Amid global headwinds and many unexpected events in 2025, real estate investment in selected sectors is strong in Thailand, chief among them, data centres, according to a recent analysis.

Data centres have become the standout asset of 2025, driven by rising demand from cloud service providers, AI-related infrastructure requirements and stronger regional interest in Thailand as a digital hub, finds the analysis report by real estate firm JLL Thailand, which adds that investor sentiment remains positive, supported by the long-term fundamentals of the asset in Thailand.

“Data centres are clearly the star performers of 2025,” says Krit Pimhataivoot, the real estate firm’s country head and head of capital markets. “Demand is being fuelled by structural drivers, not short-term cycles, which is why investors continue to view the sector favourably.

“Looking into 2026, we also expect industrial and warehouse properties to remain among the strongest performers, supported by healthy logistics demand and ongoing expansion by regional manufacturers.”

Industrial and warehouse assets continue to show resilience, the analysis shares, with strong enquiries from manufacturing, logistics and distribution operators. Key indicators, such as relatively low and stable occupancy levels ( 11.0% as of Q3 2025 ) and the continuous growth of new supply development ( 6.1% year on year at Q3 2025 ), demonstrate the sector’s robust fundamentals and will shape performance into next year.

Hotels, performance

Thailand’s hotel trading performance has moderated since January, the report points out, despite tourism promotion campaigns and visa facilitation measures aimed at stimulating travel. Slower-than-expected international arrivals and stronger competition from neighbouring destinations have placed pressure on occupancy and room rates.

The rapid growth of Vietnam’s tourism sector is being closely watched. While not displacing Thailand’s position, the report warns, Vietnam’s rising visibility as a more popular destination for both tourism and investment warrants attention.

Investor appetite for hotel assets remains intact but increasingly selective. Demand is strongest for properties with repositioning potential, assets in Bangkok and key resort locations, and hotels capable of delivering operational efficiency improvements.

Compared with last year, the report states, investors are paying more attention to product differentiation, operating performance and value-add opportunities.

“Performance dynamics have evolved when compared to the same period last year,” says Pimpanga Yomchinda, JLL Thailand’s executive vice-president for Asia-Pacific investment services, hotel investment advisory. “Investors are still active, but they are more discerning. Locations, asset profiles and the ability to enhance performance now play a much greater role in decision-making.

“As we move towards 2026, tourism momentum, regional competition and operational efficiency will be key drivers shaping investment outcomes.”

Property management, office leasing

Technology continues to reshape building operations, with automation systems, digital maintenance tools and efficiency platforms helping owners reduce operating costs and enhance service quality.

Environmental, social and governance ( ESG ) factors have transitioned from policy discussion to an operational standard, with measurable benchmarks now integrated into building performance across energy, water and asset lifecycle management.

“Technology adoption is accelerating, particularly in buildings targeting operational efficiency improvements and energy-use reductions of approximately 15% to 20%,” according to Chakrapan Pawangkarat, the real estate firm’s head of property managemen. “Tenant experience is emerging as a decisive factor in retaining occupiers, particularly in competitive locations where service quality and flexibility are key differentiators.”

The office market in 2025, the report notes, is marked by active space optimisation, demand for hybrid-ready workplaces and a continued shift towards buildings with strong sustainability credentials. Businesses are prioritizing layouts that support collaboration, efficiency and employee wellbeing.

“Office space has transformed into a critical business tool impacting talent acquisition and organizational performance, serving as a brand ambassador expressing ESG and DEI [diversity, equity and inclusion] identity highly valued by Generation Z,” points out Thananun Ruengveeravich, JLL Thailand’s head of leasing, “Many companies are seizing tenant-favourable market conditions to implement strategic upgrades while optimizing space efficiency by 10% to 30%.”

Professional services, financial services and technology sectors are driving 2025 leasing activity, the report shares, fuelled by landlord initiatives offering turnkey solutions that minimize occupier capex for relocations.

“Market volatility and heightened competitive dynamics across core property sectors,” according to Anawin Chiamprasert, the real estate firm’s head of research and consultancy, “will drive strategic imperatives and unlock value-creation opportunities throughout 2026 for forward-thinking investors and developers, who are rethinking their real estate portfolio strategy and prioritize asset enhancement, repositioning and conversion, which will become more pivotal in maintaining growth in asset trading performance and delivering innovative, market-differentiated solutions.”