JLL (NYSE: JLL) Thailand, a global real estate consultant, reports a strong momentum in Thailand's real estate investment market in 2024, with industrial estates, hotels, and data centres emerging as key drivers of growth. With continued investor interest and favorable policies, JLL expects this trend to carry into 2025, presenting significant opportunities across multiple key areas.
2024: A Year of Strategic Investment Growth
Thailand's real estate investment market demonstrated resilience in 2024, with robust activity in select asset classes. The Board of Investment's (BOI) promotion allowing foreign investors to acquire freehold land has played a pivotal role in bolstering investment in hotels, data centres, and industrial estates.
Mr. Krit Pimhataivoot, Head of Capital Markets at JLL Thailand, stated: "Real estate investment in 2024 was particularly strong in key sectors. JLL advised on transactions totaling THB 38 billion across various asset classes and deal types, with highlights including a prime greenfield site in the Ratchadamri area, a land acquisition by a global semiconductor producer, a site acquisition for a global data centre player in the Bangna area, and a greenfield site earmarked for a hotel in the prime Sukhumvit area. These deals reflect the growing confidence in Thailand's potential as a strategic investment hub."
The hotel investment market was very active in 2024, recording more than THB 22 billion across 15 transactions, which is approximately THB 10 billion above the average transaction volume since 2010. Bangkok led the market, accounting for nearly 50% of total volume, followed by Phuket and Chiang Mai. According to Ms. Pimpanga Yomchinda, Senior Vice President of Investment Sales, Asia, JLL Hotels & Hospitality Group: "The hotel sector set a new benchmark in 2024 with the largest single-asset transaction, the Hyatt Regency Sukhumvit Bangkok. "
2025 Outlook: A Year of Opportunities
Looking ahead, JLL anticipates continued growth in Thailand's real estate investment market, driven by four key asset classes: logistics and industrial, data centres, hotels, and luxury residential developments. Mr. Krit Pimhataivoot commented:
"Given the current geopolitical situation, we're seeing an increase in inquiries from foreign manufacturers interested in Thailand. The Board of Investment has done an excellent job attracting manufacturers with both tax and non-tax incentives. With the growing demand for digital spaces, data centres will continue to expand in Thailand at a rate potentially outpacing typical real estate demand. Luxury residential properties, especially ultra-luxury condos in the Central Business District, will remain in high demand, attracting both local and foreign high-net-worth individual buyers when developed with the right products and positioning.
I believe this year presents opportunities for both investors and asset owners. The key is understanding the market's macro picture, gaining market insights, and determining the highest and best uses for each asset. At JLL, we are a data-driven organization that utilizes our data, research, and real estate insights for the benefit of our clients."
The hotel sector is also poised for further growth in 2025. Ms. Pimpanga noted: "The hotel investment market has good depth to it, where we are seeing a wide range of deals from core/core-plus to value-add/opportunistic deals. 2025 is expected to be strong, as sellers leverage the rising trading performance and the relatively stable interest rate. We expect over THB 13bn in volume, which is roughly 12% over the country's average since 2010."
Mr. Michael Glancy, Managing Director for Thailand, Indonesia, Philippines, and Vietnam at JLL, highlighted the broader regional appeal: "Southeast Asia has garnered significant attention due to shifts in the global geo-political landscape, with Thailand at the forefront benefiting from this trend. We're observing strong interest from foreign investors in logistics & industrial, data centers, and hotels, as well as manufacturers looking to expand their footprint in Southeast Asia and Thailand. Growth opportunities in Southeast Asian economies are the key drivers, along with macro tailwinds supporting L&I, data centers, and hotels & tourism industries." This trend aligns seamlessly with ongoing efforts by Southeast Asian governments to foster business-friendly environments as well as to offer generous incentives and regulatory relaxation to capitalize on these emerging opportunities.
"A surge in sustainability and green building initiatives across the region is another driving force that continues to propel sustainable and visionary property investment opportunities in these emerging markets. The development of smart cities in countries like Malaysia, Thailand and Vietnam is indeed an exciting trend, attracting technology-focused investors and establishing long-term growth potential. Moreover, the rapid digitalization of economies in Indonesia and the Philippines is creating new opportunities in proptech and e-commerce-related real estate. These developments are reshaping the regional real estate landscape and offering diverse array of investment prospects."
Positioning Thailand as a Regional Investment Hub
Thailand's strong local workforce, abundant power resources, and robust tourism and hotel industries make it particularly attractive. Foreign investors are increasingly focusing on sustainability and renewable energies, presenting opportunities for local players who invest in these areas to capture this wave of investment into Thailand.
JLL remains committed to leveraging its expertise to help clients navigate the evolving real estate landscape. From advising on prime investment opportunities to pioneering data-driven insights, JLL continues to play a pivotal role in shaping Thailand's real estate future.