Business Closure Crisis Hits Thai Real Estate and Construction

MGR Online•Economy•19d ago

Reader Briefing

Thai business closures surged in the first half of 2026, with the construction and real estate sectors most affected by credit tightening and high costs.

•7,024 businesses closed between January and June 2026, a 12.49% increase from the previous year.
•The construction sector saw the highest number of closures at 154 cases, followed by real estate with 105 cases.
•The total registered capital of closed companies reached 98,857 million baht, an increase of over 224%.
•Financial institutions have tightened loan criteria due to high household debt levels.

Overview

•Between January and June 2026, 7,024 businesses ceased operations, representing a 12.49% increase over the same period last year.
•The construction sector had the highest closure rate with 154 cases, while the real estate sector ranked second with 105 cases.
•Construction businesses face pressures from high material prices, high labor costs, and a slowdown in public and private investment over the past 2 years.
•Real estate businesses are struggling with high loan rejection rates from financial institutions concerned about high household debt.
•Real estate developers are delaying new projects and focusing on clearing existing stock and increasing rental proportions to maintain liquidity.
•Despite 44,773 new businesses being established in the first half of 2026, total registered capital decreased by 25.44%.
•Continued business closures in construction and real estate may negatively impact employment, household income, and overall economic purchasing power.
•Experts predict that the second half of 2026 will be a period of survival where businesses with strong financial bases will survive while small and medium players risk mergers or closures.

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Key Quotes

Real Estate Information Center

"The key problem causing the real estate market situation to slow down severely in the first quarter was that financial institutions increased risk management strictness."

ปัญสำคัญที่ทำให้สถานการณ์ตลาดอสังหาฯชะลอตัวรุนแรงขึ้นในช่วงไตรมาสแรกที่ผ่านมา คือ สถาบันการเงินเพิ่มความเข้มงวดในการบริหารความเสี่ยง

Key Entities

Organization

Department of Business Development(กรมพัฒนาธุรกิจการค้า)

The agency that disclosed the number of business closures and registered capital losses between January and June 2026.

Department of Business Promotion(กรมส่งเสริมธุรกิจ)

The agency that reported over 7,000 businesses ceased operations in the first half of the year.

Real Estate Information Center(ศูนย์ข้อมูลอสังหาริมทรัพย์)

The organization that reported the decline of the real estate market index in the first quarter of 2026.

REICℹ️

The abbreviated name for the Real Estate Information Center.

DBD

The abbreviated name for the Department of Business Development.