Phuket Real Estate Boom: Analysis of Record-Breaking Growth in 2024
While global real estate markets are stagnating, Phuket is experiencing phenomenal growth, creating a unique phenomenon on the global investment map.
Ho Kwon Ping, founder and executive chairman of Banyan Group, one of Thailand's leading developers, recently said that property markets worldwide, including China, Bangkok, the US, and Europe, are at best in a doldrum, and at worst crashing down after a decade of growth. Yet, Phuket remains a remarkable exception.
Sales statistics and ROI indicators substantiate this thesis with impressive figures, providing a compelling case for Phuket’s resilient market
Breaking Records
Property consultant CBRE Thailand reports that Phuket's rental market has been booming since the pandemic. In 2024, it reached an all-time high with a return of over 10% per annum.
According to Prakaipeth Meechoosarn, head of Phuket property sales at CBRE Thailand, growth doubled this year from 2023 — a peak year that recorded a fourfold increase compared with the average. “Overall sales are so substantial that a new condo project is launched every two weeks”, notes Ms. Meechoosarn
This impressive growth is driven by the active development of the tourism sector and a construction boom, which stimulate high demand for both short-term and long-term rentals in prestigious areas such as Bang Tao and Laguna Phuket. A striking example of successful sales is demonstrated by The Standard Residences in Bang Tao: 70% of units were sold in the first months.
Record-breaking sales growth is also reported by Banyan Group — the hospitality-led property developer behind the iconic integrated resort, Laguna Phuket. With the company's revenue, property sales have risen from one-third of total income 20 years ago to more than half the past three years. In 2023, the company recorded its highest sales volume ever, and with strategic plans in place to exceed it in 2024.
This success is further validated by occupancy rates, with Laguna Phuket’s average occupancy rate at 80% over the past few years, compared with 70% during its first 30 years.
Against the backdrop of a global real estate market slowdown, Banyan Group founder and executive chairman Ho Kwon Ping emphasizes the uniqueness of the situation: the growth rate in Phuket property sales is unparalleled worldwide — a phenomenon that defies global trends.
New Markets for Properties in Phuket
The structure of demand in the Phuket real estate market is undergoing fundamental changes. If foreign buyers used to dominate here, now the share of local investors is actively growing. One of the main reasons is the attractiveness of recently launched projects. Part of it also comes from the fact that affluent Thai families who usually travel abroad for vacations rediscovered Phuket during COVID times.
For example, about 60% of the buyers at The Standard Residences, Phuket Bang Tao, are Thais, purchasing units both as investments and for personal residence.
Simultaneously, the geography of foreign investors is expanding: branded residences have attracted buyers from the UAE, Saudi Arabia, Israel, and Japan.
The sales in Laguna Phuket are even more indicative, where Banyan Group recently sold three ultra-luxury villas, priced from 250,000,000 baht each (≈7,170,000 USD), out of five total units at Banyan Tree Residences Beach Residences, all purchased by Thai buyers.
The growing interest from local and new international investors indicates the high potential for growth in Phuket real estate values.
Global Competitiveness in Real Estate
The impressive sales and yield indicators are driven not only by growing demand but also by Phuket's attractive property prices compared to other premium destinations. The average price per square meter here is $6,415, significantly lower than in Dubai, Miami, and Marbella.
Comparative price analysis (USD per square meter):
- Dubai: 28,105
- Miami: 19,680
- Marbella: 13,416
- Phuket: 6,415
The Epitome of Luxury Living in Phuket
The definition of luxury in Phuket’s properties has evolved significantly from early 2000s to 2024, transitioning from traditional, location-based offerings to a more holistic, service-oriented, and tech-savvy concept. Today, luxury is defined by personalization and integration with global brands. Buyers expect more than just a property, but also an experiential luxury that reflects their values and lifestyle, whether through lifestyle, wellness, sustainability, or investment potential.
Let's take a closer look at the factors that contribute to Phuket's investment superiority.
International Schools in Phuket
Phuket is not just scenic beaches and lush tropical forests, but also a place where children can receive quality education. The island's international schools rank among Thailand's finest, with graduates successfully entering prestigious universities in the UK, USA, and other countries across the world. The popularity of such education is growing rapidly: in the 2022-2023 academic year alone, student enrollment in Phuket's international schools increased by 31%.
Read more about the leading schools, their unique features and advantages in our article.
International Hospitals in Phuket
Thailand ranks in the world's TOP-5 countries for healthcare quality (according to the World Health Organization) and is one of the leading medical tourism centers in Asia and globally. Millions of people choose this country not only for leisure but also for medical treatment, creating a favorable environment for real estate investment.
Phuket is home to Thailand's leading medical facilities: Bangkok Phuket Hospital and Bangkok Siriroj Hospital. They are distinguished by:
- Highly qualified specialists, many of whom were trained in the United States and Europe
- Modern equipment at the level of the world's best clinics
- Prices 50-70% lower than in the USA or Europe
- International JCI (Joint Commission International) accreditation — the gold standard in healthcare quality
Phuket's medical infrastructure continues to develop: by 2026, a branch of Bumrungrad International Hospital - one of Southeast Asia's largest private clinics - will open on the island. The project investment amounts to approximately 4 billion baht.
Wellness in Phuket
Phuket’s luxury resorts are increasingly integrating comprehensive wellness programs that include yoga, spa therapies, detox treatments, and holistic health services, appealing to both local and international guests seeking rejuvenation.
A significant development in this sector is the introduction of Clinique La Prairie, a globally recognized Swiss wellness brand at the expansive Tri Vananda complex. The original clinic in Montreux (Switzerland) is considered the world's first luxury medical spa and consistently ranks among the world's best. Today, Clinique La Prairie successfully operates Longevity Centers worldwide: in Dubai, Doha, Madrid, Bangkok, Taipei, and Anji (China). The presence of such a prestigious brand in Phuket undoubtedly strengthens the island's position as a leading global wellness tourism destination.
Luxury retail
Central Floresta, part of the expansive Central Phuket complex, serves as the island’s luxury retail epicenter, housing 15 prestigious brands across fashion, watches, and jewelry such as Hermès, Louis Vuitton, Gucci, Bulgari, Saint Laurent & Versace. In response to growing demand, several of these brands are set to expand their store spaces, doubling their size by the end of 2024. Additionally, by 2026, Central Floresta will welcome an array of new luxury brands, further enhancing Phuket’s appeal as a high-end shopping destination.
Luxury beach clubs
These clubs are more than just leisure venues; they serve as social hubs for Phuket’s elite, reinforcing the island’s reputation as a premier destination for high-end entertainment and exclusive community gatherings, attracting both local and international high-net-worth visitors.
World-Class Golf Clubs
Phuket is justifiably proud of its championship golf courses, which are among the best in Asia. Prestigious international tournaments are held here, and legendary athletes and world celebrities choose local courses to play on.
For example, Blue Canyon Country Club is considered one of Thailand's most outstanding venues. The club holds the record for hosting the European Tour Johnnie Walker Classics three times. Additionally, it has hosted the Asian Tour Honda Invitational.
Many celebrities have played at Blue Canyon Country Club including Bill Clinton, George Bush Sr. and golf legends Tiger Woods, Nick Faldo, Greg Norman and others.
Red Mountain is regarded as one of Phuket's most challenging and spectacular courses and has repeatedly been recognized as one of Asia's best courses by various golf publications.
Laguna Golf — an elite golf course that is part of the iconic Laguna Phuket Resort. It has been named the country's best by World Golf Awards and has repeatedly ranked in the top 10 golf courses in Thailand by Asian Golf Monthly magazine.
Purchasing a home near one of these prestigious courses is more than just a property acquisition. It's an investment in a certain lifestyle. Access to magnificent golf courses, year-round comfortable climate, and new opportunities to network with people who match your status.
Luxury Marinas
Phuket marinas — Phuket Yacht Haven, Ao Po Grand Marina, Phuket Boat Lagoon, and Royal Phuket Marina — serve as vital hubs for Southeast Asia’s yachting community.
These are not just vessel mooring harbors, but comprehensive lifestyle projects combining luxury, comfort, and significant investment potential.
Yacht Haven and Ao Po Grand Marina are equipped to accommodate superyachts over 100 meters in length (such as Feadship & Princess superyachts), making them highly attractive to international yacht owners and enthusiasts.
The development of yachting tourism is rapid, with the number of yacht arrivals increasing by 26% between 2022 and 2023 alone. Phuket's status as an international yachting center is confirmed by the prestigious Thailand International Boat Show held at the Royal Phuket Marina, which traditionally gathers connoisseurs of luxury yachts from all over the world.
The island's yachting infrastructure continues to develop rapidly. By the end of 2024, a new yacht club ONE° 15 Marina Panwa Phuket will be built on Phuket 's east coast in Ao Makkham, which will be able to accommodate yachts up to 120 feet (36.5 meters) in length. The project is a joint venture between Singapore's SUTL Enterprise, the company behind ONE° 15 Marina Sentosa Cove Singapore, and Thailand's Numchai Ocean Transport Company.
With its prime location, ONE°15 Marina Panwa Phuket is already attracting particular attention from charter operators and yacht owners, and is expected to become a premium hub for organizing exclusive sailing trips to the region's picturesque islands.
Transportation Infrastructure
The development of Phuket's transportation system reflects its status as an international premium destination. Large-scale investments in the modernization of air and ground connections create a new level of comfort for residents and visitors to the island.
Phuket International Airport provides direct flights to key global hubs: Dubai, Doha, Abu Dhabi, and major cities in Asia, Europe, and Australia. Increased tourist traffic from Europe and Russia has allowed the airport to restore total passenger traffic to pre-pandemic levels. In the high season of 2024, the airport will serve more than 30,000 travelers and over 300 flights daily. The geography of flights is constantly expanding, and new direct flights to Riyadh and Kazakhstan have recently opened.
A newly built private jet terminal with a parking space for up to 7 Gulfstream G650, caters to the needs of high-net-worth travelers, providing exclusive services that align with Phuket’s luxury tourism market.
The airport is entering a new stage of development with more than 6 billion baht allocated for a major expansion of the international terminal. The project, which will begin after 2026, will increase capacity to 18 million passengers a year.
In the long term, an investment of over 80 billion baht is allocated for a secondary international airport, Phang Nga-Andaman. It is set to be built on the mainland Phang Nga province, not far from Sarasin bridge which connects it to Phuket. Once operational, it will serve as a new hub for international long-haul flights.
Improvements are also being made to the island's road network. Projects such as the Kathu-Patong Tunnel and the Heroine Monument Underpass, are set to begin in 2024-2025.
These key infrastructure projects will greatly enhance Phuket's attractiveness, ensuring long-term growth in the luxury tourism and real estate sectors.
To Summarize
Phuket today represents a unique investment opportunity in the global real estate market. Current rental yields in the prestigious areas of the island sometimes exceed 10% per annum, and experts predict that the dynamics will continue after another record year.
Phuket's phenomenal growth during a period of global stagnation has been made possible by a combination of key advantages. These include attractive prices compared to other premium destinations, the ongoing development of world-class infrastructure, the geographic expansion of international buyers, and growing interest from local investors.
Phuket's development encompasses all aspects of modern life — from transportation accessibility, medicine and education, to luxury yachting, golf clubs, and beach parties in the spirit of the legendary Ibiza. This integrated approach creates a comprehensive ecosystem for a comfortable lifestyle.
These factors, combined with the active entry of international brands, form a solid foundation for long-term growth in real estate values and strengthen Phuket's position as one of Southeast Asia's premier luxury destinations.