The final review of the Phuket real estate market for the end of 2024!
Final Overview of Phuket’s Real Estate Market by the End of 2024.
1. Demand and Supply
- Demand Growth: High interest in real estate is driven by increasing tourist numbers and active foreign investor participation. Demand is primarily concentrated on premium villas and apartments in Phuket’s popular areas.
- Supply Expansion: In 2024, the number of new villas grew to 1,175 units, a threefold increase compared to the previous year. This growth is fueled by the launch of new projects targeting the luxury segment.
2. Rental Yield and Investment Appeal
- Rental Yield: The average annual rental yield in Phuket stands at 9–10%, positioning the island as one of the most profitable investment destinations in the region.
- Investment Activity: The market’s appeal is supported by steady price growth, high rental income, and a variety of options for both short-term and long-term rentals.
3. Role of Foreign Investors
- Key Players: Investors from Russia and China remain the dominant buyers. Russian clients primarily purchase villas and apartments in high-end neighborhoods, while Chinese buyers focus on compact apartments for rental purposes.
- Increased Foreign Transactions: Foreign investors account for a significant share of transactions in the primary market, particularly in the luxury property segment.
4. Development of New Projects
- Construction Pace: In 2024, more than 25 residential complexes were introduced, many of which offer modern designs and well-developed infrastructure.
- Types of Properties: New developments include apartments, villas, and integrated residential zones with premium features such as pools, spas, restaurants, and leisure areas.
5. Property Prices
- Steady Growth: Real estate prices have seen an annual increase of 10–15%. In prime beachfront areas, prices are particularly high and continue to rise due to limited availability of land for development.
- Long-Term Prospects: Experts predict sustained positive price dynamics, making property purchases in Phuket a promising long-term investment.
6. Infrastructure Challenges
- Overcrowding in Key Areas: Zones like Bang Tao and Laguna face transportation challenges due to increased vehicle numbers and limited road capacity.
- Need for Improvements: To alleviate infrastructure pressure, plans include expanding the road network and introducing new transportation solutions, such as public transit and additional parking facilities.
Conclusion
Phuket’s real estate market by the end of 2024 exhibits strong growth with promising future development prospects. High demand, rising prices, and stable rental yields make it an attractive investment destination. However, investors should consider infrastructure limitations and carefully select projects based on their location and quality of offerings.
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