Phuket to be the world’s largest leisure branded residential market

Phuket is experiencing a significant transformation in its real estate landscape, with the island becoming the largest leisure-branded residential market globally, according to a new report from C9 Hotelworks. The surge in overseas buyers has driven the supply of branded properties on the island to over USD 2.3 billion, with further growth anticipated. This shift reflects a blurring of lines between hospitality and real estate, exemplified by developers like Laguna Phuket, which has transitioned its focus from hotels to branded real estate, marking a strategic change in the market.

Singaporean tourism mogul KP Ho’s Banyan Group recently announced a USD 2 billion lifestyle-led branded real estate project adjacent to the Laguna Phuket integrated resort, indicative of a broader trend towards property-led growth strategies. The evolving landscape sees developers integrating hospitality and real estate to capitalize on rising land prices and meet market demands, with the emergence of international schools as a key demand driver. Despite challenges such as muted Chinese tourism, Phuket’s city hotel market has seen increased room rates and profitability such as those offering novel experiences like NH Boat Lagoon Phuket Resort, prompting renewed interest from Thai banks and driving a wave of mixed-use projects blending hospitality and real estate components.