Phuket International Airport’s critical Phase 2 expansion faces significant delays, with completion now projected for 2031 instead of the original 2028-2029 timeline, raising concerns about the island’s ability to handle surging tourist demand and potential impacts on property market growth.
The 6 billion baht expansion project, designed to increase capacity from the current 12.5 million to 18 million passengers annually, has encountered delays in the design and contractor selection phases. Tourism leaders warn that without timely completion, Phuket risks losing valuable flight slots and international competitiveness.
Capacity Crisis Looming
Phuket handled more than 17 million passengers in 2024 on Airports of Thailand figures, placing significant strain on airport operations and regional infrastructure. The approved works take capacity to 18 million a year, and a separate Andaman International Airport is planned for 22.5 million a year, leaving a gap between demand and infrastructure capability.
From January to October 2025, Phuket Airport managed over 90,000 flights, with total numbers projected to reach 120,000 annually. The single runway can technically handle far more than the terminals can, and those terminals remain congested because they were designed for only 12.5 million travelers.
Economic Impact on Property Market
Tourism accounted for 92% of Phuket’s revenue in 2024, generating over 500 billion baht from more than 14 million visitors. In the first seven months of 2025 alone, over 8 million tourists contributed more than 300 billion baht to the local economy, highlighting the direct correlation between airport capacity and economic performance.
The delay particularly affects northern Phuket areas including Bang Tao, Laguna, Cherng Talay, and Layan, which were positioned to benefit most from improved airport connectivity. Properties in these areas had been priced with “future airport expansion” premiums built into valuations, potentially creating adjustment pressures.
Infrastructure Development Timeline
Project design is currently more than halfway complete and should be finalized by Q2 2026, according to airport director Monchai Tanode. The budgeting and contractor selection phases will follow, with construction now set to begin in 2027 rather than late 2025 as originally planned.
The expansion includes extensive upgrades to engineering systems, passenger services, the international terminal, plus expanded runways and taxiways. Flight capacity will increase from 20 to 25 per hour, enabling 600 daily flights compared to the current 400.
Property Market Implications
Historically, airport expansion announcements precede property price increases of 10-25% in surrounding areas within 3-5 years of completion. However, the three-year delay may moderate these appreciation expectations and create opportunities for strategic buyers in northern Phuket areas.
The delay also affects rental market dynamics, as improved connectivity typically drives both tourist arrivals and higher rental yields for short-term accommodation providers. Properties positioned for future airport-related appreciation may experience extended holding periods before realizing projected returns.
Frequently Asked Questions
Properties in Bang Tao, Laguna, and Cherng Talay may see moderated appreciation compared to projections based on original expansion timelines. However, delayed infrastructure often creates buying opportunities for patient investors willing to wait for eventual completion benefits.
Not necessarily. North Phuket offers strong fundamentals beyond airport connectivity, including established luxury resort infrastructure and international community amenities. The delay extends investment timelines rather than eliminating eventual benefits.
Short-term, Phuket may lose some flight capacity to destinations with better infrastructure. However, the island's established tourism brand and ongoing Laguna Lakelands development provide competitive advantages that extend beyond airport constraints.
Maksim Shchegolev
Phuket Real Estate Experts
The MORE Group team has helped 500+ European and American buyers purchase property in Thailand. We provide legal support, 0% commission, and on-the-ground expertise with 8 years in the Phuket market.
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