Authored by the expert who managed and guided the team behind the Thailand Property Pack
Yes, the analysis of Phuket's property market is included in our pack
If you're looking to invest in Phuket real estate, understanding rental yields is essential to making a smart decision.
This guide covers everything from gross and net yields to neighborhood comparisons and the costs that eat into your returns.
We constantly update this blog post with fresh data, so you're always looking at the most current Phuket rental yield figures available.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Phuket.
Insights
- Phuket's island-wide average gross rental yield sits around 5.8% in 2026, but the gap between high-yield and low-yield neighborhoods can exceed 4 percentage points.
- Net yields in Phuket typically drop to around 3.7% after accounting for vacancy, management fees, and Phuket's humidity-driven maintenance costs.
- Studios and 1-bedroom condos in Phuket consistently outperform larger units on yield, often reaching 7% gross because they match the biggest renter pool: solo expats and remote workers.
- Phuket Town and Kathu deliver some of the lowest vacancy rates on the island (around 5-7%) thanks to year-round local and expat demand.
- Luxury coastal areas like Bang Tao, Surin, and Layan look attractive on paper, but their gross yields often compress to 3.5-5% because prices rise faster than rents.
- Phuket's seasonal tourism cycle means landlords should budget for 1-2 months of vacancy per year, even for well-positioned properties.
- Air conditioning servicing is a recurring expense that catches many Phuket landlords off guard, given the island's heat and humidity.
- Property management in Phuket typically costs 8-12% of collected rent, plus a one-month leasing fee when placing a new tenant.
- The Central Phuket Expansion and Siam Premium Outlet, both scheduled for 2026, could lift rents in nearby neighborhoods like Wichit and the Thalang corridor.
- Phuket's rent-to-price ratio averages around 0.48% per month, so any property renting above 0.55% of its purchase price is generally a strong yield deal.
What are the rental yields in Phuket as of 2026?
What's the average gross rental yield in Phuket as of 2026?
As of early 2026, the average gross rental yield for residential property in Phuket sits at around 5.8% per year when you mix all property types together.
That said, most typical Phuket properties fall within a realistic range of 4.5% to 7.5% gross yield, depending on the location, unit size, and whether the property targets long-stay tenants or holiday renters.
Compared to Thailand's national averages, Phuket performs well because its tourism-driven economy and steady expat demand keep rents resilient relative to property prices.
The single biggest factor influencing gross yields in Phuket right now is whether you're buying lifestyle real estate in premium beach areas (which compresses yield) or local-demand housing in year-round renter hubs like Phuket Town or Kathu (which boosts yield).
What's the average net rental yield in Phuket as of 2026?
As of early 2026, the average net rental yield in Phuket comes in at around 3.7% per year when you account for all the recurring costs landlords actually face.
This means Phuket landlords typically see a gap of about 2 percentage points between their gross and net yields, which is significant but not unusual for a tourism-heavy island market.
The expense category that hits Phuket net yields the hardest is a combination of vacancy and turnover (roughly 10% economic vacancy) plus management fees (8-12% of rent), both of which are amplified by the island's seasonal rental demand patterns.
Most standard investment properties in Phuket land somewhere between 2.8% and 5.2% net yield, with the range depending heavily on how well you control maintenance costs and how accurately you price your rental for the local market.
By the way, you will find much more detailed rent ranges in our property pack covering the real estate market in Phuket.
We made this infographic to show you how property prices in Thailand compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
What yield is considered "good" in Phuket in 2026?
For most investors in Phuket, a gross rental yield of 6.5% or higher is generally considered "good," while a net yield above 4.5% puts you in solid territory for a long-term residential landlord.
The threshold that separates average-performing properties from high-performing ones in Phuket is typically around 5% net yield, which usually requires buying below the median price, targeting smaller units, or finding a micro-area with strong year-round renter demand.
How much do yields vary by neighborhood in Phuket as of 2026?
As of early 2026, the spread in gross rental yields between Phuket's highest-yield and lowest-yield neighborhoods is roughly 4 percentage points, ranging from about 3.5% to 7.5% gross.
The neighborhoods that typically deliver the highest rental yields in Phuket are those with strong year-round renter demand, like Phuket Town, Kathu, Chalong, and non-luxury pockets of Rawai, where prices haven't been pushed up by lifestyle premiums.
On the flip side, the lowest yields tend to appear in Phuket's luxury coastal belt, including Bang Tao, Laguna, Surin, Layan, and Mai Khao, where entry prices are high but long-term rents don't keep pace.
The main reason yields vary so much across Phuket neighborhoods comes down to one question: are you buying expensive lifestyle real estate where views and location command a premium, or are you buying local-demand housing where rent-to-price ratios are more favorable?
By the way, we've written a blog article detailing what are the current best areas to invest in property in Phuket.
How much do yields vary by property type in Phuket as of 2026?
As of early 2026, gross rental yields in Phuket range from about 4% for long-term villa leases up to around 7.2% for well-positioned studios and 1-bedroom condos.
The property type that currently delivers the highest average gross rental yield in Phuket is the studio or 1-bedroom condo, which typically achieves 5.5% to 7.2% because these units match the largest renter pool and have the best rent-per-square-meter ratio.
Villas positioned for long-term leases tend to deliver the lowest average gross yields in Phuket, usually around 4% to 5.8%, because their higher price tags and maintenance costs don't scale proportionally with rent.
The key reason yields differ between property types in Phuket is that smaller units attract more renters and command higher rent per square meter, while larger properties face a thinner tenant pool and higher operating complexity.
By the way, you might want to read the following:
- What rental yields can you expect for a house in Phuket?
- What rental yields can you expect for an apartment in Phuket?
- What rental yields can you expect for a villa in Phuket?
- What rental yields can you expect for a condo in Phuket?
What's the typical vacancy rate in Phuket as of 2026?
As of early 2026, the typical residential vacancy rate in Phuket for long-term rentals sits at around 10% on an island-wide basis.
That vacancy rate varies significantly across neighborhoods, ranging from about 5-7% in year-round demand nodes like Phuket Town and Kathu, up to 12-18% for high-end villas in premium areas like Bang Tao, Layan, and Surin.
The main factor driving vacancy rates in Phuket is the island's seasonal tourism cycle, which creates peaks and troughs in renter demand that affect tourist-heavy areas much more than local residential hubs.
Compared to Thailand's national averages, Phuket's vacancy tends to be slightly higher because the island's rental market is more exposed to tourism fluctuations and has a larger share of holiday-oriented stock.
Finally please note that you will have all the indicators you need in our property pack covering the real estate market in Phuket.
What's the rent-to-price ratio in Phuket as of 2026?
As of early 2026, the average rent-to-price ratio in Phuket is approximately 0.48% per month, which translates to the roughly 5.8% annual gross yield we discussed earlier.
For buy-to-let investors in Phuket, a rent-to-price ratio of 0.55% or higher per month is generally considered favorable because it signals a strong yield deal before costs are factored in, while anything below 0.35% typically means you're paying a lifestyle premium that won't translate into rental returns.
Compared to other Thai resort destinations, Phuket's rent-to-price ratio is competitive because the island benefits from consistent international demand, though it doesn't reach the higher ratios sometimes seen in less developed tourism areas where property prices haven't yet caught up with rental potential.
We have made this infographic to give you a quick and clear snapshot of the property market in Thailand. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
Which neighborhoods and micro-areas in Phuket give the best yields as of 2026?
Where are the highest-yield areas in Phuket as of 2026?
As of early 2026, the top three highest-yield areas in Phuket are Phuket Town (especially Talat Yai and Talat Nuea), Kathu, and Chalong, all of which attract steady year-round renters rather than seasonal tourists.
In these top-performing areas, investors can typically expect gross rental yields in the 6% to 7.5% range, with Phuket Town and Kathu often reaching the higher end thanks to strong local and expat demand.
The main characteristic these high-yield areas share is that they serve "live-and-work Phuket," meaning they attract professionals, long-stay expats, and families who rent year-round rather than vacationers who come and go with the seasons.
You'll find a much more detailed analysis of the areas with high profitability potential in our property pack covering the real estate market in Phuket.
Where are the lowest-yield areas in Phuket as of 2026?
As of early 2026, the top three lowest-yield areas in Phuket are the Laguna and Bang Tao prime zone, Surin, and Layan, all of which command premium prices that compress rental returns.
In these low-yield areas, gross rental yields typically fall between 3.5% and 5%, which can feel disappointing compared to what you might achieve in local-demand neighborhoods.
The main reason yields are compressed in these areas is that property prices are driven by lifestyle appeal, sea views, and brand prestige rather than rental fundamentals, so prices rise faster than what tenants are willing to pay in rent.
Buying a property in a low-yield area is one of the mistakes we cover in our list of risks and pitfalls people face when buying property in Phuket.
Which areas have the lowest vacancy in Phuket as of 2026?
As of early 2026, the three neighborhoods with the lowest residential vacancy rates in Phuket are Phuket Town, Kathu, and Wichit, all of which benefit from year-round local and expat employment.
In these low-vacancy areas, landlords typically experience vacancy rates of just 5% to 7%, which translates to roughly 3-4 weeks of downtime per year rather than the 5-8 weeks common in tourist areas.
The main demand driver keeping vacancy low in Phuket Town, Kathu, and Wichit is the concentration of local businesses, schools, hospitals, and employment nodes that attract tenants who need housing regardless of the tourism season.
The trade-off investors face when targeting these low-vacancy areas is that rental rates per square meter tend to be lower than in beach zones, so you're essentially accepting steadier income in exchange for slightly lower gross rent.
Which areas have the most renter demand in Phuket right now?
The three neighborhoods currently experiencing the strongest renter demand in Phuket are Cherng Talay and Bang Tao (for lifestyle expats), Rawai (for long-stay families), and Chalong (for year-round long-stay renters).
The renter profile driving most of this demand is a mix of remote workers, digital nomads, long-stay expats, and families looking for 1-12 month leases rather than short holiday stays.
In these high-demand neighborhoods, well-priced rental listings typically get filled within 2-4 weeks during peak season and within 4-6 weeks during the slower months.
If you want to optimize your cashflow, you can read our complete guide on how to buy and rent out in Phuket.
Which upcoming projects could boost rents and rental yields in Phuket as of 2026?
As of early 2026, the top three upcoming projects expected to boost rents in Phuket are the Central Phuket Expansion (targeting Q3 2026), the Siam Premium Outlet Phuket (scheduled for 2026), and community mall developments in the Kamala and Nai Yang areas.
The neighborhoods most likely to benefit from these projects are Phuket Town and Wichit (near Central Phuket), the Thalang and Cherng Talay corridor (near the outlet mall), and Kamala and Nai Yang (near the community malls).
Once these projects are completed, investors might realistically expect rent increases of 5% to 10% in the immediately surrounding areas, as walkable convenience and lifestyle amenities tend to justify higher asking rents.
You'll find our latest property market analysis about Phuket here.
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What property type should I buy for renting in Phuket as of 2026?
Between studios and larger units in Phuket, which performs best in 2026?
As of early 2026, studios and 1-bedroom condos in Phuket outperform larger units in terms of both rental yield and occupancy, making them the better choice for most investors focused on returns.
Studios and 1-bedroom units in Phuket typically achieve gross yields of 5.5% to 7.2% (around THB 270,000-360,000 or USD 7,500-10,000 or EUR 7,000-9,300 annually on a mid-range property), while 2-bedroom and larger units tend to fall in the 4.5% to 6% range.
The main factor explaining why smaller units outperform in Phuket is that they match the island's largest renter pool: solo expats, couples, and remote workers who want affordability and flexibility rather than extra space.
That said, larger units can be the better investment if you're targeting families or groups willing to pay premium rents in beach areas, though you'll need to accept higher vacancy risk and longer fill times.
What property types are in most demand in Phuket as of 2026?
As of early 2026, the most in-demand property type for renters in Phuket is the 1-bedroom condo, which dominates both short-term and long-term rental searches on the island.
The top three property types ranked by current tenant demand in Phuket are 1-bedroom condos in lifestyle hubs, 2-bedroom condos for sharers and small families, and 3-4 bedroom villas for holiday and group stays.
The primary lifestyle trend driving this demand pattern is Phuket's growing appeal to digital nomads and remote workers who want compact, well-located units with amenities rather than sprawling family homes.
One property type that is currently underperforming in demand and likely to remain so is the large detached house in inland locations, which struggles to attract tenants because it offers neither beach access nor the convenience renters are willing to pay for.
What unit size has the best yield per m² in Phuket as of 2026?
As of early 2026, the unit size range that delivers the best gross rental yield per square meter in Phuket is between 28 and 40 square meters, which covers studios and compact 1-bedroom condos.
For that optimal unit size in Phuket, the typical gross rental yield per square meter works out to around THB 5,000-7,000 per sqm annually (roughly USD 140-195 or EUR 130-180 per sqm per year), depending on location and building quality.
The main reason smaller units tend to have better yield per square meter in Phuket is that they command higher rent relative to their size because tenants value location and amenities over extra floor space, while larger units face a "luxury premium" in purchase price that doesn't translate into proportionally higher rent.
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Phuket.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Thailand versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you’re planning to invest there.
What costs cut my net yield in Phuket as of 2026?
What are typical property taxes and recurring local fees in Phuket as of 2026?
As of early 2026, the annual property tax (Land and Building Tax) for a typical rental apartment in Phuket is usually modest, often ranging from a few thousand to around THB 10,000-20,000 per year (roughly USD 280-560 or EUR 260-520), depending on the assessed value.
Beyond property tax, Phuket landlords must also budget for condo common area fees, which typically run THB 70-150 per square meter per month (about USD 2-4.20 or EUR 1.80-3.90 per sqm monthly), or housing estate fees of THB 15-30 per sqm per month for landed properties.
In total, these taxes and fees typically represent about 5% to 12% of gross rental income in Phuket, with condos in resort-style buildings often landing at the higher end due to their amenity-rich common areas.
By the way, we cover all the hidden fees and taxes in our property pack covering the real estate market in Phuket.
What insurance, maintenance, and annual repair costs should landlords budget in Phuket right now?
For a typical rental property in Phuket, annual landlord insurance costs are relatively modest, usually ranging from THB 3,000-8,000 per year (about USD 85-225 or EUR 80-210), though villa coverage can run higher.
Phuket landlords should budget around 0.5% to 1% of property value annually for condos or 1% to 2% for villas and houses, which covers routine maintenance plus the occasional repair (that's roughly THB 25,000-100,000 or USD 700-2,800 or EUR 650-2,600 for a mid-range property).
The repair expense that most commonly catches Phuket landlords off guard is air conditioning servicing and replacement, because the island's heat, humidity, and salt air mean A/C units work harder and wear out faster than in cooler climates.
Adding it all together, landlords in Phuket should realistically budget THB 30,000-110,000 per year (about USD 850-3,100 or EUR 780-2,850) for insurance, maintenance, and repairs combined, depending on property type and condition.
Which utilities do landlords typically pay, and what do they cost in Phuket right now?
In Phuket, the standard long-term rental arrangement has tenants paying electricity and water directly at government-set rates, while landlords typically cover common-area utilities indirectly through their common fees and sometimes include Wi-Fi as a marketing perk.
For landlords who do include utilities (more common in furnished short-term rentals), monthly costs typically run THB 2,000-5,000 (about USD 55-140 or EUR 50-130) depending on unit size and A/C usage, with electricity at around THB 3.88 per unit and water following PWA tariff bands.
What does full-service property management cost, including leasing, in Phuket as of 2026?
As of early 2026, full-service property management in Phuket typically costs 8% to 12% of collected rent each month (roughly THB 1,800-2,700 or USD 50-75 or EUR 47-70 monthly on a THB 22,500 rental), depending on the scope of services and building complexity.
On top of ongoing management, most Phuket agencies charge a leasing or tenant-placement fee of around one month's rent (approximately THB 22,500 or USD 630 or EUR 585 for a typical 1-bedroom) when they place a new tenant for a 1-year lease.
What's a realistic vacancy buffer in Phuket as of 2026?
As of early 2026, Phuket landlords should set aside around 8% to 15% of annual rental income as a vacancy buffer, which accounts for the island's seasonal demand fluctuations.
In practical terms, this translates to roughly 4-8 weeks of vacancy per year for most properties, with well-located 1-bedroom condos in year-round demand areas often experiencing just 3-4 weeks, while premium villas in tourist zones may see 6-8 weeks or more.
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What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Phuket, we always rely on the strongest methodology we can ... and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why It's Authoritative | How We Used It |
|---|---|---|
| Bank of Thailand | Thailand's central bank publishes official statistics with stated methodology. | We used it to sanity-check national home price trends. We also referenced its hedonic-index methodology when explaining why we lean on medians and ranges. |
| C9 Hotelworks | A long-established Thailand hospitality and property research firm with data-led market updates. | We used its Phuket-specific median prices and average rents as the backbone for yield calculations. We then adjusted forward to January 2026 cautiously and transparently. |
| Colliers Thailand | Colliers is a global real estate consultancy with formal research teams and published market reports. | We used it to cross-check supply, launches, and demand narratives by segment. We also validated which submarkets are structurally big enough to matter in a Phuket-wide mix. |
| CBRE Thailand (Phuket Figures) | CBRE is a leading global real estate firm and publishes consistent Thailand research dashboards. | We used it to link rental demand to a hard demand driver: airport passenger arrivals. We also justified why seasonality and tourism cycles matter more in Phuket than inland cities. |
| CBRE Thailand (Buying Guide) | An established brokerage and research brand with survey-based fee ranges. | We used it to estimate recurring building and common fees that directly reduce net yield. We also kept fee assumptions realistic rather than too low to be true. |
| Provincial Electricity Authority (PEA) | The official electricity utility for most of Thailand outside Bangkok. | We used it to ground utility-cost assumptions in an official tariff source. We also explained why tenants should pay utilities at government rates in standard long-term leases. |
| Nation Thailand | Reports specific tariff decisions and clearly attributes them to the official setting process. | We used it to set the January-April 2026 electricity headline cost per unit for rough budgeting. We also cross-checked it against PEA's published Ft period. |
| Provincial Waterworks Authority (PWA) | The official public water provider that publishes tariff tables. | We used it to avoid guessing water costs. We then translated it into a simple "who pays what" lease rule-of-thumb for landlords versus tenants. |
| PWA Water Calculator | An official calculator from the water authority. | We used it to confirm how bills are constructed (usage plus service fees plus VAT). We also kept our typical bill examples in the right order of magnitude. |
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