Phuket Real Estate market 2022: removal of coronavirus restrictions and the global crisis

Phuket is one of the most famous tropical destinations in the world, as well as a popular destination among expats, as in addition to the unique nature and culture, the island has all the necessary infrastructure for a good holiday and long stay.

After the easing of coronavirus restrictions on entry into Thailand from May 1, 2022, and then its complete cancellation on October 1, 2022, the tourist flow to Phuket has increased and reached more than 714,000 people during this period.

The Tourism Association of Thailand is working to promote tourism to Thailand around the world, which contributes to an increase in the number of flights to Phuket from different countries every month and an increase in passenger traffic.

All these factors have created a huge demand for rental properties of all categories - from inexpensive apartments in condominiums in the center of the island to luxury villas in Phuket's most prestigious area near the beach. Since October, rental prices have increased by more than 300%.

There is also a increase in purchasing power in the Phuket real estate market: demand for holiday condominiums in Phuket up 209.8% and demand for villas up 60.5%.

The economic rebound after the end of the pandemic, inflation, rising dollar prices, rising fuel and building materials prices, and higher interest rate are likely to growth in property prices. It is also expected that the value of new land appraisal prices will rise by 8% in 2023, which could also be boost growth in property prices.

To date, resort property remains one of the best long-term investments, it is a hard and always in demand asset, so its prices always recover after a drawdown, which is mainly due with the global crisis or with the domestic crisis. 2020 and 2021 were the peak of the fall of the tourism industry in Thailand, but after the lifting of coronavirus restrictions and a gradual increase in tourist flow, the market began to recover.