January 5, 2024
BANGKOK – Thailand’s booming tourism industry and the impact of the Russia-Ukraine conflict have lured affluent Russians to buy properties in the island province of Phuket for long-term residence, said an executive of the Phuket Real Estate Association on Tuesday.
This trend has driven up property prices in the southern resort island province by 15-20% since the end of Covid-19 pandemic, said association president Maetapong Upatising.
Phuket has been dubbed “the Pearl of the Andaman Sea”, and has top of the line facilities that attract foreign buyers, including an international airport, international schools, golf courses, yacht marinas, hospitals, and a wide selection of luxury villas and condos, noted Maetapong.
Large developers, including Origin, Sansiri, Siamese Asset, and Raimond Land have been increasing their investment in Phuket, with new projects planned across popular areas such as Cherng Talay and Patong, he added.
The trend has driven up land prices in Phuket from an average 3 million baht to as much as 8-9 million baht per rai. Certain plots in prime locations could go for up to 120 million baht per rai, said Maetapong.
Real-estate consultant Nattha Kahapana, the managing director at Knight Frank Thailand, said that several real-estate projects in Phuket are now 40-60% occupied by Russian customers, compared to 10-15% before the pandemic.
Popular neighbourhoods among Russians are Patong Beach, Kamala Beach, Cherng Talay, and Nai Thon Beach, while areas with increasing demand from Russian customers include Rawai, Bang Thao, and Nai Han.
“It is estimated that land prices in Phuket will increase by 8-10% annually, and will in turn drive up the price of villas, especially those located on the beach,” she said.
Nattha added that beachside lands are now sold at around 25 million baht per rai, but the supply is running low. Developers therefore are eying lands near mountains that are not far from the beach and other facilities. These areas will be popular among customers who prefer privacy and a peaceful atmosphere.