PATTAYA, Thailand – Thailand’s real estate market continues to face multiple challenges, both domestic and global, affecting buyer confidence and slowing sales. Pattaya’s condominium market has slowed in the first half of 2025. Major developers such as Sansiri, Sena, Major Development, and SC Asset have delayed new project launches, leaving high unsold inventory and low absorption rates.
While the new condo market remains sluggish, activity in resale and NPL (non-performing loan) properties has increased, with discounted offerings reaching 30–40% below asking prices. High-end units, including a 108-million-Baht condo at One Bangkok, still attract investors seeking prime properties.
The housing market in Pattaya remains strong for homes priced 5–10 million Baht, supported by bank financing and young professionals, but properties over 20 million Baht are selling more slowly, as buyers wait for clearer political and economic conditions.
Office spaces in Bangkok face mixed demand. Total supply reached 6.42 million sq.m. in Q2 2025, with small office leases continuing, but large office spaces (3,000–10,000 sq.m.) see weaker demand. Tenants increasingly negotiate 15–25% reductions and consider consolidating or relocating to lower-cost buildings. Developers face higher competition, particularly for prime locations, with new office completions expected later this year.
In contrast, industrial land in the EEC (Eastern Economic Corridor) shows robust demand. Serviced industrial land sales reached 4,684 rai in the first half of 2025, up 34% from the previous half-year, although down 42% from a historically high 2024. Average prices increased 4.5% year-on-year to 6.64 million Baht per rai, driven by investors in electronics and EV manufacturing, especially in Chonburi and Rayong. Foreign direct investment approved by BOI continues to expand, supporting long-term industrial growth.
The hotel sector shows mixed performance. Bangkok’s occupancy fell to 75.1%, down 3.7 points, while ADR rose slightly to 4,260 Baht, keeping RevPAR under pressure. Phuket has rebounded with higher occupancy and ADR, supported by international tourist demand, particularly from India and Russia, offsetting declines from China and Malaysia.
Experts note that the remainder of 2025 will be critical for market recovery. Stability in political conditions and clear government policies will be key to restoring confidence, especially in Pattaya’s housing, resale, industrial land, and hotel investment sectors. Buyers are adjusting strategies to capitalize on opportunities when sentiment improves.
