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A new wave of growth is sweeping through the real estate market in Phuket, with luxury villas in the Layan-Bangtao area emerging as a prominent investment hotspot. According to the latest assessment by Colliers Thailand, Phuket is expected to implement a visa waiver policy, further driving demand for short-term and long-term rental villas and apartments.

Despite tight land supply and high prices, the Bangtao and Layan areas remain highly favored by investors due to their prime beachfront locations. Luxury villas in these areas, particularly, have attracted considerable attention from foreign buyers, with the most expensive villas priced as high as 286 million Thai baht.

The number of foreign tourists in Phuket continues to rise, primarily due to the Thai government's policy of offering free visas to foreign tourists. In 2023, Phuket welcomed over 8.3 million foreign tourists, a 2.5-fold increase from 2022. This growth not only fuels the prosperity of the tourism industry but also injects new momentum into the real estate market's recovery.

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According to Nattha Khapana, Managing Director of Colliers Thailand, Phuket's villa market showed robust performance in 2023, with sales volume increasing by 109.3% compared to the previous year, reaching 651 units. Strong demand from Russian and European buyers for villas has driven market growth.

Meanwhile, Phuket's apartment market is also experiencing a rapid recovery. In 2023, a total of 4,081 new apartments were launched, an increase of 333.7% from the previous year. Among them, the Layan and Bangtao areas are preferred by foreign investors, accounting for 58% of the total sales units.

With the continued growth of the real estate market, some small-scale developers are starting to relocate their projects to adjacent areas or away from the beachfront to reduce costs and avoid competition with large developers. At the same time, demand from foreign buyers for both residential and rental properties is increasing, further driving the prosperity of the real estate market.

Looking ahead, Colliers Thailand expects Phuket's real estate market to continue its growth trajectory. With the implementation of the visa waiver policy and the increasing number of foreign tourists, the villa and apartment market in Phuket will see more investment opportunities. For investors, now is the perfect time to pay attention to the Phuket real estate market and seek suitable investment opportunities.