Southeast Asia Outlook 2025: Long-Term Growth Prospects Remain Intact

Note: At the time of writing, global policy uncertainty - particularly due to recent U.S. tariff measures- remains high. As the situation continues to evolve, the long-term impacts are unclear, and the findings in this report may be subject to change.

Now in its third edition, our latest Southeast Asia (SEA) Outlook highlights the region’s economic prospects in 2025. The report also offers occupiers and investors insights into key SEA markets, including Singapore, Malaysia, Indonesia, Thailand, Vietnam, and the Philippines.

While the risk of a global economic slowdown may temper SEA’s short-term growth, the region’s demonstrated resilience and strong long-term fundamentals will continue to position it among the world’s fastest-growing economies. SEA remains one of the fastest-growing regions globally, with gross domestic product (GDP) poised to rise by 4.8% year-over-year (YOY) in 2024, outpacing the 3.9% growth recorded in 2023.

Thailand's Economic Overview

Thailand's economy is expected to sustain its upward momentum in 2025. Key drivers of growth include increased government consumption and investment, robust domestic private demand, continued recovery in the tourism sector, and sustained expansion in exports.

Thailand has emerged as a major hub for data center investments, with global tech giants making significant commitments over the past 12 months. TikTok has announced an $8.8 billion investment, AWS is investing $5.9 billion, Microsoft has committed $2.9 billion, and Google has launched its fifth data center in Thailand with a $969 million investment. These milestones underscore Thailand’s growing prominence as a key digital infrastructure destination in the region.

Key Takeaways for Occupiers in Thailand

• Office Sector: Demand for Grade A office space leasing in CBD areas is expected to continue to grow, with tenants seeking high-quality office spaces in sustainable and smart buildings.
• Retail Sector: Grade A shopping malls in Central Retail District (CRD) locations are expected to face challenges in attracting shoppers with the launch of new Grade A retail spaces.
• Industrial Sector: Thailand's industrial property market shows a strong investment outlook, driven by the automotive, electronics, and machinery sectors, with the Eastern Economic Corridor (EEC) playing a key role in accelerating industrial development.
• Logistics Sector: Demand for warehouse space has seen sustained expansion, while rents are expected to increase through 2025.
• Residential Sector: Average selling prices and sold rates are expected to increase.