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Phuket's property market is experiencing significant growth with strong foreign demand and rising prices across all segments.
As of September 2025, the island continues to attract substantial international investment, particularly in the luxury villa and beachfront condo sectors, driven by tourism recovery and infrastructure development.
If you want to go deeper, you can check our pack of documents related to the real estate market in Thailand, based on reliable facts and data, not opinions or rumors.
Phuket's property market shows robust growth with condo prices averaging THB 144,000-180,000 per sqm and villa prices at THB 70,000-162,000 per sqm as of September 2025.
Foreign buyers dominate luxury segments while rental yields remain strong at 8-10% in prime coastal areas, supported by recovering tourism and major infrastructure projects.
| Property Type | Average Price per sqm (THB) | Annual Rental Yield | 5-Year Price Change |
|---|---|---|---|
| Standard Condos | 144,000 - 180,000 | 8-10% | +35-50% |
| Luxury Condos | 180,000+ | 8-12% | +40-60% |
| Standard Villas | 58,000 - 73,000 | 7-9% | +30-40% |
| Luxury Villas | 100,000 - 162,000 | 8-10% | +35-45% |
| Commercial Properties | 80,000 - 120,000 | 6-9% | +25-35% |
Fact-checked and reviewed by our local expert
Attaya Suriyawonghae 🇹🇭
Real Estate Broker, Zest Real Estate
What are the current average prices per square meter for condos and villas in Phuket, and how have they changed over the past five years?
As of September 2025, condominiums in Phuket are priced between THB 144,000 and THB 180,000 per square meter for standard units.
High-end branded developments and sea-view properties command premium prices at the upper end of this range. Luxury villas average THB 70,000 per square meter, while branded and luxury villa developments reach up to THB 162,000 per square meter.
Over the past five years, condo prices have risen steadily at 5-10% annually, representing a cumulative increase of 35-50% since 2020. Villa values have experienced even stronger growth, climbing 30-40% over the same period.
Prime beachfront areas and branded developments have seen the most significant appreciation, particularly in zones like Bang Tao and Surin Beach.
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How many new residential projects are under construction in Phuket right now, and what are their expected delivery timelines?
Phuket currently has over 343 active residential developments in various stages of construction and planning.
The first quarter of 2025 alone witnessed the launch of 35 new projects, introducing more than 660 units to the market. The condominium sector experienced particularly robust growth, with supply increasing by 148% year-over-year in 2024, resulting in over 10,400 new units being launched.
Villa supply also expanded significantly, rising 51% year-over-year in 2024 as developers respond to strong foreign demand. Major developers including Sansiri, AP Thailand, and international brands continue to announce new luxury projects regularly.
Typical delivery timelines for new projects range from 12 to 36 months, depending on the project scale, complexity, and developer track record. Smaller villa developments often complete within 18 months, while large-scale mixed-use projects may require up to three years.
What are the current rental yield percentages for condos, villas, and commercial properties in different areas of Phuket?
| Property Type | Location | Annual Rental Yield |
|---|---|---|
| Standard Condos | Bang Tao, Kata, Surin | 8-10% |
| Luxury Condos | Beachfront Areas | 8-12% |
| Standard Villas | Cherngtalay, Bang Tao | 7-9% |
| Prime Villas | Coastal Zones | 8-10% |
| Commercial Properties | Central Areas | 6-9% |
| Shophouses | Patong, Kata | 5-8% |
| Office Spaces | Phuket Town | 6-7% |
How many foreign buyers versus Thai buyers are actively purchasing property, and what nationalities dominate the foreign demand?
Foreign buyers account for the majority of luxury villa sales and constitute a significant portion of the condominium market in Phuket.
Russian buyers dominate villa demand in coastal zones, followed by Chinese, Australian, British, and German investors. These five nationalities represent approximately 70% of all foreign property purchases on the island.
Thai buyers typically focus on lower-priced segments, urban condominiums in Phuket Town, or properties priced below THB 5 million. The foreign-to-Thai buyer ratio in the luxury segment (properties above THB 10 million) is approximately 80:20.
Russian buyers particularly favor Bang Tao and Layan areas, while Chinese investors prefer newer high-rise developments in Patong and Kata. European buyers tend to gravitate toward established villa estates in Laguna and Cape Yamu.
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What is the current occupancy rate of hotels and resorts in Phuket, and how does that affect short-term rental demand?
Hotels and resorts in Phuket maintain average occupancy rates of 72-80% during peak season as of September 2025.
This strong hotel performance directly supports short-term rental demand for private condos and villas. Property owners in prime locations like Bang Tao, Surin, and Kata can achieve occupancy rates of 60-75% annually through platforms like Airbnb.
However, enforcement against illegal short-term rentals in condominiums has increased significantly, with many condo projects now explicitly prohibiting rentals shorter than 30 days. This has created a shift toward legally compliant villa rentals and licensed commercial accommodations.
The recovering tourism sector, with visitor numbers approaching pre-pandemic levels, continues to fuel demand for alternative accommodations, benefiting property investors who can legally operate short-term rentals.
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How many transactions were recorded in the past 12 months compared to the previous five years, and is volume trending up or down?
Transaction volume for condominiums increased by 60% year-over-year over the past 12 months, while villa transactions rose by 18%.
This represents a significant recovery from pandemic lows and exceeds pre-2020 transaction levels in many segments. The luxury villa market has been particularly active, with transactions above THB 20 million increasing by 25% compared to 2024.
Looking at the five-year trend, transaction volumes are definitively trending upward since the 2020-2021 pandemic trough. However, some market segments are experiencing moderation as increased supply creates more options for buyers.
The foreign buyer return has been the primary driver, with Russian, Chinese, and European investors significantly increasing their purchase activity compared to 2023-2024 levels.
What is the average time on market for property listings in Phuket, and how has that changed year over year?
Properties in Phuket typically spend 4-6 months on the market as of September 2025.
High-demand coastal zones and branded developments sell within 2-3 months, while properties in secondary locations or non-branded stock can remain listed for 8-10 months. Prime beachfront villas in Bang Tao and Surin often sell within 60-90 days.
Time on market has shortened significantly year-over-year, dropping by approximately 20-30% since 2023 as demand has recovered. Well-priced luxury properties in prime locations are moving particularly quickly.
Overpriced properties or those in less desirable locations continue to face extended marketing periods, sometimes exceeding 12 months before sellers adjust their expectations.
What government policies, taxes, and restrictions are currently in place for foreign ownership, and have there been any recent regulatory changes?
Foreign ownership regulations remain unchanged as of September 2025, with foreigners prohibited from owning land but allowed to own condominiums up to 49% of any building's total units.
Land and villa ownership requires Thai company structures or long-term leases up to 30 years, which are renewable. Transfer fees of approximately 2%, stamp duty, and withholding taxes continue to apply to all property transactions.
Recent regulatory changes focus primarily on stricter enforcement of short-term rental laws for condominiums, with many projects now explicitly prohibiting rentals under 30 days. The government has also increased scrutiny of nominee company structures used for land ownership.
No major policy shifts affecting foreign ownership limits are expected in the near term, though ongoing discussions about potential changes to long-term visa programs could impact property demand.
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 are the projected population growth and tourist arrival numbers in Phuket over the next 5 to 10 years?
Phuket's population is forecast to grow 1.5-2% annually, reaching over 600,000 residents by 2030.
Tourist arrivals are projected to reach 13-15 million annually by 2030, representing a significant increase from current levels. Chinese, Russian, Indian, and European tourists are expected to remain the dominant visitor groups.
This population and tourism growth directly supports residential property demand, particularly in areas with good infrastructure access. The expanding workforce and growing expat community create sustained rental demand for both short-term and long-term accommodations.
Government tourism promotion efforts and new flight routes continue to diversify the visitor base, reducing dependence on any single market and creating more stable long-term demand for hospitality-related real estate.
What infrastructure projects are planned or underway in Phuket, and what are their expected completion dates?
- Phuket International Airport Expansion: Major terminal and runway improvements expected completion by 2027, increasing passenger capacity significantly
- Patong Tunnel Project: Underground tunnel connecting Patong to other areas, scheduled for completion in 2026
- Layan-Bang Tao Development Corridor: New road infrastructure and utilities to support luxury resort development, phased completion through 2027
- Public Transit System: Enhanced bus network and potential light rail connections, with pilot programs launching in 2026
- Central Phuket Bypass: Traffic relief infrastructure connecting major tourism zones, completion expected by late 2026
How do property prices in Phuket compare with other major Thai markets like Bangkok, Pattaya, and Chiang Mai today?
| Market | Condo Price (THB/sqm) | Villa Price (THB/sqm) | Rental Yield (%) |
|---|---|---|---|
| Phuket | 144,000–180,000 | 70,000–162,000 | 8–10 |
| Bangkok | 114,000–150,000 | 95,000–120,000 | 5–7 |
| Pattaya | 69,000–105,000 | 150,000–250,000 | 6–8 |
| Chiang Mai | 55,000–80,000 | 65,000–100,000 | 5–6 |
What is the forecasted annual price growth rate for Phuket real estate over the next five years according to major property consultancies?
Leading property consultancies forecast annual price growth of 5-7% for Phuket real estate over the next five years.
This projection is based on completing infrastructure projects, sustained tourism recovery, and continued foreign investor interest. The luxury segment is expected to outperform, potentially achieving 7-9% annual appreciation.
However, some analysts predict more modest 2-3% growth for mass-market condominiums due to oversupply concerns in areas outside prime coastal zones. The villa market is expected to maintain stronger appreciation due to limited supply and high foreign demand.
Economic factors including Thai baht stability, global interest rates, and tourism industry health will significantly influence actual performance against these forecasts.
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Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Phuket's property market demonstrates strong fundamentals with robust foreign demand, solid rental yields, and positive growth projections through 2030.
Infrastructure developments, tourism recovery, and limited prime land supply position the island as an attractive investment destination, though buyers should carefully evaluate location, pricing, and legal compliance factors.
Sources
- Phuket Property Prices 2025 - Smart Investor Guide
- C9 Hotelworks Phuket Property Market Update Report
- Should You Buy a Villa in Phuket - BambooRoutes Analysis
- JFTB Real Estate Phuket Market Analysis 2025
- Pulse Real Estate Phuket Condo Price Guide
- RE/MAX Thailand Market Report 2025
- Charles Delcourt Phuket Property Market Analysis
- Fazwaz Phuket Property Sales Market Report
- Global Property Guide Thailand Price History
- SEA Property Average Prices in Phuket 2025
-Complete Guide to Buying Property in Phuket as a Foreigner
-How to Successfully Invest in Phuket Real Estate
-Should You Buy Property in Phuket - Investment Analysis
-Step-by-Step Guide to Buying a House in Phuket
-Average Rental Prices and Yields in Phuket