Recent Investment Trends in Phuket’s Hospitality Sector

C9 Hotelworks’ latest report indicates that improvements in Thailand’s tourism sector are prompting increased investments in the hospitality real estate market, particularly in residential developments.

According to insights from the C9 Sessions event report, foreign visitors are increasingly opting for lengthier stays in Thailand, leading to a spike in investments in the hospitality and real estate sectors centered around residential needs.

Key Insights from the Report

• Phuket’s Growth: This province is witnessing a significant boost, with visitor numbers rising by 23% in 2024.
• Investment Trends: The report highlights a growing focus on the rental market, particularly with investments in condominium developments akin to resort-style living.

Bill Barnett, managing director of C9 Hotelworks noted:

“The shift we are seeing is that tourism is driving a long-stay rental market on the island. This is the destination’s marketing funnel for a residential-led hospitality market.”

Investment Opportunities

Report findings reveal enticing comparisons: for the cost of a two-bedroom condo in Singapore, one can acquire a five-bedroom pool villa in Phuket. Additionally, family expenses like school fees are approximately 42% cheaper in Phuket than in Singapore. With substantial taxation in Singapore affecting second homes and an increased number of direct flights from Singapore to Phuket now operational, many are viewing Thailand as an appealing investment opportunity.

Upcoming Projects

• Sudara Residences Phuket: Developed by Hong Kong’s Lan Kwai Fong Group, this new venture illustrates the growing trend towards lifestyle-oriented investments. With an expected completion by 2027, Sudara offers resort-style living with various options for buyers seeking financial returns.

This ongoing trend underlines Phuket’s attractiveness for regional buyers from Hong Kong, Singapore, and more, propelled by its affordability and appeal.

Phuket Residential Development