The world is changing dramatically. Some are frightened, some are inspired to act. However, no matter how the world changes, investors always need income. The means that it is high time to introduce you to the changes in the property market in Phuket and offer you working investment options. Thailand-Real.Estate has prepared a helpful article about modern investment trends in the Phuket housing market.
When lockdowns ended and borders were opened, real estate professionals felt that the requirements of their customers had changed. The experts do not rely on their ideas about what the market needs. They prefer to trust various market researches conducted by the most trustworthy marketing companies in the global real estate business. This time they investigated how the behaviour patterns of buyers had changed and in which direction.
If earlier there were 90% of buyers’ requests of buying real estate in Thailand for investment, now many people need large square meters for living. There are a lot of people of various categories who did not think of Thailand at all as a place to live or invest, rushed here to purchase a profitable property on the most favourable terms.
Residential complexes with a large area from 50 to 300 metres are sold out during pre-sale. All the villas that were on the market have been bought out, and developers are in a hurry to open sales of brand-new villa projects, but everything is quickly sold out there.
Branded residences for living
Branded residences run by world-famous hotel chains are in great demand, for example:
- Radisson, etc.
This part of the market is developing at the tremendous pace. The situation is the same at other resorts. For example, the demand for branded residences overtook the demand for residential and commercial properties in Phuket, Dubai and Bangkok. However, real estate with branded hotel management is in the greatest demand in Phuket. Branded residence is a mix of hotel and residential real estate. Unlike hotels, branded properties are created for permanent residence. Five-star hotels can offer residences that a person can purchase both for rent and for personal use. If the owner lives in branded apartments, he has access to the entire hotel infrastructure and hotel service with significant discounts.
Today, people need not only a roof over their heads, but also professional and personalized maintenance of their homes. In this case, residents can receive highly-qualified support and service at any time of the day. This means that they are free from time-consuming activities, such as:
- cooking, etc.
For such cases, the hotel has a service staff who will do everything for its residents at the highest level.
Investments in branded residences
But what about the rental income from branded residences in Phuket? It can be both guaranteed and actual (rental pool). Rental income here will depend on the project and its target audience. For example, the guaranteed rental income will be 7% for 3 years for small residences for $250,000 and more, and the actual income will be from 8 to 13% per annum depending on the price. Many foreign and local investors are seeking to enter the real estate market.
Residences of 100-120 sq. m for $500,000-600,000 can bring the same rental income, but the capitalization will grow much faster. It should be taken into account that investors also use such residences for their holidays. The owner can live there from 30 to 60 days a year saving tens of thousands of dollars.
We will help you purchase an investment-attractive property in Phuket
Today’s changes in the requests of buyers of foreign properties are ideal for both Thailand and Phuket, which is developing its branded five-star infrastructure and integrating brand-new residential complexes into stunningly beautiful nature. You can easily and safely make money from these changes. Buying a residence will provide you with a comfortable stay, and you will receive a stable income from the year-round flow of the most solvent tourists from various countries. Thailand-Real.Estate and its highly-qualified brokers can help you purchase such a property in Phuket on the most beneficial terms and at the best prices.