Thailand industrial sales and leases to grow by up to 5% annually till 2027

Thanks to a combination of different factors, including sustained government investment.

A recent Savills report noted that Thailand’s industrial estate sector is projected to expand steadily from 2025 to 2027, with annual land sales and leases expected to grow by approximately 4% to 5% or around 7,000 rai per year.

“This growth is supported by a combination of global economic recovery, shifting investment strategies among multinational corporations, and sustained government investment in infrastructure,” the report said.

Here’s more from Savills:

Industrial estates, which provide essential infrastructure such as electricity, water supply, flood protection, and centralized sewage systems, are increasingly attractive to both domestic and foreign investors. A key driver of this expansion is the ongoing geopolitical shift, which has prompted multinational firms to diversify operations away from China and toward ASEAN markets.

Thailand, with its strategic location and investor-friendly policies, is well-positioned to benefit from this trend. The Eastern Economic Corridor (EEC) remains the focal point of industrial development. Major infrastructure projects – including the high-speed rail linking Don Mueang, Suvarnabhumi, and U-Tapao airports; the expansion of U-Tapao International Airport; and the third phase development of Laem Chabang and Map Ta Phut ports are significantly enhancing regional connectivity.

These developments have driven up land values, with the Real Estate Information Center (REIC) reporting a 107% increase in the EEC’s vacant land price index since 2017, including 120% in Chonburi and 96% in Rayong.

In response to evolving investor expectations and sustainability imperatives, estates operators are transitioning toward “smart parks” which integrate advanced technology and prioritize environmental responsibility. These developments align with Thailand’s bio-circular-green (BCG) economic model. Operators are also expanding service offerings and forming strategic partnerships to deliver more comprehensive solutions to tenants, thereby strengthening their competitive positioning.

Investor interest is particularly strong in digital infrastructure. In Q3/2025, MSCI Real Capital Analytics reported two major data center land acquisitions: Amazon’s THB400 million purchase at WHA ESIE and CloudHQ THB170 million investment in Pluak Daeng, Rayong. These transactions underscore the EEC’s growing role as a regional hub for digital investment.

Despite the positive outlook, challenges remain. Thailand’s relative competitiveness is under pressure from neighbouring countries, and the limited supply of new industrial land may constrain future growth. Rising operational costs and regulatory complexities could also affect investor sentiment. Nonetheless, with continued infrastructure development and policy support, Thailand’s industrial estate sector is entering a transformative phase, positioning the EEC as a strategic gateway for long-term industrial and technological investment.