Mega Projects Spark Surge in Phuket Luxury Properties 2023

Phuket is an internationally recognized tourist hotspot, drawing interest from real estate investors seeking high-end investment opportunities. 

Last year, the island saw a whopping 5,628,483 visitors, including 3,320,217 from overseas, which generated a staggering 176,675.17 million baht in revenue. This optimistic trend, combined with other supporting factors, has already begun to revive the real estate market this year. As a result, it's highly likely that we'll witness the unveiling of numerous high-end property projects in the foreseeable future.

Phuket’s Mega Projects Drive Economic Growth and Attract Investors

Factors attracting wealthy investors in Phuket include the expansion of Phuket International Airport Phase 3, Light Rail Transit (LRT), two mega-projects, and the city of IoT(Internet of Things) 

Phuket has a project to expand Phuket International Airport Phase 3, which is expected to open soon and accommodate up to 25 million passengers per year.In addition, there is a plan to build a Phuket LRT starting from Tha Nun train station in Phang Nga province to the Chalong Intersection station and Chalong Pier. 

Another two noteworthy mega-projects are the Carnival Magic Phuket, a 6,600-million-baht  theme park which will be a new landmark of Phuket and the Andaman International Medical Hub, a 5-billion-baht project that will help Thailand to become a medical hub and medical tourism center for the region. 

The government fully supports the Phuket Smart City project, which aims to make Phuket the first smart city in Thailand modeled after Incheon, South Korea. Moreover, efforts are underway to transform Phuket into the city of IoT (Internet of Things), including implementing a network system to control public lighting, connecting data, and providing SIM cards to tourists. These development projects, along with others, will make Phuket a hub of investment.

Tourists in Phuket spend 6,400-7,200 baht per person per day and stay on the island for 4-5 days on average. Foreigners working in Thailand have a high percentage choosing to work remotely in Phuket, with a yearly increase of 3-4%. As a result, there is high demand for properties with complete functions in Phuket, said Setthapol Buttho, an Executive Director of MontAzure Phuket

Why Phuket is the Sweet Spot for Investors

Phuket's land values have been appreciating annually, creating a profitable investment prospect with capital gains between 5.5% to 10% and rental yields up to 8%. Upscale Phuket villas and condos located along the northern and western coasts of Phuket, particularly Kamala Beach, Surin Beach, Bang Tao Beach, Laguna Beach, and Ya Nui Beach, remain popular and are obtainable at reasonable prices.

Setthapol Buttho, an Executive Director of MontAzure Phuket said that demand for condos, branded residences (premium condos in partnership with famous brands that create uniqueness and benefits for buyers beyond just living spaces, such as condos partnering with furniture brands, fashion brands, hotels, etc.), and vacation homes in Phuket from both Thai and foreign investors who are looking for a second home are continuously increasing. The Thai buyer market is in need of homes or villas, while foreigners are turning to condo projects in Phuket. The factors that make these properties attractive for investment are profitable rental rates, where foreign investors want to invest in projects that can operate like hotels and receive continuous rental income while still being able to use the property as a vacation home.

Moreover, there is a higher demand for luxury second homes in Phuket among high-income Thai residents from Bangkok and expats living in Thailand. The COVID-19 situation has accelerated changes in lifestyle, and many people realize the importance of having a second home. Furthermore, many people worldwide who are looking for a retirement destination see Phuket as a suitable option for living out their golden years.