Thriving opportunities boost Phuket’s real estate market in 2023

Rising foreign demand, investment hotspots, and shifting trends shape a promising landscape

Phuket’s real estate market is booming in 2023, driven by high foreign demand and the island’s stunning beauty and thriving tourism industry. Phuket.Net Real Estate notes that the surge in international buyers is attracted by the potential for high returns and long-term growth. New property hotspots are emerging, offering exciting investment opportunities in previously overlooked areas. Changing buyer preferences influenced by evolving lifestyles and technology are shaping the demand for specific types of properties. 

Experts predict a positive outlook for Phuket’s housing market, thanks to the island’s economic stability, infrastructure development, and attractive rental yields. Phuket’s natural beauty, strong tourism industry, and well-developed infrastructure make it a compelling choice for property investors seeking lifestyle benefits and financial returns. Overall, Phuket presents a promising landscape for investors in 2023.

Foreign buyers in the country have contributed to its improving economy, driven by the reopening of China and their higher purchasing power. According to Thailand Business News however, domestic buyers are still struggling due to factors like rising interest rates, inflation, and political uncertainties. In the first quarter of 2023, the number of condominium transfers by foreigners surged by 79.2 percent compared to the same period last year. These buyers tend to have larger budgets and prefer living in major business districts and along the Chao Phraya River. 

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The Agency for Real Estate Affairs predicts that foreign buyers will represent 15 percent of total property value or 10 percent of total units transferred, with purchases expected to increase to 18 percent of total units sold in the next two years. The Real Estate Information Center reports a significant increase in condominium transfers by foreigners, with a rise of 79.2 percent to 3,775 units in the first quarter of 2023 compared to the previous year, amounting to a 67.6 percent increase in transfer value.

Real estate developers and consultants in Thailand are urging the new government to implement policies that attract foreign investment in order to boost the economy. Thaiger reported that these developers believe that such measures will create a positive environment for overseas buyers in the property market. Suggestions include increasing awareness among foreign investors through promotional efforts. 

The head of residential sales projects at CBRE Thailand, Artitaya Kasemlawan, emphasises Thailand’s attractiveness as a destination for foreign buyers. Recent data shows a significant increase in condo transfers to foreigners, with Chon Buri surpassing Bangkok in foreign buyer activity. Developers anticipate a rise in property purchases by Russian and Chinese buyers, urging the government to focus on promoting foreign investment through tax incentives and ensuring safety and livability.

The Property Report editors wrote this article. For more information, email: [email protected].