Thailand’s luxury retail market is valued at $4.4 billion and is projected to grow around 5% annually until 2028, positioning the country as Southeast Asia’s leader in luxury shopping and the seventh in the Asia-Pacific region, according to CBRE Thailand.
The 2025 Real Estate Market Outlook highlights a strong synergy between tourism and retail, fueled by 35.5 million international visitors in 2024 and the addition of over 410,000 square meters of retail space in Bangkok’s downtown malls between 2024 and 2025.
This growth is creating new strategic opportunities for luxury retailers, driven by rising demand from affluent locals and tourists alike. Thailand’s efforts to attract wealthy expatriates and foreign investors through long-term visas and its reputation as a safe destination further bolster this trend.
As airline capacity improves and visa policies remain attractive, the number of high-net-worth individuals visiting and settling in Thailand is expected to grow, offering further opportunities for retail expansion. Developers are responding by reallocating prime retail space in central malls, emphasizing luxury brands, enhancing experiential offerings with fine dining and entertainment, and redesigning flagship stores and luxury zones. Services such as multilingual support and tax-free shopping are becoming standard to improve the customer experience.
Luxury brands entering or expanding within Thailand are becoming more selective, favoring locations that align closely with their brand image and customer base. This has led developers and mall operators to adopt a more strategic approach, focusing on areas with high concentrations of affluent consumers.
In Bangkok’s Lumpini district, growth is evident through expansions at Central Chidlom, Central Embassy, and the standalone DIOR Gold House. Phuket’s upscale market has also seen developments like the expansion of Central Phuket Floresta and Siam Piwat’s second Siam Premium Outlets.
Location, accessibility, and visibility remain critical, with integrated developments like The Mall Group’s Em District leveraging mass transit connectivity to attract shoppers. The planned addition of 15 luxury brands to Siam Paragon and Iconsiam in 2025, announced by Siam Piwat, underscores the sustained demand for high-end retail spaces. These malls focus on curated tenant mixes and high-end environments to attract new luxury brands and elevate shopping experiences.
A notable trend is the move toward experiential retail, with brands seeking flexible, immersive spaces that offer engaging experiences. Gaysorn Village’s Louis Vuitton store, “LV The Place Bangkok,” exemplifies this approach by combining retail, dining, and exhibition spaces to foster brand loyalty and customer engagement.
Chotika Tungsirisurp, head of consulting and research at CBRE, states, “The development of Thailand’s luxury retail scene is driven by robust tourism, rising numbers of high-net-worth residents, and a strong demand for exceptional retail experiences. Those prioritizing location, innovation, and premium environments will be best positioned for future growth.”
With ongoing retail expansion and an increasing affluent consumer base, competition is expected to intensify, pushing further innovation and renovation. As Thailand cements its status as Southeast Asia’s premier luxury market, the bond between tourism and retail will continue to shape the industry’s trajectory.
