Phuket Real Estate Market Report Q4 2024: No Bubble in Sight for 2025
Phuket’s real estate market has thrived for two decades, overcoming various challenges, but there are whispers of a potential market correction on the horizon.
Phuket has earned its reputation as a resilient investment destination. Over the past 20 years, the market has generally seen good to exceptional returns on real estate investments. While there have been some setbacks—like the COVID-19 pandemic—any destination would envy the consistent increase in value and volume that Phuket has experienced since 2005.
It’s however important to acknowledge that the journey hasn’t been flawless. Major events such as the 2004 tsunami and the 2020 pandemic, along with ongoing global financial issues, have impacted the island. However, each time the crisis has passed, Phuket quickly bounced back, with supply and demand continuing their intricate dance.
This dynamic is currently at play again, leading some to believe that Phuket may be in a bubble about to burst.
What factors contribute to this perception? Issues like increased traffic, over-tourism, an oversupply of properties, and fluctuating visitor patterns from countries like Russia and China are all under scrutiny.
While we recognize that some of these concerns warrant attention and possibly action, we firmly believe any downturn will be short-lived.
Phuket will rebound and continue its upward trajectory. Let’s address a couple of common concerns:
Traffic and Crowding
Yes, it’s true that Phuket is busier than it used to be. Long-term residents like myself remember a time when you could drive from one end of the island to the other in about 45 minutes. Before the coup in 2014, life here was quite idyllic.
However, for the more than 10 million visitors each year who have never experienced the island’s past, this bustling atmosphere is simply part of their vacation experience. They compare Phuket not to its former self but to their lives back home.
The contrast between Phuket and their everyday environments remains striking, even if it has changed over the years.
Overdevelopment
Many locals feel that Phuket is overdeveloped.
For those seeking a tranquil beach vacation filled with coconut drinks and sunset photos, ongoing construction can be frustrating. Adjusting to new demographics can also be challenging.
Yet for the 14 million annual visitors who come primarily for leisure, concerns about nature or yoga retreats take a backseat until it’s time for a “selfie.”
As long as they can find a picturesque spot for their photos, they are content. Most tourists prioritize food, drinks, and entertainment similar to what they enjoy at home rather than engaging deeply with local culture or architecture.
Rising Costs
It’s true that prices of Phuket property for sale have risen significantly. Anyone expecting a budget-friendly tropical getaway may find themselves disappointed.
Real estate prices are nearing what some might call temporary insanity. Even taxi fares can feel exorbitant compared to what they once were.
However, many affluent individuals—including tech entrepreneurs, influencers, and local property owners—are thriving in this environment. They have capitalized on rising prices and have little reason to complain about costs.
The voices of discontent often come from expats who miss how things used to be.
What Lies Ahead?
So what does the future hold? A correction is likely—a term we use carefully here. A correction occurs when market conditions become misaligned with actual demand or sentiment. It can happen anywhere; think of it as a seasonal sale at a store or an adjustment in your neighborhood’s real estate market.
In Phuket, we may see an oversupply of homes that outpaces buyer interest at previous rates. Consequently, some properties may linger on the market longer than expected. Developers facing financial strain may lower prices or offer incentives to attract buyers.
This situation will impact new developments as well; many smaller developers may struggle to stay afloat while larger investors like BlackRock could seize opportunities to buy properties at discounted rates. This influx of capital will likely prevent significant declines in property values—most areas should see drops of no more than 10%, with exceptions in certain locales.
Despite fears from less experienced developers and real estate agents predicting doom and gloom, we believe we will see a recovery soon enough.
By November 1, 2026, hotels will likely report increased occupancy rates as high season approaches again.
A Shift in Lifestyle
During this anticipated adjustment period—approximately 25 months—something interesting will occur: many affluent expats dissatisfied with current conditions will explore other parts of Thailand that offer lifestyles reminiscent of Phuket two decades ago.
There are numerous beautiful beachfront locations throughout Thailand where families can enjoy a quieter existence without being tethered to international schools. Areas north of Phuket present attractive alternatives with lower prices and less congestion.
With plans for a new airport and existing infrastructure designed for growth, these regions can easily accommodate those looking for a change without sacrificing access to favorite restaurants or amenities.
In summary, while there are valid concerns about Phuket’s real estate market, we are confident that it will adapt and remain strong over time. The anticipated return of Chinese tourists and continued interest from Russian visitors will help stabilize property values moving forward.
Meet the Author
With extensive expertise in Phuket’s property market and Thai property laws, as well as deep connections with local developers, Nuno co-founded one of the largest real estate agencies in the region. Recently, he launched his own venture, Storm Real Estate, specializing in a carefully curated selection of properties that meet his high standards. Unlike larger agencies where frequent staff turnover can disrupt client relationships, Nuno is committed to offering a stable, one-on-one experience with himself or a member of his team of experienced property consultants, from initial consultation through purchase and beyond. By prioritizing quality over quantity, he ensures that each client’s unique needs and budget are met, making dream homes a reality.
Contact Us
Do not hesitate to contact us if you have any further questions on the subject, or if you would like to know more about property in Phuket in general.
