Thailand property 2026: Strategic balance of risk and reward

Evolving market calls for agile approach to investment and development, according to CBRE Thailand

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Property developers and investors in Thailand must strategically balance risk and reward amid persistent market uncertainties this year, according to property consultancy CBRE Thailand.

“Thailand's real estate landscape continues its dynamic evolution, demanding a strategic and agile approach to investment and development,’ said Roongrat Veeraparkkaroon, managing director of CBRE Thailand.

“Our analysis indicates while some sectors will experience continued pressure, others are well-positioned for robust growth, driven by shifting consumer behaviours, focused government initiatives and broader global dynamics. Adaptation and innovation will be crucial for success.”

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In Bangkok's diverse retail market, ranging from expansive urban malls to community-centred spaces, developers are investing in new projects and revitalising existing assets to meet changing consumer lifestyles.

However, total retail supply reached 8.25 million square metres in 2025, with an additional 300,000 sq m slated for completion this year. This new supply growth is projected to outpace tenant absorption, causing average occupancy rates to soften to less than 90%.

Roughly 75% of this new supply is concentrated in midtown and suburban locations, shifting the competitive landscape towards residential neighbourhoods where consumers are often more price-sensitive.

“Strong interest from international retailers, particularly in F&B and fashion, continues to underscore Bangkok’s appeal for experiential spending” said Chotika Tungsirisurp, head of consulting and research at CBRE Thailand.

“The city remains a regional F&B capital, driving sustained growth in coffee and restaurant market entries. Fashion retail, especially international brands from Europe, view Bangkok as a high-reward destination. In 2025, China accounted for the highest percentage of new foreign brands [20%], followed by Japan and Europe [18% each]