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Thailand on the upswing: Branded residences are booming in Bangkok and Phuket!
Thailand is experiencing strong growth in the branded residences market, led by Phuket and Bangkok. Find out why these luxury properties are attractive to investors.
Thailand on the upswing: Branded residences are booming in Bangkok and Phuket!
The branded residential property market in Thailand is showing impressive growth despite various economic challenges. CBRE Thailand highlights that both Bangkok and Phuket are at the center of this development. Athisaya Kasemlawan, head of residential properties at CBRE Thailand, emphasizes that not only luxurious designs and first-class service are crucial, but also the established standards of the hotel industry. These standards cover aspects such as room sizes, materials and safety requirements, all of which contribute to customers trusting brands and the associated service.
The branded residence market is becoming increasingly important, particularly in the Asia-Pacific (APAC) region. It now accounts for 24% of completed projects worldwide, with Thailand leading the way with over 40 completed projects. Phuket, the popular holiday island, is at the top with 4,771 units in 26 projects, while the capital Bangkok is also making a strong statement with 1,875 units in 20 projects.
Market development and attractiveness
Branded residences in Thailand have seen 11% annual growth in recent years, with over 68,000 units sold last year alone. The total market value is an impressive $266 billion, according to estimates C9 Hotelworks. What is particularly notable is that branded residences in Phuket account for 10% of total condominiums, while in Bangkok the share is just 1%. These figures show that supply in the capital is limited, making it particularly attractive for investors.
One reason why Phuket is so popular is not only the beautiful beaches and high quality of life, but also the first-class health standards and the constant improvement of the infrastructure. More and more buyers value the opportunity to purchase luxury condominiums from internationally recognized brands, which often come with freehold rights. The rental yields are between 50 and 80% above the market average for non-branded projects.
Prices and outlook
Naturally, the prices for branded residences are correspondingly high. The average price per square meter for such exclusive properties in central locations in Bangkok is around 291,000 baht, while in tourist hotspots such as Phuket an average price of 161,000 baht can be expected. If you like it particularly luxurious, you can even expect prices of up to 445,000 baht per square meter.
With increasing competition in the market, including from foreign companies entering Thailand, an exciting time is emerging. “Branded”, a historical series, may still be remembered by some of us - this is where the connection lies: complex stories and developments that are often shaped by external influences. The real estate market is also influenced by the currents of the global markets. Bill Barnett of C9 Hotelworks predicts this competition will heat up price and quality competition among local brands.
The future looks bright — Thailand remains at the forefront and Phuket will continue to be a key market for branded residences. If growth continues like this, the tourist hotspot could offer even more interesting investment opportunities.