Construction in Thailand is expected to grow at the equivalent of almost 7 per cent per annum for the next five years, according to a new report
Data firm Timetric forecast that the sector would be worth THB614bn (£12bn) in 2017 – a compound annual growth rate of 6.7 per cent from now to then.
The data expert said the industry’s growth would be driven by the Thai government’s ambition to become the regional hub of the proposed ASEAN Economic Council.
The infrastructure market is predicted to have the fastest growth, with a CAGR of 7.2 per cent. The government has announced a development plan to improve regional connectivity; and a water management plan after devastating floods in 2011.
Commercial work is expected to expand by the equivalent of 6.8 per cent per year over the next five years as disposable income rises and demand for office buildings in Bangkok stays strong.
Industrial construction activity is forecast to grow by a CAGR of 6.5 per cent to 2017 as companies push to meet historic demand still unfulfilled due to the floods. Significant investment is expected in the manufacturing and metal industries, according to Timetric.
Housing – which makes up more than half of the construction industry in Thailand – is expected to grow at a CAGR of 6.4 per cent amid rising domestic incomes and foreign investment in holiday and retirement homes.
‘The Thai construction industry recorded a very solid recovery in 2012, recording a growth of 7.6 per cent after witnessing a decline in activity in late 2011 due to intense floods,’ said the report.
‘Reconstruction efforts have supported the industry, with the floor area of construction buildings rising to 19m sq m in the fourth quarter of 2012.’