Real estate investors return to Phuket

The real estate market in Phuket is reportedly booming once again almost 18 months after it faced the brunt of the tragic Asian Tsunami.

Research from CB Richard Ellis Thailand has found that developers are looking to lure investors with a whole range of properties, including luxury villas and resort condominiums.

Phuket has long been a tourist haven and it is certainly one of the most stunning tropical islands in Asia. The cost of living on the island is particularly low when compared with the likes of nearby Hong Kong or Singapore and it would seem that investors have rediscovered an appetite for the property market.

"[Phuket] distinguishes itself by its unique blend of safety, unrivalled hospitality, and the degree of sophistication of its economy and property market. It is a fully serviced island with first-class facilities, very accessible from anywhere in the region, thanks to its international airport, and benefits from a fantastic natural environment," said David Simister, chairman of CB Richard Ellis Thailand.

Demand is reportedly high for all property types on the island, with investors coming from Hong Kong, China and from Europe. Mr Simister observed that people are coming to realise that "Phuket can offer a very good value-for-money exotic lifestyle".

The rental market in Phuket is said to be still in its infancy and so most investors buy with a view to living there for the quality of life. Nonetheless, certain properties in the right areas are thought to offer relatively healthy yields as well.