Over the next five years, billions of baht will reshape Phuket, from new expressways and a light rail to smart-city systems, transforming how residents live and investors profit.

These upcoming infrastructure projects, with completion targets ranging from 2026 to 2030, are part of a strategy to establish Phuket as a regional economic hub by creating a comprehensive, interconnected, and sustainable city network that enhances tourism, investment and the quality of life for residents.

In this article, we'll take a closer look at the upcoming infrastructure projects expected to drive the city’s growth and shape Phuket's real estate future.

Transportation

Image by pch.vector on Freepik

• Phuket Light Rail (LRT): The LRT aims to provide a modern, efficient public transport for Phuket and the surrounding region. It is intended to link key areas, including the international airport, major interchanges, and potentially the Phang Nga province. The project is planned as a 58.6-kilometer urban transit system, with the initial phase intended to connect Phuket International Airport to the Chalong Circle interchange.
  
  However, the project has faced multiple delays, with original plans for construction and operation pushed back. Recent reports indicate the Mass Rapid Transit Authority of Thailand (MRTA) anticipates potential construction bids in 2026. The full system, which includes a second phase extending into Phang Nga province, has been estimated to cost up to 58.5 billion baht.
   
• Phuket Elevated Expressway (Kathu-Patong): The expressway, costing approximately 16.19 billion baht, aims to improve traffic flow, reduce congestion on existing roads, and provide a safer, faster route between the airport, key tourist areas and Patong. The Expressway Authority of Thailand (Exat) is managing the project after a lack of private sector interest, with a target completion of 2029–2030. 
  
  The Kathu-Patong section is Phase 1 of the project. It will connect to the existing Highway 4029 in Kathu and will include an elevated road and a 3.98 km tunnel through Nak Kerd Hill to reach Patong. Construction is expected to commence in 2025. The expressway is projected to open for service in 2028.
   
• Phuket International Airport Expansion: The airport is undergoing major expansion in 2025, aiming to increase passenger capacity from 12.5 million to 18 million passengers annually by 2029. The expansion includes the construction of a new terminal, the runways and taxiways.
  
  The project, managed by Airports of Thailand (AOT), aims to handle surging passenger demand, improve infrastructure for both airside and terminal operations, and boost the region's tourism and economy. The expansion is part of a larger strategy to develop Phuket into a premium tourist destination and a regional aviation hub. The expansion is anticipated to be completed by 2029.
   
• Andaman International Airport: A large international airport in nearby Phang Nga province is planned to handle large passenger volumes and improve regional connectivity. Located in Northern Phuket, the new airport is expected to ease passenger traffic at the existing airport in Phuket.
  
  Airports of Thailand (AoT) stated the feasibility study for the airport is expected to be complete in 2024 and construction of the airport is due to commence by 2027. The feasibility studies will cover investment potential, economic gains, financial returns and environmental impacts. Bangkok Airways reportedly is in talks with Phang Nga Province regarding a potential land lease deal, with an environmental impact assessment underway.

Public Services & Utilities

Image by redgreystock on Freepik

• Phang Nga-Phuket Water Pipeline: This project is designed to address water shortages on the island by providing a reliable water supply to expand residential and tourism zones. With an expected completion date around 2027. The pipeline aims to alleviate water shortages caused by increased demand from population growth and tourism, providing a capacity of 120,000 cubic meters per day to serve an estimated 35,000 new users. 
  
  This large-scale project involves a 300 km pipeline network extending from Cheow Lan Lake in Khao Sok National Park to supply not only Phuket but also other provinces like Krabi. As of September 2025, the project was still under discussion with officials and consultants, with earlier reports mentioning a potential completion by 2027.
   
• Waste Management: Phuket is facing a waste management crisis due to rapid tourism development and a rising number of visitors, according to Reuters's report in January. The Phuket City Municipality is racing against the clock to construct a new municipal solid waste sorting facility at the waste disposal center in Saphan Hin to improve waste management efficiency. 
  
  Moreover, a construction of a second incinerator with a 500-tonne daily capacity is underway, along with plans for a new waste disposal center in Bang Khanun Forest Park.
   
• Wastewater Treatment: Phuket is developing a new wastewater system to replace its aging infrastructure and improve water quality. The province is collaborating with China Water Environment Group to build new treatment systems and address concerns about future water shortages due to population growth on the island.

Tourism & Trade

• Deep-Sea Port Expansion: Phuket's deep-sea port is undergoing expansion to become a major regional cruise ship terminal, with planned upgrades including a new passenger terminal, dredging of the main channel, and the ability to handle larger vessels like the Genting Dream. 
  
  The project aims to boost marine tourism, though it also involves potential land acquisition for luxury hotels and the development of other facilities. An expansion is planned to accommodate larger cruise ships, strengthening Phuket's role as a maritime hub, with a target completion by 2027.
   
• Ao Por Mega Project: This large entertainment complex on Phuket's east coast is planned to include luxury hotels, a marina, sports venues, and a Formula 1 racetrack. It is also proposed to include a casino, which would be located on a private island. Development is slated to begin in 2026, with the first phase opening in 2029.
   

Commercial & Other Notable Developments

• Siam Premium Outlets: A shopping centre featuring a variety of brand-name products is seeking a new opportunity in one of Thailand's bustling tourist destinations. A second Siam Premium Outlets center is planned to open in Phuket in 2026. This new outlet is being developed by Siam Piwat Simon, a joint venture between Thailand's Siam Piwat and the global Simon Property Group, to cater to the high volume of tourists visiting Phuket.  
   
• Bumrungrad International Hospital: A new high-end medical facility is under construction in Mai Khao, near the airport, aiming to enhance Northern Phuket's appeal as a medical and residential hub. The facility will include an Advanced Diagnostic Centre and a VitalLife Scientific Longevity-Focused Wellness Center, offering a range of services including cardiology, orthopedics, and wellness treatments. The hospital is projected to open around late 2026 or 2027. 
   
• Smart City Initiatives: The goal of the Phuket Smart City initiative is to become a leading tourism island characterized by sustainable growth, a strong creative economy, and a high quality of life for everyone. It aims to create a modern, sustainable business model while enhancing the quality of life for residents and visitors through technology and innovation. 
  
  Phuket's Smart City initiatives use technology to enhance tourism, safety, and sustainability through projects like AI-powered CCTV with face/license plate recognition, a Andaman Tourism Digital Twin, Mobility-as-a-Service (MaaS) platforms, and a City Data Platform for public access to city data. This aligns with a national goal to develop a digital economy and promote smart cities, with a target of 105 smart cities by 2027.
   

How These Projects Will Shape Phuket's Real Estate Future 
 

• Increased Property Value: Locations that benefit from new infrastructure will likely see a rise in property values. Improved connectivity, such as new roads or public transit, makes locations more desirable, leading to higher property prices and more lucrative investment opportunities.
   
• Higher Demand: Enhanced connectivity and proximity to new amenities like shopping centers, schools, and healthcare facilities attract more residents and businesses, boosting demand for both residential and commercial properties.
   
• Attracting Diverse Buyers: The combination of enhanced lifestyle, international standard facilities, and relatively lower costs compared to other global destinations is attracting a broader range of international buyers to Phuket, including families and high-net-worth individuals.
   
• Greater Investor Confidence: The extensive infrastructure developments and unique combination of lifestyle appeal, economic stability, and a diverse international buyer base are solidifying Phuket's position as a resilient and attractive destination for long-term real estate investment. 
   
• Stronger Rental Markets: With better Infrastructure, Phuket will become more attractive to tenants, potentially leading to higher and more stable rental yields for investors.
   
• Economic Growth and Job Creation: Infrastructure projects can stimulate economic activity by creating new jobs and attracting both businesses and skilled workers, which further increases the demand for housing and other real estate.
   
• Enhanced Livability: The integration of technology through Smart City Initiative, alongside improvements in healthcare and shopping facilities, further positions Phuket as an attractive and livable destination for expats and retirees. 
   

Conclusion
 

These upcoming infrastructure projects will shape the real estate market in Phuket by increasing property demand and values, driven by enhanced accessibility, better amenities, and economic growth. Projects like new transportation links, upgraded utility systems, and commercial spaces attract more people and businesses to Phuket, creating a positive cycle of higher demand, increased rental income, and stronger potential for capital appreciation for property owners and investors. Properties near planned or upcoming infrastructure projects are expected to offer better long-term value and appeal.

However, there's also the risk of overvaluation in areas where infrastructure projects are hyped. This can lead to a real estate bubble, where property prices rise quickly beyond sustainable levels, increasing the risk of a market correction. Staying informed about market trends, such as the shift towards branded residences and luxury properties, is crucial for making investment decisions. As property prices are rising, buyers should carefully assess their budgets and financing options. 

Find Your Place in Phuket’s Future

Phuket is entering an exciting new era of growth and opportunity. Whether you’re planning a permanent move or a lifestyle investment, our local experts can help you find the perfect property. 

👉 Contact us today to start your Phuket property journey.