Thriving tourism acting as a catalyst for unprecedented achievements, Thailand's real estate market danced to the tune of tourism in 2023. According to REIC, Bangkok ranked at the top, followed by Chiang Mai and Phuket securing its position as the third-largest destination for foreign condo buyers and witnessing a decade-high surge in pool villa sales.
To get an insight of what exciting opportunities are in store for us in 2024, join us on this captivating journey as we unveil whether the trend is still prevalent or out of the spotlight.
Massive Tourism Impact
According to TAT, Thailand has already seen 28 million arrivals at the end of 2023, expecting to reach 30-35 millions in 2024. The surge in tourism during Lunar New Year has significantly contributed to high hotel occupancy rates in Phuket, Bangkok, and other tourist destinations, reaching 90% in January. The resurgence of the tourism industry has significantly boosted the demand for housing in Phuket and Koh Samui, offering property investors the chance to capitalize on Thailand's thriving tourism sector.
Current Market Dynamics
The real estate market of Thailand has a promising future and will keep emerging in 2024. The residential condominium market seems to have concerns with excessive supply and low demand while the availability of residential land is expected to grow, with a sale increase of 7% annually as per FazWaz. According to REIC, the increasing demand of luxury villas in Phuket is driving the new supply, 766 units worth 40.3 billion baht remaining unsold since the new launch projects are high.
Investors' Insights
Thailand's real estate market is witnessing massive foreign buyers, with the Chinese boosting their interest for 2023 and beyond after relieving the travel restrictions. However, Russians have seized the spotlight for the whole year with 338% growth in Phuket villa sales and acquiring half of foreign market in Phuket and Koh Samui, the remarkable strike of 5% from the previous year as mentioned by REIC.
High Rental Yields
Due to tourism bouncing back, CBRE Thailand reported the hotel industry has been reviving and reopening the existing properties. Moreover, high rental demand for pool villas on the islands has played a significant role, generating a minimum annual return of 8% as stated by Live Phuket. Koh Samui and Phuket’s landscape is being redefined by luxury pool villas, offering both luxury living and high yields for investors.
Bright Future Ahead
2023 is set to be a pivotal chapter in Thailand's real estate narrative, offering a promising future that will continue to flourish in 2024.Experts predict that the positive trend established in the last two years will gain momentum in the coming years, cementing Phuket and Koh Samui as a real estate powerhouse in the heart of Thailand.
In Conclusion
As we venture into 2024, Thailand’s real estate market is in the midst of a transformative journey and one of boundless opportunities and enduring growth. The interplay of tourism, international investment, soaring prices and high return has set the stage for a future that holds immense promise. Therefore, this is the best time for you to join the investment journey in Thailand. SKHAI has the best deal for properties in both Phuket and Koh Samui, popular island destinations among tourists and locals, and contact our team for detailed information.
