Bangkok secured sixth place in a survey on cross-border real estate investment in Asia-Pacific, reinforcing its appeal as a key destination, according to property consultant CBRE Thailand.
Barnaby Swainson, head of capital markets at CBRE, said Bangkok's ranking highlighted its growing appeal to North Asian developers and investors seeking opportunities in Southeast Asia's key growth hubs.
"The ranking is driven by heightened cross-border interest, particularly from North Asian developers aiming to expand into one of Southeast Asia's fastest-growing markets. Investors are targeting the hotel and residential sectors, which continue to show strong demand," he said.
CBRE's 2025 Asia Pacific Investor Intentions Survey, which explored buying intentions across most markets in Asia-Pacific, ranked top cities for cross-border investment.
Tokyo led the list for the sixth consecutive year. Sydney, Singapore, Ho Chi Minh City and Mumbai followed, while Bangkok secured sixth place ahead of Melbourne.
Although Bangkok's position remained steady, the overall investment strategy has evolved. Many investors are shifting from core to core-plus and value-add strategies in search of better returns amid changing market dynamics.
"To optimise returns, investors should target a mix of income-generating assets and development opportunities in Bangkok, particularly in sectors like hospitality, serviced apartments, retail and offices," said Mr Swainson.
Thailand offered competitive internal rates of return, ranging from 8% to 20%, depending on the investor's risk appetite. These returns keep Bangkok an attractive choice compared to other regional markets.
The survey found industrial and logistics assets remained the most sought-after. Built-to-sell residential developments, hotels, resorts and retail were also identified as top investment sectors.
Bangkok's hospitality sector remained a top pick, with strong performance trends and growing returns for investors.
The office sector was also seeing improvements in occupancy rates in newer developments and presents opportunities in older buildings through refurbishment or redevelopment, despite facing some challenges.
"Repositioning ageing properties offers a clear path to add value and generate higher returns, especially as Bangkok sees an increasing number of older assets nearing the end of their economic life," said Mr Swainson.
Investors should carefully assess asset performance trends, particularly leasing dynamics, to mitigate risks.
Negative trends could affect future returns, but stable or improving assets may offer better long-term prospects.
Inflation and rising development costs pose short-term risks to Bangkok's real estate market.
Higher borrowing costs and potential global trade tariffs could create uncertainties for investors.
While debt costs in Bangkok are higher compared with markets such as Tokyo and Osaka, borrowing rates remain relatively attractive for well-capitalised investors.
Strong economic growth prospects continue to justify investment in Bangkok.
