Market Trends of Thailand Construction Industry
This section covers the major market trends shaping the Thailand Construction Market according to our research experts:
Increase in GDP contribution from Construction Industry:
The rising of industrial construction in Thailand is expected to be around the corner soon construction on the industrial sector will be the backbone of Thailand's future economic dominance in the region. The construction sector itself will play a critical role in developing the nation's economy. Despite the downturn of the sector during the 2014-2015 economic slowdown, the construction sector will experience an improvement parallel to the increase in the industrial sector. The government's plan to develop infrastructure in several economic zones has been a great opportunity that could boost the growth of the industrial construction sector.
Increase in Number of Building Permits:
The pace of construction works is largely influenced by trends in the real estate sector. While the office segment sees steady demand, new supply does not quickly reach the market. At the same time, the residential segment is dealing with oversupply at some levels and the withdrawal of speculators. As such, construction is somewhat limited and developers are selective, especially as the price of land rises. Retail space, for its part, is witnessing overbuilding and weak demand. Thailand’s construction industry is at a turning point, and prospects for the sector are largely positive. Although it contracted in 2017, the sector is poised to accelerate on the back of significant public infrastructure investment. Indeed, growth over the medium term is expected to be steadier, with large-scale works planned under the EEC and sprawling transport projects taking place across the country.
