Bangkok, November 27, 2025 — JLL Thailand (NYSE: JLL), a leading real estate services firm, has released its latest analysis of Thailand’s real estate market, highlighting the sectoral shifts defining 2025 and the themes expected to guide investment and occupier decisions in 2026. Drawing on insights from its Capital Markets, Hotels, Property Management, Office Leasing, and Research & Consultancy departments, the firm provides a detailed view of investor appetite, performance trends, and operational priorities across asset classes.

Amidst global headwinds and many unexpected events in 2025, real estate investment in selected sectors is strong in Thailand. Data centres have become the standout asset of 2025, driven by rising demand from cloud service providers, AI-related infrastructure requirements, and stronger regional interest in Thailand as a digital hub. Investor sentiment remains positive, supported by long-term fundamentals of the asset in Thailand.

Krit Pimhataivoot, Country Head & Head of Capital Markets, said: “Data centres are clearly the star performers of 2025. Demand is being fuelled by structural drivers, not short-term cycles, which is why investors continue to view the sector favourably. Looking into 2026, we also expect industrial and warehouse properties to remain among the strongest performers, supported by healthy logistics demand and ongoing expansion by regional manufacturers.”

Industrial and warehouse assets continue to show resilience, with strong enquiries from manufacturing, logistics, and distribution operators. Key indicators such as relatively low and stable occupancy levels (11.0% as of 3Q25) and the continuous growth of new supply development (6.1% y-o-y at 3Q25) demonstrate the sector's robust fundamentals and will shape performance into next year. 

Thailand’s hotel trading performance has moderated since January, despite tourism promotion campaigns and visa facilitation measures aimed at stimulating travel. Slower-than-expected international arrivals and stronger competition from neighbouring destinations have placed pressure on occupancy and room rates.

The rapid growth of Vietnam’s tourism sector is being closely watched. While not displacing Thailand’s position, Vietnam’s rising visibility as a more popular destination for both tourism and investment warrants attention.

Investor appetite for hotel assets remains intact but increasingly selective. Demand is strongest for properties with repositioning potential, assets in Bangkok and key resort locations, and hotels capable of delivering operational efficiency improvements. Compared with last year, investors are paying more attention to product differentiation, operating performance, and value-add opportunities.

“Performance dynamics have evolved when compared to the same period last year,” said Pimpanga Yomchinda, Executive Vice President, Asia-Pacific Investment Services, Hotel Investment Advisory. “Investors are still active, but they are more discerning. Locations, asset profiles, and the ability to enhance performance now play a much greater role in decision-making. As we move toward 2026, tourism momentum, regional competition, and operational efficiency will be key drivers shaping investment outcomes.”

Technology continues to reshape building operations, with automation systems, digital maintenance tools, and efficiency platforms helping owners reduce operating costs and enhance service quality. ESG has transitioned from policy discussion to an operational standard, with measurable benchmarks now integrated into building performance across energy, water, and asset lifecycle management.

According to Chakrapan Pawangkarat, Head of Property Management, technology adoption is accelerating, particularly in buildings targeting operational efficiency improvements and energy-use reductions of approximately 15-20%. Tenant experience is emerging as a decisive factor in retaining occupiers, particularly in competitive locations where service quality and flexibility are key differentiators.

The office market in 2025 is marked by active space optimisation, demand for hybrid-ready workplaces, and a continued shift toward buildings with strong sustainability credentials. Businesses are prioritising layouts that support collaboration, efficiency, and employee wellbeing.

Thananun Ruengveeravich, Head of Leasing, notes that office space has transformed into a critical business tool impacting talent acquisition and organizational performance, serving as a brand ambassador expressing ESG and DEI identity highly valued by Generation Z. Many companies are seizing tenant-favorable market conditions to implement strategic upgrades while optimizing space efficiency by 10-30%.

Professional services, financial services, and technology sectors are driving 2025 leasing activity, fueled by landlord initiatives offering turnkey solutions that minimize occupier CAPEX for relocations.

According to Anawin Chiamprasert, Head of Research & Consultancy, Market volatility and heightened competitive dynamics across core property sectors will drive strategic imperatives and unlock value-creation opportunities throughout 2026 for forward-thinking investors and developers, who are rethinking their real estate portfolio strategy and prioritise asset enhancement, repositioning and conversion, which will become more pivotal in maintaining growth in asset trading performance and delivering innovative, market-differentiated solutions.