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Thailand expected to become regional luxury retail hub

As Thailand cements its place as Southeast Asia's leading luxury market, the synergy between tourism and retail will remain a defining factor in shaping the industry's future.

Bangkok (VNA) – Thailand's luxury retail market is valued at 4.4 billion USD and projected to grow by approximately 5% annually through 2028, placing the country at the forefront of luxury retail in Southeast Asia and seventh in Asia-Pacific, according to property consultant CBRE Thailand.

CBRE Thailand’s 2025 Real Estate Market Outlook highlights a strong synergy between tourism and retail, supported by 35.5 million international arrivals in 2024 and the addition of over 410,000 sq.m of downtown Bangkok shopping mall space between 2024 and 2025, the Bangkok Post reported on May 27.

This robust expansion is providing luxury retailers with new strategic opportunities as demand from both affluent locals and international visitors rises.

In addition to tourism-driven gains, Thailand has made significant progress in attracting wealthy expatriates and foreign buyers through long-term visa programmes and its reputation as a "safe haven".

With the recovery of airline capacity and a favourable visa policy, the number of high-net-worth individuals visiting and residing in Thailand is expected to further increase, presenting additional opportunities for retail developers.

Developers have responded by reallocating prime retail space in key central business district malls, prioritising luxury brands, elevating experiential offerings with fine dining and premium entertainment, and redesigning layouts for flagship stores and dedicated luxury zones. Services such as multilingual assistance and tax-free shopping are increasingly being incorporated to enhance the customer experience.

Luxury brands entering or expanding in Thailand are now highly selective, favouring venues that closely align with their brand image and client base. This has driven a comprehensive and strategic approach among developers and mall operators, targeting areas with dense populations of affluent consumers.

Chotika Tungsirisurp, head of consulting and research at CBRE, said that developers and retailers that prioritise location, innovation, and premium environments will be well positioned to capture the next wave of growth.

As Thailand cements its place as Southeast Asia's leading luxury market, the synergy between tourism and retail will remain a defining factor in shaping the industry's future, she said./.

VNA
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