While being an ideal tourist destination for those wishing to bask in the sun, Phuket has gained popularity among people from all over the world. However, it has something else to offer apart from a warm sea and sandy beaches. Phuket is also a sought-after destination for lucrative real estate investments. The island boasts a stable economy, rapidly developing infrastructure, and an extensive real estate market.
All this encourages foreign buyers to come to Phuket in search of high capital gains from their investments. At the same time, foreigners most often choose condominiums for purchase. In this article, together with the experts from Thailand-Real.Estate we will try to understand why this type of property is so popular and what makes Phuket so attractive for foreign investments.
Reasons to choose Phuket
Phuket is the largest island in Thailand, a tropical paradise with white sandy beaches and coconut palms by the ocean. It is also one of the most popular holiday resorts. The flow of tourists to Phuket increases by 10% every year. No wonder that residents of other countries are so eager to buy property here for investment or relocation. The main advantages of the island include:
- Advanced infrastructure.
The Thai government seeks to attract foreign investment into the country and therefore pays great attention to infrastructure development. Phuket has many hospitals, international schools, shopping centres, marinas, and golf courses. There is also a strong emphasis on transport development.
- High rental income.
Unlike many other resorts, the presence of high and low seasons does not greatly affect local rental income. Year-round rentals are common in Phuket, with average annual yields of 6–8% per year. Some property developers even offer guaranteed yields of 5–15%.
- Attractive tax policy.
Overseas real estate investments generally entail huge taxes levied by local authorities. Thailand is an exception. There are no annual housing taxes in the Kingdom. You only need to pay a one-time fee when registering a property with the land department, which is 2–3% of the property value.
- Cost of life.
Living in Phuket can be a little more expensive than in other parts of Thailand. However, compared to many other countries, living here will seem much cheaper.
In addition, due to the fact that Phuket is the most popular tourist destination in Thailand, investors can rest assured that local property will always be in high demand and prices will rise even more.
The most property for investment
As mentioned above, foreign investors most often choose condominiums among the variety of property types in Phuket. Perhaps the main reason for this is the fact that Thai law forbids non-residents from owning land in Thailand. However, foreigners are allowed to lease it for a period of up to 30 years with an extension option.
Expats can also run a legally registered business as a minority shareholder, through which they can purchase land as business property. At the same time, only condominiums allow foreigners to register the property under their own name with the Land Department and not worry about any restrictions.
In addition, condominiums allow owners to purchase property in high-demand areas where a house or villa may not be affordable. Other reasons to choose condominiums include the following:
- Easier maintenance of the property as compared to a detached house;
- Availability of on-site amenities;
- Availability of a management company to take care of repairs and renovations to the building;
- High security level;
- High return on investment.
It is also possible to find condos for different budgets. Prices for this type of property in Phuket vary depending on various factors. Those that are closer to the sea are usually more expensive. The novelty of the building and the quality of construction are also important, as are the range of amenities available in the complex.
Find your ideal condo in Phuket
You can start choosing property in Phuket today with Thailand-Real.Estate. The real estate aggregator works only with reliable developers and real estate agencies and provides a wide collection of condos for investment in Phuket. On the website, you can effortlessly find the best options according to your requirements.