Investments
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.
For several decades, Thailand has firmly established itself as a paradise for living and vacationing. Pristine white beaches, the azure waters of the Indian Ocean, lush tropical greenery, and stunning natural landscapes, combined with ancient history and the welcoming nature of locals, provide a striking contrast to the usual life in northern latitudes. As a result, more and more people from Europe, Russia, and the USA choose Thailand as their holiday destination or even for permanent residence every year.
Thailand is deservedly considered one of the best countries in Asia for real estate investment, offering an attractive alternative to Europe and the Middle East. The Thai real estate market provides optimal opportunities for investors seeking balanced returns – neither too risky nor too conservative. It is not a high-stakes game with significant risks, as in some emerging markets, but it also offers better returns than very safe investments. Even funds from Singapore and Hong Kong prefer to invest in projects in Phuket rather than on their own islands. For many investors, Thailand strikes a golden balance between mature markets and developing ones.
In Q3 2024, Russian interest in foreign real estate saw a slight decline, down by 0.6% compared to the previous year. For the first nine months of this year, overall demand cooled by 8.2% year-over-year.
Thailand has long been a leader in tourism revenue in Southeast Asia, with last year’s income reaching an impressive $66 billion. Recently, hotel chains have been actively leveraging this tourism boom by managing apartment complexes and renting them out. Property owners, in turn, receive guaranteed annual income through contractual agreements.
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.
The Thai real estate market is experiencing another surge in demand, and investments in the Kingdom's apartments and villas are becoming increasingly popular due to the attractive climate, developing infrastructure, and growing tourist flow. Experts predict that the residential real estate market will reach $2.08 trillion this year, with steady growth expected, pushing the total market to $2.63 trillion by 2028.
Thai real estate offers two main ways to generate profit: rental income and resale at a higher price. Most developers market their projects as investment properties, promising impressive rental returns and significant increases in property values. However, not all projects are as attractive as the advertisements claim. Let's take a closer look at these aspects.