One of the best ways to understand a foreign real estate market is through its key factors. That way, you can find the right metrics and will have a complete overview of the market. As a direct result of that, you will be able to make better investments that will result in higher ROI.
Investing in the Phuket real estate market can be analyzed through its key drives as well. To that end, we have made a shortlist of everything that influences Phuket’s real estate market.
Strong population growth
Phuket’s population growth is set at around 7% annually. That’s way more than the country average population growth. The math here is simple; the more people, the higher the demand for residential property.
Traditionally in Thailand, elders lived with their children. However, things are changing, and most young people opt to live in their own houses, condominiums, or townhouses. The shift is already affecting the local real estate market and adds fuel to its expansion.
Tourism boosts the local real estate market
Tourism is the main lifeline for both the local economy as well as the local real estate market. The number of tourists that come every year is constantly growing, which has a profound effect on the real estate market.
2020 is expected to be another great year for the tourism sector in Phuket. As always, that translates into a great year for the local real estate market. Tourism is expected to grow many years beyond 2020 further. Therefore, the real estate market is expected to grow along as well.
Government-funded infrastructure investments
The Thai government has made it a priority to improve the already excellent local infrastructure further. So far, they have invested hundreds of billions of dollars, and they don’t intend to stop. According to their public plans, they plan to invest even more in the upcoming years.
Global marketing efforts
Ten years ago, most real estate investors came from China, India, and other neighboring countries. Nowadays, there are foreign investors with offices in London, Moscow, New York, Amsterdam, Rome, and other cities worldwide. All that is the result of their marketing efforts and introducing Phuket’s real estate market to the world.
According to the local developers, both individuals and companies are buying property without even coming into the country. Some developers also take orders through WeChat and WhatsApp.
There is no sign of a real estate bubble or anything that might resemble that. There was a moment in 2018 when the market became a bit oversupplied. But in 2019, it all leveled itself, and now things are looking harmonious. The demand is there, the supply is on point, and there are official government data that proves that.
As a result, investors are calm, money is flowing nicely in this sector, and no turbulence is expected in 2020, or in the years that come after it.
Everything mentioned here is based on real data and information from reliable sources. Most of which are from official government sources and some from international organizations that deal with data collection and real estate analyses.
Peter Sundin was born and raised in New Jersey. He has contributed to Buzz Feed, Details and TODAY and served as a commentator for NPR, MSNBC and HuffPost Live. As a journalist for Morning News Ledger, Peter mostly covers national news. Aside from earning a living as a freelance journalist, Peter also works as a dog walker.