The real estate and tourism markets continue to show successful results. Phuket is not only returning to pre-closure figures but significantly exceeding them.
Search queries on the world-famous online booking platform Airbnb increased by 180% from 2021 to the first half of 2022. Additionally, bookings by digital nomads (remote workers) more than doubled compared to the same period in 2021.
According to a CBRE Research report, the first half of 2022 was marked by confident growth: a large number of new projects, increased demand, and high sales volumes. In some new complexes, all villas are already sold out.
During the pandemic, the main buyers were local residents. However, in the first half of 2021, after Thailand eased entry measures, the number of foreign arrivals at Phuket Airport surged from 4,830 to 2,079,950 people. Consequently, CBRE analysts observe significant demand from foreign buyers as well. In the first half of 2022, 130 villas were sold, exceeding the half-year figure by 60.5% and the annual figure by 113.1%.
The market has seen rapid growth and recovery across the island. In the first half of 2022, the number of properties sold not only reached but surpassed 2019 levels.
Interestingly, similar sales volumes for a half-year period were last observed 8 years ago, once again proving increased buyer demand and the rapid expansion of the villa market on the island.
Market Trends & Primary Locations
Market Trend: There is an increased demand for more spacious 3–4 bedroom, and even 5-bedroom villas.
The primary demand and construction activity are focused on the northwestern coast of Phuket in the Cherng Talay area, near Bang Tao, Layan, Surin, and Kamala beaches. This is where you find high-class developed infrastructure: Boat Avenue street with numerous restaurants and shops, hypermarkets with local and European products, Blue Tree water park, the five-star Laguna area, top international schools, sports facilities, as well as less dense development, wide roads, and sidewalks for jogging and walks.
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Note that besides the existing Porto de Phuket mall, a new, vibrant, modern shopping center, Robinson Lifestyle, opened on August 26, 2022, becoming a direct competitor to the famous Central Festival in the island’s center. Besides boutiques and shops for every taste, cafes, and restaurants, Robinson Lifestyle also includes a cinema showing films in English.
Why Investors Choose Villas During Construction
In conclusion, the Phuket market is still young and developing. Here, you can purchase a villa at a cost significantly lower than, for example, in Italy or Florida. Recall that on the island, with an area of 543 sq. km., 60% is occupied by national parks and reserves where construction is prohibited. Demand is growing, land is decreasing, and each subsequent property is offered at a higher price.
This is also one of the reasons why buyers choose villas during the construction phase: a villa takes about 12 months to build, and the price during construction is 30% lower. It is already difficult to purchase a completed property, as villas are bought up at the sales launch or construction stage.
All of the above applies not only to purchasing but also to renting villas. According to Airbnb data from October 18–24, 2021, search queries for rentals in the following six months more than doubled compared to the same period in 2020. And villas were the most popular query among users.
Already, we can note a huge number of villa bookings for the high season, which serves as a solid foundation for the rapid recovery of Phuket’s tourism sector, both for vacationers and investors.
