Phuket real estate boom: $14 billion for luxury homes!

Phuket real estate boom: $14 billion for luxury homes!

Phuket is currently experiencing a rapid boom in the real estate market, driven by increasing international demand and the need for long-term living. The first Phuket Real Estate Forum 2025 just took place at SAii Laguna Phuket, bringing together over 300 industry leaders to reflect on the future of the market. This forum is not only a platform for exchange and innovation, but also shows that Phuket is increasingly establishing itself as a luxury lifestyle destination. Loud positioning Investments of over 14 billion US dollars, which corresponds to around 450 billion baht, are expected in the coming years.

Phuket's popularity is reflected not only in the numbers at the airport, where 6.3 million passengers were counted from January to September 2025 - including 3.8 million international tourists. The travel wave appears to be stable, with a year-on-year increase of 0.7% and a 9.2% increase in the first quarter. But what is driving this boom?

The demand for high-quality real estate

The demand for high-quality real estate, especially from foreign buyers, is becoming increasingly noticeable. Average daily rates (ADR) have increased by 8-10%, although occupancy rates have fallen slightly. Buyers are primarily interested in quality, lifestyle and details, as Prawpood Lipthapallop, managing director of Prow Real Estate, emphasizes. Additionally, India has been shown to be a growing market, with a 47% increase in purchases, while Russia still tops the list.

Assetwise's developments clearly show that the luxury real estate market is growing. The company plans projects worth 12.2 billion baht for 2025, with a clear focus on luxury villas. One of the prominent projects is The Katabello, which will cost 5.5 billion baht and consist of 760 units. Here, 56% have already been sold in the first quarter of 2025, an excellent sign that the market is flourishing Nation of Thailand reported.

Costs and infrastructure at a glance

The general pricing in Phuket is impressive. The cost of condominiums in attractive locations such as Bang Tao and Laguna varies between 120,000 and 200,000 baht per square meter, while luxury villas cost between 25 million and over 100 million baht. Over the last 20 years the price of land has increased by 700%. This dramatic change reflects not only increased internationality, but also ongoing investments in infrastructure, including the expansion of the international airport and new transport connections.

The Thai government also plans to introduce reforms that will expand leases and increase the proportion of foreigners owning property. This could attract even more investors, especially those looking for a long-term residence option.

New trends in the real estate market

New trends show that Phuket is open to many different lifestyles. Co-living, serviced apartments and rent-to-own models are redefining the real estate market. The increasing number of remote workers choosing the island as their home and workplace reinforces this trend. This diversification attracts buyers from a variety of backgrounds and makes Phuket an even more interesting destination for investment.

Phuket has grown from a relatively unknown beach destination into a renowned resort market known for its branded residential properties. Around 60-70% of residential property purchases come from foreigners, who often pay in cash as loans are challenging for foreigners in Thailand.

Overall, it can be seen that Phuket has not only improved its infrastructure and quality of life, but also creates new perspectives for those interested in living or investing here. The island's real estate market faces an exciting future and remains a hotspot for those who smell a good deal. Continued demand and huge developments in the region promise an exciting chapter for Phuket real estate.