Phuket LRT Drives Phuket’s Real Estate Market?
Phuket, a popular tourist destination, has experienced a consistent increase in visitors, leading to a rise in property investments. This article evaluates the impact of the forthcoming light rail transit, future developments, and market prospects on real estate investments in Phuket. It caters to both experienced and novice investors, providing essential insights for informed decision-making.
What Is Phuket Island Light Rail Transit (LRT)?
The Phuket Island Light Rail Transit is set to revolutionize the real estate market in Phuket, as it will connect the airport, city center, and beaches via two lines. This mode of transportation will be accessible and affordable for both locals and tourists. The first phase of the project will span 47.7 kilometers with 21 stations from Phuket International Airport to Chalong Intersection, and is expected to cost around 50 million U.S. dollars. The second phase will add another 16.2 kilometers to Chatchai Checkpoint. Although the first phase was initially slated to be completed by 2024, technical issues in the plan and design have delayed its opening. The delay could impact Phuket’s bid to host Expo 2028, which involves competition from five countries.
Here is a railway map and a list of 21 stations in the first phase of Phuket Island Light Rail Transit
How the Light Rail Transit Affects Phuket’s Real Estate Market
The implementation of the Phuket island light rail transit is expected to have a considerable impact on the real estate market of Phuket. With the system enhancing the travel experience for tourists, there will be a rise in demand for property in the most popular areas. The areas that are expected to benefit the most from the light rail transit are Phuket Town, Patong, and Chalong Bay, as they are already in high demand among tourists, and the new system will only make them more accessible.
In addition, the heightened demand in these areas is likely to increase property prices. Those who invest in property in these locations before the completion of the light rail transit are expected to receive significant returns on their investment.
The Expected State of Phuket’s Real Estate Market in 2023.
Phuket’s real estate market in 2023 may face difficulties due to the ongoing pandemic situation, which may affect market growth as a result of travel restrictions and uncertainty. However, the Thai government intends to reopen the country to international tourists, which is anticipated to have a positive impact on the real estate market.
To cater to the increasing demand for sustainable living, developers are prioritizing eco-friendly and sustainable properties, which is a significant trend shaping Phuket’s real estate market in 2023. Additionally, the government’s proposed Smart City development on the island is expected to draw more investors and stimulate the real estate market.
Looking ahead to 2023, the Phuket luxury villa market is predicted to experience growth due to an increase in high-net-worth individuals who desire luxurious living. This growth is also expected to extend to rentals, as more digital nomads and remote workers choose to call Phuket home. Developers are turning their attention to properties that cater to this demand, making Phuket an attractive location for investment opportunities with a bright real estate market outlook.
