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Thai Real Estate in 2025: In-Depth Analysis of Winning Strategies in a Fluctuating Market
Having been involved in the real estate industry for over a decade, I can confirm that 2025 is not just the beginning of a new year, but a crucial paradigm shift for the Thai real estate sector. The market has faced significant challenges continuously since late 2023 and throughout 2024, including persistently high interest rates, volatile global economic conditions, and domestic purchasing power that still requires time to fully recover. While many may view this as a difficult period, for those who understand the game, are prepared to adapt, and possess a broad vision, this is a golden opportunity to gain a competitive advantage and become the “true winners” in this rapidly changing market.
We have witnessed a significant shift in the Thai real estate market landscape over the past two years. Previously driven by strong foreign investment and domestic purchasing power, the market has now become a testing ground for the strategic strength of leading real estate companies. It’s not just about rushing to launch new projects, but about creating real value, intelligently managing risk, and responding to increasingly complex market demands. Data we gathered from 41 publicly listed real estate companies in 2023 clearly showed cracks in the market, with a slight decrease in total revenue and a shocking contraction in sales revenue. This was a crucial lesson pushing businesses to rethink and innovate in 2025.
Business Game Changer: Total Revenue is Not Just About Sales, But About the Ecosystem
Looking back at the overall revenue of real estate companies in 2023, we found that the total revenue of all 41 companies decreased slightly from 376,141 million baht to 371,560 million baht. This figure doesn’t directly reflect a crisis, but it’s a warning sign that the era of relying solely on revenue from residential project sales has ended. In 2025, real estate companies that successfully maintain or even grow their total revenue are those that understand and have begun to build their own true “Real Estate Ecosystem.”
Many leading players have shifted their focus to recurring income sources, whether it’s revenue from managing rental space in mixed-use projects (combining residential, office, retail, and hotel spaces) or even investing in real estate. Commercial real estate, with its potential to generate consistent long-term returns, is a key area of focus. Companies like Central Pattana, which is accelerating the development of real estate projects for sale alongside its leadership in shopping malls, have demonstrated the power of business synergy. This synergy has resulted in resilient and growing overall revenue, even in a slowing residential market.
Furthermore, forming joint ventures with both domestic and international developers is another strategy to diversify risk and increase revenue streams. This includes jointly developing luxury condominium projects in prime real estate locations, investing in related businesses such as property management services, or even integrating clean energy into real estate projects to align with the megatrend of sustainability in real estate. Companies that can manage a diversified portfolio with stable revenue streams will be strong contenders in 2025 and beyond.
The sales game is not easy: Innovation and market penetration strategies are key.
Looking at sales revenue in 2023, the picture becomes even clearer that the market is facing truly challenging conditions. The combined sales revenue of all 41 companies decreased by 11%, from 299,979 million baht to 268,460 million baht. Alarmingly, 30 out of 41 companies experienced a sales decline. This means that traditional sales strategies may no longer be sufficient for 2025.
The winners in the 2025 sales battle will be those who deeply understand changing consumer behavior and are ready to offer the “right” products at the “right” price, as well as utilizing the most effective “channels.” For example, AP (Thailand), despite facing challenging market conditions, was able to maintain high sales levels by successfully capturing the premium detached house and townhome markets, as well as diversifying its product lines to meet the needs of specific groups.
Key strategies evident in 2025 include:
Adjusting product portfolio flexibility: Developers can no longer be confined to a single product type. They must be ready to adapt their real estate development to align with changing supply and demand. This includes developing mid-to-low-end condominiums in secondary cities or smaller detached houses in promising locations with convenient access. It has become an attractive option for consumers who are cautious about spending.
The full utilization of real estate technology (PropTech): Integrating digital technology into the sales process, from creating virtual reality tours and personalized marketing to using AI to analyze customer data and conduct online sales contracts, is something leading companies are using to increase efficiency and reduce costs. Digital transformation in real estate is no longer an option, but a necessity.
Easier access to home loans: Many real estate companies are now working with financial institutions…
