to follow a similar pattern. Trends seen in the second half of 2025 are set to continue, particularly in downtown Bangkok, where developers increasingly prioritize quality over quantity. Delayed projects from 2025 will be formally launched, many in the super-luxury segment, all striving to differentiate through unique selling points in their projects.
Ms. Roongrat Veeraparkkaroon, Managing Director of CBRE Thailand, said that “Residential developers continue to adapt condominium designs and innovate, delivering high-quality projects that appeal to both local and international buyers. Many downtown projects aim to achieve premium pricing through international hospitality branding or distinctive designs. A growing share of super-luxury developments will feature fewer than 100 units, prioritizing privacy and exclusivity supported by elevated amenities and service standards.”
Midtown and suburban markets will continue to feel the impact of high mortgage rejection rates, prompting developers to limit launches to locations with clear demand drivers like transport hubs, universities and hospitals. These locations benefit from both own-use and rental demand, attracting investor-buyers with the financial resources to buy units.
Overall, CBRE Research expects condominium project launches to exceed those of 2025, which was particularly subdued and severely hampered by the impact of the earthquake in Myanmar in March 2025.
With rising unsold low-rise housing inventory, developers will carefully assess which locations have sufficient demand to support new launches. Buyer confidence remained low throughout much of last year due to uncertainties, impacting decision-making and sales volumes. We expect that developers will remain cautious to launch new projects, and await signs of improvement in overall market sentiment.
The office market remained active in 2025, with new supply peaking and tenants benefiting from favorable market conditions. Many occupiers relocated to new buildings as the flight-to-quality trend continued.
Occupancy levels in the best Grade A+ buildings are rising, allowing landlords in these buildings to increase asking rents and widen the gap between the best and the rest. Given weak overall market conditions, many landlords have advanced plans for asset enhancement. Once renovation programs are completed in older building, occupiers will have more options when considering relocations and lease renewals.
“With very limited new office supply expected over the next four years, well-renovated office buildings offering competitive rents in established locations will present compelling relocation opportunities,” Ms. Roongrat added.
The industrial sector has been the standout performer in recent years, supported by sustained demand for serviced industrial land plots, particularly from foreign investment in S-curve industries, generating consistently strong land sales. “Industrial estate operators in the Eastern Economic Corridor (EEC) have accelerated expansion of existing estates and development of new sites. However, as recent demand has largely come from data centers, the focus has shifted from land availability to electricity and water supply,” Ms. Chotika pointed out.
In the logistics sector, developers continue to pursue speculative developments in high-demand locations, while established players prefer to deliver new logistics facilities backed by pre-lease agreements or build-to-suit (BTS) contracts.
We expect 2026 to be another active year for industrial land sales, supported by high levels of pre-commitments and continued government support.
“With numerous large-scale projects under construction, many of which will complete in 2026, developers in the Bangkok real estate market continue to balance risk and reward by using their experience from previous turbulence to guide them in their decision-making and execution of their development plans going forward.” Ms. Chotika concluded.
Ms. Chotika Tungsirisurp, Head of Consulting and Research at CBRE Thailand, stated that this is particularly true in the retail sector. “Bangkok offers a wide range of high-quality retail formats, from large-scale enclosed malls in prime locations to smaller, community-focused retail in established and emerging neighborhoods,” she said. “Retail developers continue to invest not only in new projects but also in upgrading existing malls, balancing expansion into new areas with reinvestment into their existing assets to meet the changing needs and lifestyles of consumers.”
Many overseas retailers entered the Thai market in recent years, bringing greater variety to the domestic market and familiarity for international visitors, who remain an important customer base for mall operators, particularly in the downtown areas.
The hospitality market in Bangkok faces similarly strong competition. A steady stream of new supply has introduced additional brands and concepts, making asset enhancement essential for existing hotels to remain competitive. After a disappointing year, with fewer than 33 million international tourist arrivals, Thailand remains well positioned to attract visitors seeking medical care, wellness services and leisure travel, assuming improved stability and sentiment.
“As more travelers combine business and leisure, there are few countries in Southeast Asia better placed to serve the affluent “bleisure” visitor than Thailand. While government agencies continue to focus on overall tourist arrival numbers, hotel operators recognize the need to balance demand across segments and diversify their source markets and income beyond room revenue alone,” Ms. Chotika added.
Hotel owners and operators are therefore continuing to look beyond occupancy and average daily rates by enhancing their assets, expanding offerings to generate diversified revenue streams and managing operating costs more effectively.
The residential condominium sector has balanced risk and reward for several years, and we expect 2026 to follow a similar pattern. Trends seen in the second half of 2025 are set to continue, particularly in downtown Bangkok, where developers increasingly prioritize quality over quantity. Delayed projects from 2025 will be formally launched, many in the super-luxury segment, all striving to differentiate through unique selling points in their projects.
Ms. Roongrat Veeraparkkaroon, Managing Director of CBRE Thailand, said that “Residential developers continue to adapt condominium designs and innovate, delivering high-quality projects that appeal to both local and international buyers. Many downtown projects aim to achieve premium pricing through international hospitality branding or distinctive designs. A growing share of super-luxury developments will feature fewer than 100 units, prioritizing privacy and exclusivity supported by elevated amenities and service standards.”
Midtown and suburban markets will continue to feel the impact of high mortgage rejection rates, prompting developers to limit launches to locations with clear demand drivers like transport hubs, universities and hospitals. These locations benefit from both own-use and rental demand, attracting investor-buyers with the financial resources to buy units.
Overall, CBRE Research expects condominium project launches to exceed those of 2025, which was particularly subdued and severely hampered by the impact of the earthquake in Myanmar in March 2025.
With rising unsold low-rise housing inventory, developers will carefully assess which locations have sufficient demand to support new launches. Buyer confidence remained low throughout much of last year due to uncertainties, impacting decision-making and sales volumes. We expect that developers will remain cautious to launch new projects, and await signs of improvement in overall market sentiment.
The office market remained active in 2025, with new supply peaking and tenants benefiting from favorable market conditions. Many occupiers relocated to new buildings as the flight-to-quality trend continued.
Occupancy levels in the best Grade A+ buildings are rising, allowing landlords in these buildings to increase asking rents and widen the gap between the best and the rest. Given weak overall market conditions, many landlords have advanced plans for asset enhancement. Once renovation programs are completed in older building, occupiers will have more options when considering relocations and lease renewals.
“With very limited new office supply expected over the next four years, well-renovated office buildings offering competitive rents in established locations will present compelling relocation opportunities,” Ms. Roongrat added.
The industrial sector has been the standout performer in recent years, supported by sustained demand for serviced industrial land plots, particularly from foreign investment in S-curve industries, generating consistently strong land sales. “Industrial estate operators in the Eastern Economic Corridor (EEC) have accelerated expansion of existing estates and development of new sites. However, as recent demand has largely come from data centers, the focus has shifted from land availability to electricity and water supply,” Ms. Chotika pointed out.
In the logistics sector, developers continue to pursue speculative developments in high-demand locations, while established players prefer to deliver new logistics facilities backed by pre-lease agreements or build-to-suit (BTS) contracts.
We expect 2026 to be another active year for industrial land sales, supported by high levels of pre-commitments and continued government support.
“With numerous large-scale projects under construction, many of which will complete in 2026, developers in the Bangkok real estate market continue to balance risk and reward by using their experience from previous turbulence to guide them in their decision-making and execution of their development plans going forward.” Ms. Chotika concluded.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm (based on 2024 revenue). The company has more than 140,000 employees (including Turner & Townsend employees) serving clients in more than 100 countries. CBRE serves clients through four business segments: Advisory (leasing, sales, debt origination, mortgage servicing, valuations); Building Operations & Experience (facilities management, property management, flex space & experience, digital infrastructure services); Project Management (program management, project management, cost consulting); Real Estate Investments (investment management, development). Please visit our website at www.cbre.com.