How does Phuket attract tourists and expats?
Phuket is Thailand's largest island, located in the southwest of the country in the Andaman Sea. It has been and remains a popular vacation and wintering destination for tourists from all over the world, including Russia and the CIS countries. If during the time of covid, Phuket was almost extinct due to the lack of tourists, then in recent years everything has changed. Now the island is actively being built up, and the real estate market is growing rapidly. This is facilitated by a well-developed tourist infrastructure, convenient flights, a variety of beaches and entertainment, good medicine, as well as a warm climate all year round.
Thais themselves joke about their country like this: "We have two seasons, summer and rain." The rainy season in Phuket lasts from May to October, but it cannot be compared with the tropical rains in other Asian countries. The rains are heavy here, but short, they come more often at night and in the morning, and after them the sun comes out quickly. Expats find their charms in the low season - it gets quieter on the island, there are fewer tourists, traffic is lower, and many services are cheaper.
The island has everything you need for a comfortable stay, including international schools and high-level medical facilities. At the same time, prices for rental housing, food, and utilities are on average lower here than in most European countries. Phuket is a great place to have your own house by the sea and live there all year round or come to spend the winter. The Thai government offers visitors a variety of ways to stay long-term, from work and student visas to retirement and business visas. The main thing is to comply with the conditions of the visa regime in order to stay in the country legally.
Phuket also attracts remote workers, digital nomads and entrepreneurs, thanks to which an international community is being formed on the island, uniting people of various nationalities.
Phuket's Russian-speaking community
Phuket is sometimes called the "Russian island", and this is partly true. There is a fairly large Russian-speaking community here. Interest in Phuket from tourists from Russia has been growing in recent years. From January to November 2024, about 900,000 Russians visited the island, which is 28% more than in the same period last year. The growing interest is associated with the development of tourist infrastructure, an increase in the number of direct flights and the expansion of offers for Russian-speaking guests. Many local businesses adapt to their needs and offer Russian-language menus, Russian-speaking guides, and other amenities. Phuket has a well-developed infrastructure aimed at Russian speakers: there are Russian restaurants, kindergartens, beauty salons, and taxis. Concerts, networking events, business clubs, and other events are organized for the Russian-speaking community.
In addition, Russians are actively investing in Phuket real estate. In 2023, Russian citizens topped the list of foreign buyers of villas and apartments, both in terms of the number of properties purchased and the amount of funds invested. The share of transactions with Russians among all transactions with foreigners was 53%, with the Chinese in second place (22%) and the French in third (3%).
Who is buying property in Phuket and for what purposes?
Phuket attracts property buyers from all over the world - Asians, Europeans, Australians, Americans. Each of them has their own goals: someone wants to invest, someone wants to rent out a house, and someone wants to move to the island on a permanent basis or spend the winter there. Among those who purchase real estate for personal residence, a significant proportion are elderly Europeans. Tired of the European winter with its cold and slush, they are happy to buy houses in Thailand to enjoy the sun all year round.
Many people buy apartments in Phuket for short-term or long-term rentals. The most popular format is when the owners live in the house themselves for some part of the year, and rent it out the rest of the time. Short-term rentals are aimed at tourists, their profitability is higher, but they require constant search for new tenants. Long-term leases involve annual contracts. Prices in this sector are lower, but such a lease provides the property owner with stable payments and reduces risks. The owner can manage the rent himself or transfer these responsibilities to the management company, which is engaged in finding and settling tenants, cleaning and paying for utilities.
The third investment method is a combination of the previous two: purchased housing can be rented for 5-10 years and then resold. During this time, the facility itself and the infrastructure will still be in good condition, and housing prices will rise.
Russian buyers invest in Thai real estate mainly in order to save their money and bring it to a stable region where there is no hyperinflation. Thailand's big advantage is low inflation, which is 0.1-0.5%, and in rare cases it reaches 1%. This means that if assets are going to depreciate, it will be very little compared to many other countries.
Five years ago, the main interest of Russians was investment. Then the boom in relocation housing began. Now the demand has shifted: many people purchase real estate for themselves in order to come on vacation and rent it out the rest of the time.
Some buyers consider buying a home in Phuket as a long-term strategy with an eye to the future. In order to be able to use this property for personal purposes after some time, for example, in retirement or in case of unforeseen world events.
Prices and types of real estate in Phuket
The cost of housing in Phuket depends on the area, location, area, infrastructure. The closer to the sea and the better the view from the window, the more expensive the object. Apartment by the sea with an area of 50 sq. m. m can cost the same as a villa with a swimming pool, but at a distance from the coast. There are practically no beaches suitable for swimming on the east coast of the island. Therefore, it is worth considering the southern and western parts of Phuket for investment.
The market is represented by the following objects:
- Apartments. They can be either in an ordinary apartment building or in a complex with hotel infrastructure: reception, swimming pool, fitness room. This format means that both permanent residents and people who have come on vacation can comfortably live there. Some developers initially build two separate buildings: one for those who live permanently, the other for short-term rentals. Because practice shows that permanent residents can be annoyed by tourists constantly coming and going.
The most demanded type of real estate among investors is condominiums.In popular areas (Patong, Karon, Kamala, Bang Tao), prices for a studio apartment in a condominium start from $ 100,000.
Apartments at the excavation stage near the sea can be bought from 3 million baht (89,000 dollars). Currently, the minimum price for an apartment near the sea with an area of 27 square meters is at least 3.4 million baht ($100,000). In the popular areas of the western part of the island, the cost of apartments averages 5-10 million baht (about 149,000 - 298,000 dollars).
- Villas. These can be either villa villages or individual plots with houses and private territory. It is difficult to find villas with a swimming pool for less than 12 million baht. A small villa with a plot of 370 sq. m. m and a living area of 250 sq. m. The m will cost from 12.4 million baht ($370,000).
- Townhouses and duplexes. Multi-level houses adjacent to the neighboring ones. The duplex format with common walls is the most budget-friendly. Townhouses with an area of 100-150 sq. m. can be purchased for 5-6 million baht (148,000-178,000 dollars). For this amount, you can buy a full-fledged comfortable house with a small terrace in areas far from the beaches.
- Penthouses - luxury apartments on the top floors with panoramic views and pools that are located on the roof or on the balcony. Such options are not cheap, and their cost can be compared to villas.
Phuket Area Overview
Patong is the center of nightlife and tourism on the island. There are numerous bars, restaurants, nightclubs, and shops here. High tourist flow in the areaprovides stable demand for short-term rentals. But it's not very comfortable to live here permanently - it's too noisy and fussy. Property prices in Patong are above the island average.
Bang Tao This is a promising area where many new projects are currently being built. In fact, this is the most developed area of the island with a new housing stock. This is a good place to live, where there is all the necessary infrastructure, and many Russian speakers live. There is a large Lagoon resort in the Bang Tao Beach area. Both in the Lagoon itself and in the neighborhood, a lot is currently being built villas and apartment complexes.
Kata and Karon areas with a calm atmosphere suitable for family holidays. Kata Beach is a Phuket mecca for surfers, especially during the rainy season. However, it is quite crowded here during the tourist season. A small stylish one a studio apartment 650 meters from Karon Beach can be purchased for 3.3 million baht ($98,000).
Rawai Primorsky district of the southern part of the island. It is popular among expats, especially Europeans, Chinese, and Russian speakers. There are no beaches for swimming, and the entertainment infrastructure is poorly developed, but there is also a plus in the lack of a tourist flow. The area is suitable for long-term residence. Here you can find both small apartments and luxury villas with spacious areas.
Kamala A cozy, peaceful area that can be safely recommended to families with children who want to live closer to the sea. There are good beaches, well-developed infrastructure, and high demand for long-term rentals. In the area can be found as luxury apartments and more budget-friendly options at a distance from the sea.
Surin is a prestigious area on the west coast. There are no noisy bars and clubs, but there are luxury villas, expensive hotels and high-end restaurants. This area is suitable for buyers of premium real estate.
Nai Harn is located in the south of Phuket. This is a fairly peaceful area, which is preferred by expats and winter residents. Housing here is mainly represented by villas, small hotels, guest houses.
Mai Kao A sparsely populated scenic area of Phuket, located just a 15-minute drive from the airport. The infrastructure here is minimal: cafes, shops, and entertainment are concentrated mainly in hotels. Mai Kao is suitable for customers who want a relaxing holiday without noise and loud parties.
Nai Yang "More lively, compared to Mai Kao. There is a well-developed local infrastructure and a more active tourist movement, so it is quite possible to consider as an investment project condominium 200 meters from the beach.
Chalong has everything you need for a comfortable life: shopping malls, kindergartens, international schools. The area is suitable for long-term stay of families with children. There is a wide range of properties for sale here, including villas, condominiums and townhouses.
Who can I recommend buying a property in Phuket?
Buying a property in Phuket can be recommended:
- Investors who plan to keep their funds in a stable currency and multiply them.
- Wealthy pensioners who want to spend their old age in a pleasant place by the sea.
- Digital nomads who want to live and work in warm countries.
- Families seeking to educate their children in international schools.
- People who want to spend their holidays by the sea, and the rest of the time earn money by renting out housing.
There are a lot of interesting projects on the market now, and there is a lot of choice: with different designs, concepts, and for different purposes. New projects usually appear in the fall, at the beginning of the season.
.jpg)
If we talk about the expected risks, they are minimal. For example, high competition in popular areas can reduce profitability. And, of course, there is always the possibility that the influence of global economic and political factors may slow down price growth.
It's worth remembering that good deals in Phuket sell out quickly. The most profitable deals occur at the start of sales. At the excavation stage, apartments are sold at the lowest price. During this period, the most attractive and liquid apartments are sold out, and prices from developers begin to rise. While the buyer is thinking, the cost may increase by 20%. Therefore, it is important to clearly define the purpose of the purchase and forge the iron while it is hot. If the main goal is investment, you need to look at real estate located close to the sea and choose what is currently liquid. A house by the sea will always have value. Especially in a country where it is warm all year round.
Thank you for your help in preparing the material:
Alexey Klyuev, Chief Financial Officer, and Bogdan Dyachuk, CEO of the company Undersun Estate
Svetlana Kasatkina, Managing partner of the company Exotic Property
