Russian upper class take over Phuket properties

Phuket has become a playground for Russia’s wealthy elite, causing property prices to skyrocket by 15 to 20%.

Amidst Thailand’s tourism boom and the aftermath of the Russia-Ukraine conflict, affluent Russians are making Phuket their long-term home, revealed Maetapong Upatising, president of the Phuket Real Estate Association.

“Phuket’s allure lies in its world-class amenities, including an international airport, schools, golf courses, yacht marinas, hospitals, and a dazzling array of luxury villas and condos.”

This influx has prompted major developers like Origin, Sansiri, Siamese Asset, and Raimond Land to invest heavily in Phuket, unveiling projects in coveted areas such as Cherng Talay and Patong.

Land prices have surged from an average of 3 million baht to a staggering 8 to 9 million baht per rai, with prime plots hitting an eye-watering 120 million baht per rai, according to Maetapong. Russian demand has reached unprecedented levels, with real estate projects now occupied by 40 to 60% of Russian clientele, a stark contrast to the pre-pandemic figures of 10 to 15%.

Popular among the Russian elite are Patong Beach, Kamala Beach, Cherng Talay, and Nai Thon Beach. Areas experiencing a surge in Russian interest include Rawai, Bang Thao, and Nai Han.

Real-estate consultant Nattha Kahapana of Knight Frank Thailand predicts an annual 8% to 10% increase in land prices, consequently driving up villa prices, especially beachfront properties. With beachside lands fetching around 25 million baht per rai and supplies dwindling, developers are now eyeing mountainous terrains near the beach, offering privacy and tranquillity for the discerning elite, reported The Nation.

Phuket’s transformation into a haven for the Russian elite is not just a trend, it’s a phenomenon reshaping the island’s real estate landscape.

In related news, a speedboat carrying seven Russian tourists, including a five year old girl, crashed into rocks at Koh Maithon while returning to Phuket from Phi Phi Island. The young girl, Liza Pak, sadly lost her life in the incident.