_Bangkok Office Market Q4 2024

Bangkok’s office supply remained steady at 6.31 million sq.m. this quarter, with leasing activity continuing to show strength. The market saw a net absorption of 48,000 sq.m., primarily driven by green-certified buildings, which recorded a net gain of 50,000 sq.m., while non-certified buildings experienced a slight decline of 2,000 sq.m.

March 18, 2025

Market Overview

The Bank of Thailand forecasts that the Thai economy will grow by 2.7% in 2024 and 2.9% in 2025. The tourism and service sectors are expected to perform well, while merchandise exports, particularly electronics and machinery, should see improvements driven by the global tech cycle. Hard disk drives are expected to benefit from rising demand in the data center industry. However, certain manufacturing and export sectors continue to face challenges. The automotive and parts industry has weakened due to sector-specific factors, while exports of chemicals, metals, and electrical appliances are under pressure from heightened competition with China. Uncertainty in both the global and Thai economies has risen significantly, driven by U.S. economic policies—especially tax and tariff measures—that could disrupt international trade and pose downside risks to global growth.

In December, the Business Sentiment Index (BSI) saw a slight decline but remained on an overall upward trajectory, driven mainly by recovery in the non-manufacturing sectors. Nearly all business sectors contributed to the improved confidence, with the strongest rebound seen in the tourism-related sector, including hotels, restaurants, and passenger transportation. Respondents in this sector reported a significant boost in confidence, driven by an increase in travellers from the US and Europe during the year-end holiday season. However, the three-month expected BSI continued to fall throughout 2024, with a sharper decline in the second half of the year. During this period, the manufacturing index dropped to its lowest level for the longest duration since the onset of COVID-19, highlighting heightened uncertainty in business prospects.

Supply

Bangkok's total supply of office space remained at 6.31 million sq m as there were no additions or withdrawals to supply this quarter. For the entire 2024, total supply increased by 235,000 sq m, a similar level to the total increase in 2023.