KKP Signals Thai Real Estate Passing Lowest Point, But Recovery Not Strong

KKP points out that the Thai real estate market has passed its lowest point in 2025, considered the most challenging year for developers, but the recovery in 2026 will not be as swift as many expect. This is due to three key structural factors: declining purchasing power among the 26-45 age group, a growing preference for renting over buying among younger generations, and a downward cycle in foreign investment. Another critical issue is the stringent lending practices of financial institutions, which are making it difficult for projects under 3 million baht to secure loans. The current market shows that smaller developers are losing ground, with the top 5 companies increasingly dominating the market, particularly in the condominium sector. For 2026, developers are advised to prioritize financial stability by maintaining high liquidity and low debt, and to avoid investing in office spaces, small hotels, and vacant land due to market oversupply and potential tax burdens.