Phuket real estate market on the wave of changes

26.09.2022
Phuket real estate market on the wave of changes

The Phuket real estate market, the most dynamic in the country, has recently undergone significant transformations. There is a growing demand for single-family housing and condominiums. Phuket faced an influx of real estate buyers in 2019, with the first interest shown in apartment buildings, most of which were branded hotels.

The COVID-19 pandemic quickly broke the existing trend, there was an outflow of foreign buyers. Most of the demand began to be provided by residents of Bangkok, and private villas gained popularity. Focus on a quiet, secluded life has become an important motivator for potential buyers.

The main sales driver in Phuket is the Laguna area, which is directly adjacent to the popular resort area of the tourist island. According to research by real estate agencies, today the bulk of sales are accounted for by five developer companies specializing in premium villas.

The leader is Phuket Exclusive Development, which has two dozen projects with a total number of clients up to 500 people. The positions of the other members of the top five are more modest, but each of them has at least a hundred clients. Along with this, the cost of housing in this segment has grown to 30-80 million dollars, against 15-20 million a few years ago.

Another trend has been the active purchase of commercial real estate with a view to its subsequent lease to entertainment venues, catering and trade. As for 1- and 2-room apartments, estimated in the range of 9-15 million baht, their buyers are mainly young families.

Analysts note that the coastal zone of Phuket is practically built up, so real estate located on the second and subsequent lines is gaining popularity. Further urbanization of the island leads to the transformation of entire areas.

In general, experts consider the market favorable for further growth, expecting a significant influx of foreign investment in local real estate.