Rising Construction Costs in Thailand Linked to Global Conflict

According to a report by ttb analytics, published via Khaosod Online, the cost of producing construction materials in Thailand is expected to rise by approximately 20% in 2026 compared to the previous year. This surge is primarily attributed to escalating energy prices, increased transportation costs, and higher raw material expenses resulting from the ongoing conflict between the U.S. and Iran.

The report highlights that the potential closure of the Strait of Hormuz—a critical global shipping route for crude oil and petroleum products—is disrupting supply chains. Because many construction materials rely on petroleum-based inputs, manufacturers are facing significant pressure. This situation is particularly challenging for small and medium-sized enterprises, which already struggle with low profit margins and limited capacity to absorb additional costs.

For residents and those involved in the property sector, this trend may lead to higher prices for new developments and renovations, as businesses find it difficult to pass these costs on to consumers due to weak purchasing power and strict lending conditions. While the 20% increase is a projection based on current geopolitical instability, the long-term impact remains subject to the duration and intensity of the regional conflict. Stakeholders are advised to monitor supply chain stability and potential fluctuations in the housing market as these economic pressures continue to evolve.