Luxury Hotel Investment Phuket: Growing Property Investment Potential

Luxury hotel investment Phuket is showing a lot of potential. The growth in this industry has been observed for quite some time now. In fact, the real estate sector in Phuket has been attracting further growth and investments. One of the most notable to come along is from a partnership effort between Castlewood Group and Nikki Beach.

Reasons to Invest in Phuket’s Real Estate Development Sector

There are a lot of good reasons why property investors should investigate the potential of Phuket’s property sector. Aside from being highly recommended, the current investments already established have proven to be quite resilient. They have also established the fact that Phuket’s market share is currently on the rise.

Best Upmarket Tourist Destination in Asia

Although some people may argue this point, many people will also readily agree with this claim without any reservations. In 2007, it was reported that Phuket had a total of 2.85 million tourists visiting the island. The number of tourist arrivals represents the upper echelon of the tourist market in the world.

The tourists who visit Phuket usually come from countries like Germany, Sweden, South Korea, UK, and Australia. Back in 2007, a total of 345,641 tourists visited Phuket. This represents the highest number of tourists from any given nationality for that year. Inquiries about the many resorts and tourist destinations also came from places in the Middle East, Africa, Eastern Europe, Asia, Scandinavia, Oceana, Thailand, UK, and North America.

Steady Rise in Market Value

Condominiums and other properties have been reporting increasing market values.

In the first half of the year 2005, the market value of current investments was at 1.2 billion. That figure rose to 2.6 billion in the second half of that year. It further rose to a total of 3.0 billion over the first half of 2006. However, it took a slight decline in the first half of 2008 since it dipped down to 2.7 billion.

Support from Government

It can be admitted that the Thai government may be experiencing a few bumps in their history but this has never stopped the property investments from coming in. The luxury hotel investment Phuket has experienced a steady increase in the number of investments. A lot of new hotels are being planned including other infrastructure projects geared to help move the industry forward. Since the 2005 the prices for condominiums have been doubling. These investments usually average at 101,203 billion in the first half of but that has grown so much more in recent years.

Demonstrated Growing Yields

It appears that the partnership between foreign investors and local Thai investors have proven successful. Both local and foreign entities are allowed by the government to purchase freehold properties on the island province of Phuket. This eventually helped bolster the efforts at improving the current industry. Investments are then well leveraged and have consistently featured very attractive payment structures for all parties concerned. This represents very good reasons to be involved in the sector of luxury hotel investment Phuket.