The start of a special military operation (SVO) on the territory of Ukraine has made its own adjustments to the situation on the Russian real estate market. Demand for overseas property has doubled. Many citizens decided to leave the country, and experts note the UAE, Turkey and Thailand as leaders in terms of Russian demand.
A significant role in this is played by the fact that in these countries they did not impose restrictions on Russians, and some even spur demand on their own, allowing them to pay for real estate in rubles. There are locations where housing is in particular demand. For example, there is very little land in Phuket, Thailand, especially in close proximity to the sea, and in 10 years it has risen in price by 400%.
Real estate in Thailand in Phuket. What to choose for Russians in 2023 and how much it costs
Real estate in Phuket is represented by apartments and villas. As a rule, they are formed into separate apartment complexes or villa complexes. Sometimes both types of real estate are found within the same complex.
The apartments are divided into studios (24-30 sq.m), objects with one bedroom (30-45 sq.m), with two and three bedrooms, less often – four. The area of the apartments depends on the class of the complex. Prices start at about 100 thousand dollars, depending on the stage of readiness, location and other characteristics. In some complexes, the cost of a two-bed apartment, for example, is comparable to the price of a small villa.
Prices for villas in Phuket start from 280 thousand dollars. For that kind of money you can buy small houses with an area of 80 sq.m. The maximum value of this type of real estate can reach several tens of millions of dollars.
Investing in Phuket property in 2023: how much you can earn
Villas are considered the most profitable investment tool: they are excellent for rent and almost never stand idle even in the “low” season. An order of magnitude higher, compared with apartments, and the capitalization of villas – it varies from 30 to 100% per annum. However, everything is very individual and depends on the complex: its architecture, infrastructure, location, proximity to the sea.
If the investor chooses the strategy of renting out the acquired housing, the income will be, on average, 10-15%. Some developers give a guaranteed profit of 7-8%, and if this result is exceeded, the property owner receives a nice bonus. Under the current conditions, it is likely that rental yield figures will be higher.
Phuket Property Price Forecast
On average, real estate in Phuket in past periods gave an increase of 10-15%, but now, due to increased demand, the situation may change. Zhanna Lukoshevichene complains that agents will soon have nothing to sell in Phuket: everyone wants to buy and no one wants to sell. There is little land on the island, the buildings, unlike Pattaya, are low-rise. Already at the exit of the complex for mass sale, investors, buying at closed sales (presales), earn 30% of the value of the object and 100% – on invested.
However, in general, the specialist emphasizes that housing prices are very, very individual. In some projects, the increase is significant and far exceeds the above figures, and an impressive queue of investors is already gaining pre-sales. But in order to calculate such objects and get the maximum profit, do not make a mistake with the developer and rent the object through the management company or on your own almost all year round. You will have to study the Phuket real estate market very well, the features of a particular location, be familiar with the previous projects of the developer, his portfolio, and the legal intricacies of the transaction.
Is it possible to buy an apartment without a realtor?
Of course, any real estate agent will tell you that it is not safe to buy an apartment in a foreign country on your own. However, Lukoševičienė does not see any problems and obstacles in such a solution: any buyer can independently monitor the market, make an analysis of the profitability calculation, check the developer, his experience, portfolio.
In addition, without a realtor, the buyer will not be able to buy an object on pre-sales, and the cost of the object for the buyer when entering the open market will be exactly the same as for everyone, and sometimes even higher, because agencies sell objects in large quantities, and developers for them often provide the best conditions and discounts.
How does a real estate transaction work?
The specialist notes that to buy a home in Phuket, it is not necessary to fly to Thailand. Realtors conduct a detailed interview in order to satisfy the buyer’s needs as fully as possible and choose the most suitable project for him remotely.
Then the offers are sent to the client, he considers them and chooses those that are suitable for online display. Further, clients provide detailed information, calculation of profitability for the object, and the buyer makes a choice.
Under the reservation agreement, an advance payment is made, payment is made on the basis of the agreement, and only then the main agreement is prepared, 30% of the cost of the object is paid.
When buying property in Phuket, as well as in Thailand in general, Russians may face some difficulties. Of course, not all banks will be able to transfer funds abroad. But this is just another reason to turn to specialists: they know through which banks and under what conditions it is more profitable to make a transfer. In addition, you can also pay for real estate with cryptocurrency.
However, in general, there is no discrimination based on nationality in the country, and a Russian can purchase any property on an equal basis with other foreigners.
The post How to buy property in Phuket in 2023: an overview of prices, buying methods and property options appeared first on the Realty Times.
