Russians Slowly Returning to Phuket
Russians Slowly Returning to Phuket
The local Phuket economy keeps increasing and this is due in part to the Russians slowly returning to Phuket. Russians in Phuket are increasing partly because the ruble and oil markets are finally recovering. Russia’s commodity-driven economy was set back by low energy and commodity prices, in addition to US sanctions which is behind them now. When oil prices are up, Russia benefits.
With the election of Donald Trump, the relationship between these two countries is slowly improving. Trump has said, through tweets, that he thinks the two countries can mutually benefit from a growing dialog.
Russians are starting to come back to Thailand and increasingly they are shifting from Pattaya towards the Southern provinces of Phuket and Koh Samui. This shift we are starting to see in greater numbers. Russian arrivals are starting to strengthen in Phuket and will continue to do so most likely as long as oil prices are stable.
Phuket already has a well-developed Russian-friendly tourism infrastructure with Russian speaking professionals as well as hotels, restaurants, and real estate agents focused on the unique needs of these buyers. Russians in Phuket are basically keen to own a home here. Many will buy real estate in Phuket to use for themselves and then rent out when they are not using it. There are many Russian speaking real estate agents on the island now to help. Some have come from the Pattaya real estate sector.
Russians are frequent visitors to Thailand now and the demand for real estate in Phuket by Russian buyers is growing.
According to a Russian news report, over 40% of Russian tourists have now visited Thailand at least once. The contribution to the Thai economy has already exceeded billions of baht. This is always welcome news for the Phuket real estate market.
One thing to watch is the exchange rate between the Russian Ruble and Thai Baht. Russia suffered a financial crisis in 1998 and again in 2014. The 1998 crisis was due to banking. The 2014 financial crisis was due to oil and both resulted in a sharp devaluation of the Russian ruble. This has led to many Russians looking outside of their home country for investments.
Fast forward to 2018, Russians now believe that Thailand is a safe place to keep their money or at least part of their money. The Thai baht has been very stable since the Asian financial crisis of the 1990s. Not only can Russians travel to Thailand without any visa, but they can also fly direct from Russia non-stop into Phuket.
It is no secret that winters in Russia can be brutally cold. A steady number of Russians are traveling to Thailand to escape the harsh temperatures. Naturally, they are coming to the beaches of Phuket, Koh Samui, and Pattaya. And for those who can afford it, Phuket is particularly ideal for real estate purchases.
Most foreign investors consider Thailand a safe and stable country for real estate investment. Thailand has shown strong and positive economic growth as a country with a sound banking system and a stable Thai baht. Thailand appears to understand the meaning of a win-win situation when it comes to foreign investment in Thai real estate. Pattaya real estate buyers are slowly shifting to Phuket.
Last year, inbound direct flights to Phuket from Russia totaled 1,767 flights.
The Thai government expects foreign investment into Phuket to continue its impressive growth track well until the future. With the Russian economy, ruble, stock market, and oil rebounding, we suspect more Russians in Phuket this high season for some "winter sun". The numbers of Russians in Phuket are increasing at a slow but steady pace. The number of Russians investing in Thai real estate is also growing.
If you would like to know more about Phuket real estate or the steps involved in buying property, we can be reached on WhatsApp at +66 93 606 0906. For what happens next contact us here.