Russian Influence Causing Phuket Market to Boom

Hula Property
Russian Influence Causing Phuket Market to Boom

Thailand, having lifted its COVID-19 control measures since October last year, has fully reopened its doors to tourists. Recent statistics from the Thai government reveal a significant influx of Russian tourists, ranking third after Malaysian and Indian tourists.

Phuket's Resurgence: A Magnet for Long-Term Stays

Phuket, a prominent tourist destination in Thailand, is experiencing renewed vitality as more foreigners choose it for extended stays. Notably, a sizable group of Russians, seeking refuge from war and desiring relocation to foreigner-friendly nations, has flocked to Phuket. They are actively engaging in the local real estate market, purchasing and renting Phuket villas, thereby contributing to the surge in demand.

Russian Influence Driving Phuket's Villa Market

Phattanan Phisutvimol, President of the Phuket Real Estate Association, highlights the current influx of tourists, particularly Russians, numbering around 100,000 daily. Escaping conflict, this group often invests in villas valued at 50-60 million baht or opts for rentals spanning 6 months to a year. This surge in demand has made Phuket's villa market highly popular.

"The rental market is now insufficient, and rental rates have increased 2-3 times since the COVID period, where they were around 20,000 baht per month and now are 40,000-60,000 baht per month," notes Phattanan. The escalating demand has led to the emergence of new projects, mainly comprising 9 units priced between 10-100 million baht.

Exploring Chinese Involvement in Phuket's Villa Market

While there is a noticeable rise in Chinese tourism post-China's opening up, it has not yet reached pre-COVID levels. Phattanan anticipates a stronger return of Chinese investors by mid-2023. Despite the ongoing recovery, Chinese investors have shown interest in various businesses in Phuket, including hotels, real estate projects, and restaurants.

Phuket's Allure to Major Developers

Major real estate developers, such as Origin Property, Sansiri, and Supalai, are actively investing in Phuket. Notably, Asset Wise Public Company Limited partnered with Botanica Luxury Phuket for the Botanica Grand Avenue project, a luxury villa development on Bang Tao Beach worth over 10 billion baht.

A Booming Phuket Villa Market in 2023

The Phuket villa market is currently experiencing heightened demand, primarily fueled by Russian buyers and renters seeking the island's tranquility. This surge has led to increased rental rates and the initiation of new real estate projects. While Chinese investment is gradually recovering, a robust return is anticipated in mid-2023. Investing in Phuket villas in 2023 presents a lucrative opportunity given the island's growing appeal among foreign buyers and renters.

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