Investment Property in Phuket

Posted by Hipflat 3 Dec 2018

Phuket is the most popular resort in Thailand. From 2012 to 2017, the tourist flow to the island increased from 5 million to 8 million passengers per year. To host more tourists, in 2016 a new terminal of Phuket Airport was built. Now the airport can take up to 15 million passengers per year. Such an increase in passenger traffic is planning by 2020.

New Terminal of Phuket International Airport

In turn, increasing of the amount of tourists and the rapid development of road and transport infrastructure, in turn, encourages private development companies to invest in the construction of hotel property on the island.

One of these companies - Phuket9. From 2014 to 2018 built two family hotels in Phuket, manages them and builds two more. By the end of 2020, the company will manage over 400 hotel rooms and 65 villas.

Launch ceremony of the new project of the VIP KATA Condominium by Phuket9 company.

"For us, investing in hotel real estate is very profitable and important. Sooner or later, the land for construction in Phuket will end. And thus, developers think either to manage the built real estate, or build outside of Phuket.

We choose management and invest in the infrastructure of our projects. Residential complex VIP KATA Condominium is conceiving as a family hotel. A private investor buys an apartment and receives rental income. The choice of a family concept for us is not accidental: Phuket is an ideal place for families with children. In 2016, we built and opened a kids park in Rawai. In 2019, we plan to build a kids park, and it will become a part of the infrastructure of the VIP KATA Condominium, " comments Denis Pshechuk, general sales manager of Phuket9.

By 2020, more than 30 Phuket condominiums are being built in Phuket. For sure, with a so-called guaranteed income program. This is another distinctive feature of the island's investment property.

Guaranteed Income Program. How it works?

The investor buys an apartment in a condominium, and after completion of construction and registration of the property, signs a guaranteed rental agreement with the developer. Under such a contract, the owner receives a fixed income from the rental of real estate in % of its value for 3-10 years. The profitability of real estate for guaranteed rental is 5-10% per year. Besides to fixed income, the owner also lives in his apartment or villa for free for up to 30 days per year.

The amount of tourists visiting in Thailand 2008-2018.

Given that the Thai government aims to increase the tourists flow into the country from 35 million in 2017 to 60 million in 2028. Investors expect a significant increase of the housing costs in the vacation areas of the country.

Who buys property in Phuket: