Thailand is a small kingdom in Southeast Asia and one of the most popular holiday destinations. In 2019, 39 million tourists visited Thai resorts, becoming a new national record as reported in the information of the Ministry of Tourism of the country. Of course, the pandemic has had an impact and the state sacrificed the tourism sector for the sake of preserving the health of its citizens. But the dynamics of the indicators of previous years in the tourism sector allow us to believe that after restrictions are lifted, a tourist boom will occur again in the country.
Real estate in Thailand attracts foreign investors from all over the world and Phuket Island is becoming one of the most attractive in investing in real estate in Phuket. According to research on the registration of the transfer of ownership in the Land Department, the island ranks 3rd among the regions in popularity with foreign buyers. For 5 years of observations and research by the local housing market, it is believed that 4.7% of the total number of apartments were bought by foreigners and investors in Phuket.
Investment property in Phuket
Some of the following types of property investment in Phuket are:
Apartments in condos;
A condominium is joint ownership of a real estate project that is located on one piece of land. When buying property in Phuket for foreigners, they are one of the key clients of real estate agencies that buy property in Phuket and apartments in Thai condominiums. But, according to the laws of the kingdom, foreigners can own up to 49% of the total area of a building with condo apartments.
Usually, a condo is a small studio apartment. For instance, real estate in Phuket with an area of 20 square meters in a new residence under construction from a well-known developer in Thailand, sale from USD 42,000. Of course, apartments in Thailand are presented in various layouts and prices will vary depending on the following factors:
Proximity to social and entertainment areas;
Availability of security and other amenities such as a swimming pool, a gym and a garden.
Property prices in Phuket, Thailand
Real estate in Phuket from developers and agencies are houses with a private fenced area, a swimming pool, a garden and a recreation area. The price for a modern villa starts from USD 100,000. Premium-class villas, according to the report on the average market value for 2021, can be purchased from USD 1,000,000.
Townhouses are low-rise buildings that have adjacent walls with neighboring houses. The main advantage of the townhouse is its area. The rooms are relatively larger than apartments which creates an atmosphere of a spacious and cozy home. The price for a townhouse in Phuket varies from USD 100,000 to USD 500,000. Prices for real estate for sale in Phuket vary depending on the location and area of the development project.
New buildings in Thailand are one of the most profitable real estate investment in Phuket. At the initial stage, you can buy real estate at a bargain price, which is 30% lower. In addition, most developers provide a convenient payment system and installments. Some projects guarantee profitability of up to 7% of cash so that the payback of real estate will occur in up to 15 years.
In the secondary market, real estate prices in Phuket range from USD 88,000 to USD 30,000,000. The average price per square meter is about USD 3,000 or THB 100,000.
Due to the easing of restrictions, analysts predict an increase in Phuket real estate prices 2022 by about 5-10%. But even taking into account this growth, when investing in Thai real estate, you can get an income of up to 10% per year with self-rental real estate. In Thailand, it is more profitable to rent housing for the short term since a discount system has been adopted for long-term rentals with a discount of up to 50%.
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