Banyan Group Focuses on Indian Investors for Luxury Homes in Phuket Amid Middle East Uncertainty

Banyan Group, a global hospitality brand, is stepping up its focus on Indian buyers for luxury holiday homes and temporary long-stay residences across its properties in Phuket, Thailand. The company sees increasing potential among India's high-net-worth individuals (HNIs) and ultra-high-net-worth individuals (UHNIs) amid ongoing uncertainty in the Middle East, said Stuart Reading, Managing Director, Banyan Group Property Development.

Speaking with Hindustan Times Real Estate, Reading said they are monitoring the situation in the Middle East. “The Dubai market has definitely suffered. We are now actually getting a lot of brokers and people from Dubai. They are having to pivot because they are finding it difficult to sell property in Dubai, so they are now pivoting to markets like ours. I guess it remains to be seen what the long-term impact will be over the next few years, but putting this year into perspective, our business is probably 40% above last year. We had a record year in the last few years,” said Reading.

According to Reading, many affluent Indian buyers are already familiar with Phuket and Thailand as leisure destinations and view the market as a diversification opportunity alongside investments in Dubai, Europe, the UK, and the US. Phuket's proximity to India, lifestyle appeal, and growth potential have attracted interest from wealthy Indian investors.

“The company has established a dedicated presence in India and considers the country a key source market. It regularly hosts familiarisation trips for potential clientele from India and Indian real estate brokers, allowing them to experience the development first-hand before introducing it to potential clients. Right now, as we speak, Indians are the fifth-largest buyers by value for Laguna Phuket, and they are the second-largest group of tourists in Phuket. We are seeing Indians investing in luxury properties more than any other segment for our project,” Reading said.

Phuket continues to offer significant investment potential, driven by comparatively affordable real estate prices and strong long-term appreciation prospects. “Property prices in Phuket remain lower than those in several global markets, including Dubai, making Phuket attractive for international investors, including those from India. While Dubai has witnessed sharp price increases in recent years and concerns around market saturation, Phuket remains a relatively smaller market with greater scope for future upside,” Reading said.

Reading noted that Phuket's property market is primarily driven by long-term investors rather than speculative buyers seeking quick gains. Excessive speculative activity often suppresses returns as investors compete to exit their positions quickly. In contrast, “most of our buyers tend to hold their properties for a longer duration, supporting market stability and sustainable value growth. From an investment perspective, buyers can potentially benefit from a combination of rental yields and capital appreciation.”

Rental returns and property value appreciation in Phuket could range between 5% and 10% annually, depending on the asset and market conditions. In addition to these factors, investors should also consider currency movements, which can further influence overall returns on overseas property investments.

Nearly 80% of investors in Phuket's residential property market are purchasing homes as second residences, underscoring the island's growing appeal as a lifestyle and holiday-home destination. According to Reading, Indian investors are investing in property more for lifestyle than for quick returns. “We have been selling our top-tier properties to ultra-net-worth buyers, and I think they are not as motivated by investment as they are by lifestyle. They want to have something very nice here where they get to enjoy the services, the hospitality, and get to spend time with their family, and it is not so much motivated by making a quick return on the 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 there's about 25% to 30% buying as their permanent or semi-permanent home,” Reading added.

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 growing interest from Indian investors. Beyond Russia, key European markets include the UK, Germany, and Switzerland.

Indian nationals can enter Thailand visa-free for short stays of up to 30 days, while longer-term options include retirement visas for individuals above 50 years of age, Long-Term Resident (LTR) visas for wealthy individuals and highly skilled professionals, and the Destination Thailand Visa (DTV) for digital nomads and remote workers. The country also offers the Thailand Privilege Visa (formerly the Elite Visa), which provides residency benefits through membership programmes 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 (around ₹1.25 crore) for premium long-term packages.

Banyan Group has developed its mixed-use integrated township, Laguna Phuket, in Southern Thailand. It is spread across 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. In Laguna Phuket, the company offers projects priced from approximately ₹1.7 crore to ₹86 crore, catering to both mid-segment international investors and ultra-high-net-worth individuals.

While the company currently has no real estate developments in India, it remains actively evaluating opportunities. It has a business development representative based in India who is exploring potential opportunities in both hospitality and real estate. According to Reading, any future project would need to meet its global brand standards, but he acknowledged that India could emerge as a future destination for expansion.