Bangkok – May 6, 2025 – CBRE Thailand, the leading international property consultant, is
spotlighting the remarkable growth and resilience of Thailand’s luxury retail sector. The market is now valued at USD 4.4 billion and is projected to grow by approximately 5% annually through 2028, placing Thailand at the forefront of luxury retail in Southeast Asia and ranking it seventh in Asia-Pacific.
CBRE Thailand’s 2025 Real Estate Market Outlook highlights a strong synergy between tourism and retail, supported by 35.5 million international tourist arrivals in 2024 and the addition of over 410,000 square meters of downtown Bangkok shopping mall space between 2024 and 2025. This robust expansion is providing luxury retailers with new strategic opportunities as demand from both affluent locals and international visitors rises.
In addition to these tourism-driven gains, Thailand has made significant progress in attracting wealthy expatriates and foreign buyers through long-term visa programs and its reputation as a “safe haven.” With the recovery of airline capacity and favorable visa policies, the number of high-net-worth individuals (HNWIs) 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, prioritizing 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 incorporated to enhance the customer experience.
Luxury brands entering or expanding in Thailand are now highly selective, favoring 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 HNWI populations. Bangkok’s Lumphini district, for example, has seen growth through investments and expansions at Central Chidlom, Central Embassy and Dior’s standalone DIOR Gold House. Phuket’s affluent profile has also spurred projects such as the expansion at Central Phuket Floresta and Siam Piwat’s second Siam Premium Outlets.
Location, accessibility and visibility remain crucial, with integrated retail developments like The Mall Group’s Em District leveraging mass transit connectivity and optimizing shopper flow. The planned addition of 15 exclusive luxury brands to Siam Paragon and ICONSIAM in 2025, announced by SiamPiwat, highlights the ongoing strong demand for high-end retail destinations. Synergistic tenant mixes and curated high-end environments in these malls serve as key differentiators, attracting new-to-market luxury brands and enhancing the overall luxury shopping experience
Another notable trend is the shift toward experiential retail, as brands seek flexible and immersive spaces to create engaging, shareable experiences. Gaysorn Village, now home to Louis Vuitton’s “LV The Place Bangkok,” exemplifies this multidimensional approach, combining retail, dining, and exhibition spaces to enhance engagement and brand loyalty.
“The evolution of Thailand’s luxury retail landscape is propelled by strong tourism, increasing numbers of high-net-worth residents, and a continued appetite for exceptional retail experiences,” said Ms. Chotika Tungsirisurp, Head of Consulting & Research, CBRE Thailand. “Developers and retailers that prioritize location, innovation and premium environments will be well positioned to capture the next wave of growth.”
With ongoing expansion in retail space and a growing base of affluent consumers, competition is expected to intensify, driving continued innovation and renovation. 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.