See full version in the middle of the website👇
From Crisis to Opportunity: Decoding Thailand’s Real Estate Strategy for 2025 Amidst Changing Trends
As a veteran of the Thai real estate industry for over a decade, I have witnessed numerous fluctuations and adjustments in this business landscape. 2023 served as another test of the resilience of developers, as the market faced unexpected slowdowns, reflecting the fragility of the overall economy and intervening political factors. However, as we enter 2025, the overall picture is changing dramatically. While challenges remain, new opportunities are emerging alongside the ever-evolving economic, social, and technological context.
This article will delve into the current state of the Thai real estate market, drawing on in-depth data from the 2023 performance of 41 leading publicly traded real estate companies. This data reflects the strategies and adaptability of each player, projects future trends for 2025, and analyzes who is poised to become a leader and who needs to urgently adapt to a rapidly changing world.
Reshaping the Thai Real Estate Market Landscape in 2025: Challenges and New Opportunities
After 2023, which many considered a year of disappointment due to the rapid weakening of momentum from 2022, the real estate market entered a slump before the election and continued until the end of the year. Even the peak season in the last quarter failed to rebound as expected. This slowdown resulted in a slight decrease in revenue of approximately 1.2% for 41 real estate companies listed on the Stock Exchange of Thailand compared to 2022, with 25 companies experiencing a decline in total revenue.
However, 2025 is not just a continuation of the past year, but a year in which new factors will significantly drive the market. We are beginning to see signs of recovery in some segments, coupled with increasingly subtle and complex changes in consumer behavior. The recovery of the tourism sector is a key driver of demand for investment and rental real estate, especially in major tourist areas such as Bangkok, Phuket, and Chiang Mai. At the same time, government stimulus through economic stimulus policies and large-scale infrastructure investment remains a crucial factor in building confidence and opportunities for new project development.
Volatility in policy interest rates and inflation remains a challenge to consumer purchasing power and the financing costs for developers. Access to housing loans remains a key issue to watch, especially for middle-to-lower income buyers. With a large customer base in the market, adjustments to the global economy and geopolitical situations continue to indirectly impact domestic investment and consumption decisions. This is an overview of the battleground that real estate developers will face in 2025.
In-depth analysis of total revenue: Who leads the way amidst volatility?
Based on 2023 data, the total revenue of 41 real estate companies was 371,560 million baht, a slight decrease from 2022. The fact that the industry’s total revenue remained close to the previous year reflects the differences in how each company copes with the situation. While some faced significant sales declines, such as L.P.N. Development, Eastern Star Real Estate, and Country Group Development, which saw total revenue decreases of over 28%, as well as Raimon Land (-26%), Lalin Property (-23%), Major Development (-22%), and Siamese Asset (-21%). These companies demonstrate the challenges in clearing inventory and launching new projects in an unfavorable market environment.
Even leading companies like Land & Houses experienced an 18% decrease in total revenue. Notably, among the top 10 companies by total revenue in 2023, five saw a decline from the previous year, including AP (Thailand) with a slight decrease of less than 1%, Supalai (-10%), Pruksa Holding (-9%), and Origin Property (-4%). ​​The impact on these large companies demonstrates that no one is immune to a slowing market.
However, Sansiri performed outstandingly, achieving the highest total revenue of 39,082 million baht, growing by 12%, narrowly beating AP (Thailand) which had revenue of 38,399 million baht. This was followed by Supalai (31,818 million baht), Land & Houses (30,170 million baht), and Pruksa Holding (26,132 million baht).
In 2025, we predict that companies capable of maintaining continuous revenue growth will be those with diversified strategies, including developing residential projects across various segments. Expanding investment into commercial and hotel real estate benefiting from tourism, along with generating revenue from related service businesses, efficient cost management, and marketing strategies reaching new target groups will be key to achieving sustainable returns on real estate investments.
The Sales Battleground: The Key to Success in the 2025 Real Estate Market
Considering only total revenue may not reflect the true picture of operational performance, as many companies generate revenue from sources other than direct real estate sales. A deeper dive into “sales revenue,” the core of real estate development operations, reveals a different landscape.
The overall sales revenue of 41 companies combined in 2023 was 268,460 million baht, a decrease of 11% from 2022. Of particular concern is that 30 out of 41 companies experienced a significant decline in sales revenue. Some companies experienced severe sales declines, such as Raimon Land (down 78%), L.P.N. Development (down almost 40%), and Land & Houses (down 38%). Even AP (Thailand), the number one in sales, saw a slight decrease of 2%, reflecting the challenges…
