Projects in Phuket at the Excavation Stage: Choose the Most Promising Investment
Buying real estate at the construction stage can be more profitable than purchasing ready-made housing, as property values significantly increase once construction is completed. This makes it a great option for investment. When renting out a property, an investor can earn up to 10% annually, as Phuket is one of Thailand's most popular year-round tourist destinations, with a constant demand for rental properties such as apartments and villas.
When purchasing real estate under construction, developers often offer attractive deals and installment payment options until the project is finished. These installment plans are particularly beneficial for foreigners, as getting a mortgage in Thailand without citizenship or residency can be difficult.
At the construction stage, you can invest in apartments, townhouses, duplexes, or standalone houses.
Let’s take a look at some of the current projects under construction in Thailand as of April 2022.
PHYLL Phuket Feel Phuket Condominium began construction in December 2021. This project is from Central Pattana, one of Thailand’s largest and most reputable developers. Located in Deduction, in the central part of Phuket, the starting price for an apartment is 2,590,000 baht. The complex will feature three 8-story buildings with a total of 439 fully furnished apartments.
There are three types of apartments:
- 1-bedroom (28–36 m²)
- 1-bedroom (39–46 m²)
- 2-bedroom (57–60 m²)
The complex will have advanced security, including video surveillance, 24-hour security, and face scanning at the entrance. Residents will also have access to a swimming pool, garden, yoga room, fitness center, sauna, coworking space, laundry room, and BBQ area.
While this project is ideal for permanent residence, it may not be the best option for rental investment due to its distance from the beach. It is better suited for those who have a car and are comfortable navigating the island.
MONO Plus Palai Duplexes, developed by The Attitude One, stand out for their minimalist Japanese style and are located just 350 meters from Padai Beach. Prices start at 5,590,000 baht, and the complex includes only six two-story houses. The developer’s previous projects, MONO KohKaew and MONO Palai, were completed in 2020 and 2018, respectively.
Each house has a usable area of 208.25 m² and a plot size of 186 m², with one parking space per house. Residents also have the option to add a private pool. The duplexes feature three bedrooms, four bathrooms, and built-in baths (a rarity in Thailand).
This location is convenient for vacationers, making it a profitable rental option. Nearby are two hospitals, Bandibuk and Orphans, as well as Polye Pier, Chalong Pier, and several beaches like Rawai and Plai Beach.
Another project, Layan Green Park, is located 700 meters from Bang Tao Beach and Layan Beach, 600 meters from Dream Beach, and near golf courses and other attractions. The condominium will consist of seven floors and four buildings, with a total of 403 apartments. Building D will be a two-story clubhouse with just six apartments, each with private access to a pool.
The developer offers a «Return Guarantee» contract with a 7% annual yield for 3-5 years, starting from the completion of construction. The developer also handles apartment rentals, with profits split 60/40 between the owner and the company. Owners can live in their apartments for up to 15 days per year.
Parking will be available for 26% of the apartments (103 cars), which is ideal for the area. This project offers a great investment opportunity due to its location and guaranteed rental yield.
Another ongoing project is MONO RESIDENCES BANGTAO BEACH, where prices start from 2,500,000 baht. The developer guarantees a 7–8% yield for three years, and it’s near Bang Tao Beach.
The building features a minimalist Japanese Art Deco design, with a maximum height of eight floors and 136 apartments. There are two types of apartments: 1-bedroom (34 m²) and 2-bedroom (61 m²).
The complex will offer an above-ground pool, rooftop pool, rooftop bar, 24-hour security, a garden, and parking. Its proximity to Bang Tao Beach makes it an excellent option for tourists.
In conclusion, the best areas for real estate investment in Phuket are the coastal zones. Tenants prefer properties near beaches and tourist attractions, and rental rates are higher in these areas. As mentioned, the average return on real estate investments in Phuket is 7%, with potential yields of up to 10%. With many projects under construction, you can find the best option by consulting local market specialists.