Krungsri Research predicts growth for Thai construction
Krungsri Research unveiled the dynamic trajectory of Thailand’s construction sector for the next two years.
According to the report, the construction industry is poised for a meteoric rise, with an anticipated annual growth rate of 3% to 4%. This surge aligns seamlessly with the overall investment value in construction, heralding a golden era of development on the horizon.
The state sector is projected to spearhead this remarkable ascent, with construction value expected to soar by 3.5 to 4% annually. This surge will be fuelled by ambitious government investment initiatives, particularly those earmarked for the Eastern Economic Corridors.
These projects, slated for accelerated development from 2023 to 2027, are poised to revolutionise Thailand’s logistics infrastructure, propelling the nation into a new era of connectivity and economic prowess.
Simultaneously, the private sector is gearing up for a resurgence in both residential and commercial real estate ventures. Anticipated growth rates of 3% to 3.5% signal a gradual recovery, buoyed by improved purchasing power and strategic infrastructure investments. This revitalisation promises a brighter future for developers and investors alike, as economic conditions continue to stabilise.
However, amidst this wave of optimism, challenges loom large on the construction horizon. Rising construction costs, encompassing materials, labour, and transportation expenses, threaten to dampen the industry’s meteoric ascent. With energy prices soaring, stakeholders must navigate these turbulent waters with prudence and innovation.
Moreover, the spectre of climate change and the urgent race towards achieving Net Zero emissions cast a shadow over traditional construction practices. To navigate this paradigm shift, contractors must pivot towards sustainable technologies that minimise material consumption, thereby mitigating environmental impact while maximising efficiency.
Krungsri Research’s analysis also illuminates a shifting revenue landscape within the industry. Contractors focusing on large-scale government projects are poised to reap the rewards of burgeoning state investments, with revenue streams set to expand exponentially, reported Pattaya Mail.
Meanwhile, their counterparts engaged in private sector ventures can expect a gradual but steady improvement in earnings, mirroring the sector’s upward trajectory.
