Figure 1: Historical market-wide cumulative Prime Grade Supply (2015-1H21)

Source: JLL Research, as of 1H21

Bangkok is a large demand source, but suitable development land is scarce and expensive, resulting in minimal new supply. JLL witnesses the city’s periphery and neighbouring provinces driving supply growth. These areas enjoy substantially less expensive land but benefit from convenient access to the city centre. Therefore, they experience the highest growth in both supply and demand for Digital Space.

In Bangkok, warehouse demand has been high in the below areas:

• Eastern Vicinity, an area on the outskirts of Bangkok, which provides access to the city centre
• Eastern Economic Corridor (EEC), an incentivised special development zone with Thailand’s largest seaports
• Northern Vicinity of Bangkok towards Phra Nakhon Si Ayutthaya, the gateway to the northern region of Thailand

Figure 2: Warehouse transactions since 2012

Source: JLL Research, as of 1H21

As the Digital Age reaches maturity, demand for Digital Space in Thailand will expand, and developers will continue to provide more tailored options. This will continue to provide opportunities to those innovators who can best synergise digital and physical space.