The Bangkok shopping centre business in Thailand is experiencing significant recovery, buoyed by the steady influx of international tourists. Projections for 2024 estimate a total of 35.99 million foreign visitors, approximately 88% of the pre-COVID-19 levels seen in 2019.

Retail supply has increased by 4% compared to the end of last year, mainly due to the gradual market entry of projects like One Bangkok. From 2024 onwards, large-scale township developments, such as Dusit Central Park and The Forestias, are expected to enter the market progressively. These projects play a vital role in attracting multinational companies to invest in Thailand.

In Q1 2024, Bangkok shopping centre operators reported a 25% increase in revenue and a 31% rise in profit. Key drivers included the hardline goods, food, and fashion sectors. 

The Bangkok shopping centre sector is expected to maintain growth in both supply and demand towards the end of 2024, driven by sustained international tourist arrivals.

This period will also see the launch of major township projects like One Bangkok and Dusit Central Park. These developments are well-positioned to support increased consumption by foreign residents and business travellers, benefiting from Thailand’s rising role as a hub for data center investments.
 

Foreign Tourist Forecast: 88% Recovery in 2024
By mid-2024, Thailand had welcomed 17.5 million international tourists, with the largest groups being from China (3.43 million), Malaysia (2.43 million), and India (1.04 million). The Tourism Authority of Thailand forecasts a total of 35.99 million foreign visitors by year-end, representing 88% of the 2019 levels.

Retail Supply Growth: 4% Increase in 2024
As of mid-2024, Bangkok's total shopping mall retail space reached approximately 3.2 million square meters, a 4% year-on-year increase, primarily driven by One Bangkok. Additionally, supporting retail in mixed-use projects contributed approximately 820,000 square meters, with new entrants like Gaysorn Plaza adding to the supply.

 
Large-Scale Township Projects Attract International Investments
Starting in 2024, large-scale township projects such as One Bangkok, Dusit Central Park, and The Forestias will roll out. These projects are designed to attract international firms by offering comprehensive environments for work, leisure, and living.

The growing interest from global companies to establish data centers in Thailand has further boosted investment. Notable commitments include:

• Google: Plans to invest $1 billion (approx. THB 35 billion), expected to create 14,000 jobs between 2025 and 2029.
• Amazon/AWS: Announced a $5 billion (approx. THB 190 billion) investment to launch AWS Thailand Region in early 2025, with a target of training over 100,000 Thais in cloud skills by 2026.
• Microsoft: Intends to establish data centers in Thailand, focusing on AI skill development for over 100,000 Thais through initiatives like AI Skill for the AI-enabled Tourism Industry and AI Odyssey.
• Nvidia: Plans to invest in data centers and is set to visit Thailand in December 2024.
• Equinix: A leading U.S.-based data center provider, committed to investing THB 16.5 billion over the next decade.

Significant Revenue and Profit Growth in the Shopping Mall Sector
Major Bangkok shopping centre operators reported a 25% revenue increase and a 31% profit boost in Q1 2024, with food and fashion sectors contributing 8% to total revenue.

Profit margins rose by 5-9%, driven by the hardline goods, food, and fashion segments. With strong footfall from both local and international visitors, rental rates have risen by 1-3% for new contracts, while some malls have expanded their retail spaces to accommodate increasing demand.

Future Trends
Bangkok shopping centre sector is expected to experience continuous growth in both supply and demand, driven by a significant increase in international tourists during the New Year season.

This surge in traffic is boosting shopping mall revenues, both through Gross Profit and Fixed Rent leasing models. Additionally, the gradual launch of major projects like One Bangkok and Dusit Central Park, which will initially focus on hotel spaces before expanding to residential and retail areas in the following year, is set to stimulate consumption among foreign visitors, particularly business travelers and long-term expatriates.

Global investments in data centers by leading international companies further strengthen the sector, providing a critical boost to the expansion of mall patronage.

Related Readings 

Strong growth of Bangkok’s shopping centres in the second half of 2023 – Knight Frank | RE Talk Asia

Overview of Bangkok Retail Market as of mid-2023 | RE Talk Asia