Phuket, Thailand’s largest island, has long been a popular tourist destination for Russians. But since the start of the Ukraine war, the number of Russians in Phuket has surged, and they are now driving up prices for everything from property to food and rent.
According to the Thai Real Estate Information Center (REIC), Russians bought nearly 40% of all condominiums sold to foreigners in Phuket in 2022. This is a significant increase from pre-war levels, and it has led to a sharp rise in property prices. For example, the average price of a condominium in Phuket has increased by 15-20% in the past year.
More than 400,000 + Russians arrived in Phuket, Thailand between January and July of this year (2023). This is double the number of Russians who arrived in the same period last year.
The influx of Russian tourists is also having a major impact on the rental market. In some areas of Phuket, rents have doubled or even tripled in the past year. This is making it difficult for locals and other foreigners to afford to live on the island.
The rising cost of living in Phuket is also having a knock-on effect on other industries. For example, the price of food and other goods and services has increased significantly. This is making it more difficult for businesses to operate and is putting a strain on the local economy.
The Thai government is aware of the problem and is taking steps to address it. For example, it has recently introduced new regulations that make it more difficult for foreigners to buy property in Thailand. However, it is unclear how effective these measures will be in curbing the influx of Russians and other foreign buyers.
In the meantime, the rising cost of living in Phuket is having a negative impact on many people, both locals and foreigners. It is making it more difficult for people to afford to live on the island and is putting a strain on the local economy.