A Complete Guide to Safely Purchasing Property in Phuket

The construction sector in Phuket demonstrates steady growth and development, attracting the attention of both local and foreign investors. The island offers housing for every budget: from luxurious villas on the seafront to affordable studios in modern condominiums. In 2024, the average cost per square meter on the island is about $3,000. This figure varies depending on the location and proximity to key tourist attractions but remains affordable compared to many popular resort destinations worldwide.

Why Phuket Attracts Investors from Around the World

  • Nature and Climate: Phuket is known for its picturesque beaches, warm tropical climate, and rich natural diversity, making tourism viable year-round. In 2023, the island was visited by 4.9 million foreigners.
  • Infrastructure: Investors and buyers are drawn to the island’s developed infrastructure, including an international airport, numerous schools, hospitals, shopping centers, and restaurants.
  • High Investment Potential: Thanks to the growing flow of tourists, property on the island has high potential for rental income or resale. This is confirmed by an ROI of 10-12%.
  • Political Stability: Thailand’s economy is relatively stable, which increases confidence in the safety of investments in real estate and relocation.
  • Support for Foreign Investments: The Thai government offers various programs and incentives to facilitate property purchase and ownership for foreigners, such as simplified procedures for obtaining residency permits.

These factors contribute to the popularity of real estate among foreigners, including those who are first-time buyers abroad. Let’s discuss the specifics of the procedure in Thailand.

Step-by-Step Guide to Buying Property in Phuket

Purchasing property abroad can be a difficult  process, but with the right preparation and knowledge of all the steps, you can conduct the transaction quickly and smoothly. Here is a step-by-step guide.

Step 1: Defining Purchase Goals

  • Decide whether you are looking for a residence for permanent living or an investment property.
  • Determine your budget, including all potential expenses for purchase and maintenance.

Step 2: Market Research

  • Explore locations to find the one that fully meets your requirements, lifestyle, budget, and purchase goals.
  • Visit properties: if possible, visit the project in person. This item does not apply to buildings under construction, especially at the excavation stage. The best impression in this case can be obtained from presentations and on the developer’s website.

Step 3: Choosing Property

  • Choose the type of property that suits your needs.
  • Ensure the quality of construction, availability of necessary amenities, and correctness of legal documents.

Step 4: Selecting a Real Estate Specialist

  • Such an expensive purchase requires a professional approach, so we advise turning to well-known real estate agencies. Specialists usually provide a full range of services, including legal document checks and online transaction closure.

Step 5: Payment

  • Determine whether you will purchase the property with cash or need mortgage financing.

Step 6: Closing the Deal

  • Sales Agreement: Prepare and sign the agreement in the presence of your lawyer or agent.
  • Pay the necessary amount and obtain property rights in your name.

Step 7: Post-Sale Service

  • Property Management: If you are purchasing an investment property, consider using property management services, for example, to rent out the property remotely.
  • Registration with Local Authorities: Register the property with local tax and other government agencies.

Popular Investment Strategies in Phuket

The real estate sector in Phuket attracts many investors due to its high income potential and steady increase in property values. Over the last 10 years, the cost of housing in popular areas has increased by 400%, which has also affected rental prices.

  1. Buying and Reselling (Flipping)

This involves purchasing property at a price below market value, usually requiring renovation or modernization, with the aim of reselling at a higher price. In our case, low prices are offered at the stage of building construction, after completion, the price typically rises by 30-40%.

  1. Long-Term Rental

Purchasing property for long-term rental in Phuket offers a stable and dependable source of passive income. The island’s appeal as a prime destination for expatriates and tourists who choose to stay for extended periods—often escaping colder climates during winter months—creates a consistent demand for residential properties. This demand is not only limited to the high season but extends throughout the year, ensuring that property owners can enjoy continuous rental income.

  1. Short-Term Rental

Considering the large flow of tourists, short-term rental of property in Phuket is a profitable strategy. Investors rent out housing for periods ranging from a few days to several months. This model is usually more profitable compared to long-term rental, but requires good management.

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Марина Абрамович
Марина Абрамович
2024-02-27
Моя первая покупка квартиры на острове наконец-то состоялась! Благодаря Silk Properties все прошло гладко и без лишнего стресса. Они не только нашли квартиру под мои требования, но и провели онлайн сделку под ключ, советую! Все прошло быстро, сейчас я на пути к получению ВНЖ, по этому вопросу тоже консультируюсь с ребятами! Если хотите сэкономить время и выбирать из действительно качественных застроек - обращайтесь в Silk, не пожалейте !)