Phuket's Real Estate Boom: The New Global Leader in Branded Leisure Residences
Phuket has emerged as the largest leisure branded residences real estate market globally, witnessing an unprecedented surge in overseas buyers. According to new data from hospitality consulting group C9 Hotelworks, the current supply of branded properties on the island has exceeded a staggering USD 2.3 billion (THB 80 billion) and is poised for further growth.
Transformation from Tourism to Real Estate Giant
The evolution of Phuket’s economy from a tourism-dependent hub to a thriving property giant is underscored by the convergence of hospitality and real estate sectors. Leading developer Laguna Phuket exemplifies this shift, transitioning its focus from hotels to branded real estate, symbolizing a significant trend in the market.
Key Players and Major Developments
Singaporean tourism icon KP Ho’s Banyan Tree Group is among the key players driving this paradigm shift, with plans to develop a USD 2 million lifestyle-led branded real estate offering adjacent to the Laguna Phuket integrated resort.
Mixed-Use Projects and Rising Demand
The strategy reflects a broader trend towards mixed-use projects, as developers capitalize on rising demand from affluent overseas and domestic buyers seeking investment opportunities or relocation to Phuket. Recent market entries include renowned brands like The Standard in Bangtao, signaling sustained growth in the region.
Pandemic Resilience and Financial Boost
Despite challenges posed by the pandemic, Phuket’s tourism market witnessed higher room rates, leading to increased profitability for hotel owners. Thai banks, buoyed by improved market conditions, are once again lending to greenfield projects, further boosting investor confidence.
Factors Driving Real Estate Demand
The surge in real estate demand is driven by factors such as rising global migration, urban flight, and Thailand’s progressive visa policies, including long-term retirement visas and the Thailand Elite program. Additionally, the proliferation of international schools in Phuket underscores its appeal as a preferred destination for expatriates and retirees.
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International Community and Investment Opportunities
C9 Hotelworks Managing Director Bill Barnett emphasized the transformative nature of Phuket’s evolving economy, highlighting the island’s growing attraction as an international community. The burgeoning demand for branded residences reflects shifting buyer values, with Phuket now positioned alongside global real estate hubs like Miami and Dubai.
Future Outlook: Diverse Sectors and Continued Growth
As Phuket continues to redefine itself as a premier real estate destination, industry experts anticipate the influx of non-hotel brands from diverse sectors such as fashion, automotive, and gastronomy, further enriching the island’s vibrant landscape.
Conclusion
With record-setting property supply and a thriving market ecosystem, Phuket solidifies its status as a dynamic and lucrative investment destination, offering unparalleled opportunities for investors and residents alike.
