The future of Thai real estate — Key trends reshaping the market in 2025

Flexible rentals, co-living spaces, and industrial growth are driving the next wave of property investments

Thailand’s real estate market is experiencing a shift in investment priorities, as developers and investors adapt to rising mortgage rejection rates, evolving consumer behaviours, and growing demand for alternative assets. 

With homeownership becoming less accessible, flexible rental properties and co-living spaces are emerging as major opportunities for developers. Meanwhile, industrial real estate and alternative investments, such as data centres and healthcare facilities, are gaining traction as Thailand strengthens its infrastructure and logistics network.  

According to the Nation Thailand, the country’s real estate sector has remained resilient, but affordability concerns, economic conditions, and changing lifestyles are reshaping the way people live and invest.  

“High household debt has pushed the 2024 mortgage rejection rate to 70 percent, significantly impacting the Bangkok condominium market,” said Marciano Birjmohun, Managing Director of Marciano Advisory Co., Ltd. and Member of the PropertyGuru Thailand Property Awards Judging Panel.  

“As a result, younger generations are leaning towards renting over buying due to high costs and limited savings, driving developers to focus on flexible and affordable rental properties, including co-living spaces.”  

This shift presents both challenges and opportunities for developers, as rental-focused projects and mixed-use developments gain prominence in Bangkok, Phuket, and other major cities.  

A growing rental market: Developers shift focus 

With mortgage rejection rates increasing, developers are turning to rental housing as a key market segment. The Nation Thailand also revealed that property firms are launching flexible leasing models, co-living spaces, and serviced apartments to cater to urban professionals and expatriates.  

“For investors, this shift presents the rental market as a potentially lucrative long-term investment opportunity,” Birjmohun explained.  

This trend is particularly strong in Bangkok, where high land costs and urban density make renting a more practical choice. Developers are also integrating smart technology and community-driven living spaces into new rental projects to attract long-term tenants.  

Moreover, short-term rental demand is surging in Thailand’s tourism-driven cities, such as Phuket, Pattaya, and Chiang Mai, where visitors prefer private accommodations over hotels. The country’s post-pandemic tourism recovery has increased demand for serviced apartments and vacation rentals, making short-term leasing a profitable segment for investors.  

Beyond residential: Alternative assets are on the rise 

As reported by Newswit, Thailand’s logistics, industrial, and alternative real estate segments are becoming prime targets for investment.  

“The real estate landscape is evolving with increasing interest in alternative assets such as data centres, healthcare facilities, and industrial estates,” Birjmohun noted.  

The local industrial sector has gained strong government backing, with infrastructure expansion, manufacturing investments, and e-commerce growth fuelling demand for warehouses and logistics hubs. As Thailand positions itself as a Southeast Asian trade hub, investors are actively seeking high-yielding industrial properties.  

In addition, data centres and medical real estate are emerging as high-potential investment sectors, driven by technological advancements and demographic shifts. Thailand’s ageing population has increased demand for healthcare facilities and retirement living spaces, prompting developers to explore senior housing and wellness-focused properties.  

Luxury housing market remains strong amid market shifts 

While the mid-market faces affordability challenges, Thailand’s luxury property segment continues to attract high-net-worth buyers. The demand for high-end and ultra-luxury residences remains strong in prime locations, with developers focusing on low-density, exclusive housing projects, reported the Bangkok Post. 

At the 19th PropertyGuru Asia Property Awards Grand Final 2024, Thailand’s top luxury and office developments received international recognition, crowned as the Asia Winners against 15 markets across Asia, Australia, and the Middle East.  

• Best Ultra Luxury Housing / Landed Development (Asia): BuGaan Pattanakarn by Sansiri Public Company Limited 
• Best Luxury Housing / Landed Development (Asia): Narasiri Phahol-Watcharapol by Sansiri Public Company Limited 
• Best Mid-End Housing / Landed Development (Asia): The City Rama5-Nakhon In by AP (Thailand) Public Company Limited 
• Best Office Architectural Design (Asia): APAC Tower by APAC Land  

These awards highlight Thailand’s leadership in high-end property development, showcasing the country’s ability to create world-class, architecturally significant projects.  

What’s next for Thailand’s property market? 

Looking ahead, the Thai real estate sector will be shaped by three major trends in 2025:  

• Continued growth in the rental market
  • Developers will prioritise rental properties and co-living spaces as demand for flexible housing increases.
  • Investors will see long-term rental yields as a key opportunity, particularly in Bangkok and tourism-driven cities.
• Industrial and alternative investments on the rise  
  • Logistics hubs, manufacturing spaces, and data centres will attract more investment, supported by government infrastructure projects.  
  • Healthcare-focused developments will gain traction as Thailand’s ageing population drives demand for medical real estate. 
• Luxury and ultra-luxury segments will remain strong  
  • High-net-worth buyers will continue investing in exclusive, low-density housing projects in Bangkok’s prime districts.
  • Developers will focus on architecturally unique and highly curated luxury projects to attract global investors. 

Despite the challenges in homeownership, Thailand’s real estate market is proving to be dynamic and adaptable. With strategic shifts in investment focus and continued global recognition, Thailand’s real estate sector is set to navigate 2025 with innovation, resilience, and long-term growth.  

Know any award-worthy residential, commercial, or industrial projects in the archipelago? Nominate them for the 20th annual PropertyGuru Thailand Property Awards on or before 11 July 2025. To know more, visit AsiaPropertyAwards.com/Award/Thailand/.

Gynen Kyra Toriano, Digital Content Manager at PropertyGuru, wrote this article. For more information, email: [email protected].