Thailand’s luxury retail market is currently valued at USD 4.4 billion and is expected to grow by about 5% annually through 2028. This positions the country as the top luxury retail destination in Southeast Asia and seventh overall in the Asia Pacific region, according to CBRE Thailand.
CBRE’s 2025 Real Estate Market Outlook highlights the growing connection between tourism and retail. In 2024, Thailand recorded 35.5 million international arrivals, contributing to increased demand for high-end goods. At the same time, over 410,000 square meters of new shopping mall space is being added in downtown Bangkok between 2024 and 2025, creating new opportunities for luxury retailers.
Beyond tourism, Thailand is attracting high-net-worth expatriates and international property buyers through long-term visa programs and a reputation for stability. With improved airline capacity and visa policies, more affluent visitors are expected, creating further demand in the retail sector.
Retail developers are responding by allocating more space in central business district malls to luxury brands. Strategies include introducing fine dining, premium entertainment, and tax-free shopping, as well as redesigning layouts to accommodate flagship stores and branded zones. Multilingual services are also being added to cater to international shoppers.
Luxury brands entering the Thai market are now more selective, focusing on venues that align with their image and clientele. This has led to a strategic shift by developers toward locations with concentrated wealth.
According to CBRE’s Chotika Tungsirisurp, success in this sector will depend on a focus on prime locations, innovation, and high-quality environments.
(Source: VietnamPlus)
