Investment in Phuket and the Andaman Region
Phuket’s excellent reputation as an exotic, exiting and comfortable place to visit, combined with a strong marketing effort by the government to attract more high-end tourists has been extremely successful in reviving the tourist industry from its low point in December 2004. New constructions in the beach resort areas is expected to attract vast number of tourists on short-term holiday, and generate excellent rental yields for the investors who own these properties.
The Government is concentrating its marketing efforts on international tourists with purchasing power, especially from the Asian-pacific markets like Singapore, Hong Kong, Australia, Malaysia, Japan and China, as well as the traditional European market, but it is also investing heavily in new markets, such as Russia and India.
The relatively undiscovered nature of Phuket means that property prices here remain far below those in the more established markets, although they are growing rapidly. In the last 3 years, land prices on Phuket rose by approx. 20%
Particularly projects in the resort areas are currently attracting a lot of foreign investment capital. Investors are advised to concentrate on the most popular areas in order to benefit from maximum investment growth.
The best investment returns comes from condominiums in resorts offered for rent or built for sale to overseas buyers of a second home, retirees or expatriates. On Phuket, demand is dominated by expatriates. Peak season rental income will cover at a minimum the major part of mortgage payment and bills. Profit on rental potential is even greater because there is no capital gains tax for private investors, as well as low ongoing taxes.
Phuket is a sophisticated tourist destination with great universal appeal. Phuket Island boasts beautiful mountains, dense forests and stunning beaches. With its perennial subtropical climate, Phuket guarantees pleasantly warm weather for winter holiday makers between the months of November and April. For tourists who have been visiting Phuket and professionals based in Asia, Phuket is a popular retirement destination, because of the familiar environment and high standard of living.
Phuket offers the best of both worlds – on one hand we have 5 marinas, 8 golf courses, 2 luxury shopping malls and excellent international schools and hospitals. On the other hand you can still find long stretches of natural beaches and secluded island destinations just a short trip away.
Phuket is teaming with cultural life and colour, it has world-class international schools and an efficient health care infrastructure, and it is seen as a friendly place for tourists as well as expatriates.
If you are thinking of making Phuket YOUR home, we invite you to a free consultation to guide you through your options – the coffee is on us!