Authored by the expert who managed and guided the team behind the Thailand Property Pack
Yes, the analysis of Phuket's property market is included in our pack
Are you considering investing in Phuket's real estate market? Curious about the trends that will shape property values in 2025? Wondering if now is the right time to buy a piece of paradise?
We will lay down recent insights, providing you with a clear picture of what's to come. Here, no guesswork, we rely only on solid data.
Actually, we know this market inside and out. We keep tabs on it regularly, and all our discoveries are reflected in the most recent version of the Thailand Property Pack
Fact-checked and reviewed by our local expert
Attaya Suriyawonghae 🇹🇭
Real Estate Broker, Zest Real Estate
1) Affordable housing prices in Phuket will decline due to oversupply in certain areas
Phuket's real estate scene is buzzing with around 500 new projects up for grabs.
By early 2024, the island had 72,000 housing units on the market, with 10,000 still waiting for buyers. This means there's a lot of choice for potential homeowners. Despite the buzz, some areas are seeing a slowdown, with a noticeable number of unsold homes. This could be a sign of an oversupply, especially as more construction permits are being issued, hinting at even more homes coming soon.
Experts are noticing that while people are still interested in buying, the number of homes available is growing faster than the number of buyers. This mismatch might lead to lower prices in the near future. Real estate agents are also seeing a shift; it's becoming a buyer's market, meaning there are more homes than people looking to buy, which could push prices down.
For those eyeing a property in Phuket, this could be a golden opportunity. With more homes than buyers, you might find a great deal. The market's current state suggests that prices could become more attractive, especially in areas with a lot of unsold units.
So, if you're considering buying a home in Phuket, keep an eye on these trends. The oversupply in certain areas might just work in your favor, offering you more options and potentially better prices.
As the market continues to evolve, staying informed will be key. With the right timing, you could snag a property at a price that suits your budget.
Sources: Thai Residential, Phuket Real Estate Market Performance, YouTube
2) Rental property yields in Phuket will rise with tourism rebound and growing short-term rental popularity
Phuket's tourism is booming, with over 28 million visitors in 2023.
This surge means more than 2 million tourists are arriving each month, and the trend is holding strong into 2024. With 4.3 million visitors in the first half of the year, international arrivals have jumped by 42% from last year.
As more tourists flock to Phuket, the demand for short-term rentals is skyrocketing. Hotel occupancy rates have hit 84%, even higher than before the pandemic. This shows a clear preference for short-term stays, which are becoming a hot choice for travelers.
Room rates for these rentals have climbed significantly, with a 32% increase year-on-year and a whopping 64% rise compared to pre-pandemic times. This trend is fueled by government moves like the free visa policy and a weaker Thai baht, drawing in more foreign visitors.
Phuket's airport is set for expansion, aiming to handle more international flights. This will make the island even more accessible, likely bringing in even more tourists. All these elements point to a promising future for rental property yields.
Sources: Luxe Phuket, Thai Websites, Bangkok Post, The Investor
Everything you need to know is included in our Real Estate Pack for Phuket
3) Demand for Phuket beachfront properties will drop as buyers recognize climate change risks
Buyers are becoming more cautious about investing in beachfront properties in Phuket due to climate change concerns.
With sea levels expected to rise significantly, coastal areas face increased flooding and erosion. This makes potential buyers wary of properties that might be affected by these changes. In some parts of Phuket, the shoreline is eroding at a rate of up to 4.10 meters per year, which is alarming for anyone considering a beachfront investment.
Insurance companies are reacting to these risks by raising premiums or denying coverage for high-risk properties. This financial burden adds another layer of hesitation for buyers. As people become more environmentally conscious, there's a noticeable shift towards sustainable and eco-friendly properties, often steering clear of beachfront locations.
Real estate market reports highlight this trend, showing a preference for properties that align with sustainability goals. Media coverage has also played a role, making buyers more aware of the climate change impacts on Phuket's coastal areas. This awareness is reshaping the real estate landscape, with fewer people willing to take the risk on beachfront properties.
Sources: MDPI, Thai Science, Ocean WWP
4) Phuket's growing expatriate community will boost demand for international schools and family-friendly neighborhoods
The growing expatriate community in Phuket is a major driver for the demand for international schools and family-friendly neighborhoods.
In 2024, Phuket's population hit approximately 455,102, a jump from 449,389 in 2023, largely due to expatriates settling in. This influx is reshaping the island, making it a hotspot for international families looking for a slice of paradise with all the comforts of home.
International schools are booming, with the British International School reporting that 85% of their 360 students are foreigners from 57 different countries. This isn't just a one-off; there's been a 10.2% increase in international school enrollments over the past year, according to the Kasikorn Research Centre. It's clear that education is a top priority for these families.
Real estate is feeling the heat too. Property prices are climbing in areas known for good schools, showing that expatriate families are keen on neighborhoods that offer quality education. This trend is pushing developers to focus on creating more family-friendly environments.
New international schools are popping up, further highlighting the demand for family-oriented communities. These schools are not just about education; they are becoming cultural hubs for expatriate families, offering a sense of community and belonging.
Sources: Statista, Nation Thailand, BKK Kids, World Population Review, Tranio
5) Phuket's aging population will drive demand for homes near healthcare facilities
Phuket's aging population is driving up the demand for homes near healthcare facilities.
By 2030, a large chunk of Thailand's population will be 60 or older, and Phuket is no exception. Known as a retirement hotspot, the island is seeing more seniors who need easy access to medical care. This shift is making healthcare-adjacent properties more attractive to buyers.
People are living longer these days, with life expectancy jumping from 45 years in 1950 to over 76 years in 2024. This means more folks are sticking around longer and need healthcare services close by. Naturally, this boosts the demand for homes near hospitals and clinics.
Phuket is not just a pretty beach destination; it's becoming a medical hub. Thanks to government efforts like the Phuket Smart City Project, the island is drawing in more healthcare services and investments. This makes it a prime spot for those looking to live near top-notch medical facilities.
High-end wellness centers are popping up all over Phuket, adding to its appeal. These centers are part of the island's transformation into a world-class medical destination. For retirees and those seeking a healthy lifestyle, living near these wellness hubs is a big plus.
With all these developments, it's no wonder that healthcare-adjacent properties are in high demand in Phuket. The island's aging population and its growing reputation as a medical hub make it a smart choice for those looking to invest in real estate.
Sources: KPMG International, Earth Database, Thailand Now, Travel and Tour World, Nestopa
Get fresh and reliable information about the market in Thailand
Don't base significant investment decisions on outdated data. Get updated and accurate information with our guide.
6) Health and wellness trends will boost demand for Phuket properties with gyms and wellness centers
Phuket is becoming a hotspot for wellness-focused property developments.
Imagine living in a place where your home feels like a retreat. In Phuket, new projects like the Clinique La Prairie Wellness Resort and Bumrungrad Hospital Phuket are doing just that. They're blending physical, mental, and nutritional health into their designs, catering to the growing demand for wellness-oriented living spaces.
People are increasingly drawn to properties that offer health-focused amenities. The wellness real estate market is booming, with expectations to nearly double from USD398 billion in 2022 to USD887.5 billion by 2027. This means more homes with gyms and wellness centers are on the horizon.
Social media and media coverage are also fueling this trend. They highlight the benefits of a healthy lifestyle, making wellness travel and living more appealing. This buzz is encouraging more buyers to seek out properties with wellness amenities.
Phuket's appeal isn't just about the beautiful beaches anymore. It's about a lifestyle that promotes extended healthier living and improved quality of life. This shift is resonating with many potential property buyers who are looking for more than just a place to live.
As the wellness tourism market is projected to reach $1 trillion by 2024, it's clear that the focus on well-being is here to stay. This trend is particularly strong in places like Phuket, where the integration of wellness into everyday living is becoming the norm.
Sources: WellSpa360, 4Hoteliers, TTR Weekly
7) Luxury villas in Phuket will attract high-net-worth individuals and maintain premium pricing
Luxury villas in Phuket are a magnet for high-net-worth individuals, and this isn't changing anytime soon.
In early 2024, there was a boom in new villa launches, with 1,285 units worth 36.3 billion baht from 65 projects, outpacing all of 2023. This surge is largely driven by international buyers, especially from Russia, who are keen on investing in Phuket's premium real estate.
As the global economy recovers, the wealth of high-net-worth individuals is climbing, which means more money is flowing into luxury properties like those in Phuket. These affluent buyers are on the lookout for top-tier real estate investments, and Phuket fits the bill perfectly.
Phuket's tourism scene is bouncing back strong, with 4.3 million visitors in the first half of 2024. The island is drawing in tourists from Russia, China, India, and Australia, making it a hot spot for luxury seekers. This wave of international arrivals is boosting the demand for high-end villas, as tourists often prefer lavish accommodations.
With its stunning beaches and vibrant culture, Phuket continues to be a top choice for those looking to invest in luxury living. The island's appeal is undeniable, and the influx of wealthy tourists only strengthens its position as a premium destination.
For those considering a property purchase in Phuket, the market is ripe with opportunity. The combination of rising global wealth and a thriving tourism industry ensures that luxury villas will remain in high demand, maintaining their premium pricing.
Sources: Bangkok Post, Ocean WWP, Luxe Phuket
8) Phuket's northern residential real estate market will surge as infrastructure projects improve connectivity
The northern areas of Phuket are becoming a hot spot for real estate, thanks to improved infrastructure.
In 2023 and 2024, the Transport Ministry rolled out plans to upgrade Phuket's transport network, including expanding the Phuket International Airport and building new highways like the Krathu-Patong and Muang Mai-Koh Kaew. These projects have made northern Phuket more accessible, drawing in potential buyers.
There's also talk of a tram project by the Mass Rapid Transit Authority of Thailand, which would further boost public transport in the north. With highway expansions and a second airport in the works, getting around northern Phuket is easier than ever, making it a prime spot for investment.
As property prices soar in central and southern Phuket, buyers are eyeing the north for more affordable options. The area is not just budget-friendly; it also offers stunning beaches and a warm climate, attracting international investors looking for everything from cozy apartments to lavish villas.
The government is pushing for economic growth in northern Phuket, focusing on infrastructure and tourism. This has led to a boom in the real estate market, with new residential and commercial projects popping up to meet the rising demand.
Real estate agents are seeing a spike in interest and sales in the north, signaling a shift in buyer focus. Media outlets are also spotlighting northern Phuket as a new real estate hotspot, drawing even more attention from potential buyers.
Sources: Nation Thailand, World Estate, Bangkok Post, Phuket Real Estate Market Performance
Everything you need to know is included in our Property Pack for Phuket
9) European demand for Phuket properties will slightly decline due to Europe's economic uncertainties
European buyers might pull back on Phuket properties due to economic uncertainties back home.
With the EU's GDP expected to drop from 6.4% in 2023 to 2.2% by 2025, Europeans could find themselves tightening their belts. This economic slowdown means less disposable income, making people cautious about big purchases like overseas properties.
Consumer confidence in Europe is also taking a hit. In December 2024, it fell to -14.5, below the long-term average, hinting that Europeans might hesitate to invest in properties. Plus, the Euro's fluctuations are not helping. A weaker Euro means buying property in places like Phuket could become pricier for Europeans.
Interest rates in Europe are climbing, making mortgages more expensive. Higher rates could deter potential buyers from diving into the property market. On top of that, many European households are focusing on saving more to pay off debts and build up their financial safety nets, leaving less money for property investments.
Sources: CEPR, Trading Economics, Real Samui Properties
10) Phuket's central neighborhoods will become prime real estate investment hotspots as urbanization expands
The central neighborhoods of Phuket are becoming hotspots for real estate investment as urbanization continues to expand.
In 2024, property sales in Phuket doubled compared to 2023, with a remarkable fourfold increase from the average, according to CBRE Thailand. This surge is drawing attention from both Thai and foreign buyers, especially in areas like Bang Tao and Cherng Talay.
These neighborhoods are seeing a boom in villa sales, which jumped by 383% in the first half of 2024. The allure of these areas is not just about the properties themselves but also the lifestyle and amenities they offer.
Government infrastructure projects are playing a crucial role in this transformation. Enhanced connectivity in central areas is making them more appealing to investors and tourists, boosting their attractiveness as investment hotspots.
Alongside infrastructure improvements, the expansion of commercial and retail developments is further fueling growth. These developments are turning central Phuket into a vibrant hub, drawing in more people and businesses.
As urbanization continues, the central neighborhoods of Phuket are poised to become even more desirable. The combination of rising property values, improved infrastructure, and expanding amenities is creating a perfect storm for real estate investment.
Sources: Bangkok Post, Phuket Serenity Villas, Khaosod English
11) Interest in hillside properties in Phuket will surge due to their safety from flooding
Phuket has been grappling with severe flooding issues in recent years.
In 2023, the island was hit hard, with major floods in October that left parts of Phuket town underwater twice. The situation worsened in 2024, when floods led to 10 deaths, 1 missing person, and 19 injuries, along with landslides that claimed 13 lives and damaged over 50 homes.
These disasters have sparked a surge in flood-related insurance claims across Thailand. While specific figures for Phuket aren't available, the national trend shows a growing worry about flood risks. This anxiety is driving people to seek out properties that seem safer from flooding.
Reports from the Thai real estate market, like those by Krungsri Research, show a rising interest in hillside properties. These homes are considered safer because their elevation helps protect them from floods. Media outlets, such as the Bangkok Post, frequently emphasize the safety of elevated areas, reinforcing the idea that hillside properties are a more secure investment.
For those considering buying property in Phuket, the trend is clear: hillside locations are becoming increasingly popular due to their perceived safety from flooding. This shift in preference is not just about avoiding water damage but also about peace of mind.
As the island continues to face environmental challenges, the demand for properties that offer a sense of security is likely to grow. Investing in elevated areas could be a wise choice for those looking to safeguard their assets and well-being.
Sources: Bangkok Post, ReliefWeb, Krungsri Research
Don't buy the wrong property, in the wrong area
Buying real estate is a significant investment. Don't rely solely on your intuition. Gather the right information to make the best decision.
12) Foreign retirees will increasingly buy homes in Phuket boosting the retirement community market
Phuket is becoming a hotspot for foreign retirees looking to buy homes.
Over the years, the number of foreigners on retirement visas in Thailand has skyrocketed, growing five times from 2005 to 2021. This trend shows that more retirees are choosing Thailand as their go-to retirement spot. Phuket stands out with its tropical vibe and luxury amenities, making it a top pick.
What makes Phuket even more attractive are the favorable property laws in Thailand. The Long-Term Resident Visa, introduced in 2022, offers a 10-year renewable visa with perks, simplifying the process for retirees to settle down on the island.
Phuket is not just about beautiful beaches; it's also about convenience. New retirement communities and improved healthcare facilities are popping up, making life easier and more comfortable for retirees. The Thai government is sweetening the deal with incentives to draw in foreign property investments.
These incentives are expected to boost the market for retirement communities in Phuket. The combination of a welcoming environment, legal benefits, and government support is creating a perfect storm for a real estate boom.
Sources: Bangkok Post, JTJB, Phuket Real Estate Market Performance, University of Vienna, Fulcrum
This article gives you valuable insights, but remember, it’s not and will never be investment advice. We pull data from a range of sources to provide you with the most accurate picture possible, yet we can’t guarantee complete accuracy. Markets are difficult to predict. Make sure to do your own research and consult a professional before making any financial moves. Any risks or losses are your own responsibility.