Among the participants were some 300 cyclists.
They cycled alongside people in other vehicles, who all oppose the constructions, along the rally route from Chiang Mai International Exhibition and Convention Centre to the construction site.
Rally participants flew green ribbons to show their stance in favour of protecting forestland.
The participants included activists who have long had differing political ideologies but have now come together for the common cause of protecting the environment.
Some cyclists headed from the construction site to zones with dense concentration of trees to perform sacred rituals to consecrate Chiang Mai’s forests.
Critics say the constructions have allegedly encroached on forestland, even though authorities have maintained that none of the buildings are located on land belonging to the nearby Doi Suthep-Pui National Park.
Authorities plan to hold talks with the protesters on Monday.