Infrastructure projects diversify Phuket’s economy beyond tourism

Phuket’s shift from tourism island towards a global city

Major public and private projects worth more than THB214 billion are changing the investment landscape of Phuket, according to Phattarachai Taweewong, senior director of market research and public relations at Savills Thailand.

The island, long associated with beaches, hotels and foreign visitors, is attracting investment in airports, public transport, healthcare, shopping centres and large mixed-use and destination developments.

Investment in Phuket aims both to accommodate growing visitor numbers and to “reshape the urban structure”, transforming the island from a tourism destination into an integrated international tourism and service hub.

As airports, rail links, roads, hospitals, retail facilities and luxury housing advance together, their effects are expected to extend beyond individual projects to the island’s wider economy and property market.

THB214 billion investment reshapes Phuket’s infrastructure

The New Andaman Airport, valued at about THB80 billion, is among the major projects associated with Phuket’s transformation.

Synthesis Ark Phuket has an estimated value of THB50 billion, while the first phase of Phuket’s light rail system has an estimated budget of approximately THB35.35 billion.

Phuket International Airport also has plans for a second phase of expansion, valued at approximately THB10 billion, to increase passenger handling capacity.

Taken together, Phuket’s major projects represent an attempt to address “urban constraints” as the island’s growth outpaces its capacity to handle traffic, travel demand and tourist arrivals, alongside the provision of service infrastructure.

Airports and rail could transform Phuket’s connectivity

Phuket’s growth as a global tourism city depends not simply on the number of hotel rooms or its beaches, but on how easily “people and money” can enter and move around it.

This gives the first phase of Phuket’s light rail system and the Pa Khlok–Bang Ku expressway project significance beyond providing new transport systems.

Better connections between areas could reduce reliance on private cars, improve accessibility and open more land to commercial and property development.

Transport concepts including Andaman Ring Ports, a seaplane airport, a monorail and Phuket’s rail transit system reflect a shift from a single system towards a more varied and interconnected transport network.

Medical tourism could shift Phuket towards a healthcare economy

Healthcare investment is adding another economic sector to Phuket.

Projects include the Songklanagarind Phuket Advanced Medical Center, valued at about THB20 billion, and Bumrungrad International Hospital Phuket, valued at approximately THB4.3 billion, as the island develops a “healthcare economy”.

Phuket’s healthcare projects are expected to attract medical tourists, long-term residents and people with strong purchasing power, as well as expand hospital provision.

Combining tourism with medical care, health and wellness could extend stays, while spending is expected to shift from short-term tourism towards higher-value services.

Retail and lifestyle projects add to Phuket’s economy

ICONPHUKET, valued at approximately THB10 billion, and Siam Premium Outlets Phuket, at about THB5 billion, are expected to expand the island’s retail and lifestyle offerings.

The projects would support economic activity beyond beaches and hotels.

Closer connections between Phuket’s retail, lifestyle, healthcare, housing and tourism sectors could help the island evolve from a place tourists “come to stay” into somewhere they can “live” over the long term.

Phuket property market gains momentum with 4,166 new units

Savills Thailand recorded 67 residential projects launched in Phuket in the first half of 2026, comprising 4,166 units with a combined development value of approximately THB52.955 billion.

The housing launches reflect the effects of infrastructure investment on the island’s property market.

Phuket’s housing launches indicate that developer confidence remains high, particularly in homes for holidays, investment and long-term residence, with foreign buyers providing an important source of demand.

The market’s expansion also reflects a change in the “quality of demand”, alongside growth in the number of homes.

Condominiums lead unit numbers, villas lead project value

Condominiums accounted for 16 new projects and 3,466 units in Phuket in the first half of 2026, representing more than 83% of all newly launched homes and approximately THB20.45 billion in development value.

Activity remained concentrated in western tourism areas.

Savills identified Surin as the leading location for new condominium launches, with 672 units in three projects worth around THB4.05 billion, followed by Choeng Thale with 397 units and Kamala with 363.

Aceller Hotel & Residence in Chalong, with 688 units, was among Phuket’s larger developments during the first half of 2026.

In terms of “value”, however, villas accounted for a substantially greater share of development value than condominiums.

Phuket’s 700 new villas valued at about THB32.505 billion

Phuket recorded 51 new villa projects comprising 700 units in the first half of 2026, with a combined development value of approximately THB32.505 billion.

Villas represented more than 61% of the value of all newly launched residential projects, reflecting the influence of luxury and ultra-luxury properties despite their smaller share of units.

Foreign buyers remain the main customer base for Phuket’s villas, particularly purchasers from Europe, Russia and Asia who view the island as both a holiday-home destination and a place for long-term property investment.

Demand from these buyers helps villas generate substantial value despite far fewer units than condominiums.

Western Phuket remains a key draw for new investment

Si Sunthon led Phuket’s new villa launches in the first half of 2026, with about 120 units worth approximately THB3.675 billion.

Choeng Thale followed with 84 units valued at around THB3.425 billion, while Kamala recorded 67 units worth about THB3.9 billion, as “western areas” remained a key draw for investment.

Holiday use, investment opportunities and access to amenities support demand in Phuket’s leading villa locations, alongside a strong foreign customer base.

Bang Tao, Choeng Thale, Surin, Kamala and Layan remain the main locations where higher-end property developers compete.

Major Bangkok developers signal confidence in Phuket

Major developers from Bangkok are expanding their presence in Phuket.

Sansiri launched RHEA by Sansiri near Surin Beach, with a project value of approximately THB1.5 billion, and is preparing to launch a further four new projects in the second half of 2026.

TITLE is also developing new projects in Bang Tao, Choeng Thale and Kamala to serve foreign customers.

Supalai is still studying the feasibility of expanding investment in Phuket.

Interest from major developers suggests the island is moving beyond a niche property market to become a strategic market for national developers.

Phuket projects could benefit surrounding businesses

Phuket’s approximately THB214 billion in major projects could produce an “economic multiplier effect” beyond the developments themselves.

Airport expansion, new rail systems, major hospitals and additional visitor destinations are expected to generate activity for surrounding businesses as they come into operation.

Potential beneficiaries of Phuket’s investment include hotels, serviced apartments, restaurants, retailers, offices, mid- to higher-end housing, luxury residences and mixed-use developments.

Better-connected locations could emerge as “new areas” for property development.

Infrastructure is helping to “create land value and new development locations”, as well as make travel easier.

Luxury property leads Phuket’s second-half 2026 outlook

Phuket’s housing market is expected to see further launches in the second half of 2026, particularly luxury condominiums and villas, supported by recovering tourism, a growing foreign buyer base, infrastructure spending and the entry of major developers.

Future growth is expected to be measured not simply by “unit numbers”, but by how well developments meet the needs of high-quality buyers and connect with Phuket’s evolving economy.

What kind of growth lies ahead for Phuket?

Investment of more than THB210 billion could signal a major transition for Phuket.

An economy previously driven mainly by “tourism” is developing several engines of growth, spanning aviation, healthcare, commerce, transport, housing and international services.

A new airport could improve Phuket’s connections, rail systems could change how people travel, and hospitals could attract long-term residents.

Luxury property is already drawing capital and purchasing power from around the world.

Phuket is developing into an international city, with tourism as one of its principal economic engines, rather than simply “a larger tourism destination”.

If the major projects proceed as planned, the current investment figure of approximately THB214 billion could mark the beginning of changes lasting for decades.

Source: Bangkokbiznews