Foreign real-estate on Samui is a relatively new thing. Prior to the opening of the airport in 1989 very few foreigners lived, worked or owned property here. Backpackers were the first to arrive, most of whom weren’t the settling kind. However, some did make roots and looked to make Samui a more permanent home.

As word of this tropical paradise island spread and more tourists started to arrive, inevitably, more began to see a future here. Others met Thai partners and chose to stay on, rather than take their new partners home. Germans, Britons, Scandinavians and Australians all added to the eclectic mix of cultures staying on the island. So the market at this stage was understandably very limited. But there were a few people who sought holiday homes and only a few investors saw the potential.

After the opening of the airport, the island was accessible to a much bigger audience. And as more came, more wanted their own piece of this idyllic island. Some were looking to live and enjoy the relaxed lifestyle, others just wanted holiday homes. So as tourist numbers grew, so did the real-estate market which was running in parallel. It’s logical that as more people arrived, more fell in love the place, and therefore more needed accommodation.

The strength of certain foreign economies played a major part in the real-estate evolution on Samui. In particular, the property boom in the UK that resulted in many people finding themselves with huge equity in their properties. A lot of these people chose to buy properties abroad as it seemed a no-lose investment opportunity. This, in turn, led to property prices in popular destinations like Spain, France and Greece rising significantly as the number of British residents and holiday-home owners rose. And, in addition to the astronomical price rises, the sheer numbers of British people living in certain areas on the Mediterranean acted as a deterrent for many seeking an escape.

With advances in air travel, shorter flight times and improved services, the British started travelling long-haul and all of a sudden people realised that you could get a lot more for your money in terms of housing, cost of living and climate in further-flung parts of the world, like Thailand.

This triggered the island’s property boom, and it continued to gain momentum. The market began to change with other nationalities joining in and people expecting better quality homes, improved facilities and western-style finishes, such as fitted-kitchens.

As the product improved, numbers of foreign buyers continued to increase and a new breed of buyer emerged. Investment buyers saw the opportunity to tap into the villa-rental market and this added significant fuel to the industry. Suddenly people were buying purely as an investment and not just for their own holiday-home or retirement prospect; they were looking solely at rental returns and capital growth.

Then, when the tsunami hit Phuket, the effect on the Samui market was extraordinary. Not only was there the inevitable shift in tourists to Samui, but property investors also shifted their focus, which led to a higher-end type of visitor, and buyer, being targeted. The result was a further increase in quality and long-awaited improvements to the infrastructure of the island, which at that stage still suffered from droughts and regular water shortages during the dry season.

New types of property developments also began to appear: apartments, condominiums and townhouse projects that were run as small-scale holiday resorts; and estates of private homes, that exceed the million dollar mark, that are operated as five-star luxury resorts, like Karma Samui, a member of the Leading Small Hotels of the World association.

Samui’s growth seemed to know no bounds and a peak was nowhere in sight, until the government began enforcing a previously-ignored legal issue regarding foreign ownership. And then the property industry in Thailand, generally, and on Samui, in particular, faltered for the first time.

This was made worse by government proposals to change the Foreign Business Act, causing many buyers to proceed with extreme caution, or defer their decision on buying altogether. Then the political coup, alleged land scams and changes to the visa regulations all appeared to have delivered what could have been a fatal blow to real-estate on the island.

But there are two things that continue to exist and, together, they guarantee the continued success of real-estate on Samui. People will always be enchanted by Samui’s considerable charms. So, as long as the island remains a popular tourist destination, there will always be a number of those visitors who want to buy property here. And, if people are visiting, they will need the full range of accommodation options available, so therefore investors will continue to buy rental properties.

Big company investment is currently on the rise and those who are unperturbed by the current climate are cashing in on properties, land and resorts that will undoubtedly increase in value when the dust settles and buyer-confidence fully returns.

People haven’t stopped wanting to buy a home here, they’ve just been sidetracked by other issues that will only delay the final purchase. All the signs are good. The market here is stronger than many thought. And, although it’s not as established as other markets in other destinations, the demand for properties remains high. The shift towards high-end visitors is supported by the number of luxury international hotel chains arriving; the recent expansion to the airport, and its improved capability to accommodate private jets; and the construction of a very exclusive marina project.

And, in the future, the market will change again as it will not always be driven by new-build homes. A strong and stable used-home market is naturally growing all the time and, at some stage, will overtake the new developments.

The real-estate industry on Samui is starting to recover as more investors see the potential future growth, and it’s bracing itself for a sudden rush when the law is clarified and the new government is elected to add stability and build buyer-confidence