The climate on the island is resort-like and comfortable to live in. The air temperature rarely drops below 25 ° C, on average stays at 28-31 ° C. The sea temperature is 28° on average.
Most tourists visit Phuket from December to March. In April-June the load is average, July-September is low demand. But this does not mean that your property will be empty in the summer. At this time, tourists from eastern countries come to the island, and for the Chinese, Thailand is something like our Sochi.
Phuket's tourist traffic in 2019 totaled 14 million tourists according to the Tourism Authority of Thailand.
For 2022, 12 million visited Phuket despite the post-Kovid stress.
More people came to the island in 2023 than before the covid. I don't remember such a housing boom in a long time. At peak season everything was occupied and from December to February demand only increased. Owners who left their homes at the peak rented them for five times the normal price. In December or January, 3-4% of the asset was paid off.
In 2024, even more tourist traffic is expected, and few new facilities have been built. The island is small and the entire coastal zone is almost occupied. The development will now go inland, developing "wild" areas without infrastructure.
Most of those who flew in in 2022 didn't fly back and moved to the island. Rental prices, even in low season, are getting higher every year. The popularity and population of the island is growing, and the authorities are speeding up the process.
Thailand is making a big bet on the island. Soon Phuket will also become a medical resort. A large-scale medical complex with institutes and research centers is being created here. The authorities plan to use advanced technologies, attract professors and scientists. The government has allocated 5 billion baht for the complex, the end of construction is scheduled for 2027.
The legalization of marijuana has also warmed up interest in Thailand among tourists, investors and agro-segment. I would like to point out that there is no record of marijuana-related crime and incidents, nor have I heard of any such incidents. On the contrary, the island has become even calmer.
In 2023, Phuket changed its government, and the new government has already started to improve the comfort of the island. The goal is to turn Phuket into an international hub with huge capacity. Monorail from the airport across the island, railway transportation in the Old Town, architectural objects will appear very soon.
Here, the assets of residents are not monitored, cryptocurrency is used, and the state encourages business development. If you have a long-term visa or real estate in the country, you can open an account in a local bank. Paying Visa and Mastercard worldwide, fixing profits from renting, transactions with cryptocurrency through local exchanges, and yes, and simply storing capital in local currency - the option is very convenient and profitable. The baht is one of the most stable currencies in the world.
The market capitalization of real estate is pleasing: the total value of housing is growing since 2019 by an average of 5-7% per year. And land has risen in price by 70-140% in the last 2 years.
Analyzing the prices, which now give resale ready objects, we get an increase of 40-60% from the presale price for 3 years. All this is a combination of total market capitalization, plus entering the project much cheaper than the market at the start.
Rental Income - 10% per year, this is the norm. Minimum 7-8%: such figures are guaranteed by the developers themselves. In my opinion, a 70/30 pool works best, where 70% of the profit goes to the owner and 30% to the management company.
We get a payback of no more than 7 years with installment payments for 3 years.
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