04 Apr 2023
PhuketProperty.com; If you are considering buying property in Kamala, Phuket, it's important to understand the real estate market in the area before making a decision. Kamala is a popular destination for both tourists and expats, with a variety of properties available for sale ranging from small apartments to much larger luxury villas to in excess of US$10 million. In this blog, we will explore the current state of the real estate market in Kamala and what buyers should consider before making a purchase.
Current State of the Real Estate Market in Kamala:
Post Covid, Kamala is again experiencing positive interest in real estate market, with a wide range of properties available for sale. According to recent data, the median price of a condominium in Kamala is around THB 6.5 million, while the median price of a villa is around THB 30 million. These prices remain relatively competitive compared to other popular areas in Phuket, such as Laguna and Layan.
In recent years, the real estate market in Kamala has been steadily growing. This can be attributed to a number of factors, such as the development of new properties, the increasing popularity of Kamala as a tourist destination, and the growth of the local economy. This growth has led to an increase in the local property prices, making it a good time to invest in the area before prices potentially continue to rise.
What to Consider Before Buying Property in Kamala:
Location: One of the most important factors to consider when buying property in Kamala is location. Kamala is a large area, and the location of your property can have a significant impact on its value and rental potential. Properties located close to the beach are limited and expensive and command higher prices, while properties located further inland towards the mountain can be more affordable and yet are within easy reach of the beach.
Budget: Kamala offers a wide range of properties at varying price points, from affordable one-bedroom condo’s to luxury oceanfront villas. Before making a purchase, it's important to set a budget and stick to it. Consider not only the initial cost of the property but the transaction costs and also ongoing expenses such as community and maintenance fees. Property taxes remain low in Phuket and are collected on an annual basis.
Purpose: Another important consideration when buying property in Kamala is the purpose of the purchase. Are you buying the property for personal use or as an investment? If you are planning to rent out the property, it's important to consider the rental potential and demand in the area. Currently, rental laws prohibit daily rental income unless as part of a resort or hotel. Privately owned condo’s can be rented for a minimum period of one month.
Developer and Management Company: When buying property in Kamala, it's important to research the developer and management company responsible for the property. Look for established and reputable companies with a track record of delivering quality properties and good management services as up keep can reflect in a higher selling price when the development is well maintained.
Legal Considerations: Finally, it's important to consider the legal requirements when buying property in Kamala. Foreigners are allowed to own condominiums in Thailand, but ownership of land is restricted. It's important to work with a reputable lawyer and ensure that all legal requirements are met before making a purchase. PhuketProperty.com can help with an introduction to a well-established local legal team.
Benefits of Buying Property in Kamala:
Growing Real Estate Market: As mentioned, the real estate market in Kamala is growing steadily post Covid, making it a good time to invest in the area before prices potentially continue to rise.
Tourist Destination: Kamala is a popular tourist destination, with a beautiful beach, a variety of restaurants and bars, and a relaxed atmosphere. Properties located close to the beach or in popular tourist areas may have good rental potential.
Relaxed Lifestyle: Kamala offers a relaxed lifestyle away from the hustle and bustle of other popular areas in Phuket. If you are looking for a peaceful and tranquil environment, Kamala may be the perfect place for you.
Variety of Properties: Kamala offers a wide range of properties at varying price points, making it accessible and appealing to a wide range of investors.
PhuketProperty.com has been based in Kamala for the past 18 years and has transacted significantly along the Millionnaires Mile in Kamala within the multi-million dollar luxury villa market.