Future development plans in Phuket can significantly alter your property’s value, positively or negatively. Analysing these upcoming projects is essential for anyone owning or considering investing in property in Phuket. The island has several major development initiatives scheduled for 5-10 years to reshape specific areas and directly impact property valuations across different neighbourhoods. Let’s examine the upcoming projects and how they might affect your investment.
Light rail project
The planned Phuket light rail system connecting the airport to Chalong represents one of the most substantial infrastructure investments on the island. Properties within 500 meters of proposed stations are likely to see 15-30% value increases once construction begins. The northern section from the airport through Thalang district will see the first development phase, making these areas particularly attractive for near-term appreciation. Properties directly on the construction path may experience temporary disruption and accessibility issues during the 3-4 year construction period, potentially causing short-term rental yield decreases of 10-15%.
Airport expansion
The approved airport expansion will increase capacity from 12.5 million to 18 million passengers annually. Properties in the surrounding areas of Nai Yang, Nai Thon, and Sakhu will experience significant changes in value:
- Properties with direct airport access will see 20-25% increases
- Areas under new flight paths may see 5-10% decreases
- Commercial properties near airport access roads could double in value
- Residential properties within a 2-3km radius will appreciate 15-20%
The expansion project has received final environmental approval, with construction planned to commence in late 2025 and complete by 2028.
Smart city initiative
Phuket’s designation as a smart city development zone brings fibre optic connectivity, intelligent traffic management, and enhanced security systems to key areas. The initial rollout focuses on Phuket Town, Patong, and Kata-Karon, with subsequent phases expanding to other regions. Properties in these first-phase areas can expect 8-12% technology premiums as digital infrastructure becomes increasingly important to property buyers and renters. The smart city designation also includes zoning modifications for mixed-use developments in previously restricted areas. Several obsolete government facilities in prime locations will be repurposed for public-private development projects, creating new commercial hubs that will alter surrounding property values.
Marina developments
Four new marina projects have been approved along Phuket’s east coast, with construction timelines extending from 2025 to 2029. These developments will transform previously overlooked coastal areas into luxury boating hubs:
- The Ao Po area will see the most significant development with 250 berths
- Cape Yamu’s smaller 120-berth facility breaks ground in 2026
- Chalong Bay’s expansion adds 180 berths to existing facilities
- Makham Bay’s boutique marina focuses on smaller vessels with 85 berths
Properties within view of these facilities tend to appreciate 30-40% from pre-construction to completion. The surrounding commercial zones typically see rapid development of supporting businesses, creating investment opportunities before these areas fully mature. Each marina includes strict environmental impact mitigation requirements that enhance coastal conditions through improved wastewater management and beach restoration programs.
These conservation efforts create scarcity of developable land in prime areas, increasing existing property values by limiting future supply. Historical data from similar conservation initiatives on the island shows 10-15% value premiums for properties bordering protected zones, with these premiums increasing as vacant land becomes increasingly scarce. The most recent environmental protection plan released by the provincial government indicates no further development will be permitted within 200 meters of certain beaches and forest reserves.
