5 Phuket Mega Projects Drive Luxury Properties 2023
Phuket is a well-known destination for tourists around the world, and it has captured the attention of real estate investors looking for lucrative investment options. In the past year, the island welcomed an impressive 5,628,483 visitors, with 3,320,217 of them coming from overseas, resulting in a remarkable revenue of 176,675.17 million baht. This positive trend, along with other supportive factors including these 5 Phuket mega projects, has already started to revive the real estate market this year. Consequently, it is highly probable that we will see the introduction of several upscale real estate developments in the near future.
5 Mega Projects in Phuket Attracting Wealthy Investors to Phuket
Phuket is drawing the attention of affluent investors with its diverse range of mega projects. These include the development of Phuket International Airport Phase 3, Phuket Light Rail Transit (LRT) system, Carnival Magic Phuket, the Andaman International Medical Hub and the city of IoT(Internet of Things).
The expansion of Phuket International Airport Phase 3 will increase its capacity to 25 million passengers annually, while the proposed Phuket LRT will run from Tha Nun train station in Phang Nga province to the Chalong Intersection station and Chalong Pier.
Another two massive projects set to establish Phuket as a leading medical hub and tourist destination in the region are The Carnival Magic Phuket, a theme park worth 6,600 million baht, which will be a new landmark of Phuket and the Andaman International Medical Hub, a project valued at 5 billion baht, are expected to generate significant economic and social benefits for the region.
The Thai government also expresses support for the Phuket Smart City initiative, which seeks to establish Phuket as the first smart city in Thailand, modeled after Incheon, South Korea. In addition, concerted efforts are being made to convert Phuket into an IoT (Internet of Things) city, which includes the deployment of a network infrastructure to govern public lighting, data integration, and offering SIM cards to tourists. These development endeavors, in conjunction with other initiatives, will position Phuket as a prime investment destination.
Why Phuket is the Perfect Destination for Investors
Phuket’s land values have been a recurring trend, making the location an attractive and profitable investment opportunity. Potential investors can expect capital gains between 5.5% to 10% and rental yields of up to 8%. Upscale villas and condominiums located along the northern and western coasts of Phuket, including Kamala Beach, Surin Beach, Bang Tao Beach, Laguna Beach, and Ya Nui Beach, are highly sought after and reasonably priced.
According to Setthapol Buttho, an Executive Director of MontAzure Phuket, there has been a steady rise in demand for branded residences, vacation homes, and condos in Phuket from both domestic and international investors seeking a secondary residence. Thai buyers are currently in the market for homes or villas, while foreigners are inclined towards investing in condo projects in Phuket. The profitability of rental rates is a key factor contributing to the appeal of these properties for investors. Foreign investors are keen on investing in projects with hotel management, generating steady rental income while also serving as a vacation home.
Furthermore, the demand for luxury secondary villas in Phuket has increased among affluent Thai residents from Bangkok and expatriates residing in Thailand. The COVID-19 pandemic has expedited a shift in lifestyle, with many recognizing the significance of owning a secondary residence. Additionally, Phuket is viewed as a desirable retirement destination by individuals worldwide seeking to spend their golden years in an idyllic location.
