Updated trends in the real estate rental market in Phuket.

The outlook for the rental property market in Phuket promises to be vibrant and diverse in 2024. In addition to short-term rentals for vacationers, there is a strong demand for long-term living on the island. Instead of simply asking realtors for their opinions on the rental market, it was decided to turn to Brennan Campbell, head of brokerage services at Thailand's leading real estate portal FazWaz.com. Based on this, the goal was to explore trends and changes by analyzing data from all of 2023 and the current 2024.

Research results

According to the research, more than 60% of rented properties consist of apartments, while houses and cottages in residential complexes account for over 20% of the rental market. Townhouses and standalone houses make up a much smaller percentage. It is noted that apartments continue to show increasing popularity. The size and structure of rented apartments have also changed: one-bedroom apartments make up over 40%, two-bedroom apartments around 20%, and studios approximately the same amount. Regarding houses, the demand for three-bedroom units is decreasing, while four-bedroom houses are becoming increasingly popular.

Nationality of tenants and regions

According to data on the nationality of tenants, while Russia previously held a third of the market, this year the share decreased to 25%. This is due to an increase in the share of rentals from Thailand, the US, the UK and Australia. For individual regions, although the data for 2024 is still somewhat preliminary, significant changes can be noted.

Rental terms and payments

The rental period continues to change as well. While in 2023 the average duration was just over 10 months, this year it has decreased to 9 months. Three to six-month leases remain popular, but annual contracts account for more than half of the demand. The average monthly payment in the apartment and house segment was around 68,000 baht in both last year and this year.

Investment recommendations

Remember that investing in real estate in Phuket requires a serious approach and planning. Consider popular types of rentals, regions, and projects. Do your homework, study financial indicators, and plan for long-term maintenance costs. In the future, we can expect growth in the construction of rental properties, but it's important to keep in mind the high land prices. The serviced apartment sector also shows a need for sustainable rental income. The best advice for buyers is to approach the matter with due attention and thoughtfulness, taking into account all factors and potential risks.