Phuket – The Ideal Region for Real Estate Investment: Seven Key Arguments
Phuket's economy is booming, driven by a thriving tourism industry that brings billions into the region. A stable currency and limited available land make the island highly attractive for long-term investments. Projects from global developers, flexible transaction terms, and high-yield rental programs offer investors significant opportunities to maximize their returns.
These factors make Phuket one of the top regions for real estate investment. Our conclusions are supported by the experts from Exotic Property.
Economic Growth
The real estate market heavily depends on the economic stability of the region. Thailand is performing remarkably well, as evidenced by recent data from Deloitte. The economy is recovering post-crisis, and forecasts from the IMF and the Bank of Thailand predict GDP growth of 3.6–3.8% by the end of 2024. A major source of regional income is the hospitality sector, which contributed over $8.5 billion from international tourists in 2023, representing a third of Thailand’s total tourism income.
The stable national currency, the Thai baht, has remained consistent against the US dollar for over 20 years, providing investors with a reliable source of income from real estate.
Tourism Potential
Phuket attracts between 500,000 and 700,000 tourists monthly, including visitors from China, India, Malaysia, Russia, and Europe. In 2023, Russian tourism increased by 130%, driven by direct flights and an extended visa-free period. Tourism is expected to grow further with the opening of a new airport in the Phangnga province.
Phuket does not suffer from seasonality, making it particularly attractive for long-term investors. According to Knight Frank, the average occupancy rate of serviced apartments on the island is 81%, significantly higher than the average rate in Europe.
Limited Land Availability
Phuket is experiencing a shortage of land for new construction, especially in resort areas, limiting new projects and raising property prices. However, this presents a great opportunity for investors, as real estate on Phuket will always be in high demand for both rental and resale.
High-Quality Construction
Phuket is also renowned for its high-quality construction, supported by a large number of branded developments. Properties managed by Hilton, Radisson, Wyndham, Movenpick, and other global brands can be found here. According to Savills, Phuket ranks in the top 5 regions worldwide for branded residences, surpassing London.
Attractive Property Prices
Over the past 15 years, property prices in Phuket have risen by 150%, but they remain affordable compared to other resort regions globally. For example, $1 million can buy you 213 sqm, whereas in Saint-Tropez, you would only get 30 sqm. The entry threshold for investment properties on Phuket starts at $100,000.