Luxury Villas in Phuket: The Trend of 2021-2022

Luxury Villas in Phuket: The Trend of 2021-2022

The real estate and tourism markets in Phuket continue to exhibit remarkable success, surpassing pre-border closure performance levels.

 

From 2021 to the first half of 2022, search queries on the globally recognized online booking platform Airbnb experienced a significant increase of 180%. Furthermore, bookings from remote-working digital nomads more than doubled when compared to the same period in 2021.

 

CBRE Research reports that the first half of 2022 displayed robust growth, with numerous new projects, heightened demand, and an elevated level of sales. In some newly developed complexes, all villas have been completely sold.

 

During the pandemic, local residents primarily drove the demand for real estate. However, in the first half of 2021, as Thailand eased its entry restrictions, the number of foreign arrivals at Phuket Airport surged from 4,830 to 2,079,950. Consequently, CBRE analysts observed a considerable increase in demand from international buyers. In the first half of 2022, a total of 130 villas were sold, outperforming the half-year metrics by 60.5% and the annual metrics by 113.1%.

 

The following chart demonstrates the rapid growth and recovery of the island's real estate market. Notably, in the first half of 2022, the number of properties sold not only reached but also surpassed the levels recorded in 2019.


 

Interestingly, similar data on the number of villas sold in half a year was observed eight years ago, once again demonstrating increased demand from buyers and a rapid expansion of the villa market on the island.

 

A notable trend in the real estate market is the heightened demand for more spacious 3-4 bedroom villas, and even 5-bedroom villas.

 

The primary demand and construction are concentrated on the northwestern coast of Phuket, in areas such as Cherng Talay, Bang Tao, Layan, Surin, and Kamala beaches. These locations boast top-notch amenities, including Boat Avenue with its numerous restaurants and shops, hypermarkets with local and European products, the Blue Tree water park, the five-star Laguna district, leading international schools, sports clubs, and well-spaced developments, wide roads, and even sidewalks for jogging and walking.

 

 

It's worth noting that in addition to the existing Porto de Phuket shopping center, a new vibrant and modern shopping center, Robinson Lifestyle, opened on August 26, 2022. It can be considered a direct competitor to the famous Central Festival in the island's center. Apart from boutiques and shops for every taste, as well as cafes and restaurants, Robinson Lifestyle also features a cinema showing movies in English.


 

In conclusion, the Phuket market is still young and developing: here, you can purchase a villa at a considerably lower cost than, for example, in Italy or Florida. Keep in mind that on the island, with an area of 543 square kilometers, 60% is occupied by national parks and reserves where construction is prohibited. As demand grows and land availability decreases, each subsequent property is offered at a higher price.

 

This is one of the reasons why buyers choose villas during the construction phase: a villa takes approximately 12 months to build, and the cost during construction is 30% lower. It is already challenging to purchase a finished property, as villas are bought up at the sales launch or construction stages.

 

All of the above applies not only to purchasing but also to renting villas. According to Airbnb data from October 18 to 24, 2021, the search query for rentals for the following six months (high season 2022) exceeded the corresponding figures for 2020 by more than double. Villas were the most popular search among users.

 

At present, there is already a considerable number of villa bookings for the 2022-2023 season, laying a solid foundation for the rapid recovery of Phuket's tourism sector for both vacationers and investors.

 

Do you have any further inquiries?

Please do not hesitate to contact us through social media. We would be delighted to offer complimentary consultations on any matter ⬇️

 

✔️ E-mail: hello@apart-homes.com

✔️ Phone: +66 83 503 2555

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