Overview of the Thai Property Market & what will happen in 2024
Welcome to an exciting journey into the heart of Thailand's property market! Whether you're a homeowner, an investor, or you're curious, this blog post is your key to understanding the Thai property market.
Buckle up as we take a tour of Thailand's property market, where the past, present, and future converge.
Real Estate Trends in Thailand for 2023
Thailand's real estate industry is one of the most important sectors in the country. Forecasts suggest the market will grow in the next five years.
Residential Real Estate Market
Overview
The demand for residential properties in Thailand continues to grow. Urban areas, in particular, are in demand.
Factors such as lower interest rates, economic growth, and increased urbanization, contribute to the development of the residential property market.
Market Trends
Fluctuating prices and inventory levels vary. Often depending on location and property type. Bangkok and other major cities may experience high demand for condos. But rural areas also have seen increased demand for single-family homes.
The COVID-19 Pandemic also influenced consumers' preferences. As a result of COVID, more people prefer larger homes with outdoor spaces.
Key Factors
Factors that impact 2023's residential property market in Thailand include demographics, urbanization, and government policies. For example, the aging population has led to an increased demand for retirement homes. Government policy also affects demand. When government policy pushes for more affordable housing, there are more buyers in the market.
In the first quarter of 2023, the demand for condos in Bangkok reached over 3,000 units. During that same period, most of the new Bangkok condo supply was in Bangkok's suburbs.
Commercial Real Estate Market
Overview
Thailand's commercial real estate market remained stable. With steady demand and supply for the last couple of years. The market consists of many segments such as office, retail, and industrial space.
Market Trends
Commercial real estate space demand in 2023 could remain strong. For offices and retail space in particular. While vacancy rates have remained low, rental rates have risen over the past few years. This is the case in prime locations such as Bangkok.
The demand for office rentals will strengthen throughout 2023-2025 with the economic recovery. As companies gain more staff, their need for office space will also increase.
Key Factors
The growth of e-commerce and changes in consumer behavior could continue to impact 2023's commercial real estate market. Retailers could prioritize creating experiential shopping experiences to attract customers. This could lead to an increased demand when it comes to retail space. Government policies seeking to promote foreign investment and economic growth could lead to an increase in office and industrial space demand.
As of March 2023, there were seven major office buildings in the works, with over 500 square meters of usable area in BMR (Below Market Rate) and five upcoming projects in 2024.
What we could see in 2024
Next year, a shift is on the horizon in Thailand's property development landscape. This shift is an increasing emphasis on sustainability.
Sena Development, a prominent property developer, seeks to build "Zero Energy" houses in alignment with Thailand's eco-conscious direction. These innovative homes will harness the power of solar cells to generate clean and renewable energy. Ultimately resulting in a significant reduction in greenhouse gas emissions.
In response to the surging popularity of electric vehicles (EVs) developers are also making strides by adding more EV chargers to their projects.
This proactive approach not only caters to the needs of the expanding EV user base. It also makes a contribution to the collective effort to reduce greenhouse gas emissions.
Final Verdict
The Thai property market is evolving, and the future looks exciting. As we head into 2024, it's clear that sustainability will take center stage. Solar cells and EV chargers signify a commitment to a greener, more sustainable future. So, whether you're planning to buy your dream home or explore investment opportunities, keep an eye on these trends. As they promise a more environmentally conscious and vibrant Thai property market.
Begin your next move with us at PropertyScout today! Our dedicated team will be happy to help you should you have any further questions.
