Feb 27, 2012 | Comments 0
According to the Phuket Real Estate Association (P-REA) an expected THB 30 billion (US$984.24 million) will be pumped into projects by Bangkok developers.
P-REA President Tanan Tanphaibul believes that Phuket is drawing many investors as it the demand for condominiums and reasonably priced homes is increasing.
He said, “ As long as tourism is on the up, the real estate business and economy will continue to prosper since tourist groups bring capital and generate demand.”
Tanaphaibul noted that one specific group that contributes to the property demand is the Russians who first arrive as tourists and later choose to invest in property.
Markets in the mid-high range are expected to grow the most, but due to due to Euro zone being the predominant source of buyers who are able to invest in tens of millions will cause as sluggish increase in top property.
Bangkok based developers such as Pruksa and Sansiri remain the majority to develop projects in Phuket rather then foreign investors.
Tanphaibul also noted that due to the high demand for town houses and condos priced under a million baht will be the fiercest in competition in the mid-range housing market.
As land prices in Phuket range from 15-20 million baht (US$492,120-656,160), more multi-storey projects are being built on the island, which correlates with the increasing demand for small condos under a million baht.