Phuket Real Estate Market
Anyone who’s bought real estate in Phuket over the last 10 years knows, the demand for property here has increased significantly. There are new developments in the pipeline that aim to ensure the island’s popularity for years to come. Some areas in Phuket are still yet to be developed and represent investment opportunities.
Thailand has been an extremely popular tourist destination for decades now, attracting an astounding 28 million visitors in 2014. A growing number of people enjoy the Thai culture so much that some decide to buy an apartment or condominium in the Land of Smiles. A majority of these home buyers choose the white sandy beaches and tropical lifestyle of Phuket for investment.
The Market for Condos in Phuket
Phukets luxurious high end Condominiums have been in great demand in prior years. However, these units are currently not the most sought-after anymore. The average home buyer in Phuket prefers a more affordable property. Most of the Condominiums that are sold now are under the 5 million baht mark.
The effect of this trend is already visible in the new developments. Most of these are now built on a relatively smaller plot of land and a smaller unit size but with a focus on comfort and privacy. The reduced size has made these units more affordable, especially as land prices in Phuket are consistently increasing.
Interesting Areas in Phuket
The most saturated area in Phuket is the West coast, with Patong Beach at its center. This is where some of the most expensive property is located and land plots are harder and harder to come by. This area stretches from Surin Beach all the way South to Kata Beach on Phuket’s premier West coast.
Phuket is currently focused on offering a more luxurious holiday experience to its visitors. More high-end shopping malls will be constructed and improvements on the island’s infrastructure are being planned. The center of Phuket is especially benefiting from this with some of the most impressive malls under construction. This is an interesting area for investors where land is more abundant.
The same can be said about the North part of Phuket and just off the island. This is currently the least populated and underdeveloped part of the island. Even apartments and condominiums within walking distance to the beach are very affordable here and you could have the whole beach to yourself on some days. Phuket’s airport is located in this area and the yet to be constructed light rail train will be departing from here too. This will make the Northern part of Phuket’s real estate market much more accessible and could result in more people relocating North.
Return of Investment in Phuket real estate market
Most people looking to buy real estate in Phuket prefer new property. You receive a discounted price if you buy during the construction phase or even before the building process is started.
The steady appreciation of the Thai Baht is an interesting development. As long as the economy in Thailand is growing faster than that of other major countries, an extra profit can be made.
In the Phuket real estate market investors are able to compare the rental projections of a property to that of other properties so that a maximum rental yield per year can be estimated and attained.
The large demand for new real estate doesn’t have to negatively impact your existing property. The unit size of new apartments and condominiums are becoming smaller and smaller. This will also eventually lead to a scarcity of units with lager footprints.
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