The Burgeoning Real Estate Ecosystem of Phuket

Ravi Chandran, Corporate Affairs Advisor, Amal Group, takes a look at the factors shaping the real estate market of the popular holiday destination

Phuket's real estate sector is booming. This tropical Thai island has long held a reputation as being one of the world's most desirable destinations to visit. Now, in the evolving landscape of the post-pandemic era, the ‘Pearl of the Andaman’ is becoming one of the most popular places to invest in luxury property and start a new life.

The appeal of Phuket is clear to see. With its year-round climate, stunning sandy beaches (26 in total) and crystal-clear seas, this is the ultimate tropical paradise. But these natural assets alone are not enough to attract discerning investors; what sets Phuket apart is its world-class infrastructure and facilities, including nine hospitals, 13 international schools, eight shopping centres, four marinas, 16 golf courses and, of course, its international airport which welcomes regular flights from major global airlines including Emirates and Etihad.

This blend of natural beauty, accessibility and connectivity is fuelling the real estate boom in Phuket. According to C9 Hotelworks, the leading Phuket-based hospitality consultancy, the island's real estate transactions reached a total market value of THB 27.51 billion (USD 760 million / AED 2.8 billion) in the first half of 2023. This followed a significant upswing in 2022, when the total market value hit THB 48.15 billion – a substantial 30% increase from the previous year. In fact, since H1 2022, the average transaction value for houses in Phuket has surged by a staggering 48.9%.

Demand Rises on Phuket’s Sunset Coast

Naturally, the highest prices are commanded by properties that lie on or close to Phuket's west coast. Blessed with a string of crescent-shaped sandy beaches and lapped by the Andaman Sea, this stretch of coast also has the benefit of stunning daily sunsets. One of these beautiful west-facing beaches, Bang Tao Bay, is home to some of the island's most prestigious hotels and resorts, including the Banyan Tree, as well as chic beach clubs. It is little surprise therefore, that Bang Tao and neighbouring Layan Beach have emerged as the leading locations for branded residences in Phuket, commanding a combined total of 45% market share, with 1,927 units, according to C9 Hotelworks¹.

One major new project at Bangtao Bay is Gardens of Eden, a spectacular 11.7-hectare development which celebrated its ground-breaking ceremony on 10th May 2024. The vision of Dubai-funded property company Amal Development and award-winning architecture and interior design studio, Tierra Design, this highly sustainable development is set to transform the real estate landscape in Phuket. Only 30% of the total project area will be built up, with the remaining 70% being left as green, open space. This is unheard of in property development – especially in a destination with limited space such as Phuket. With parks, wetlands and forests (more than 1,000 native trees will be planted on the site), plus natural swimming pools, fitness trails and a 5,000m² wellness centre, this will be a genuine haven of tranquility.

Family Values Drive Sustainability Trend

The focus on sustainability is becoming an increasingly decisive factor in the real estate sector, especially in an “out-of-town” destination like Phuket. As high-net-worth individuals settle down and start families, their primary concern switches to the health and happiness of their children. The traffic congestion and air pollution in major cities is encouraging many senior executives and entrepreneurs to escape their urban lives and seek a cleaner, greener environment to raise their family. 

With the rapid advancements in technology and connectivity, which have accelerated since the global pandemic, many professionals are now able to run their businesses from anywhere in the world. So, where could it be better to live, work and raise a family than Phuket? Amal Development’s CEO has even committed to move his family to Gardens of Eden – a considerable vote of confidence in the project, and in Phuket itself.

With so much demand for Phuket, there could be concern that this tropical island retreat could itself become overburdened and congested. But this Thai province is taking steps to alleviate this with a series of major improvements to its transport infrastructure. The planned Phuket Expressway and Kathu-Patong tunnel will help speed up accessibility across the island, and a potential light rail network will connect the airport with major tourist areas. The passenger capacity of Phuket International Airport is expected to increase 44% from 12.5 million to 18 million by 2027, creating additional options for international visitors, and a proposed Andaman International Airport could even raise this capacity to 40 million annual passengers.

As the world moves away from the traditional constraints of urban living, more savvy families will seek new lifestyles in idyllic destinations, such as Phuket. This will further drive the island’s real estate boom and create strong long-term benefits for those who invest in the island.