Investment in Phuket Real Estate in 2024
In 2024, Russians, along with buyers from China and Western countries, are increasingly investing in Phuket's real estate. In 2022, Russians ranked second in the number of real estate transactions in Thailand. Their interest remains focused on the resort regions, especially Phuket, but their goals have changed: while they used to buy primarily for vacation, now the focus is on investment.
Phuket resort properties offer high rental returns of up to 10% annually and can appreciate by up to 30% during the construction phase. One of the key advantages of Phuket’s real estate market is its diversity. Although prices for resort developments have risen significantly after the pandemic, there is still room for growth, as the main category of foreign investors from China is only beginning to return after the lockdowns.
Additionally, developers in Phuket are highly international: major companies from Bangkok, Australia, Europe, and even Russian-speaking developers have succeeded in Phuket over the past two decades. Furthermore, the potential for growth in tourist traffic remains high due to the increasing number of tourists from China and rising demand from other countries.
Foreign investor interest in Thailand continues to grow. According to the Government Housing Bank (GHB), the number of foreign real estate transactions in 2022 increased by 82.3% compared to 2021. Russians have maintained second place among the most active buyers over the past five years, behind Chinese investors, followed by buyers from the USA, UK, and France.
Target regions differ by country: Chinese investors are most active in the capital markets of Bangkok and Chiang Mai, while Russians and Europeans focus on Phuket and other resorts like Samui, Koh Chang, and Koh Lanta. Analysts from GHB note that foreign property sales began to regain momentum in the second half of 2022 as borders reopened and Chinese buyers returned to the market.
Thailand is a stable and friendly market for investors. Over the past 10 years, Thai real estate prices have consistently grown by 1–10% annually without sharp fluctuations, according to data from the Bank of Thailand. Following the pandemic, prices for resort developments in Phuket nearly doubled in a short time. Before the lockdowns, small apartments in a developing condominium could be purchased for $70,000–80,000, but by May 2023, similar units were listed for $130,000.