_Phuket Villa and Condominium real demand foreigner

Phuket real estate market in 2023 recovered continuously in both villas and condominiums. According to tourism data in 2023, the number of foreign tourists arriving in Phuket amounted to 8,376,464, an increase of 2.5 times from last year.

May 23, 2024

Phuket real estate market in 2023 recovered continuously in both villas and condominiums. According to tourism data in 2023, the number of foreign tourists arriving in Phuket amounted to 8,376,464, an increase of 2.5 times from last year. The largest numbers of foreigners were from Malaysia, Russia, Europe, China and India. As the government has approved free tourist visas, number of tourists visiting Phuket will be increased, especially toward the end of the year. As a result, the demand for both condominiums and villas will be increased. In addition, private investment in housing and hotel construction has resumed and expanded. As such, the supply and demand for condominiums and villas grew significantly at the same level as 2019 even though the number of tourists was still not as much as 2019.

The total supply of villas in 2023 amounted to 5,137 units, with a new supply of 740 units launched from 50 projects. The villa market supply grew 126.3% compared to the previous year and the number of new units launched for sale grew at the same level as 2019. The Cherng Talay and Bang Tao areas are still the most popular areas for villas building. The Cherng Talay and Bang Tao areas have few land remaining and land prices are rising, causing villa prices to rise accordingly. Micro-developers therefore expanded villa development to nearby areas. From data collection, it was found that newly opened villas have expanded to areas adjacent to the Cherng Talay, namely Phru Champa and Bang Jo.

According to the Knight Frank research department, it was found that the villa market in Phuket is expanding well, reflected by the sales rate for the past 12 months of 2023. There were 651 villas sold and the sales rate increased 109.3% compared to 2022, mainly due to the large number of Russian tourists. They purchase a villa to live in with the family as a second home or as an investment. Therefore, the villa market this year is growing well as it is driven by Russian and European buyers, especially in the Bang Tao and Cherng Talay areas, which have the highest number of units sold compared to other areas at a similar rate of 32%, or 60% of total units sold. These areas are very popular because of the comprehensive amenities. Thus, villa projects around these areas are quite expensive. Most wealthy foreigners prefer to live around here.