Russians Overtake Chinese to Become Biggest Phuket Condo Buyers as Russia-Ukraine War Continues

• 12 March 2023
• Property Focus
• 3571 Views

Amidst the ongoing conflict between Russia and Ukraine, Russian investors have become the leading purchasers of condominiums in Phuket, Thailand, overtaking Chinese buyers from the top spot.  

“Last year, Russians became the leading purchasers of condominiums on the island, dislodging Chinese buyers from the top spot. According to Thailand’s Real Estate Information Centre, 40% of all condos in Phuket are Russian-owned,” the Diplomat reports. 

This sudden surge in purchases was fuelled by war-related investor anxiety, resulting in a super high season for the property market in November, December, and January, where more sales were made in the last 10 years, said a sales agent.  

Intermark Real Estate, a Moscow-based agency, reported that Southeast Asia accounted for 27% of overseas property purchase transactions in 2022, a significant increase from 12% in the previous year.  

Russian buyers viewed Phuket or Bali real estate primarily as investments. “Asia seems to be safe, secure, and neutral for Russian people,” noted one real estate professional specializing in the Thai property market. 

While the influx of Russian vacationers helped Thailand’s tourism industry receive 10 million visitors in 2022, Phuket’s condo market still needs another 1-2 years to fully recover to pre-pandemic levels, according to Nattha Kahapana, managing director of Knight Frank Thailand. 

The Tourism Authority of Thailand recently set an ambitious target of 1 million tourists from Russia for 2023 based on current trends. 

As for Cambodia, there are questions about why it has not been able to seize this opportunity despite its new investment laws that provide additional benefits to foreign investors. Nevertheless, the Thai property market continues to see a significant rise in Russian investors amidst the ongoing conflict between Russia and Ukraine.  (Read more)

• Business and Market
• Economy and Finance
• Technology and Engineering
• Ukrain War
• Real Estate Investment