Investors target high-conviction assets in the country.
Thailand’s real estate market is seeing selective, conviction-led investment activity despite softer economic momentum, with capital targeting assets backed by long-term structural demand, according to Savills.
Savills noted that Thailand’s economy grew 2.5% year-on-year in Q4 2025, up from 1.2% in the previous quarter, based on data from the National Economic and Social Development Council. The improvement was supported by stronger exports, investment and consumption, although overall growth remains below pre-pandemic levels.
Tourism softened during 2025, with international arrivals declining to 32.9 million from 35.5 million in 2024, amid safety concerns among Chinese visitors. Savills expects a gradual recovery in 2026, with arrivals projected to reach 35.5 million, still below the 2019 peak.
Against this backdrop, Savills highlighted several notable transactions in Q4 2025, reflecting a focus on high-quality opportunities. In the industrial sector, Frasers Property (Thailand) acquired over 2,400 rai in Nong Yai for THB3.8 billion to develop a second industrial estate, while EZA Hill entered the market with a THB1.3 billion warehouse acquisition in Bangkok.
In the hospitality sector, The Erawan Group secured a 30-year lease near BTS Asoke for THB1.24 billion. Meanwhile, in the residential segment, Rhom Bho Property acquired land at Kamala Beach for THB898 million, underscoring continued investor interest in prime resort locations.
Savills said industrial performance remains location-sensitive, with Thailand’s eastern region outperforming due to infrastructure investment linked to the Eastern Economic Corridor and demand from targeted industries. The firm added that the digital economy is emerging as a key structural driver, with rising data centre investment reinforcing Thailand’s role as a regional hub.
Looking ahead, Savills expects hotel performance in major tourist destinations to improve in line with a gradual recovery in arrivals, with occupancy levels projected to normalise from 2026.