6 Reasons Why You Should Invest in Real Estate in Phuket
Thailand's tourism industry is an important part of the country’s economy. The sector directly employed 4 million people and supported 10 million additional jobs before the pandemic, contributing to 21.9% of Thailand's GDP – making it one of the highest valued industry per capita globally! In 2020 and 2021, the tourism industry drastically decreased - only contributing to around 7% of Thailand's GDP. This is the main reason why Thai authorities have been working hard recently on increasing visitor numbers.
After a timid opening in July 2021 via the "Sandbox" program, Thailand and especially Phuket's tourism magnet province are speeding up the return of tourists through the "Test & Go" program.
Phuket has finally opened up for business and leisure after a two-year hiatus, it is now the best time to make your real estate purchase dreams come true and live in that tropical paradise!
A great opportunity awaits those who want to get ahead of the curve and reap benefits now, or stay at home with family while enjoying Phuket's mesmerising yet peaceful lifestyle. The following list offers 6 compelling reasons why investing your money into real estate in Phuket in 2022 could make perfect sense:
1. There's an offer for everyone, no matter what you're looking for.
The real estate market in Phuket is undoubtedly one of the most attractive ones in southeast Asia as it is filled with all different types of properties for those who are looking to buy or invest. Phuket indeed offers an extensive selection available, from low-end to luxury "full-service" condominiums with shared pool, gym facilities and conciergerie, from charming townhouses to secured estate houses and, of course, from family-sized balinese villas to high-end luxury villas!
Medium-sized pool villas are one of the most popular real estate products for new buyers - whether for investment purposes or for private use. These tropical yet fancy retreats usually range from 2-5 bedrooms, depending on the budget. There is no shortage either on the upper scale market, with more than 200 five star hotel like luxury villas awaiting those who invest wisely onto this exclusive yet profitable market.
2. Rental yields here can be quite lucrative!
Phuket is one of the most popular tourist destinations in the world, and with good reasons. Apart from its stunning natural scenery, there are plenty of activities and attractions to keep visitors entertained. What many people may not know is that Phuket is also a great place to invest in property compared to other popular travel destinations. It is true that the highly service oriented culture of the Thai people makes it easier to add services to rental properties - thereby increasing customer satisfaction and therefore rental returns. Nowadays a great share of property buyers are doing it for the explicit purpose of renting it out - attracted by lucrative rates of return ranging from 5% to 10% - sometimes more.
Whether you're a seasoned investor or just starting out, it's important to be well escorted to know where to find the best opportunities - and Vestaways is here to help :) By doing our homework and researching the right markets, we can help you maximise your profits while minimising your risk.
So what are you waiting for? Start exploring today !
3. Phuket is praised by expatriates
According to an HSBC ranking, the satisfaction index of expatriates living in Thailand is 87%, with the cost of living and quality of life being the main reasons given - and Phuket is no exception! The pandemic, with its many lockdowns and restrictions in major cities across the world, has been a painful experience for many people, who are now obsessed with the need to change their living environment. In such difficult times many families and individuals are thus considering moving to breathe some fresh air and find peace and solace on Phuket's beaches.
Whether you’re looking for a place to retire or just to enjoy a change of scenery, Phuket has something to offer everyone. With its friendly multi-cultural community, affordable housing, modern and abundant infrastructure, and array of activities for all ages, Phuket is the perfect place to call home and a great choice for expats. Investing in Phuket as an expatriate therefore means securing your investment by focusing on a dynamic, attractive and still fashionable destination. Spearheading Phuket’s economic and tourism recovery efforts, the Thai government is also pushing many incoming projects that will add to the influence of the island in the coming years.
With properties always being resold - as long as they are well located, well maintained and nicely decorated - there is peace of mind guaranteed for those that choose this lifestyle! So if you’re thinking about making the move, just give us a call :)
4. Phuket is ambitious and wants to entice a new clientele
Phuket is already a magnet for leisurely vacations, Airbnb addicts, corporate retreats and special events. The island's private properties make it easy to organize any of these types of trips in the comfort provided by its diverse accommodation options - whether you're looking for a tropical wedding on an idyllic beach, wellness focused getaways with friends or an ideal spot if you want your social media pages boosted!
But Phuket is ambitious and now wants to attract a whole new clientele including startuppers, crypto-entrepreneurs, digital nomads, remote workers, technology experts, wealthy retirees, senior executives and investors thanks to new visa stimulus and top-notch communication facilities, including Hi-speed internet infrastructures or the coming 5G network coverage.
The real estate market in Phuket will thus boom even further thanks to this whole new clientele. This will inevitably support the growth of sales or vacation rentals for those looking forward into long-term investments, with property being one of the most secured investment option that Phuket could offer!
5. Thailand has a welcoming and reassuring legal framework for property investors
Thailand's legal framework for property investments is one of the most favorable in Asia. The Thai government ensures foreigners with guaranteed rights to purchase houses, as long as contracts are handled by competent lawyers or consultants for a stress-free investment.
Vestaways provides a full range of property services for buyers and investors alike, and we can help you with all things technical and legal, so you can rest assured that you’ll be making a safe and secure purchase. For those seeking investment properties for rental purposes, we can go one step further by offering hospitality consultancy that can help owners manage their yield on an ongoing basis while maximizing profits!
6. Thailand's ability to withstand economic uncertainties is a huge strength
The Thai government's handling of the Covid-19 crisis was a feat in itself. The country has weathered every global financial crisis or economic meltdowns since World War II without major problems or economic meltdowns, which means the country is pretty durable! The real estate and tourism market have continued on their upward trend in a very clear manner and have demonstrated their capacity to resist these unforeseen events.
Thailand's real estate market has been one of the best performers in Asia over recent years, with prices rising steadily and demand remaining strong. The economy’s resilience is a booster for this sector - as it helps keep money flowing through people’s hands which can then be invested into more homes or businesses.
Property prices are on the rise again, but don't get too excited yet. The market will eventually favour those who buy before this pandemic crisis ends for good - so if you're looking for an investment that might be worth it before future inflationary times, then now is your chance!