17 Apr 2023
PhuketProperty.com; Phuket is a tropical paradise island located in the southern part of Thailand, and it has become a popular tourist destination over the years. The island is known for its pristine beaches, crystal-clear waters, and lush greenery. With the growing popularity and development of the island, there has been an increase in demand for residential real estate in Phuket. In this blog, we will be discussing the current status of the residential real estate market in Phuket, post-Covid.
Overview of Phuket's Real Estate Market
Phuket has a vibrant real estate market that has been growing steadily over the years. The island's real estate market is driven by both local and international buyers, with the majority of the demand coming from foreigners. The real estate market in Phuket is divided into two segments: the luxury and mid-range markets.
Luxury Real Estate Market
The luxury real estate market in Phuket has been growing rapidly over the years. This market segment is dominated by high-end villas and luxury condominiums that cater to the affluent clientele. The luxury villas in Phuket offer breathtaking ocean views, large land plots, private swimming pools, and state-of-the-art facilities, such as gyms and home theaters. The key factor is generally location and proximity to the ocean with views. The luxury condominiums, on the other hand, provide a more urban lifestyle with modern amenities such as concierge services, swimming pools, and fitness centers.
The luxury real estate market in Phuket is mainly driven by foreigners, particularly those living in Hong Kong, China, Russia, and the Middle East. These buyers are attracted to the island's natural beauty, favorable climate, and the relaxed lifestyle it offers. The luxury real estate market in Phuket has also been supported by the Thai government's investment in infrastructure projects, such as the expansion of Phuket International Airport and the development of new roads and highways. Healthcare and communications are also excellent and the island has an active yachting community with numerous marinas.
Mid-Range Real Estate Market
The mid-range real estate market in Phuket is also growing steadily. This market segment is dominated by condominiums, good sized villas and townhouses that cater to both local and foreign buyers. The mid-range real estate market in Phuket offers more affordable options compared to the luxury market. These properties are usually located in the more urban areas of Phuket, such as Layan, Cherng Talay, Laguna and Bangtao in the North West and Rawai and Nai Harn in the South
The mid-range real estate market in Phuket is still mainly driven by foreign buyers as there has been an increase in demand from foreigners who are looking for more affordable options. The mid-range real estate market in Phuket has also been supported by the Thai government's policy of promoting foreign investment in the country and the ease of visa types for longer stay residence.
Current Status of Phuket's Real Estate Market
The residential real estate market in Phuket was affected very negatively by the COVID-19 pandemic, which has caused a dramatic decline in the number of tourists visiting the island. The decline in tourism also impacted the demand for residential real estate in Phuket. However, despite the challenges posed by the pandemic, the real estate market in Phuket has bounced back rapidly with an influx of buyers.
According to PhuketProperty.com, a leading real estate company, the luxury real estate market in Phuket has been showing signs of recovery and there has been an increase in the number of inquiries for luxury properties in Phuket, particularly from buyers in Hong Kong, Singapore, and mainland China. PhuketProperty.com believe that the luxury real estate market in Phuket is expected to grow in the coming years, driven by the island's natural beauty and the Thai government's investment in infrastructure. The island has a finite amount of land and with a short supply and increased demand the prices will, over time, increase.
The mid-range real estate market in Phuket has also shown resilience during the pandemic and the demand for mid-range properties in Phuket has remained stable despite the decline during Covid.
For more information, contact us at PhuketProperty.com where we have been providing real estate services since 1998.