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In 2023, the demand for villas in Phuket soared by 300%, with developers announcing twelve times more projects than in the first half of 2022. This boom raises several questions for overseas buyers: How should they navigate the market? What should they know before buying a villa in Phuket? What can they expect in terms of conditions? And most importantly, which deals are the best? To find answers, we turned to Exotic Property, a real estate company that has been operating on Phuket since 2009.
Reading reports from the Thai Real Estate Information Center (REIC) might lead you to think there's a construction frenzy in Phuket, with a reported twelvefold increase in developer projects! But this view can be deceiving. In fact, there aren't as many housing complexes suitable for foreigners as one might believe.
The dramatic increase in statistics is partly because, during the pandemic, hardly any new projects started. Now, with construction activity picking up, Phuket has become a magnet for developers, including many new to the region. They are opening up land for development both near well-known resorts and in the heart of the island.
However, if we set aside projects from less reliable developers — those without experience, good reputation, or solid financial backing (and there are quite a few of them) — and those aimed primarily at Thai buyers, we're actually left with only about 15-20 solid choices that merit foreign investors' attention.
It's crucial to remember that Phuket is a relatively small island, ten times smaller than Bali in Indonesia, with much of its land covered by mountains and nature reserves. This limits the possibility for widespread building. Each villa project here is distinct and unique.
The limited availability of land in Phuket greatly affects the types of villas you'll find here.
First off, you won't see the small bungalows that are common in places like Bali, which range from 50 to 100 square meters. High land prices mean that even the smallest house would cost at least $200,000. With that kind of budget, buyers tend to prefer an apartment in a high-quality complex by the sea, rather than a small bungalow that's five kilometers away from the beach.
Before the pandemic, when land was cheaper, Phuket had townhouse projects that would sell for about 5-6 million baht ($140-170,000). But now, with a bigger demand for villas, developers are moving away from building these more affordable options.
The smallest houses now start at about 150 square meters, with most villas being at least 200 square meters or larger.
Secondly, the prices match the high demand and limited land. Finding a villa in Phuket for $100,000 is impossible; such properties just don't exist, even though we often get asked for them.
Nowadays, the starting budget for a villa is between $300,000 and $400,000. This price range typically gets you a two-bedroom house in a nice complex, although without any scenic views and located three to four kilometers from the sea. If you're willing to spend $400,000 to $700,000, you can get a similar house but with more space. Prices for villas with views begin at $700,000. For very spacious villas with good views or those close to the sea (but not beachfront), prices start at over $1 million.
Beachfront villas in Phuket are exceedingly rare and usually only come up on the secondary market, with prices starting at $5 million. For buyers interested in spacious properties by the water, we often suggest looking at penthouses with pools or ground-floor apartments that offer garden access. These can be more realistically found at around the $1 million mark.
When we get a request to find a villa in Phuket, we focus on three key factors: what the buyer wants, the developer's track record, and the location of the villa.
Understanding the Buyer: The first step is always to understand the buyer's needs. This includes the size of the villa they're looking for, the layout, number of bedrooms, their budget, preferred locations, and, very importantly, what they intend to do with the property.
Sometimes, buyers are interested in villas as investment opportunities. They're looking to make money off the property instead of living in it. For these buyers, it's critical to check if the villa has a hotel license, the quality of its management, and its potential for generating income. However, it's worth noting that villas often have lower profitability compared to apartments due to their higher purchase and maintenance costs. But for those interested in investment, Phuket's apartment complexes can offer good income opportunities.
Most of the time, buyers are looking for villas for vacation use or possibly for renting out occasionally. Others might be planning to move to Phuket permanently.
Location Considerations: The heart of resort life in Phuket is on the west coast. But that's just the beginning. Different areas offer different advantages — some are closer to beaches and nightlife, while others offer easy access to schools and shopping centers. Transportation links, views, and overall ambiance vary from place to place. We provide our clients with comprehensive insights into Phuket's infrastructure across the island.
It's also vital to look at not just the current state of a location but what the future holds. Are there plans for new developments? Areas under development often see an increase in property values as new infrastructure, like roads and amenities, are built. Property owners in these areas can see significant benefits from such growth.
Developer's Reputation: The practice in Phuket is often to build villas to order. Developers announce their projects, design the villas, open showrooms, and start sales. Once a buyer commits, their specific villa is constructed within the designated complex, typically over 12–16 months. Working with reputable developers who adhere to their timelines and maintain high standards is crucial. Our knowledge of the local industry and the players within it is something we freely share with our clients to help them make the best decision.
Here's a snapshot of the best villa offerings in Phuket right now, in 2024. We've chosen a range of options to highlight the variety available in the market, from budget-friendly to premium.
1. Smart Home at Nai Harn Beach — $356,000
This two-bedroom villa, equipped with a private pool, is situated in the southwest of Phuket, just 1.5 kilometers from Nai Harn and Yanui beaches. The price covers plumbing, finishing touches, air conditioning, and a smart home system. The complex boasts amenities such as a car park, video surveillance, a restaurant, a management company, and villa maintenance services.
Developed by a highly experienced developer who has been in the market since before our real estate agency, Exotic Property, opened in 2009. They began with villas, shifted to apartments, and have now returned to villa construction, responding to current demands. They own substantial land and are developing several complexes simultaneously, ensuring there are always similar options available for sale.
This villa is the smallest in the complex at 190 sq. m, offering excellent value per square meter (less than $2,000). Technically, it's a twin house—shared with one other owner—but the design ensures privacy. A high wall separates the plots, so owners won't disturb each other. It comes with a pool, a small garden, and all essentials for comfortable living and relaxation, making it an attractive option for under $400,000.
2. High-Tech Villa from an Experienced Developer — $445,000
This villa complex, located in the prestigious Bang Tao area near five-star hotels, comprises 14 villas spaced along a broad avenue for comfort and privacy. What sets this project apart is its focus on energy efficiency and modern, high-tech architecture.
The primary appeal of these villas is their fantastic location. With many new complexes and burgeoning infrastructure, this street is becoming an increasingly sought-after area in Phuket.
Although the developer is relatively new to Phuket, the company brings a wealth of experience. Having purchased several plots of land upon their recent entry into the Phuket market, they've quickly established a solid reputation through their diligent work on this villa project and an apartment development. Their construction process is on track, and their marketing department is proactive, offering comprehensive support and documentation. This approach indicates their extensive background in real estate, showcased through their attention to architecture and design. They offer unique and stylish projects, a quality not all developers in Thailand can claim.
An additional benefit is the pricing strategy. Being new to the local real estate scene, the developer has priced these villas competitively to make a mark. As their reputation solidifies, prices are expected to rise, making this an opportune moment for investment.
3. Scenic Villas in a Large-Scale Complex — $635,000
This offering is a spacious, 350-square-meter villa featuring three bedrooms and its own pool. It's part of a significant development project, nestled in a pristine area of Phuket that boasts national park views.
The developer behind this project is supported by Chinese investment and has a track record of building several luxury apartment complexes in Phuket, earning them a solid reputation.
A standout feature of this new villa complex is its hillside location, providing homeowners with breathtaking views. Having visited the site ourselves, we can vouch for the spectacular panoramas, particularly impressive from the upper floors.
Another significant benefit is the size and facilities of the complex, which houses 62 villas. It comes with comprehensive infrastructure for residents, including private park areas, playgrounds, a gym, and secured communal spaces, making it an attractive option for those seeking a blend of luxury and community.
4. Family Villas Near an International School — $765,000
This newly developed complex includes 33 villas, strategically positioned near one of Phuket's leading international schools. Each villa is designed with panoramic windows that provide stunning views of the city and hills, enhancing the sense of openness and connection to the natural surroundings. Every homeowner will enjoy the luxury of a private pool, with the villas themselves starting from a generous 350 square meters in size.
While this complex is situated about five kilometers from the beaches, its location is notably attractive for other reasons. It's conveniently close to an international school, as well as a variety of cafes, restaurants, and gyms, making it an ideal living spot for families.
The developer behind this project is a well-regarded conglomerate in Phuket, known for their diverse ventures, including the management of an international school. This relationship provides villa owners in this complex with unique advantages, such as access to the school's extensive sports facilities, which include football fields, tennis courts, and an Olympic-sized swimming pool.
Although these villas come at a higher price point, they promise high quality, ample space, and exceptional views. We consider this offering one of the best for wealthy families aiming to provide their children with an excellent education in Phuket while living in a peaceful area that remains well-connected to the tourist infrastructure.
5. Elite Waterfront Villas in the Most Prestigious Area — $1.49 Million
This exclusive complex features 44 luxury villas, each offering spacious living with sizes starting from 430 square meters. Homeowners will enjoy private pools, premium finishes, and an environment secured by a management company providing 24-hour security and exquisite landscaping.
The developer behind this ambitious project is among the largest in Phuket, with a focus on high-end real estate. They hold extensive land across the area, maintaining a portfolio of five to seven complexes for sale at any given time. It's important to note that prices within their projects can vary widely, mainly depending on how close you are to the sea. A villa similar to those in this offer could be available for nearly half the price, albeit located five to seven kilometers from the coastline.
What sets this complex apart, in our view, is its unparalleled location. Situated near the prestigious Laguna Phuket resort area, it offers the finest tourist infrastructure on the island. The project itself is designed with unique landscape features, including rivers, canals, tropical plantings, and pedestrian pathways, making it an exceptional choice for those seeking luxury living in Phuket's most sought-after location.