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Phuket Real Estate Trends 2020-2021. What to Buy?

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The year 2020 tested the strength of all local real estate markets. Phuket is one of the main destinations for investment in Asia. It is known for high-quality resort complexes that generate guaranteed passive income. How did the island survive the lack of tourists? Did the developers drop prices, did the owners make a profit? And most importantly, what should those who intend to invest in profitable real estate in 2021 do? We understand it together with the experts of Exotic Property.

Trend #1. Prices have stopped, but there are no sales

Increasing prices is a common practice for Phuket as the compound is built. The most affordable apartments can be rented at the off-plan stage. As soon as the developer fills the foundation, the price increases by 5%. The same happens after the completion of each stage of construction. As a result, the finished apartment will cost you 30% more.

In addition to the planned increase, developers quickly change the price tags based on the current demand. For example, January-February is a hot season in Phuket. Lots of tourists, lots of deals. And apartments are usually more expensive in winter than in summer. But not in 2021…

Trend # 2. Developers complete current projects and research demand

In Phuket, two payment schemes are common for real estate under construction. First, the developer issues an invoice upon completion of the stage. Second, the client pays 100% of the price, but immediately begins to receive cashback of a guaranteed income of about 7% per annum, which is usually paid after the building is put into operation. In both cases, small delays in construction are not critical for the buyer.

In 2020, Phuket experienced one tough lockdown. In April-May, areas of the island were closed, residents sat at home. There was no construction then either, but as soon as the restrictions eased, the developers continued to work. However, in 2021, the pace of launching new projects is likely to slow down. Developers take their time and carefully analyze the demand.

Trend # 3. Investors buy remotely, waiting for expats

The coronavirus pandemic has aggravated economic problems and created a huge amount of uncertainty. Under such circumstances, there is always a growing demand for real estate as a reliable asset that allows you to protect your savings from inflationary risks. A striking example is Russia. Despite the fall in GDP and real incomes, the number of housing transactions and real estate prices jumped. Thanks to the cheap mortgage that the government has supported.

In Phuket, there are also more local buyers in 2020. The excitement began after large Bangkok developers came to the island. Developers known throughout the capital were able to attract local investors. Credit products with a down payment of 10%, which banks offer to Thais, also helped. As for foreigners, they can still count on interest-free installments from the developer, and if there is a confirmed income in Thailand, then a bank loan for the purchase of an apartment.

Trend # 4. Guaranteed income is still there, even the rates are not reduced

The most affected industry in 2020 was tourism. The decline in the number of international guests at various resorts around the world reached 90%. This led to a loss of income for the owners of rental apartments. In the best case, thanks to local tourists, it was possible to come out in the plus. But the tenants who permanently live in the resorts won the most: they were able to rent apartments for a long time in the best locations at low prices.

But Phuket has become famous among investors thanks to guaranteed income programs, under which owners receive a return of 6-10% of the price of the property, regardless of how the apartment was actually rented out. In 2020, they were just able to assess the benefits of this program.

Examples of real estate available for sale:
Apartment for 41 535 euro on Phuket Island, Thailand
41 535 €
Apartment on Phuket Island, Thailand
20 sq.m 1 1
In the complex: new apartment complex on Nai Yang beach, 2 buildings with studio apartments overlooking the garden. On the territory of the complex there is an office of the management company, lobby, gym, swimming pool, garden, Parking, 24-hour security. In the apartments: a magnificent view opens from all apartments in the complex. Bright...
Apartment for 47 096 euro on Phuket Island, Thailand
47 096 €
Apartment on Phuket Island, Thailand
30 sq.m 1 1
In the complex: a new complex in the center of the island. Three eight-storey buildings with apartments. On-site private parking, communal swimming pool, fitness center, 24-hour security. In the apartments: the modern interior of the studios is ideal for those who prefer a dynamic lifestyle. Feature: the complex is located in close proximity...
Exotic Property
Apartment for 66 898 euro on Phuket Island, Thailand
66 898 €
Apartment on Phuket Island, Thailand
24 sq.m 1 1
In the complex: a new complex in the center of the island. Two eight-storey buildings with apartments. On-site private parking, communal swimming pool, fitness center, 24-hour security. In the apartments: the modern interior of the studios is ideal for those who prefer a dynamic lifestyle. Feature: the complex is located in close proximity...
Exotic Property
Apartment for 70 596 euro on Phuket Island, Thailand
70 596 €
Apartment on Phuket Island, Thailand
33 sq.m 1 1
In the complex: the condominium consists of an eight-storey building designed in a modern style. All 102 apartments are divided into 3 types, different in size and layout, communal swimming pool, restaurant, fitness center, conference room, parking, 24–hour security. In the apartments: modern tropical design, comfortable stylish furniture,...
Exotic Property
Apartment for 70 971 euro on Phuket Island, Thailand
70 971 €
Apartment on Phuket Island, Thailand
31 sq.m 1 1
In the complex: a new complex in the center of the island. Studios, one-room, two- and three-bedroom apartments are located in two 7-storey buildings. On-site private Parking, shared two-level swimming pool, park area, 24-hour security. In the apartments: the concept of quality and versatility. The interior is decorated in warm colors, each...
Exotic Property
Apartment for 71 684 euro on Phuket Island, Thailand
71 684 €
Apartment on Phuket Island, Thailand
39 sq.m 1 1
In the complex:  a small building with 4 floors, swimming pool and recreation area, lobby, reception, Parking, 24-hour security. In the apartments: large spacious studio apartments and apartments with 2 separate bedrooms are fully furnished and decorated. Feature: the complex is located on Rawai beach in close proximity to the sea and the...
Exotic Property
Apartment for 72 152 euro on Phuket Island, Thailand
72 152 €
Apartment on Phuket Island, Thailand
34 sq.m 1 1
In the complex: 171 apartments in a building of 7 floors, 2 communal swimming pools, one of them is located on the roof with a magnificent view of Bang Tao beach, a children's pool, lobby, restaurant, fitness center, kids club, 24-hour security. In the apartments: the project is distinguished by a bright color scheme in the decoration of the...
Exotic Property
Apartment for 72 267 euro on Phuket Island, Thailand
72 267 €
Apartment on Phuket Island, Thailand
33 sq.m 1 1
In the complex: 7 storey building, 67 apartments with 1 and 2 bedrooms. On the one hand, the complex is surrounded by 2 beaches, Bang Tao and Surin, on the other hand a magnificent view of the mountains. On the territory there are: a gym with modern equipment, Parking, 24-hour security. In the apartment: modern style of architecture,...
Exotic Property
Apartment for 72 844 euro on Phuket Island, Thailand
72 844 €
Apartment on Phuket Island, Thailand
30 sq.m 1 1
In the complex: 2 apartment buildings with a wonderful view of the Andaman coast, a communal swimming pool, a restaurant, a SPA center, 24-hour security. Proximity to the developed infrastructure of the Patong area with an abundance of supermarkets, bars and restaurants In the apartments: stylish apartments, high-quality finishes and a...
Exotic Property
Apartment for 75 817 euro on Phuket Island, Thailand
75 817 €
Apartment on Phuket Island, Thailand
30 sq.m 1 1
In the complex: a residential complex under hotel management is located in an elite area of the Lagoon surrounded by a park area. The complex has 213 apartments, a large themed swimming pool with a sandy island, a restaurant, five-star service. In the apartment: eco-friendly materials, good layout and bright interior. The apartments on the...
Exotic Property
Apartment for 76 055 euro on Phuket Island, Thailand
76 055 €
Apartment on Phuket Island, Thailand
30 sq.m 1 1
In the complex: a unique complex on the first line of Bang Tao beach, a total of 6 buildings, 196 apartments of various layouts. The infrastructure of the 5* hotel - several swimming pools for children and adults, a restaurant, a bar, a park area, a fitness center, a SPA, parking, reception, 24-hour security, etc. In the apartment: modern...
Exotic Property
Apartment for 76 115 euro on Phuket Island, Thailand
76 115 €
Apartment on Phuket Island, Thailand
48 sq.m 1 1
In the complex: 60 apartments in a six-storey building on the Phuket Country Club Golf course, communal pool, fitness center, 24-hour security In the apartment: the interesting interior of the apartment differs from the usual style of the tropics. Natural colors and wood trim create an unusually warm atmosphere, competing in beauty with nature...
Exotic Property
Apartment for 76 323 euro on Phuket Island, Thailand
76 323 €
Apartment on Phuket Island, Thailand
27 sq.m 1 1
In the complex: a large complex of 7 four-storey buildings with 40 apartments each, three communal swimming pools, sauna, gym, reception, management company office, parking, 24-hour security. In the apartments: the complex has a unique location, directly on the first line of Rawai beach, 30 meters from the sea. Inside the apartment, French...
Exotic Property
Apartment for 77 007 euro on Phuket Island, Thailand
77 007 €
Apartment on Phuket Island, Thailand
44 sq.m 1 1
In the complex: 2 seven-storey buildings, communal swimming pool, fitness center, reception, parking, 24-hour security. In the apartments: modern, comfortable apartments, equipped kitchen, terrace with views of the surrounding area and the sea, comfortable bathroom with shower or Jacuzzi to choose from, the complex is surrounded by tropical...
Exotic Property
Apartment for 79 390 euro on Phuket Island, Thailand
79 390 €
Apartment on Phuket Island, Thailand
27 sq.m 1 1
In the complex: the building has 7 floors, a total of 197 apartments of various layouts. There is everything you need for a comfortable stay: a reception, a recreation area with free access to high-speed Internet, a space for coworking, a swimming pool with a children's area and a Jacuzzi, a meeting room, a fitness center, round-the-clock...
Exotic Property
Apartment for 79 683 euro on Phuket Island, Thailand
79 683 €
Apartment on Phuket Island, Thailand
27 sq.m 1 1
In the complex: a new phase of the already working complex. There are only 4 floors, apartments-rooms with mountain views, sea views and direct access to the pool.The complex has all the necessary infrastructure of a modern hotel - lobby area and 24-hour reception, restaurant, cafeteria, shop, swimming pool with sea view, children's pool, kids...
Exotic Property
Apartment for 80 157 euro on Phuket Island, Thailand
80 157 €
Apartment on Phuket Island, Thailand
34 sq.m 1 1
Description of the object: Club Apartments is a premium boutique condominium with 5–star service and beautiful views of the Andaman Sea, located in the heart of Rawai district. In the complex:All the necessary hotel infrastructure. A swimming pool with panoramic sea views, a gym with a sauna, contactless door and elevator technology, a coworking...
Exotic Property
Apartment for 80 277 euro on Phuket Island, Thailand
80 277 €
Apartment on Phuket Island, Thailand
24 sq.m 1 1
In the complex: complex of 2 buildings, 292 apartments in total, cinema, karaoke bar, game room, restaurant, gym, SPA, sauna, parking, 24-hour security. The complex is located 900 m from Nai Harn Beach and 1 km from Rawai Embankment. 500 m away is a beautiful lake for walking and evening jogging. In the apartments: apartments from 24 to 40...
Exotic Property
Apartment for 81 883 euro on Phuket Island, Thailand
81 883 €
Apartment on Phuket Island, Thailand
34 sq.m 1 1
In the complex: the condominium is a new phase of a major project under construction in Patong, in the most popular resort area of Phuket. The developer is building 5 objects in this area, some of which are already working, and finishing works are underway in the rest. There will be around: more than 250 nightclubs, more than 1000 restaurants...
Exotic Property
Apartment for 82 953 euro on Phuket Island, Thailand
82 953 €
Apartment on Phuket Island, Thailand
40 sq.m 1 1
In the complex: 110 apartments in a modern seven-storey building with ocean views, communal swimming pool, fitness center, rooftop recreation area, reception, parking, 24-hour security. In the apartments: modern apartments with a total area from studios to double residences. Pastel tones decorated with walnut color, French windows and lots of...
Exotic Property

What to buy in Phuket in 2021

Based on the trends outlined in the crisis of 2020, we can draw conclusions.

First, the situation plays into the hands of those who are willing to make a remote transaction. Prices have hovered at the level of 2019, and developers are now not spoiled by demand. This means that the buyer can get a lot of bonuses, such as furniture or freehold status as a gift (although usually apartments in full ownership are 10% more expensive than in leasehold). But it is clear that as soon as the tourist flow is restored, the developers will immediately take a position of strength, and it will be more difficult to bargain with them.

Secondly, when choosing new buildings, buyers always paid attention to the status of the developer, and in 2021 this parameter became critically important. Around the world the risk of bankruptcies and delays in payments from small companies increases. In the current situation it is better to hedge your bets and choose projects from developers with international assets that do not depend on bank loans and investors' funds. For example, large companies from Bangkok, China, Singapore, and Hong Kong are building in Phuket.

Third, despite the fact that the guaranteed income during the first years is usually paid by the developer, it is better to choose complexes with professional hotel management (Best Western, Wyndham Group, Sheraton, etc.). An international hotel chain will be able to ensure maximum occupancy of the complex when the borders are fully opened. In turn, thiss will bring the investor a better return on the property and help to sell the property profitably.

Fourth, location is still important. All other things being equal, it is better to choose apartments located closer to the beaches in Phuket. They will also be in demand among tenants, and it will be easier to sell them, especially in popular locations where there are already not enough places for construction.

And fifth, against the background of the general enthusiasm for remote work, we can expect a further increase in the number of expats in Thailand. The local authorities, by the way, are already working on this direction, they are developing a project of long-term visas "Thailand Elite", which allow wealthy foreigners to settle in the country. Developers offer their clients who buy real estate from 10 million baht, to apply for a long-term visa for free. This trend in the future will give an incentive to increase prices for villas, townhouses and spacious apartments that are designed for long-term living. Even now, investors can take advantage of this potential: buy a property, keep it in the property for several years, and then sell it at a higher price.

Also read: Buying Realty in Thailand Remotely

Quoting conditions of Prian.info materials

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