Search

Office building for rent in 2019-2021 continues to expand Driven by the growth of the Thai economy

Updated the key Industry Indicator: Office Building in BMR in each industry.By Patchara Klinchuanchun

The office rental market is expected to remain under pressure in 2026 due to a persistent oversupply that continues to outpace rental demand.

The market for office rentals will strengthen over 2023 to 2025 on the ending of the Covid-19 pandemic and recovery in the economy, encouraging businesses to take on new hires. This in turn feeding stronger demand for office for at least 0.85 million sq.m., of which is expected to come to market over the next three years.

The office rental business from 2024 to 2026 is expected to improve in line with the recovery of the Thai economy, led by the service sector, resulting in increased demand for office space. In particular, the Green Office segment is becoming increasingly important, as it attracts large corporations and international companies

Depressed conditions have extended from 2020 into 2021 for the office rentals business, and the industry is continuing to battle against the stiff headwinds generated by this year’s severe outbreak of Covid-19 and the impacts of this on the economy. The pressure on costs that this has generated has then forced businesses to trim back on expenses, lay off staff and reduce their office sizes, but in 2022 and 2023, demand is forecast to make its way slowly out of this trough as the effects of the vaccine rollout begin to be felt, the economy rebounds, and the government moves forward with infrastructure projects, especially those connected with communications. The net effect of this will be to spur developers to step up their investments in new office space and/or in renovations of older buildings both within the CBD and in less central parts of the BMR. However, major developers’ investment plans indicate that over the period 2021-2023, growth in supply is likely to outpace what will be only somewhat weak recovery in demand, and so over the next 3 years, the occupancy rate will trend downwards.

The Thailand Industry Outlook report evaluates the attractiveness of selected Thai industries to complement the credit evaluation process for the bank’s clients over the next 3 years (2021-2023). The report considers a range of factors that would influence each industry over this period. These include the broad competitive environment (e.g. trends in trade and the global economy, structural changes occurring at global level, and economic outlook for Thailand), as well as sector-specific variables (e.g. industry structure, Thai industrial competitiveness, and ongoing regulatory changes). We look at the players’ ability to cope with uncertainties, generate revenues, and service debt.

ธุรกิจรับเหมาก่อสร้างปี 2565 มีแนวโน้มเผชิญความเสี่ยงจากต้นทุนที่ปรับสูงขึ้นมากทั้งด้านค่าขนส่งและราคาวัสดุก่อสร้าง จากสงครามรัสเซีย-ยูเครนที่ผลักดันให้ราคาน้ำมันและวัสดุก่อสร้างที่สำคัญโดยเฉพาะเหล็กและปูนซีเมนต์ปรับเพิ่มขึ้น สำหรับปี 2566-2567 ธุรกิจมีแนวโน้มเติบโตตามมูลค่าการลงทุนก่อสร้างโดยรวมที่คาดว่าจะขยายตัวเฉลี่ย 4.5-5.5% ต่อปี