Phuket Property Investments 2024

Russian demand is still focused on the resort regions of Thailand, in particular Phuket, but the purposes of purchase have changed: previously, they bought mainly for recreation, now - for investment. Phuket resort real estate brings high rental yields of up to 10% per annum and increases in price up to 30% during the construction period. The main advantage of the Phuket real estate market is its diversification. Firstly, although prices for resort new buildings have grown significantly after the pandemic, they still have room to grow: the main category of foreign investors from China is just beginning to return to this market after the lockdowns. Secondly, there is a complete international community among developers: Phuket attracts large companies from Bangkok, Australia, Europe, there are also Russian-speaking developers who have succeeded in Phuket over the past two decades. Finally, thirdly, the tourist flow also still has great potential for growth due to tourists from China and growing demand from other countries. Foreign investors' demand for Thailand is growing According to the Government Housing Bank (GHB), in 2024, the number of foreign transactions to purchase apartments in Thailand increased by 82.3% compared to 2023. Over the past 5 years, Russians have consistently held 2nd place among the most active buyers, behind investors from China. Russians are followed by investors from the United States, Great Britain and France. The target regions of clients from different countries differ: Chinese investors are most active in the capital markets of Bangkok and Chiang Mai, Russians and Europeans - in Phuket and other resorts (Samui, Koh Chang and Koh Lanta). GHB analysts note that in the second half of 2024, housing sales to foreigners only began to gain momentum again due to the opening of borders after the pandemic and the return of Chinese buyers to the market. Thailand is a stable and friendly market Real estate in Thailand has been steadily growing in price by 1-10% per year over the past 10 years without any sharp jumps, according to the Bank of Thailand's real estate price index. After the pandemic, prices in new resort buildings in Phuket almost doubled in a short period of time. Before the lockdowns, small apartments in a condominium under construction could be purchased for $70-80 thousand, and in May 2024, similar units were put up for sale from $130 thousand.