Banyan Group bets on Indian investors for second home in Phuket amid Middle East uncertainty

Banyan Group, a global hospitality brand, is turning its focus to Indian buyers for luxury holiday homes and temporary long-term stays at its properties in Phuket, Thailand. Stuart Reading, managing director of Banyan Group Property Development, said the company sees growing potential among India’s high-net-worth individuals (HNIs) and ultra-high-net-worth individuals (UHNIs) amid the ongoing uncertainty in the Middle East.

“The Dubai market has definitely suffered. Now we’re actually getting a lot of brokers and people out of Dubai. They’re having difficulty selling property in Dubai, so they’re now turning to markets like ours. I think it remains to be seen what the long-term impact will be over the next few years, but putting this year in perspective, our business is probably up 40% from last year. We had a record year the last few years.”

According to the readings, many affluent Indian buyers are already familiar with Phuket and Thailand as holiday destinations and see the market as an opportunity for diversification, along with investments in Dubai, Europe, the UK and the US. Phuket’s proximity to India, lifestyle appeal and growth prospects have attracted the interest of wealthy Indian investors.

“The company has established a dedicated presence in India and considers the country a major source market. It regularly organizes familiarization visits to India for potential clients and Indian real estate brokers, giving them first-hand experience of the development before presenting it to potential clients. Right now, as we speak, Indians are the fifth largest buyer by value for Laguna Phuket, and they are the second largest group of tourists to Phuket. We look forward to inviting Indians to any of our projects. “We are seeing more investment in luxury properties compared to other segments.” Said.

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“Property prices in Phuket are lower than many global markets, including Dubai, making Phuket attractive to international investors, including India. While Dubai has seen a sharp rise in prices in recent years and there are concerns about market saturation, Phuket remains a relatively small market, with greater potential for future upside,” Reading said.

Reading said Phuket’s property market is mainly driven by long-term investors rather than speculative buyers seeking quick profits.

According to him, excessive speculative activity often suppresses returns as investors compete to exit their positions quickly. Conversely, “the majority of our buyers hold their properties for the long term, supporting market stability and sustainable price growth. From an investment perspective, buyers can potentially benefit from a combination of rental yields and capital appreciation.”

“Rental returns and property price appreciation in Phuket can range between 5% to 10% annually depending on the property and market conditions. In addition to these factors, investors should also consider currency movements, which can further impact overall returns on overseas property investments,” Reading said.

According to the readings, Indian investors are investing more in property for lifestyle rather than quick returns.

“We’re selling our top-tier properties to ultra-net-worth buyers, and I think they’re not as driven by investment as they are by lifestyle. They want something very nice here where they get to enjoy services, hospitality and spend time with their family, and it’s not so driven by making a quick return on investment,” Reading said.

“It’s really different horses for different courses, and it depends on their motivation. I would say 75% to 80% of people are buying with us as a second home, and about 25% to 30% of people are buying as their permanent or semi-permanent home,” Reading said.

According to the company, Russia remains the largest source market by value for Laguna Phuket, followed by Thailand, Singapore and Hong Kong. India ranked among the top five source markets last year, reflecting the growing interest of Indian investors. Apart from Russia, major European markets include the UK, Germany and Switzerland.

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The country also offers the Thailand Privilege Visa (formerly Elite Visa), which provides residence benefits through membership programs ranging from five to 20 years. Membership fees currently start at around THB 650,000 (approximately) ₹16 lakh for a five-year visa) and can exceed THB 5 million (approx. ₹1.25 Crore) for premium long term package.

Banyan Group has developed its own mixed-use integrated township, Laguna Phuket, in southern Thailand. It is spread over 1,000 acres along Bang Tao Beach in Phuket. The project includes six hotels, a wellness centre, dining and leisure facilities and more than 3,000 branded residences. At Laguna Phuket, the company offers projects priced around Rs 1000 to Rs 200 ₹from 1.7 crores ₹86 crore, caters to both mid-segment international investors and ultra-high-net-worth individuals.

The company has a presence in 15 countries and operates a hotel in Bengaluru.

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(The author visited Laguna Phuket, Thailand at the invitation of Banyan Group)