Knight Frank shares 2026 real estate outlook: luxury homes and Phuket remain strong, EEC factories robust, office buildings face pressure

*Knight Frank shares 2026 real estate outlook: luxury homes and Phuket remain strong, EEC factories robust, office buildings face pressure — confirmed details at this stage for Phuket readers.*

Published: 2026-03-16 21:12 UTC Event date: 2026-03-16

Knight Frank shares 2026 real estate outlook: luxury homes and Phuket remain strong, EEC factories robust, office buildings face pressure

Knight Frank Thailand released its 2026 real estate market outlook on March 16, highlighting Phuket’s continued strength in the luxury home sector, robust demand for industrial properties in the Eastern Economic Corridor (EEC), and mounting pressure on office buildings nationwide. The report provides a detailed analysis of key trends and data shaping the Thai property market as the country enters a new phase of post-pandemic recovery.

Phuket luxury home market remains resilient

According to Knight Frank Thailand, the luxury residential market in Phuket is expected to maintain strong performance through 2026. The agency noted that high-net-worth buyers, both domestic and international, continue to drive demand for upscale villas and condominiums on the island. In 2025, over 1,200 new luxury units were launched in Phuket, with an average price of THB 18 million per unit. The report attributes this resilience to Phuket’s reputation as a premier lifestyle destination and ongoing infrastructure improvements, including the expansion of Phuket International Airport.

EEC industrial sector shows robust growth

The report highlights the Eastern Economic Corridor (EEC) as a key area of growth for industrial real estate in Thailand. In 2025, factory occupancy rates in EEC provinces—Chonburi, Rayong, and Chachoengsao—rose to 92%, up from 89% the previous year. Knight Frank Thailand attributes this increase to continued foreign investment in manufacturing and logistics, with 38 new factories completed in the EEC during 2025. The agency forecasts sustained demand for industrial land and facilities as government incentives and infrastructure projects attract additional investors to the region.

Office buildings face downward pressure

While the residential and industrial sectors show positive trends, Knight Frank Thailand reports that office buildings in Bangkok and other major cities are under increasing pressure. As of Q1 2026, office vacancy rates in central Bangkok reached 18.5%, the highest level in over a decade. The report cites changing work patterns and the rise of flexible workspaces as key factors, with more than 220,000 square meters of office space remaining unleased across the capital. Knight Frank Thailand expects landlords to offer more incentives and flexible lease terms to attract and retain tenants in the coming year.

Outlook and market implications

Knight Frank Thailand’s 2026 outlook underscores a diverging real estate landscape, with strong performance in Phuket’s luxury sector and the EEC’s industrial market, contrasted by challenges in the office sector. The agency recommends that investors closely monitor shifts in demand and adapt strategies accordingly. Market participants are advised to watch for further government policy updates and infrastructure developments, which could influence real estate trends in Phuket and across Thailand throughout 2026.

Source: https://news.google.com/rss/articles/CBMiTEFVX3lxTE1hcjZjNF92RUluMzdCMnVUR3hJOEw2OUVjS1lCT19HcVZGTUtsNThWRUsyRF81ZXZiZURyaXJ2TThXT3ZycUJhOGpfQzM?oc=5