Thailand's real estate sector, estimated to be worth US 2 trillion, is on the brink of significant transformation, driven by three emerging megatrends: multigenerational living, semi-retirement, and hospitality-residence hybridization.
Multigenerational Living - Multigenerational living is on the rise in upscale segment. This new pattern sees family members across generations acting as co-decision makers in property purchases, with older generations maintaining substantial purchasing influence.
According to UNFPA data, 34% of Thai households are currently multigenerational, a figure expected to increase in tandem with the growing elderly population. This shift towards multigenerational living is reshaping the real estate landscape, prompting developers to reconsider traditional housing models and adapt to evolving family structures.
To seize a new growth opportunity, the flexibility principle is put at the heart of home design that allows for functional expansion in the future to meet the needs of family members across generations. It starts with a basic layout and construction that fully support every stage of human life cycle.
Under one roof, demands vary. Gen Xers will need a home remodeling to enhance mobility with fewer obstruction and wider doorways when they experience physical health challenges. When it comes to location, millennials and Gen Zers prioritize proximity to work as they are career oriented. While Gen Alpha concerns the neighborhood safety where a high-quality school is situated.
Semi-retirement lifestyle - Thailand's aging society is reshaping retirement patterns and labor market dynamics. A 2024 Fidelity Investments study reveals that 66% of Gen-Z and Millennials favor phased retirement, with 57% planning part-time work during retirement. This trend is fostering a "semi-retirement lifestyle," where individuals reduce work hours while maintaining income to pursue personal interests.
Globally, semi-retirement is gaining traction, driven by financial needs, the desire to stay active, and personal passions. This shift highlights a growing demand for residential properties that can accommodate both work and leisure, as well as integrated medical care facilities.
Hospitality-Residence Hybridization - Thanks to the influx of international demands seen in Bangkok and Phuket, the use of property and length of stay has been shifted from a primary residence for full-time occupants to a secondary occupancy for semi-vacationing.
As a result, mixed-use development will continue to dominate Thailand’s real estate development, offering products and services that meet the needs of all customer groups beyond residential purposes. Branded residence is leading the way along with retail and office spaces like urban and market developments in Dubai.
