Thriving Demand in Thailand's Office Sector

Despite concerns of an oversupply in Bangkok's office market, experts from JLL Thailand highlight a robust demand that continues to absorb new developments. Michael Glancy, managing director for Thailand, Indonesia, Philippines, and Vietnam at JLL, emphasizes the alignment of supply with the growing demand, which has exceeded expectations post-COVID.

Key Market Trends for 2025

JLL Thailand outlines four pivotal trends shaping Thailand's property landscape, including the country's rising prominence in the "China+1" strategy and its appeal to high-tech industries. Roddy Allan, chief research officer at JLL APAC, notes the significant role of investment incentives in attracting foreign manufacturers and the rapid expansion of data centers.

Driving Forces Behind Premium Space Demand

The shift away from hybrid working models is fueling the demand for high-quality office spaces. Companies are now requiring employees to return to the office more frequently, leading to an increased need for prime office spaces within mixed-use developments.

Asset Enhancement: A Landlord's Priority

Landlords are focusing on upgrading their portfolios to stay competitive. With only 30% of Bangkok's office stock holding LEED, WELL, and WiredScore certifications as of 2024, there's a significant opportunity for enhancement, especially with green-accredited buildings commanding higher rental prices.

Transformation in the Hospitality Sector

Thailand's hospitality industry is experiencing a renaissance, driven by significant investments and evolving traveler preferences. Rathawat Kuvijitrsuwan from JLL Hotels & Hospitality Group anticipates strong growth in MICE and wedding-related events, with hotel transaction volumes expected to reach 13 billion baht in 2025.

Thailand's Emergence as an Investment Hub

Thailand is increasingly recognized as a regional investment hub, especially in high-tech sectors like electronics and semiconductors. The investment in digital industries has seen a dramatic increase, with data center capacity projected to grow by 300% by 2030.