Investments in condominiums in Phuket: pros and cons

Real estate investments have always been an attractive option for those looking for stable and profitable investments. Phuket, one of Thailand's most popular resort islands, has become the focus of attention for many foreign investors. Condominiums in Phuket offer unique investment opportunities, however, like any investment, they have their pros and cons. In this article, we will look at the main advantages and disadvantages of investing in condominiums in Phuket to help potential investors make an informed decision.

Pros of Condominium Investment in Phuket

1. High yield potential

• Increase in tourist flow: Phuket attracts millions of tourists from all over the world every year. In 2019, more than 9 million foreign tourists visited the island. This figure is growing every year, which ensures high demand for rental housing.
  *Attractive rental rates: The average cost of renting a condominium in Phuket has increased by about 10-15% over the past three years. In 2020, the average monthly rental rate was around 20,000 baht, and in 2023 it reached 23,000-25,000 baht.

2. Increase in property value

*Infrastructure development*: Phuket is actively developing its infrastructure, which is contributing to rising property values. Projects such as the new tunnel to Patong and improvements to the road network increase the attractiveness of the region.
Stable real estate market growth**: Property purchase prices in Phuket have grown by an average of 5-7% annually over the past three years. In 2020, the average cost per square meter was about 85,000 baht, in 2023 this figure increased to 95,000-100,000 baht.

3. Easy to manage and sell

• Professional Management: Many condominiums offer property management services, making the rental and maintenance process easier.
  *High liquidity levels: Condominiums in Phuket are in high demand among buyers, making them easier to sell if necessary.

Disadvantages of condominium investment in Phuket

1. Legislative restrictions

*Foreign quota: In Thailand, there is a limit on foreign ownership of no more than 49% of the total condominium area. However, the government has taken the initiative to increase this quota to 75%, which will significantly expand opportunities for foreign investors.

• Difficulties with paperwork: The process of completing a transaction can be complex and require significant time and effort, especially for foreign investors. TOKENS Real Estate specialists and lawyers are ready to help at all stages of the transaction, ensuring the reliability and legality of procedures

2. Competition and market saturation

• High competition: The large number of condominiums on offer in the market can lead to high competition among owners, which can affect rental profitability.
  *Market saturation: In some areas of Phuket, the market may be oversupplied, making it difficult to rent out real estate.

3. Dependence on tourist flow

• Seasonal fluctuations: The profitability of renting condominiums is highly dependent on tourist flow, which can vary depending on the season and economic conditions.
• External factors influence: Political and economic instability, natural disasters and pandemics can have a negative impact on tourism and, accordingly, on the profitability of renting real estate, as in any other country.

Investing in condominiums in Phuket offers significant benefits such as high yield potential, stable property value growth and ease of management. However, they also involve certain risks and disadvantages, including legal restrictions, high competition and dependence on tourist flows. Before deciding on an investment, it is important to carefully review all aspects and, if necessary, seek professional advice.

Investments in foreign real estate are not just square meters, they are an opportunity to diversify your investment portfolio and ensure financial stability.
Ready to discover new investment horizons? Contact us and we will guide you through the entire process, from site selection to stable income. Invest wisely with us!

TOKENS Real Estate – platform created for profitable and safe investments in foreign real estate. Working in countries such as Thailand, Indonesia (Bali), Turkey and Dubai, we offer unique opportunities to increase your capital. Our specialists will help you correctly select the most attractive objects in terms of investment, accompany you at each stage of the transaction and provide full legal support.