Phuket is known globally as the “Pearl of the Andaman” for its beautiful beaches, clear waters, and unique culture, making it a popular destination for both tourism and residence. For real estate investment, Phuket has outstanding potential which draws interest from investors around the world. This article will provide an overview of the key factors influencing Phuket’s residential real estate market.

Factors Supporting Real Estate Market Growth

Consistent Tourism Recovery and Growth

Phuket’s economy relies heavily on tourism. Tourism has rebounded rapidly after the covid-19 pandemic, with a continuous influx of domestic and international visitors. During the high season, Phuket International Airport sees over 370 flights and approximately 10,000 foreign tourist arrivals daily. The influx of visitors directly fuels the demand for both short- and long-term accommodation, including hotels, rental villas, and condominiums.

A Destination for High-Net-Worth Individuals

Phuket continues to attract high-net-worth tourists and investors from around the world. This is especially true for foreign nationals seeking a second home or a permanent retirement home. This market demands luxury properties with comprehensive amenities, and Phuket offers well-rounded amenities and services that cater to this lifestyle. The island’s potential as a yachting hub is also a significant draw, with a capacity to accommodate approximately 700 yachts.

Beyond lifestyle, investors see Phuket as an attractive investment target in Southeast Asia. Geopolitical uncertainties elsewhere in the world have led new groups of investors, such as those from Israel, India, and Bangladesh, to seek out opportunities to diversify their portfolios by investing in Phuket real estate.

Infrastructure Development

Phuket has consistently developed its infrastructure, including the expansion of Phuket International Airport, the construction of new roads, and public transportation projects. These developments enhance convenience for both the travelers and the local population, making a solid foundation to support future population and tourism growth. Several new projects are underway to accommodate foreigners such as the Bumrungrad Hospital (set to be completed in 2027), and the expansion of Srinakarin Hospital and Bangkok Hospital.

The expansion of educational institutions in Phuket is noteworthy. International schools in Phuket are adding more classes to accommodate a growing student body. Several new international schools are set to open. Comparing to Hong Kong and Singapore, the cost of education and overall living expenses in Phuket are more affordable, which allows parents to have more savings. This is a key factor that makes Phuket’s educational institutions attractive to foreigners who seek quality education at a reasonable price.

An Open and Welcoming “Safe Zone”

Phuket has long been known as a place that is open and welcoming to people from a wide variety of nationalities and cultures. This has made it a “Safe Zone” or a safe space that is conducive to living and settling down for everyone, whether they are foreigners who come to work or retire, or even the LGBTQ+ community looking for a place where they can be themselves freely.

This diverse and friendly community creates a warm and welcomed international atmosphere. Phuket also has the strength of a close-knit community where people know each other, leading to a strong collaboration among the private sectors. The recent Equal Marriage Law is another key factor that helps attract people to invest and build long-term homes, because beyond just investing in real estate, they are also investing in quality of life and a society that is open and respectful of one another.

Diverse Real Estate Options

Phuket’s real estate market is highly diverse, offering everything from affordable condominiums to luxurious beachfront villas. This variety allows it to meet the needs of a wide range of investors and buyers. Most projects feature modern designs, unique architecture, and capitalize on the natural scenery. Here are some of the interesting types of properties available:

Condominiums: These are popular with investors seeking returns from short- or long-term rentals, especially in areas near major beaches and tourist attractions like Patong, Karon, Kata, and Bang Tao Beach.

Villas and Holiday Homes: This market is continuously growing for high-income domestic and international buyers who desire privacy and luxury. Prime locations include Cherngtalay, Kamala, or the Nai Yang area.

Commercial Real Estate: Although not residential, the growth of the tourism sector has fueled the demand for commercial spaces such as restaurants, shops, and service apartments.

As in other markets, investing in Phuket’s real estate comes with challenges to consider, such as high market competition, an abundant supply of properties, global economic fluctuations, and the risks of changing government policies. Therefore, it is crucial to conduct detailed research, choose the right location, and consult with experts.

Phuket remains one of the most interesting and high-potential residential real estate markets in Thailand. Its strong supporting factors, including a robust tourism sector, high-net-worth clientele, and continuous infrastructure development—ensure there is still rental demand and numerous channels for renting out properties. Despite the challenges, careful consideration of investment in Phuket’s real estate still presents an attractive opportunity for those seeking both long-term returns and the value of owning a home in the “Pearl of the Andaman.”