After analyzing the real estate market in the logistics sector in 2021, experts found that demand began to increase. The highest level of warehouse occupancy in the last 10 years has been achieved.
In the fourth quarter of 2021, Thailand's economy grew by 1.9%, an improvement over the previous year.
The value of exports in the fourth quarter of 2021 increased by 21.3%, exceeding the growth in the previous quarter by 15.7%. This was followed by an increase in the volume of air and sea transportation.
Bangkok and its surroundings still hold the largest market share. In the second half of 2021, the supply in this area increased by 7.5% year-on-year and reached 2.2 million m2.
New construction of warehouses is planned in Samut Prakan province. There are already many warehouses located in this area, which is due to the fact that it is located near Suvarnabhum International Airport, as well as between Bangkok and the Eastern Economic Corridor area (which includes the provinces of Rayong, Chonburi and Chachengsao).
The overall occupancy of warehouses near Bangkok has increased due to the shift of the market from the East Coast due to the limited number of goods during the pandemic. As a result, the occupancy rate rose sharply to 81%.
The average cost of renting ready-made warehouses in Thailand increased by 0.9% year-on-year and amounted to 159 baht/m2 per month. This growth is of great importance if we take into account the cumulative average annual growth in rental rates of 0.3%. The growth may be partly due to the rapid recovery of logistics activities and demand for ready-made warehouses. This is due to the fact that Thailand and many other countries have begun to lift restrictions imposed during the pandemic.
Rental prices in Bangkok and its surroundings, including the East Coast, rose to 161.2 and 163.2 baht/m2 per month. This represents an increase of 1.3% year-on-year and 1.1% year-on-year, respectively. The restriction of first-class warehouse space in the Bangkok Metropolitan area has led to a record increase in rental rates in the area.
At the moment, investments in warehouses can be profitable, as the cost of rent is growing and new warehouses are required in the market, in convenient areas near the airport and seaport.