Is buying a property in Rawai a good investment?

Last updated on December 20, 2023

Yes, the analysis of Phuket's property market is included in our pack

If you've embraced the coastal charm and tranquil atmosphere of Rawai, you might have contemplated settling in this peaceful part of Phuket, enjoying its serene ambiance and seaside lifestyle.

Is it a good idea though? What's the current state of the real estate market in that area? Are property values appreciating or depreciating? Are investors seeing returns on their real estate investments? How's the demand for rentals?

We'll answer all these questions for you! When building and updating our property pack for Thailand, our team has been researching and surveying this area. In fact, there is significant customer interest in investing there. Therefore, we believe it would be beneficial to include some information about it in our property pack.

Why do property buyers like investing in Rawai?

Rawai, located in the enchanting island of Phuket, Thailand, has increasingly become a hotspot for property buyers, and it's not hard to see why.

When you think of Phuket, the usual images that might pop up are those of bustling tourist spots like Patong or the upscale luxury of Surin and Bang Tao.

However, Rawai offers something distinct, striking a unique balance between tranquility and accessibility that makes it stand out.

One of the most appealing aspects of Rawai is its blend of serene beauty and local charm. Unlike more commercialized areas of Phuket, Rawai has managed to retain a sense of traditional Thai culture. It's not overrun by large resorts or towering skyscrapers.

Instead, you find a more laid-back, community-focused atmosphere. The area is renowned for its stunning beaches, like Nai Harn, which are less crowded than those in more tourist-heavy parts of the island.

This tranquility has been a major draw, especially for those looking to escape the hustle and bustle of city life.

Interestingly, Rawai started gaining popularity among property buyers around the early 2000s. This surge in interest was partly due to the expanding infrastructure and its relatively affordable property prices, especially when compared to the skyrocketing rates in more developed parts of Phuket.

Looking at the trends, it seems likely. Rawai's property market has shown steady growth, and with the ongoing development that's mindful of preserving the area's natural beauty, it's poised to remain an attractive location for both investors and those seeking a peaceful home.

The type of people drawn to Rawai is quite diverse. You have retirees looking for a tranquil place to enjoy their golden years, expatriates who prefer a more authentic Thai living experience, and even families who appreciate the area's safety and close-knit community feel.

It's a place that seems to offer something for everyone, without the overwhelming intensity of more tourist-centric locations.

However, it's important to consider some of the potential downsides. For instance, while Rawai is developing, it doesn't have the same level of amenities or nightlife as places like Patong or Phuket Town. This could be a drawback for those who crave a more vibrant, urban lifestyle.

Also, during the monsoon season, the beaches here, beautiful as they are, can become less accessible, and the weather might not always be ideal.

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Why is Rawai a nice place to live?

Living in Rawai presents a unique experience that blends the allure of island life with the comforts of modern living.

You might be wondering what it's like to call this place home, and the answer lies in the harmonious mix of its lifestyle, culture, and amenities.

The lifestyle in Rawai is characterized by its laid-back, serene atmosphere. It's a stark contrast to the bustling tourist hotspots elsewhere in Phuket. Here, you'll find a slower pace of life, where days can be spent enjoying the scenic beauty of beaches like Nai Harn or engaging in a variety of water sports.

The local culture is rich and vibrant, with a strong sense of community. Traditional Thai customs are woven into everyday life, offering a deep dive into the country's heritage.

For expatriates, Rawai is a welcoming haven. The expat community here is thriving and diverse, with people from all corners of the globe. This melting pot creates an environment where different cultures intermingle, leading to an eclectic and inclusive atmosphere.

Expats often gather at local cafes or participate in community events, making it easy to form new friendships and networks.

When it comes to the cost of living, Rawai strikes a balance. While it may not be the cheapest area in Phuket, it's certainly more affordable compared to the more commercialized parts of the island.

The cost of living here can cater to a range of budgets, offering both luxury villas and more modest accommodation options.

Safety in Rawai is generally good, with low crime rates contributing to a sense of security among residents. This peaceful environment is one of the reasons why families and retirees are drawn to the area.

In terms of amenities and facilities, Rawai doesn't disappoint. There are several reputable schools in and around the area, such as the Rawai Progressive International School, catering to the expatriate and local communities.

Healthcare needs are well met with facilities like the Dibuk Hospital, ensuring residents have access to quality medical care. For shopping and leisure, the HomePro Village and Rawai Park are popular spots, providing a variety of retail and entertainment options.

The infrastructure in Rawai has seen significant improvement over the years. Roads are well-maintained, making travel within the area smooth.

Utilities like electricity and water supply are reliable, and internet connectivity is generally excellent, catering to those who work remotely or require high-speed internet.

Access to Rawai from other parts of Phuket and major transport hubs like the Phuket International Airport is straightforward. The area is well-connected by a network of roads, making travel to and from other parts of the island convenient.

However, when it comes to public transportation, options are somewhat limited compared to urban areas. Local buses and taxis are available, but many residents prefer to use personal vehicles or motorbikes for more flexibility.

How much does it cost to buy real estate in Rawai?

If you need a detailed and updated analysis of the prices, rents and yields, you can get our full guide about real estate investment in Thailand.

Buying property in Rawai, can be an exciting venture, considering the diverse range of options and the evolving real estate landscape.

In Rawai, you'll find a variety of residential properties, including apartments, houses, and luxury villas. Each type offers its own unique appeal, catering to different lifestyles and preferences.

Apartments in Rawai are popular among those seeking a low-maintenance living option, often favored by singles or couples. Houses, including townhouses and standalone homes, are sought after by families or those desiring more space and privacy.

Luxury villas, on the other hand, are the epitome of opulence and are particularly popular among high-end buyers and investors. These villas often come with premium amenities like private pools, expansive gardens, and stunning views.

In terms of demand, there's a noticeable inclination towards luxury villas and modern apartments. This trend is driven by the growing expatriate community and investors looking for holiday homes or rental properties.

The appeal of luxury villas is largely due to the privacy, space, and exclusivity they offer, coupled with the breathtaking natural beauty of Rawai.

The property market in Rawai is a mix of new developments and resale properties. In recent years, there has been a surge in new developments, especially modern apartments and luxury villas, catering to the increasing demand. These new developments often come with contemporary amenities, adding to the allure of the area.

Speaking of prices, the range in Rawai can vary widely depending on the type and location of the property. On average, prices per square meter can start from around THB 60,000 for standard apartments and can go up to THB 150,000 or more for luxury villas. These figures, however, are subject to change and can be influenced by various factors.

Over the past few years, property values in Rawai have shown a steady increase. This growth is attributed to the area's rising popularity, ongoing development projects, and the overall appeal of Phuket as a desirable location for both living and investment.

Looking ahead, there are several upcoming developments and city planning changes that could impact property values. For instance, projects like the expansion of local infrastructure or the addition of new leisure and retail facilities can enhance the appeal of the area, potentially driving up property prices.

Predictions for the real estate market in Rawai in the coming years lean towards continued growth. Factors like the increasing appeal of Phuket as a global destination, the ongoing development of amenities and infrastructure, and the area's natural beauty suggest a potential increase in property values.

Specific factors indicating a potential increase in value include the steady influx of expatriates and tourists, ongoing infrastructure improvements, and the limited availability of land for new developments, which can drive up the value of existing properties.

This trend is further bolstered by the Thai government's initiatives to promote tourism and foreign investment in the region.

Where is the best area to buy a property in Rawai?

Choosing the best area to buy a property in Rawai, depends on various factors, including your personal preferences, lifestyle, and investment goals.

Rawai is diverse in its offerings, and different parts of the area cater to different tastes and needs.

Let's start with the coastal areas of Rawai, particularly those near the beachfront. These locations are highly sought after due to their stunning sea views and easy access to the beach. Properties here tend to be more luxurious, and as a result, they come with a higher price tag.

If you're looking for high-end villas or upscale apartments with breathtaking views, this is the area to explore. Keep in mind that the premium location also means a premium in price.

Moving inland, you'll find a different atmosphere. These areas are typically quieter and offer a more authentic Thai lifestyle experience. The properties here are more varied, ranging from modest homes to more spacious villas, and are generally more affordable compared to beachfront areas.

This part of Rawai is perfect for those who prefer a peaceful setting, away from the hustle and bustle of the tourist spots but still close enough to enjoy the amenities of the area.

An up-and-coming area within Rawai that buyers should be aware of is around Nai Harn. This area is gaining popularity for its beautiful natural surroundings, including Nai Harn Beach, one of the most beautiful beaches in Phuket.

Properties here are a mix of modern apartments and villas, and the area is becoming increasingly popular with expatriates and long-term visitors. The blend of tranquil environment and the growing community makes Nai Harn an attractive option for property buyers.

Another area worth considering is near Rawai Park. This area is family-friendly and is becoming popular due to its proximity to recreational facilities, international schools, and other amenities. It's ideal for families or those who want to be close to community hubs.

On the contrary, there are areas in Rawai that might not be advisable for everyone. Regions that are too remote or lack easy access to basic amenities like shops, hospitals, and schools might not be ideal, especially for families or those who rely on these facilities.

Additionally, areas that are still under heavy development might not offer the immediate lifestyle or return on investment that you might be seeking.

Here is a summary table to help you visualize better. If you need more detailed data and information, please check our property pack for Thailand.

Area	Atmosphere	Property Types	Price Range
Beachfront Areas	Luxurious, stunning sea views, tourist-centric	High-end villas, upscale apartments	High
Inland Areas	Quieter, authentic Thai lifestyle	Modest homes to spacious villas	Moderate
Nai Harn	Natural surroundings, growing expat community	Mix of modern apartments and villas	Moderate to High
Near Rawai Park	Family-friendly, community amenities	Villas and family homes	Moderate
Remote Areas	Isolated, less accessible	Varied, potentially less developed	Lower

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Is there a strong rental demand in Rawai?

In Rawai, the rental market is indeed vibrant, but the nature of this demand varies, reflecting the diverse appeal of the area.

To understand this better, let's delve into the specifics of the rental demand, the types of tenants, the properties they seek, and the potential returns on investment.

Firstly, there's a balanced mix of short-term and long-term rental demand in Rawai. Short-term rentals are primarily driven by tourists and short-term visitors, attracted by the area's beaches, relaxed lifestyle, and scenic beauty.

On the other hand, the long-term rental market caters to expatriates, retirees, and some local residents who prefer the tranquility of Rawai to the busier parts of Phuket.

The target demographic for rentals in Rawai is quite diverse. For short-term rentals, the typical tenants are tourists, both international and domestic, seeking a comfortable and scenic vacation spot.

These tenants often look for properties that offer convenience, easy beach access, and holiday amenities like pools, Wi-Fi, and modern furnishings. Areas close to popular beaches, such as Nai Harn and along the Rawai beachfront, are particularly popular for these short-term rentals.

For long-term rentals, the tenant profile includes expatriates working in Phuket, retirees seeking a peaceful place to live, and some local families or professionals. These tenants generally look for more spacious properties that offer a sense of home.

With a preference for features like good security, proximity to schools (for families), and access to local markets and healthcare facilities. In this category, areas like the interior parts of Rawai and those near international schools or community centers are in demand.

Certain amenities can significantly boost the appeal of a rental property in Rawai. For short-term rentals, amenities like swimming pools, good internet connectivity, proximity to beaches, and modern, well-furnished interiors are key in reducing vacancy rates.

For long-term rentals, security features, parking facilities, proximity to schools and healthcare, and a quiet, community-friendly environment are more important.

Regarding potential returns on investment, properties in Rawai can offer attractive yields, though this varies widely based on property type and location.

Generally, for short-term rentals, properties can fetch higher rental rates per night but might face seasonal fluctuations. Long-term rentals offer more stability in income but at lower monthly rates.

Estimating specific numbers is challenging without current market data, but traditionally, properties in popular areas and those with sought-after amenities tend to offer better yields.

Finally, the types of properties experiencing increasing demand, and hence potentially better yields, include modern apartments and luxury villas for short-term rentals, and family-friendly homes and villas for long-term rentals.

These properties, especially when located in desirable areas and equipped with popular amenities, are well-positioned to capitalize on the strong rental demand in Rawai.

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Is it easy to buy a property as foreigner in Rawai?

Before we answer the question, please know that we have an article dedicated to the experience of buying real estate as a foreigner in Thailand.

Buying property as a foreigner in Rawai, Phuket, involves navigating a set of regulations and understanding the local real estate market.

While it's feasible, there are certain factors and legalities that foreign buyers need to be aware of.

Firstly, Thailand has specific regulations regarding foreign property ownership. Generally, foreigners are not allowed to own land outright, but they can own buildings or apartments.

In condominiums, for instance, up to 49% of the unit area can be owned by foreigners. An alternative for those wanting to invest in a house or villa is to lease the land (usually for a period of 30 years, renewable) and own the building on it.

Another option is to set up a Thai company to hold the land, but this comes with its own set of complexities and legal requirements.

The purchasing process in Rawai for foreigners typically starts with finding a property that fits within these legal frameworks. Once a property is selected, a deposit is usually paid to reserve it, followed by due diligence to check the legal status of the property. This involves ensuring that the property has a proper title deed and that there are no outstanding encumbrances or legal issues.

One of the primary risks associated with property investment in Rawai, as with any foreign market, is the complexity of local real estate laws and regulations. Navigating these can be challenging, especially regarding the restrictions on foreign ownership.

Additionally, there's the risk of encountering issues with property titles, as Thailand has several types of land titles with varying degrees of ownership rights.

Classic pitfalls for foreigners buying property in Thailand include not conducting thorough due diligence, misunderstanding the legal restrictions on foreign ownership, and miscommunicating with sellers due to language barriers.

Unique to Thailand, issues can arise from not properly understanding the different types of land titles, such as 'Chanote' and 'Nor Sor 3 Gor', which denote the level of legal rights over the land.

Given these complexities, working with a local real estate agent and/or lawyer is extremely important. They can provide invaluable guidance through the buying process, ensure that all legal requirements are met, and help avoid common pitfalls.

They are also essential in navigating the language barrier and understanding local market conditions and practices.

Common exit strategies for property investors in Rawai include selling the property to other foreigners or locals, particularly if the property has appreciated in value or is in a high-demand area.

Another strategy is to lease the property, either as a short-term rental to tourists or a long-term rental to expatriates or locals, providing a steady income stream.