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
Why is Phuket emerging as a prime destination for property investment in 2025? Is it the attractive rental returns, the thriving tourism sector, or the competitive pricing compared to other international markets? What are the key benefits for investors?
We get asked these questions all the time because we’re on the ground, working closely with developers, real estate agents, and investors like you. With so much interest in this market, we’ve decided to turn our individual answers into a comprehensive article for everyone to benefit from.
Our goal is to provide a clear case for investing in Phuket's real estate market, backed by our firsthand experience and market knowledge.
If you think we missed an important point in our content or want to know more, don’t hesitate to reach out (we answer super fast). Your feedback makes our content even stronger.
Finally, please note that this is not financial or investment advice. Investing in real estate carries inherent risks, and market conditions can change unexpectedly. We strongly encourage you to conduct thorough research and consult with a qualified financial advisor before making any investment decisions.
How this content was created 🔎📝
Fact-checked and reviewed by our local expert
Attaya Suriyawonghae 🇹🇭
Real Estate Broker, Zest Real Estate
1) In Phuket, you’ll find a variety of properties, from condos to villas, to suit different investor tastes
Phuket's real estate market is buzzing with a wide variety of property types, from condos to villas, catering to different investor preferences.
Thanks to the island's booming tourism, 10,000 units were sold in 2023, raking in 90 billion baht. This shows how popular Phuket is with both tourists and investors.
Vacation rentals are hot right now, with villa sales jumping to 787 units in the first half of 2024, valued at around 30 billion baht. High occupancy rates for vacation condos and standalone houses are driving this trend.
Phuket's growing expat community is also fueling the demand for diverse properties. Many expats, drawn by the island's great lifestyle and economy, are settling here.
You'll find a mix of French, Italian, Australian, and German expats, which mirrors the tourism trends and boosts the need for varied housing options.
Sources: Bangkok Post, Skhai, Home in Phuket
2) In Phuket, you’ll enjoy strong rental yields that offer attractive returns on your property investments
Phuket's rental yields are impressively high, making it a hotspot for property investors.
During the bustling high season from November to April, Airbnb properties in Phuket boast an average occupancy rate of 67%, with some even hitting 72%. This demand is especially strong in areas like Bang Tao, where rental yields can soar past 10%.
Since the pandemic, tourism in Phuket has surged, with places like Laguna Phuket seeing occupancy rates peak at 80%. This influx of tourists during the high season means property owners can really cash in on short-term rentals.
Phuket's rental yields are not just competitive; they're exceptional. For example, a 1-bedroom condo costing 4.7 million baht can bring in a monthly rent of 39,000 baht, giving a price-to-rent ratio of 10. The average rental yield here is about 9-10% annually, which is double what some condo projects used to guarantee.
The island's charm isn't lost on digital nomads and expats either. Phuket's expat community has grown, drawn by the affordable living, warm weather, and vibrant lifestyle. This steady stream of long-term residents and remote workers keeps the rental market buzzing.
Sources: Bangkok Post, Ocean WWP, Sunway Estates
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.
3) Phuket’s luxury market is growing, drawing in wealthy buyers seeking exclusive properties
The luxury real estate market in Phuket is booming, attracting high-net-worth individuals seeking exclusive properties.
In recent years, residential prices in Phuket have surged by 10-15%, far outpacing the usual 5% growth rate. This upward trend is expected to persist, with luxury property values projected to rise by 15-20% annually over the next five years. By 2025, the market could reach a staggering US$4.1 billion.
Russian buyers are leading the charge, making up 70% of all foreign property purchases on the island in 2023. They're snapping up large villas priced between 20-60 million baht and condos ranging from 5-10 million baht. Meanwhile, Chinese buyers are eyeing short-term stays and are anticipated to return in greater numbers by 2025.
Developers are responding to this demand with gusto, launching new luxury villas and condos. Some projects have seen price hikes of up to 30% due to their unique concepts and high demand. Branded residences are particularly popular, drawing interest from both Thai and international buyers.
New markets are emerging, with buyers from the United Arab Emirates, Saudi Arabia, Israel, and Japan showing keen interest. This diverse influx is reshaping the island's real estate landscape, making it a global hotspot for luxury living.
Sources: Bangkok Post, Bangkok Post, Nation Thailand
4) Phuket’s location in Southeast Asia is perfect for regional travel and business opportunities
Phuket is a key hub for regional travel and business opportunities in Southeast Asia.
In 2023, international flights to Phuket International Airport saw a 34% growth compared to the previous year, highlighting a rising demand for travel to this vibrant island. This trend is expected to continue, making Phuket an increasingly popular destination.
Passenger traffic at the airport reached nearly 14 million in 2023, with both domestic and international flights on the rise. This boom is fueled by the weakening Thai baht and a recovering aviation sector, which is set to bring millions of foreign visitors, boosting the local hospitality industry.
Phuket is not just about beaches; it's becoming a hotspot for business events. With numerous international conferences planned for 2025, the island is attracting professionals from various fields, offering enhanced networking and collaboration opportunities.
New business parks and commercial spaces are sprouting up, drawing multinational companies to set up regional offices. This development is solidifying Phuket's status as a business hub, making it an attractive spot for investors and entrepreneurs.
Sources: Statista, Luxe Phuket, International Conference Alerts
5) Phuket’s cultural festivals attract tourists all year, making it easy to rent out your property short-term
Phuket is a hotspot for tourists, thanks to its vibrant cultural festivals and events that draw crowds year-round.
In the first half of 2024, the island saw 4.3 million visitors, with 2.6 million being international travelers, a clear sign of its growing appeal. This surge is closely tied to the island's lively cultural scene.
During major festivals, short-term rentals in Phuket boast a median occupancy rate of 66%, with properties booked for an average of 241 nights annually. Hotels see even higher demand, with occupancy rates climbing to 84% and peaking over 90% during festival times.
Phuket's title as the “2024 World Festival & Event City” by the International Festivals & Events Association (IFEA) highlights the island's cultural allure. Events like the Phuket Vegetarian Festival and the Phuket Old Town Festival attract thousands, boosting both tourism and the local economy.
These festivals not only bring in visitors but also lead to a noticeable increase in international flights and hotel bookings, underscoring their economic impact. The island's diverse cultural offerings ensure a steady demand for short-term rentals.
Sources: Luxe Phuket, Airbtics, Luxe Phuket
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6) Phuket’s wellness reputation draws health-focused tourists and long-term residents
Phuket is becoming a hotspot for health-conscious tourists and long-term residents seeking wellness.
The island is buzzing with wellness retreats and spas like Layan Life by Anantara, which mixes modern medical tech with traditional Thai healing. This unique combo has put Phuket on the map as a top spot for medical wellness, drawing international attention.
Phuket also hosts a variety of health and wellness events, meeting the growing demand for holistic health. This has led to a surge in health-focused visitors, with wellness tourism in Thailand hitting THB 269 billion in 2023, thanks to 10 million wellness trips.
More people are choosing to live in Phuket long-term for its wellness lifestyle. Luxury projects like Gardens of Eden are pulling in high-net-worth individuals, and the rise of yoga studios and organic cafes is fueling this trend.
Phuket's appeal isn't just for tourists; it's a lifestyle choice for many. The island's growing reputation as a wellness destination is attracting those who want to live healthier, more balanced lives.
With its mix of modern and traditional wellness options, Phuket is a magnet for anyone looking to invest in their health and well-being. The island's wellness scene is thriving, making it an attractive place for both short visits and long-term stays.
Sources: Travel Wires, Nation Thailand, TCI Thaijo
8) With better healthcare facilities, the island is ideal for medical tourists and retirees seeking quality care
Phuket is quickly becoming a top choice for those seeking excellent healthcare.
The Thai government is pouring resources into healthcare, with projects like the Andaman International Medical Center aiming to make Phuket a global medical hub. This includes modernizing hospital systems, which means a smoother and more efficient healthcare experience for everyone.
Phuket's hospitals, such as Bumrungrad International and Medpark, have earned global recognition for their high standards. This gives patients peace of mind about the quality of care they can expect. Plus, places like the Chularat Medical Center are expanding, so they can serve more patients than ever before.
Medical tourism is thriving, with revenue now surpassing pre-pandemic levels. In 2023, it brought in a staggering US$9 billion to Thailand's healthcare sector. Phuket is a major player in this, attracting millions of medical tourists each year.
The introduction of a medical treatment visa in 2023 has made it easier for visitors to stay longer for medical reasons, further boosting Phuket's appeal as a healthcare destination.
Sources: Statista, Thailand Now, Tractus Asia
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.
9) Affluent tourists love Phuket for its marine tourism, making waterfront properties highly desirable
Phuket is a hotspot for affluent tourists drawn to marine tourism, especially those eyeing waterfront properties.
Yachting is booming here, with a 26% increase in yacht arrivals from 2022 to 2023. This surge is bolstered by new yacht clubs like ONE° 15 Marina Panwa Phuket, which cements Phuket's reputation as a global yachting hub. The island's annual regattas and events, such as the Thailand International Boat Show, are a big draw for luxury yacht enthusiasts worldwide, highlighting Phuket's allure as a top marine tourism destination.
Diving tourism is also on the rise, with more diving schools popping up, attracting tourists eager to explore the island's underwater wonders. While exact numbers aren't available, the trend is clear: diving is becoming a major attraction alongside Phuket's cultural sites and beautiful beaches.
Waterfront properties are in high demand, with areas like Bang Tao and Laguna Phuket seeing rising property values and high occupancy rates. The real estate market is thriving, with rental yields surpassing 10% annually, thanks to the tourism boom and ongoing construction projects.
Affluent tourists are increasingly interested in buying waterfront properties. At The Standard Residences in Bang Tao, a significant number of buyers are Thais, along with international investors from the UAE, Saudi Arabia, Israel, and Japan. This trend underscores the strong demand for luxury accommodations in Phuket.
Phuket's marine tourism, including diving and yachting, continues to attract wealthy tourists, reinforcing the island's status as a premier destination for those interested in waterfront living.
Sources: Sunway Estates, Now Travel Asia
10) Phuket’s mix of expats and locals makes it a welcoming place for new residents
Phuket is a great place for new residents because of its welcoming community of expatriates and locals.
With around two million foreigners living in Thailand, many choose Phuket, creating a diverse and inclusive atmosphere. This mix of people makes it easy for newcomers to feel at home.
Expatriate clubs, like the Phuket Expats Club, are key to this friendly vibe. They offer social activities and events, helping new residents connect and integrate smoothly into the community.
Phuket's dining scene is another big plus. The wide range of international cuisine caters to the tastes of its expatriate population, providing familiar comforts and enhancing the welcoming feel.
The local government also plays a part by offering streamlined visa processes and cultural integration programs, making life easier for newcomers.
Sources: Phuket Expats Club, Invest Asian
11) Phuket is a great travel base because it’s close to Krabi and Phi Phi Islands
Phuket is a fantastic travel hub because of its proximity to Krabi and Phi Phi Islands.
In the first half of 2024, 4.3 million tourists flocked to Phuket, drawn by its strategic location. This bustling island offers easy access to nearby gems, making it a favorite among travelers who want to explore more without long journeys.
Frequent ferry and boat services make hopping to these stunning islands a breeze, adding to Phuket's charm as a travel base. Imagine waking up in Phuket and by lunchtime, you're lounging on a beach in Krabi or snorkeling in the clear waters of Phi Phi.
Travel packages that bundle Phuket with Krabi and Phi Phi are gaining popularity. These packages position Phuket as the perfect starting point for a southern Thailand adventure, highlighting its convenience and appeal.
Phuket's role as a travel base is further enhanced by its vibrant local culture and amenities. From bustling markets to serene beaches, it offers a mix of experiences that cater to all kinds of travelers.
Whether you're a solo backpacker or a family on vacation, Phuket's strategic location and connectivity make it an ideal choice. It's not just a destination; it's a gateway to the wonders of southern Thailand.
Sources: Luxe Phuket, CBRE Thailand, Thailand Starts Here
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12) Phuket’s airport has direct flights worldwide, making it easy for travelers and renters to reach
Phuket's international airport is a key hub for travelers worldwide, offering direct flights to numerous destinations.
With 50 airlines operating out of Phuket, getting here is a breeze. Thai AirAsia, for instance, has ramped up its operations, boasting 161 take-offs weekly, making it the airport's largest airline. This means you can count on frequent flights and reliable service. Plus, Qatar Airways is planning to add more flights to Phuket, boosting the island's connectivity even further.
Phuket is becoming increasingly popular among tourists, especially those from the Asia Pacific and Europe. The airport has seen a steady rise in passenger traffic, which highlights its growing appeal. This trend is likely to continue as more airlines expand their routes to include Phuket.
For those considering buying property here, this connectivity is a huge plus. It not only makes it easier for you to travel back and forth but also enhances the potential for rental income from tourists. The island's accessibility is a major draw for international visitors, making it a smart investment choice.
Imagine owning a property in a place where global travelers can easily reach without the hassle of multiple layovers. Phuket's airport is a gateway to a world of opportunities, both for personal enjoyment and financial gain.
Sources: Wikipedia, Mighty Travels, FlightsFrom.com
13) Phuket’s infrastructure upgrades boost property values with better roads and services
Phuket's property values are on the rise thanks to major government investments in infrastructure.
In 2023, the Transport Ministry unveiled plans for the Muang Mai-Koh Kaew Highway, a new route that will connect Phuket airport with Krabi and Phang Nga. This highway, set to be completed by 2025, promises to enhance connectivity and accessibility across the region, making it easier for both tourists and residents to travel.
Looking ahead to 2024, the government has earmarked funds to further boost Phuket's transportation network. A new monorail system is in the works, linking the airport directly to Phuket Town. Plus, the expansion of Highway 402 to four lanes is underway, which will help reduce travel times and ease traffic congestion, making the island even more appealing to potential property buyers.
Public transport is also getting a facelift. A feasibility study is exploring a light rail system that would connect Phuket International Airport with the Ha Yeak Chalong intersection. This project, expected to kick off by 2028, will significantly improve the island's connectivity. Additionally, plans are in place to increase Phuket Airport's capacity to handle up to 18 million passengers annually by 2031.
Sources: Nation Thailand, Bangkok Post
14) With low taxes and favorable rules, the island is a magnet for foreign property investors
Phuket's property tax rates are incredibly low, making it a hotspot for foreign investors.
Imagine paying just 0.01% to 0.1% in property taxes on your investment in Phuket. That's a stark contrast to places like Singapore, where taxes can soar up to 20% for high-value properties. This low tax rate is a huge incentive for those looking to invest in real estate without the heavy tax burden.
But it's not just about the taxes. Phuket also has favorable investment regulations that make it easier for foreigners to own property. The Thai government allows foreigners to own up to 49% of a condominium building, which is a pretty sweet deal if you're looking to invest in a stable market.
What's more, the process of getting the necessary permits and licenses in Phuket is generally straightforward. This means you can dive into the market and manage your investments without getting bogged down by red tape.
These factors combined create a welcoming environment for foreign investors, ensuring that your investment is not only profitable but also secure. The regulations have remained stable over the years, providing peace of mind for those looking to invest long-term.
So, if you're considering buying property in a place that offers both low taxes and a friendly investment climate, Phuket might just be the perfect spot for you.
Sources: Ocean Worldwide Phuket Real Estate, SKHAI, Samui Island Realty
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Thailand. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
15) Phuket is becoming popular for film and photography, making it more visible and desirable
Phuket is becoming a hotspot for film and photography, boosting its global appeal.
With international productions like "The White Lotus" choosing Phuket, the island is catching the eye of global audiences. Lisa from Blackpink starring in the series adds to its allure, making it a must-see destination for fans and travelers alike.
Tourism is on the rise, especially among foreign visitors, including Russians, who are drawn to Phuket's newfound fame. The post-pandemic tourism boom has led to a surge in foreign buyers snapping up local properties, eager to own a piece of this paradise.
Social media is buzzing with mentions of Phuket, with platforms like Facebook and YouTube playing a big role in its popularity. Hashtags and posts about Phuket's nightlife and attractions are influencing tourists to visit and explore the island.
The Thai government is also in on the action, offering cash rebates to foreign film productions. This initiative has made Phuket a film-friendly location, attracting more filmmakers to its shores.
Even with mixed reviews, Netflix's "Mother of the Bride" showcased Phuket's stunning scenery, adding to its charm. The island's scenic beauty is undeniable, making it a desirable spot for both filmmakers and tourists.
Sources: Khaosod English, Statista, Bangkok Post, Lifestyle Asia, Emerald Insight
16) Phuket’s tropical climate and stunning beaches make it perfect for retirees looking for a warm, relaxing place
Phuket's tropical climate and stunning beaches make it a top choice for retirees seeking warmth and relaxation.
Many retirees are drawn to Phuket's natural beauty and peaceful vibe, which has fueled a steady rise in its real estate market. The island is a favorite among expatriates and retirees who appreciate its lush landscapes and inviting beaches.
Phuket is not just about the scenery; it also offers retirement communities with great amenities that cater to older adults. These communities provide a sense of security and comfort, making the island even more appealing for those in their golden years.
One of the biggest draws is the affordable cost of living compared to many Western countries. Retirees can enjoy a high quality of life without breaking the bank, which is a significant factor in choosing Phuket as a retirement spot.
Healthcare is another plus, with facilities like Bangkok Hospital Phuket offering top-notch medical services. This ensures that retirees have access to quality care, adding to the island's allure as a retirement haven.
Sources: University of Vienna, Luxe Phuket, Osiris Investissements
17) Phuket’s lively nightlife and entertainment scene draw in young tourists and long-term renters
Phuket is buzzing with vibrant nightlife and entertainment, drawing in younger tourists and long-term renters.
With the island expecting 7-8 million foreign arrivals this year, it's clear that Phuket is bouncing back in a big way. This surge is largely thanks to the lively nightlife scene, which is constantly evolving with new bars and clubs popping up. Popular spots like Bangla Road are at the heart of this excitement, offering a mix of music, lights, and energy that keeps visitors coming back for more.
Even without specific occupancy rates, it's obvious that accommodations in nightlife hotspots are in high demand. The growing number of venues in these areas speaks volumes about the interest they generate. Social media platforms like Facebook and YouTube are key players here, guiding tourists to the hottest nightlife activities and influencing their travel plans.
Social media isn't just a tool for planning; it's a megaphone for spreading the word about Phuket's nightlife. Tourists share their experiences, leading to glowing reviews and high ratings on platforms like TripAdvisor. This buzz attracts even more visitors, creating a cycle of excitement and discovery.
Government initiatives are also in play, aiming to promote Phuket as a top nightlife destination. Proposals for longer operating hours are part of this strategy, designed to boost tourism revenue and make the island even more appealing. These efforts align with the island's natural charm and vibrant culture, making it a must-visit spot for those seeking adventure after dark.
Sources: Phuket Hotels, Emerald Insight, Bangkok Post
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18) Investors interested in eco-friendly properties are drawn to the island’s focus on sustainable development
Phuket is becoming a hotspot for eco-friendly property investments.
In recent years, especially in 2023 and 2024, the island has aligned its development plans with the UN's Sustainable Development Goals. This move highlights Phuket's strong commitment to sustainable tourism and development. Developers are now focusing on integrating eco-friendly features like solar panels and rainwater harvesting systems into their projects. This trend is not just about keeping up with global standards; it's a response to the growing demand from buyers who are increasingly conscious of environmental issues.
Phuket's real estate market is buzzing with interest in properties that offer sustainable living options. Green spaces are becoming a standard feature in new developments, reflecting a shift in both developer and buyer priorities. This change is driven by a desire to live in harmony with nature, which is a big draw for those looking to invest in the island's property market.
Moreover, the adoption of green building standards, like Thailand's Rating of Energy and Environmental Sustainability (TREES), is on the rise. This certification is gaining traction among developers, further underscoring the island's dedication to sustainability. It's not just about meeting regulations; it's about creating a sustainable future for the island.
Phuket's commitment to sustainable development is attracting investors who are keen on eco-friendly properties. The island's focus on sustainability is evident in its real estate trends, making it an appealing destination for those looking to invest in properties that align with their environmental values.
Sources: UNDP, Ocean WWP, Baker McKenzie
While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility.