Should you buy Phuket property in 2023?
How has Covid impacted real estate in Thailand? In this article we look at reasons you might want to buy Phuket property in 2023.
Phuket has long been a popular destination for experienced real estate investors, thanks in part to the affordable prices for apartments in Phuket.
However, if you are new to investing in Thailand, or Southeast Asia in general, you may have some reservations about buying property in the region. Let’s look at some of the reasons why investors are buying Phuket property in 2023 – and how Covid has impacted the real estate market there.
How Covid-19 affected real estate in Thailand
The crisis generated by the Covid-19 pandemic started in 2020. The Thai regions most affected by the coronavirus pandemic were Bangkok, Pattaya, Phuket, and Koh Samui, where many foreigners were located. This has understandably had a knock-on affect on the local real estate market.
As a result, prices for houses and apartments in Thailand fell, but not significantly. The main problem during the crisis was the suspension of construction and the complete revocation of many schemes, which decreased the number of new skills.
In some areas, no new structures were created during the pandemic. In the first half of 2021, 37% of new real estate was postponed. Specifically, in condominiums the country saw a decline of 42.5% against previously planned.
According to local experts, about 47,5000 properties were put on the market in 2021; this is the lowest number in a decade. Since 2022, though, the market has revived. In the second quarter of 2022, the supply volume in the Bangkok condominium market was 15,164 units, a decrease of 470.% compared to the same period last year.
Three reasons to buy Phuket property in 2023
Now the Covid-19 pandemic, which was a cause for concern for many investors, especially when buying property overseas, has passed, many consider that now is the time to invest in Phuket residential properties. Here are three reasons why.
1) Growing rental demand
As many people have been postponing the purchase of Thai property until better times since the start of the pandemic. As a consequence, since 2022 we have seen a rapidly growing demand for housing from tenants, and a low level of supply from landlords.
2) Reasonable real estate prices
Currently, the value of residential properties in many areas of Phuket is declining. This is a great opportunity for investors looking to capitalize on capital gains in the future.
3) Sellers are open to negotiation
Since the demand for buying Thai property still has not fully recovered to pre-pandemic levels, many sellers will be more open to negotiations.
Why is Phuket so popular with tourists?
Thanks to Phuket’s popularity among foreigners, local landlords can expect high returns. But what caused this trend? There is always something to see and do in Phuket; the largest island in Thailand offers a wide range of leisure and recreation facilities that appeal to tourists and locals alike.
Here are three popukar restaurants in Phuket:
- Chao Leh Kitchen
- La Sala
- Rim Nam Pool Bar
The island also offers many shopping opportunities. Shopping malls in Phuket include:
- Central Phuket
- Central Patong Phuket
Phuket is home to some of the most beautiful beaches in the entire world. There are plenty of options here for lovers of secluded relaxation and those who appreciate an active and lively atmosphere.
Here are the five most popular beaches on the island:
- Kata Noy
Mistakes to avoid when investing in Thailand real estate
Investments in real estate in Thailand, as well as in real estate in other countries, primarily allow you to save capital. If you choose the right property to invest in, the investor will be able to earn on the growth in value and rent payments.
But if an investor makes a mistake when selecting a property, they will possess a property that cannot be rented out or resold, and its value may decrease. Experience shows that some of the most common mistakes people make when investing in real estate include:
- The wrong choice of country for investing in real estate
- Ignorance of the situation in the residential or commercial real estate market in a particular country or city
- The wrong choice of the location in the city
- An erroneous choice of the area of the property for purchase
- Wrong choice of the moment for investment (project stage)
- An erroneous assessment of the ratio of price and level of the property
- Inaccurate assessment of the liquidity of the project
Help with buying real estate in Phuket
The Thailand-Real.Estate catalog contains a wide range of apartments, villas, penthouses, and other types of real estate located in Phuket and other regions of Thailand.
Contact the representatives of the aggregator to get help with the selection of the optimal residential property and support at all stages of the transaction.