People frolic on Patong beach in Phuket. Mr Barnett said Phuket's luxury properties woo investors from around the world.

Grade A residential projects in Phuket are valued at 337 billion baht and are expected to grow by 10-20% annually over five years, driven by demand from affluent buyers globally, according to C9 Hotelworks, a hospitality consultancy.

Bill Barnett, managing director of C9 Hotelworks, said Phuket's luxury properties are attractive to customers from around the world, as the province offers various premier facilities, including international schools, international hospitals, hotels, wellness centres and luxury retail.

According to C9's latest Phuket Luxury Report, published last month, around 450 new luxury residence units are on sale now in Phuket, of which 413 are condos and 37 are villas.

Roughly 51% of total units are located in Kamala, followed by 38% and 10% in the Cherngtalay-Bang Tao area and Layan area, respectively.

In terms of size, around 41% are one-bedroom units, while two-bedroom, three-bedroom and four-bedroom units accounted for 33%, 21% and 5%, respectively.

Mr Barnett said the luxury condo market has an average absorption rate of five units per month.

The report indicated that luxury property development has evolved from two decades ago, as buyers now expect experiential luxury that reflects their values and lifestyle. This includes a shift towards minimalist designs from Thai traditional design, opting for gated communities with ocean views and proximity to commercial centres.

In the past, buyers mostly looked for beachfront or hillside properties with privacy.

Other essential elements are wellness programmes, curated social events that offer an exclusive experience.

Mr Barnett said buyers' priority is now investment, a shift from personal use and occasional rentals.

He said Phuket still offers competitive prices for luxury residences compared to other cities or resort destinations, with an average price of 231,579 baht per square metre.

Meanwhile, Marbella, Miami and Dubai record an average price of 484,343 baht per sq m, 710,461 baht per sq m, and 1.01 million baht per sq m, respectively.

Mr Barnett said that as Phuket is becoming an urban resort destination, it needs significant infrastructure development and improvement to catch up with demand and luxury lifestyles.

Those include sufficient water management utilities, road and traffic, and power infrastructure.

C9 Hotelworks and key stakeholders in Phuket will soon submit a white paper to the government, outlining Phuket growth details and guidelines for the island's development.