Connect with us

Property

From Russia with Love. Russian buyers on the rebound.

Published

 on 

From Russia with Love might is a James Bond 007 thriller but it has also been a mantra for island developers as the past nine months has seen a strong uptick in demand in Phuket real estate by Russian buyers.

According to the recently released Phuket Russian Tourism Market report, over 51% of Russian travelers to Thailand come to Phuket. The contribution to the local economy in terms of tourism receipts is estimated to exceed THB30 billion. What is good news for property developers is the knock-on effect to sales.

This can be seen when you look at the exchange rate of the Russian Ruble to the Thai Baht. In February 2016 the current hit a record low but managed to grow by 35% in the remainder of the year. Looking back at recent exchange rates after a high water market in 2012, declining oil prices and domestic economic issues put investors onto the sidelines.

Rolling into 2017, the reality is when speaking to both developers and agents the feedback is that a growing number of Russian real estate buyers consider Thailand a safe offshore investment haven. With visa free travel, good access by air and the snowbird effect of those seeking to escape hash winters, Phuket is a natural location for a real estate purchase.

Another strong peripheral effect from not only Russia but other Eastern European countries such as Kazakhstan, Uzbekistan and others are capital flight from volatile domestic markets into Southeast Asia. Thailand and Vietnam are good examples of investors taking a positive view of these markets.

We expect the positive Russian tourism growth to continue through 2017 and on into next year, and this is expected to have a domino effect on the Phuket property sector.

 

Get more from The Thaiger

Join the conversation and have your say on Thailand news published on The Thaiger.

Thaiger Talk is our new Thaiger Community where you can join the discussion on everything happening in Thailand right now.

Please note that articles are not posted to the forum instantly and can take up to 20 min before being visible. Click for more information and the Thaiger Talk Guidelines.

Bill Barnett has over 30 years of experience in the Asian hospitality and property markets. He is considered to be a leading authority on real estate trends across Asia, and has sat at almost every seat around the hospitality and real estate table. Bill promotes industry insight through regular conference speaking engagements and is continually gathering market intelligence. Over the past few years he has released four books on Asian property topics.

Follow Thaiger by email:

Pattaya52 mins ago

Small children in Pattaya learn to get help when locked in hot cars

Chiang Mai1 hour ago

Heavy rains collapse part of Chiang Mai’s ancient city wall

Events2 hours ago

6-hour whiskey drinking contest draws criticism

Sponsored2 days ago

From regulation to cannabis delivery, here’s what you need to know about cannabis in Thailand

Pattaya3 hours ago

Pattaya official urges mayor to expand legal nightlife zone

Thailand3 hours ago

Things you can do in Thailand during the rainy season

Indonesia4 hours ago

Earthquake in Indonesia felt throughout southern Thailand

Join the conversation on the Thaiger Talk forums today!
Patong4 hours ago

Foreign women rescued from rip current in Patong

Thailand20 hours ago

Woman smashes up her 1.5 million baht car over feud with Ford Thailand

Bangkok22 hours ago

1.8 billion baht in donations at the Erawan shrine in 2022

Phuket23 hours ago

Phuket welcomes 4 million tourists in 8 months

Tourism23 hours ago

Carnival Magic theme park opens in Phuket to fanfare

Video23 hours ago

Ask the Thais | Stereotypes, Racial Profiling, and Discrimination

Coronavirus (Covid-19)24 hours ago

Thailand watching BQ.1.1 variant as Covid rules ease

Thailand1 day ago

Military conscription in Russia could benefit Thailand’s economy

Economy1 day ago

Economists foresee 38 baht to 1 US dollar this year

Thailand1 year ago

Morning Top Stories Thailand | Police to end protests, Human Trafficking | September 14

Thailand2 years ago

Thailand News Today | Thai Airways in rehab, All go for Songkran | March 4

Tourism2 years ago

Phuket’s nightlife. Yes, bars and clubs are still open | VIDEO

Phuket2 years ago

Thailand News Today | Covid passport talks, Thai Airways heads to court | March 2

Tourism2 years ago

Phuket Thai food treats you need to try | VIDEO

Thailand2 years ago

Thailand News Today | Bars, pubs and restaurants ‘sort of’ back to normal | Feb 23

Tourism2 years ago

In search of Cat & Dog Cafés in Phuket Town | VIDEO

Thailand2 years ago

Thailand News Today | Gambling crackdown, Seafood market to reopen, Vlogger challenge | Jan 21

Thailand2 years ago

Thailand News Today | Covid testing for visas, Business impact, Vaccine approval | January 19

Thailand2 years ago

Thailand News Today | Weekend Bangkok bombs, Thailand fires, Covid update | January 18

Thailand2 years ago

Thailand News Today | Stray car on runway, Indonesian quake, 300 baht tourist fee | January 15

Thailand2 years ago

Thailand News Today | Governor off respirator, sex-trafficking arrest, condo prices falling | January 14

Thailand2 years ago

Thailand News Today | Chinese vaccine, Thailand ‘drug hub’, Covid update | January 13

Thailand2 years ago

Thailand News Today | Bangkok may ease restrictions, Phuket bar curfew, Vaccine roll out | January 12

Thailand2 years ago

Thailand News Today | Covid latest, Cockfights closed down, Bryde’s Whale beached | January 11

Trending