For decades, Phuket has been synonymous with short-term holidays and quick tourist cash. Today, however, that narrative is dramatically shifting. The island’s real estate market is undergoing a profound structural change, graduating from a seasonal destination to a robust “Permanent Living Destination” and the numbers prove it.

The latest report from the Real Estate Information Center (REIC) confirms that Phuket is not just attracting visitors; it’s becoming a Global Residential Hub, drawing in high-net-worth foreign buyers ready to settle down for the long haul.

The Great Migration: Villa Investment Trumps Condos

The investment surge is staggering. In the second half of 2023, the total value of new residential projects in Phuket skyrocketed by 1,361% compared to the previous year. This massive confidence injection signals developers’ belief in the island’s long-term residential potential.

More telling is the shift in preference: for the first time in over a decade, the investment value in luxury villas surpassed that of condominiums in 2024. This is the clearest sign yet that “Phuket is becoming a city for living, not just a temporary escape.”

Beyond the Beach: The New Logic of Living

The traditional “prime location” near the beach is no longer the sole driver. Demand is steadily moving away from the coastline towards suburban and inner-city areas like Thep Krasattri–Si Sunthon and Koh Kaew – Rassada

These areas have become hotspots for foreign residents seeking the “Logic of Living”: convenient access to essential services like international schools, hospitals, and better transit networks. This trend is functionally transforming Phuket from a resort town into a city with serious residential communities, fostering a “New CBD” centered around high-quality education and healthcare.

The Power of the High-Net-Worth Expat

Phuket’s market is now fueled by a powerful group of cash-rich buyers, including Expats, Digital Nomads, and Retirees primarily from Russia, Europe, and China. They typically purchase properties in cash, with an average budget between 20–60 million Baht, focusing less on superficial luxury and more on “long-term quality of life.”

• The Villa Craze: Their clear preference is for horizontal housing (villas), especially large 3–6 bedroom luxury villas that support Multigenerational Living.
• A New Luxury Definition: This has redefined the idea of “Luxury Property” in Phuket, shifting the focus from ocean-view condos to homes prioritizing usable space, privacy, and secure ownership rights.

Opportunity, But with a Mid-Market Warning

While the luxury segment is booming, the overall market reveals a key area of risk:

Mid-Market Oversupply: The total unsold inventory remains high, with many units concentrated in the 3–5 million Baht price bracket. This segment, which relies mainly on local Thai purchasing power, is struggling due to high household debt and rising interest rates.

Hotspot Hangover: A significant chunk of unsold units remains clustered in traditional tourist areas like Bang Tao–Surin, highlighting the lingering volatility in markets focused purely on short-term rentals.

The Long-Stay Economy: Fueling the Purchase Cycle

A major systemic boost comes from the Long-Stay Economy, driven by a shadow population of over 1.6 million people (including long-term tourists) who are gradually converting from “renters” to “owners.”

The government is actively supporting this via the Long-Term Resident (LTR) Visa, which offers 10-year stays, tax benefits, and Fast Track services at the airport. This attracts working professionals (35–50 years old) seeking work-life balance.

• High Rental Yields: The resulting robust long-term rental market is providing impressive returns, with some areas like Bang Tao and Laguna yielding 9–10% per annum.
• Hybrid Investment: Buying property in Phuket has become a desirable “Hybrid Investment,” serving both as a permanent residence and a highly profitable income-generating asset.

Phuket Smart City: The Long-Term Confidence Multiplier

For Phuket to sustain its status as a residential hub, infrastructure is paramount. The Phuket Smart City vision is the crucial component, focusing on Smart Living, Smart Mobility, and Smart Governance to ensure safety, convenience, and a high environmental standard for permanent residents.

The island is actively developing Smart Bus networks, EV Shuttles, and integrated healthcare control centers. Crucially, the city is adopting Data-Driven Planning to sustainably manage traffic, water, and environmental issues. This systematic development not only enhances property values but also builds the “long-term confidence” essential for global buyers to commit their lives to the island.

Phuket’s Next Chapter: A Global Home

Phuket is entering its most ambitious developmental phase yet. The demand for real homes has officially overtaken short-term rental investment. The growth of suburban residential areas confirms this fundamental structural change.

In the coming years, Phuket may cease to be merely the “Pearl of the Andaman” and truly become a Global Metropolis of Residential Excellence.