Here to stay: Russian citizens are buying condominiums in Phuket on a grand scale. Business with Russians on Phuket has been booming since the Russian attack on Ukraine.
Russian tourists have already traveled to Thailand in large numbers in recent years, even before the corona pandemic, and have spent their holidays in Phuket and in numerous other popular tourist regions such as Pattaya or Koh Samui. Since February 2022, when Russia started the war against neighboring Ukraine, Thailand has seen a significant increase in Russian tourists. For example, several planes from Russia land on Phuket every day and bring many Russians into the country every day. For the most part, it is younger people and young couples who travel to Thailand for various reasons. Because often it’s not just the temperatures and beaches, but fear or flight from conscription to military service in Russia. And many have also come to stay in Thailand. If you have a little more money at your disposal, you can buy a condominium in Thailand directly.
More condos on Phuket owned by Russians than Chinese
While in the past it tended to be Chinese nationals who held the majority of foreign-owned condominiums, the Chinese have now been replaced by the Russians. The Thai Real Estate Information Center (REIC) recently published very interesting statistics. Accordingly, on Phuket, the largest of Thailand’s islands, around 40 percent of all condominiums owned by foreigners are now owned by Russians. Scores of Russians arrive at Phuket International Airport on a one-way ticket with the intention of staying in Thailand permanently. Wealthy Russians often not only buy an apartment or a house, but also have the Thailand Elite Card with them, which allows them a long-term stay in Thailand from five to 20 years. Of course, this visa for wealthy foreigners has its price, but the advantages of the Thailand Elite Card usually outweigh this, because in addition to a residence permit for many years, taxes can also be saved very well in Thailand, which should ultimately please every wealthy foreigner. And maybe even a luxury property with sea views.
Rental rates for Phuket condominiums are multiplying
And as is completely normal in the real estate market, an enormously increased demand leads to significantly higher rental prices. After all, supply and demand drives the price, and rents for upscale and luxury condos have mostly at least doubled or tripled in a short space of time.
Almost all foreign tourists who plan to stay in Phuket for three to six months are affected by the increased rental prices. After all, it’s only a minority of super-rich Russians who can afford a property for more than $500,000 in conjunction with the Thailand Elite Card. The majority of Russians on Phuket are generally 30-40 years old and do not plan to stay in Thailand permanently, but plan to stay for a few months to half a year.
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