At the time when all around the world the real estate market faces severe problems, the biggest Thai island in the Andaman sea Phuket seems to be a pleasant exception from the rules.

During the last four years, Thailand survived in two catastrophes, which can completely destroy the country. The tsunami of 2004 seriously damaged the coastal area of Thailand including the health resort Phuket. Two years ago, military took over the country and the democracy government was overthrown: the country narrow escaped economic collapse. The countries-partners apprehended that the flourishing in the sphere of tourism will completely delay and with it, the real estate market, which made good only due to the foreign capital inflow, will fall.  

Nevertheless, the apprehensions did not prove true. If even these two so undesired events had influenced negatively the country economics, the effect appeared non-durable.

Stable real estate market.

The market of elite real estate on Phuket even during the period of difficulties does not suffer from collapse: moreover, there is a sharp increase if what the article from the Asia Property Report’ number of May says the true. The tourist revival in the country leads to the increasing demand for the rest houses. During the last year, 5 million tourists visited the famous Thai island. At the same time, the number of tourists visiting all the country increased noteworthily - by 22,5%. 

According to the data of CB Richard Ellis, one of the biggest real estate agencies of Thailand, in the second part of 2007 the number of transactions of purchase and sale of the rest houses on Phuket increased by 32%. During the same period, costs of such real estate objects grew by 56%, and from 2000 till 2006, the prices doubled.  

The stability of the real estate market on Phuket reflects the investors’ optimism and enthusiasm regarding the future of the country despite the unstable policy today.

Charlotte Fyliel, General Director of the CB Richard Ellis assets that the foreign investors were worrying a year ago when the military overthrew the coalition government headed by the ex-prime minister Taxin Shivanatra. The majority of foreign buyers decided to “wait and see the reaction”, the expert added. It is necessary to take into account that 90% of the elite market of the country belong to the foreign investors.

Nevertheless, later it became obvious that the new government did not intend to take measures which could negatively influence the tourism and real estate market. The grown rate reduction did not follow. “The market now is strong. The number of deals and buyers is growing, the analytics predictions are perfectly positive”, Mrs. Fyliel says.

A number of factors positively influencing the market of the health resort estate are obvious. “The elite objects in the seaside resorts are still two times cheaper then on the Mediterranean or Caribbean seaside. Administrative expenses are not big; meanwhile the service quality is the best of all. Shipbuilding is developing quickly, wonderful yachts are constructed and that also supports the real estate market and infrastructure on one of the most fabulous seaside in the world which is visited by tourists all the year”- the analytic says. Besides that in Thailand there are good international schools, hospitals, first-rate kitchen and great variety of entertainment – all this attract the holyday-makers’ attention. Onу of the main reason of the stability in the country is a good development of the tourist sector. Thailand is a practically safe country. The population of it is friendly towards the visitors.
   
Canvassing of new buyers. 

There are also other factors, which positively affect the market of the elite real estate on Phuket. During the period of the maximum tourists’ flow-in on the island from November 2007 till March 2008 the prices for the floor-space in the elite cooperative houses grew dramatically (from $2 985 till $4 153 for square meter) according to the data of the Jones Lang LaSalle company who control financial recourses in the real estate sphere. The results of the researches performed by the company showed that general buyers flow goes from the well-known regions: United States, Great Britain, Scandinavian countries. With the prosperity growing and appearing of the well off in other Asian countries, in Russia, in the Middle East the interest to Thailand is also increasing.

Recent article of the magazine The Economist says that the countries Brazil, Russia, India, China, South Korea and Vietnam are of the great interest for buyers from all over the world. More and more people discover these new regions, at the same time the number of tourists from these countries is also growing. As a rule, the new generation of tourists chooses to visit countries where the economic grows is like in their own countries. So the island of Phuket becomes attractive for similar buyers, and that is the reason of the growing demand for the elite objects.  

Prognoses for the Next Years.

Mrs. Fyliel states that in the nearest future the market of the elite real estate of Phuket will remain strong. “In order of merit and location the elite objects begin to meet the requirements of the worldwide standards, we receive the purchasers’ orders from everywhere. The investments come from all parts of the world,” admits the expert.

As more and more foreigners come to the island, it is planned to enlarge and develop the airport. Now the new quay for yachts is built, new suppliers of fuel come to the island intending to use Phuket as the center of their activity. All this proves that the market in near future will develop with the same pace.

Author: Emisrack Kiflee, portal NuWireInvestor
Translation: Yanina Krupina
Provided by Prian.ru