Market Trends of Thailand Real Estate Industry
Growth in Tourism is Driving the Market
Thailand showed a gradual economic recovery in 2022 owing to increased international tourism arrivals. In 2024 and 2025, GDP growth is anticipated to accelerate from an estimated 2.5% in 2023 to 3.2% and 3.1%, respectively. The Thai manufacturing sector showed some improvement in its momentum, with the S&P Global Thailand Manufacturing PMI for February 2023 showing a solid expansion.
As border restrictions gradually relaxed in Thailand and in many of the most prominent tourism source countries during 2022, international tourism significantly improved during the second half. In 2022, there were 11.15 million global visitors. The total number of international visits between January and September 2023 alone was around 19.96 million.
International tourism arrivals increased to 6.5 million visitors in the first quarter of 2023, more than half its total international visitor numbers for 2022. Total tourism receipts in the first quarter were estimated at TBH 499 billion (USD 14.28 million), an increase of 127% Y-o-Y in terms of domestic and international tourist spending. In 2023, the Tourism Authority of Thailand set a target to attract 25 million visitors from abroad, more than double the total number of tourists in 2022.
Phuket’s Real Estate Market is Experiencing a Significant Surge in Demand
In 2023, Phuket’s real estate market experienced a significant surge in demand driven by local and foreign investors. The island’s stunning natural beauty, vibrant culture, and thriving tourism industry, as described by Phuket.Net, make it a sought-after destination for property investment. The increasing foreign demand is contributing to a notable boom in the real estate market.
The changing preferences of buyers, impacted by progressing lifestyles and advancing technology, are shaping the demand for specific property types in Phuket.
Phuket is a prime destination for property investment in Thailand due to its natural beauty, strong tourism industry, and well-developed infrastructure. These factors create a desirable living environment, offering benefits and financial returns. The island’s economic stability, infrastructure development, and appealing rental yields enhance its appeal as an investment destination.
The real estate market in Phuket is witnessing a significant increase in growth. One area of interest is Pa Sak-Kok Tanot Road, Thalang, where lands were sold at a premium price of at least TBH 14 million per rai (USD 448,000), with a 20-30% price increase as of 2023. These lands are being developed into luxurious pool villas, which are increasingly in demand among tourists and foreign investors.
