CBRE reveals real estate trends in 2023 Real estate houses - condos recover. Hotel expansion - overflowing offices from the boost of tourism in the last quarter of 2022 Combined with the opening of China at the beginning of this year, tourists returned faster.

Condos in the city wake up to foreign demand.

"Chotika Thangsirisub" Head of Research Department and Project Development Consultant CBRE Thailand said that this year, condos in the city began to return after 3 years of stagnation. It is expected that in the second half of the year when the return of tourists increase There will be more projects launched to support Chinese or Middle Eastern people who become medical tourists or neighbors like Myanmar. Start looking for a second home in Bangkok. And this year, project developers will continue to launch low-rise housing projects. Especially in the luxury segment, targeting real-demand groups who want to buy for their own stay.

"Papinriya Puengkhueankan", head of the retail housing sales department, said that consumers are interested in the second-hand condo market because the unit size is larger than new projects. Price per square meter is cheaper. As for the demand for buying real estate abroad, Thai people are still interested in England for their children to study and live. Including for investment While people who buy real estate bought in Japan to travel and have income

New office supplies rose to 400,000 square meters

While the office building market will face the challenge of "negative take up" in leasing. Because new supply has been added a lot, 400,000 square meters, while in the past it has been affected by uncertainty from COVID-9. The economy and the policy of each company about how much they will return to use the office building.

“An important turning point this year is that customers will renew their existing rental contracts or move to new locations. And most importantly, the environmental, social and governance or ESG requirements of multinational companies. affecting the rental of space Including flexible workspace (Flex Space) and a variety of service turn-key solutions. cost and work flexibility,” said Sarut Weerakul, director of office space division.

Omnichannel community mall is hot.

Jariya Thamtrongkitkul, head of the retail space department, said the retail space market showed signs of recovery from the highest index of confidence in the past two years, with the Thai e-commerce market growing in fifth place. in Asia Pacific and has a proportion of about 10% of the retail market, but in the next 2 years is expected to increase to 15%, of which the largest product category is food and drink

While the popularity of e-commerce Causing entrepreneurs to develop online channels to join in with the storefront service. Merge offline and online channels In addition, the community mall trend It has become an alternative that meets the needs of people after COVID who do not want to travel to the city. meet the lifestyle of suburban residents

Timings & Opportunities for Investors to Buy Hotels

Attakawee Choosang, Head of Hotel Business Department Indicates that this year's market is in a positive direction. This benefited from improved hotel performance and an increase in the number of foreign tourists. and the support from Chinese tourists returning to Thailand faster than expected. while the government still pays attention to the treatment of domestic tourists

Therefore, hotels will continue to develop. CBRE Research expects to have more than 10,000 new hotel rooms by 2025, resulting in a 12% increase in hotel room volume in Bangkok.

“It is interesting to note that hotel owners and chains will focus on cost control by implementing ESG strategies, as well as investing in technology and employee retention. Because many formerly unemployed people are reluctant to return to this sector. At the same time, there may be an opportunity for investors to buy hotels. As we have seen, the price gap between sellers and buyers is more likely. Because confidence in the market has improved ”

China Plus One attracts investors to set up production bases

Industrial and logistics are markets similar to hotels. That is, when the country is opened, the market quickly rebounds from the restrained demand in the past 2 years.

Adam Bell, head of industrial land and logistics, said the trend for industrial land demand will continue in 2023 as developers accelerate the expansion of existing industrial estates and develop new industrial estates in line with demand resulting from the ongoing China Plus One policy.

Therefore, various privileges of the Board of Investment (BOI) need to be renewed and revised. to attract foreign investment From continued investment in critical infrastructure, especially in the Eastern Economic Corridor (EEC) and in professionally managed industrial estates. As a result, Thailand is in a position to benefit from stagnant demand for industrial and logistics areas during the current period. 2-3 years ago

"data center service provider semiconductor manufacturer and automotive manufacturers will continue to look at Thailand as a suitable option for setting up a production base Thailand is in a very strategic position to attract foreign direct investment.”

Source:https://www.bangkokbiznews.com/property/1054635

Date 23/2/2023