Phuket has been long admired for its pristine beaches and picturesque landscape, rightfully earning the title of the “Jewel of the Andaman Sea.” Therefore it does not come as a surprise that thousands of foreigners have decided to stake a claim on a property on this warm and friendly island.
What is it that made them choose Phuket for buying a property? What makes property investment in Phuket so attractive?
Let’s have a look at the major reasons why Phuket is the best destination for property investment:
Tourism and Tourist Visitation
Being a tropical island with some of the world’s most beautiful beaches, Phuket attracts over 10 million tourists every year and is listed amongst the top 15 most visited places in the world. As per a report released in 2018 by UN World Tourism Organization, the revenue Thailand generates from tourism is the 4th highest of any country in the world.
In the last 20-30 years, Phuket besides being a holiday destination has become home to thousands of professionals, young families, and retirees with a lot of them buying a house or condo for investment.
Thailand welcomed about 40 million people in 2019, however, with the pandemic hit, travel was badly impacted as nations tightened border controls to contain the coronavirus. With those restrictions easing worldwide Thailand's travel numbers have soared significantly. Thailand celebrated the arrival of its 10 millionth international visitor of 2022 recently.
Over four million visitors arrived in Phuket alone in the first eight months of 2022, generating at least 66 billion baht for this popular island. Phuket is now seeing 3,000-5,000 foreign arrivals a day, which accounts to about 40% of the number prior to the outbreak of the Covid-19 pandemic in 2019, while the number of local tourists is at about 85% of pre-Covid levels.
The continuous growth in tourism and foreign residents has contributed to the steady growth in the Phuket property market with the most obvious reason being tourism.
Easy Accessibility with Direct Flights
Phuket has an international airport that makes traveling to and from many countries easy. Phuket Airport has non-stop passenger flights scheduled to 40 destinations in 16 countries including far-flung places like Germany and Australia. It is only a one-and-a-half-hour flight away from Bangkok.
With such easy connectivity, it is no wonder that people from across the world are choosing to make a real estate investment in Phuket.
Despite being world-recognized as a popular holiday destination and such attractive long-term demand numbers, prices in Phuket remain well below other major real estate investment markets in the world. These attractive prices make Phuket desirable not only for the capital returns on the investment but also as a destination for expat living or retirement.
Popular holiday destinations such as Spain, Italy, Portugal, or Greece are much more expensive and prices in the other real estate investment capitals of the world such as Dubai, London, and New York are way beyond affordable. An equivalent freehold condominium property in London would be around 10-15 times more than that in Phuket with a rental yield that would offer a far lower ROI.
Popular Holiday Home Destination
Due to its tropical climate and fabulous beaches, Phuket has long been a popular destination for holiday homes attracting both domestic and international property investors on the island for vacation homes, rental property, hospitality establishments, and also those who wish to settle on the island.
The best part about buying a house or condo for investment in Phuket is that you have a holiday home in a really great holiday destination, allowing you to enjoy staying at your property time and again.
With plenty of appreciation potential, excellent infrastructure, a high standard of living for less, and its ever-increasing popularity, Phuket offers excellent short and long-term property investment opportunities for those who wish to make the most out of their money as they get the best of what life has to offer on this gorgeous island.
If you are looking at property investment in Phuket get in touch with our team at SKHAI to avail the best deals on exquisite properties at some of the most striking locations on the island.