Key takeaways:
- Thailand's growth is shifting: Moving away from a Bangkok-centric concentration toward a dynamic, multipolar regional expansion anchored by the Eastern Economic Corridor, with development flourishing in premier tourism destinations—including the global resort destination of Phuket alongside upcoming coastal locations like Phang Nga.
- Industrial real estate is moving up the value chain: Driven by China+1 diversification, focusing on electronics, electric vehicles, and advanced logistics within managed industrial parks.
- Rising ESG standards: A widening "brown discount" for outdated buildings, presenting opportunities for asset repositioning, retrofit, and conversion of aging office and retail stock in Bangkok.
Thailand is strongly positioned to benefit from the structural shifts reshaping Southeast Asia's real estate markets, according to JLL's latest research report, "Planning for a Multipolar World: Real Estate Strategies Across Southeast Asia in 2026 and Beyond". In Thailand, the Eastern Economic Corridor (EEC) remains the anchor of the future growth era, while immediate of growth is extending into second-tier cities and tourism-linked destinations.
JLL's report finds that the region's growth is being shaped less by broad cyclical recovery and more by structural forces, including geopolitical fragmentation, supply chain diversification, state-led infrastructure investment, digitalisation and rising sustainability standards.
Southeast Asia's Structural Transformation
The report identifies three regional themes redefining real estate across Southeast Asia: public policy becoming an increasingly powerful market signal, infrastructure redefining geography beyond traditional CBD concentration, and a growing divide between high-quality, future-ready assets and ageing stock under pressure to reposition, retrofit or convert.
Governments across the region are increasingly directing market growth through strategic initiatives, from Indonesia's Danantara sovereign wealth platform and the Philippines' extension of investor land leases to 99 years, to Malaysia's rollout of three major special economic zones, Singapore's AI- and sustainability-led economic strategy and Vietnam's institutional reform agenda. In Thailand, the EEC initiatives are among the infrastructure investments expanding the map of investable locations and moving the region towards a more networked urban future.
Key Opportunities for Thailand
EEC and the Eastern Seaboard
- The EEC continues to anchor Thailand's opportunity set, with the next phase of growth expanding into second-tier locations and mixed-use, tourism-linked destinations.
- Industrial township developments in the EEC area, and mega projects centred around the U-Tapao aviation hub, point to a more regionally distributed pattern of growth.
Industrial and Logistics Moving Up the Value Chain
- Thailand is advancing its industrial and logistics base up the value chain, in line with a regional shift towards higher-value sectors such as electronics, electric vehicles, advanced logistics and specialised manufacturing, shaped by China+1 diversification and export-led industrialisation.
- Industrial real estate across the region is moving towards managed industrial parks, sector-specific clusters and integrated platforms, and away from traditional land banking and warehouse-led approaches.
Regional Cities, Tourism and Wellness
- Regional retail and hospitality opportunities are emerging in Phuket, an established global resort destination and coastal city, and in upcoming coastal locations such as Phang Nga.
- Wellness-focused development in tourist-driven destinations is expected to accelerate growth, taking a more prominent role across retail, ultra-luxury residential and hospitality segments.
Developers Shifting Towards Recurring Income
- A strategic shift by major developers towards recurring-income assets, together with Thailand's industrial evolution, is supporting a broader and more diversified real estate pipeline.
Sustainability Raising the Bar
- ESG standards are rising across both office and industrial portfolios in Thailand, widening the 'brown discount' for poorly configured, energy-inefficient or functionally obsolete assets and creating opportunities for retrofit, conversion and repositioning.
"Thailand's real estate market is moving into a more selective phase, where success depends on focusing on strong fundamentals. While policy and infrastructure remain key drivers, capital is deploying into highly specialised areas. We see this in the sustained demand for advanced industrial estates, the robust expansion of world-class tourism, hotel, and wellness developments in premier coastal destinations, and, in Bangkok, the practical opportunity of converting and upgrading existing office buildings to meet modern demands," said Krit Pimhataivoot, Country Head & Head of Capital Markets, JLL Thailand.
Strategic Opportunities for Investors and Occupiers
The report identifies four cross-cutting opportunities across Southeast Asia, each relevant to Thailand:
- Industrial and Logistics Platforms: Supported by manufacturing diversification, low vacancy rates in many submarkets and stronger corridor connectivity.
- Data Centres and Digital Infrastructure: Driven by AI adoption, cloud investment and localisation requirements.
- Asset Repositioning and Conversion: Ageing office and retail stock in Bangkok offers value-add, ESG retrofit and conversion opportunities into mixed-use, living, healthcare or hospitality uses.
- Cross-Border and Corridor Plays: Thailand's EEC-related growth arc is highlighted alongside the Johor-Singapore axis, Northern Luzon and Vietnam's mega-regions as one of the region's interconnected growth ecosystems.
"Thailand is a prime example of the regional expansion occurring across Southeast Asia, shifting from a Bangkok-focused market to a highly diversified, multipolar landscape. Investors are capitalizing on specialized opportunities across different regions, from advanced industrial estates in the Eastern Economic Corridor to premier, self-sustaining luxury hospitality and wellness markets in Phuket and upcoming coastal locations like Phang Nga," said Dr Yang Liang Chua, Head of Research & Advisory, Southeast Asia, JLL.
A More Selective, Structural Outlook
The report emphasises that Southeast Asia's real estate outlook for 2026 and beyond should be assessed through a structural rather than purely cyclical lens. Success will depend less on broad regional exposure and more on precise positioning within appropriate corridors, sectors and asset strategies.
"For investors and occupiers alike, Thailand offers compelling upside, particularly for those who approach it as part of a connected, multipolar system," Dr Chua added.