North Phuket for Investment: Where to Invest to Maximize Profit?
Real estate in Thailand continues to attract significant interest from foreign investors, thanks to the country’s government incentives and stable economic growth. In 2022, most international buyers came from China, the US, the UK, France, and Germany. Resort areas, especially the island of Phuket, are of particular interest. Statistics show that in 2022, foreigners purchased twice as many apartments in Phuket as in 2021. Properties in these popular areas offer a stable rental income, often reaching up to 10% annually in the most lucrative regions.
CONTENT:
- Advantages of North Phuket
- Nai Thon
- Nai Yang
- Property Prices in Nai Yang and Nai Thon
- Foreign Property Purchases
- Return on Investment
- Selecting and Buying Real Estate in North Phuket
With the lifting of lockdowns, the Thai real estate market has bounced back quickly, leading to rising prices. For example, before the pandemic, an off-plan apartment could be bought for $70,000–80,000, but by May 2023, similar properties were priced at $130,000. However, experts predict that real estate prices in Thailand have not yet peaked and will continue to rise. This suggests that now is an ideal time to invest in property in Thailand, particularly in North Phuket.
Advantages of North Phuket
North Phuket is an attractive destination for resort property investment for several reasons, including:
- It is home to Thailand's third-busiest international airport, offering direct flights from over 20 countries.
- The area boasts wide, sandy beaches lined with residential and hotel developments.
- The warm, tropical climate ensures a year-round influx of tourists. The high season, from October to April, sees rental occupancy rates reaching 100%. Even in the off-season, occupancy remains above 50%.
- Property purchase taxes are low.
- The average real estate price is $3,200 per square meter. Investors can acquire profitable properties for as little as $100,000.
- The area offers well-developed infrastructure, including international schools, quality medical services, and convenient shopping options.
Among the best locations for investment in North Phuket are Nai Thon and Nai Yang, two areas near picturesque beaches. Let’s explore these areas in more detail.
Nai Thon
Nai Thon is a peaceful resort area located just 15 minutes from Phuket Airport. It is favored by families and those seeking a serene beachfront escape. Unlike other beaches in Thailand, there are no noisy planes, and the golden-sand beach stretches 1 kilometer along the coast.
While the area lacks bustling cafes, restaurants, and clubs, its tranquility attracts tourists who prefer to unwind in peace. Nai Thon is perfect for meditation, yoga, or simply admiring the stunning sea views.
The area is home to cafes, restaurants, shops, guesthouses, residential complexes, and villas. Although hotels are limited, tourist numbers peak during the high season, making Nai Thon a promising location for rental property investment.
Nai Yang
Nai Yang is one of North Phuket's most scenic beaches. The coastline is lined with tropical trees, and the sea is calm, making it perfect for swimming. The resort area is located near Phuket Airport, and visitors can even walk to the popular spot where planes fly low overhead. While the beach is quiet during the day, it comes alive in the evenings.
Visitors can enjoy dining at beachfront cafes and restaurants offering both local and European cuisine. The area is also home to boutiques, grocery stores, and traditional fast-food vendors. There’s a nearby park where locals and tourists often gather for picnics under the shade of old trees.
Nai Yang offers villas and apartments close to the sea, and tourists favor rental properties by the beach. For investors, this makes residential complexes in close proximity to the beach highly attractive.
Property Prices in Nai Yang and Nai Thon
In the popular resort areas near Nai Yang and Nai Thon beaches, you can find high-quality apartments and houses. The prices depend on factors such as the property's total area, proximity to the beach, and the type of residential complex.
For instance, in Nai Yang, a completed 36 m² studio apartment is priced at $110,000. A luxurious Thai-style house spanning 260 m² with three bedrooms and a private swimming pool is available for $242,000.
Near Nai Thon Beach, the cost of a 37 m² studio apartment is $153,000. In the same area, a two-storey contemporary minimalist villa of 220 m² is being sold for $223,000.
Foreign Property Purchases
Foreign buyers in Thailand can fully own apartments and houses (freehold) or lease them for a 30-year period (leasehold), renewable up to 90 years. However, it’s important to note that buying the land beneath the property is not permitted.
Investors benefit from purchasing properties under leasehold terms since these properties are generally 5–10% cheaper than freehold ones. Additionally, the tax for leasehold transactions is 1.1% of the property value, compared to 2% for freehold purchases. Leasehold properties can be sold or bequeathed, and no income tax is due when the property is sold.
Investors heavily involved in the Thai real estate market can qualify for a long-term visa of 5 years, provided their investments exceed $500,000. Applicants must also demonstrate an annual income of at least $80,000 and assets worth a minimum of $1 million.
Return on Investment
Many resort complexes in Phuket offer attractive options for investors.
Investors can enter into contracts with management companies to receive a guaranteed annual profit of 5–7%. Such agreements ensure that owners are protected from vacancies.
Another option is a rental pool agreement, where profits from all the apartments in a complex are pooled and distributed based on the size of the units. Management services take 30–40% of the total income. This arrangement can yield up to 10% during peak seasons.
A mixed option is also available, where a minimum guaranteed return is provided, and any additional profits are distributed through a rental pool arrangement.
Numerous new residential properties are under construction in Phuket. Developers often offer off-plan properties at discounted rates, allowing buyers to pay in installments throughout the construction phase. By the time the property is completed, its value could increase by up to 30%.
For buyers who can pay for off-plan properties upfront, developers often offer a 5–10% discount.
Selection and Purchase of Real Estate in North Phuket
You can browse available apartments and houses in North Phuket through our website’s catalog. It includes up-to-date listings from developers and real estate agencies, complete with prices, photos, and descriptions.
Our easy-to-use search system allows you to filter properties by price, area, location, and other features. You can compare prices, explore technical details, and select the best investment opportunities.