Thai construction sector expected to grow by 3-4% 2024-2026
The state sector’s construction value is projected to expand by 3.5-4.0% per year, driven primarily by significant government investment projects. Notably, projects related to the Eastern Economic Corridors are under an accelerated plan to develop Thailand’s logistics system from 2023 to 2027.
Krungsri Research has published an analysis of the construction sector trends for the years 2024 to 2026, summarizing that this industry is expected to grow by 3-4% annually, in line with the overall construction investment value.
The state sector’s construction value is projected to expand by 3.5-4.0% per year, driven primarily by significant government investment projects. Notably, projects related to the Eastern Economic Corridors are under an accelerated plan to develop Thailand’s logistics system from 2023 to 2027.
Meanwhile, the private sector’s investment in both residential and commercial real estate is expected to gradually recover, with an expansion of 3.0-3.5% anticipated. This growth is attributed to an expected improvement in purchasing power following economic conditions and advancements in infrastructure investments.
However, the primary constraints on growth are likely to stem from construction costs, including materials, labor, and transportation expenses, which are expected to remain high in line with energy prices.
The challenges of climate change and the race to achieve Net Zero emissions are expected to compel contractors to accelerate adjustments in their investments toward technologies that reduce the consumption of construction materials.
Krungsri Research also detailed that revenues for contractors focusing on large-scale government projects are likely to continue expanding with state construction investments. At the same time, revenues for those focusing on private sector projects are expected to improve gradually. (NNT)
Source: https://www.pattayamail.com/thailandnews/thai-construction-sector-expected-to-grow-by-3-4-2024-2026-455171
