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
What will happen in Phuket’s real estate market? Will prices go up or down? Is Phuket still a hotspot for foreign investors? How is Thailand’s government impacting real estate policies and taxes in 2025?
We’re constantly asked these questions because we’re deeply involved in this market. Through our work with notaries, real estate agents, and clients who buy properties in Phuket, we’ve gained firsthand insights.
That’s why we created this article: to provide clear answers, insightful analysis, and a well-rounded perspective on market predictions and forecasts.
Our goal is simple: to ensure you feel informed and confident about the market without needing to look elsewhere. If you think we missed the mark or could do better, we’d love to hear your thoughts. Feel free to message us with your feedback or comments, and we’ll work hard to improve this content for you.
How this content was created 🔎📝
Fact-checked and reviewed by our local expert
Attaya Suriyawonghae 🇹🇭
Real Estate Broker, Zest Real Estate
1) Affordable housing prices in Phuket will drop slightly because of oversupply in some areas
In 2023 and 2024, Phuket saw a boom in new housing developments.
Imagine this: about 500 real estate projects popped up for sale in early 2024, offering a whopping 72,000 units worth 460 billion baht. Out of these, 62,000 units found buyers, but that still left 10,000 units sitting on the market.
This pile-up of unsold homes in certain spots hints at an oversupply. Even though there's a buzz around buying, many homes are still waiting for owners. This mismatch between what's available and what's wanted might nudge prices down a bit.
Adding to the mix, more construction permits are being handed out in Phuket. This means even more homes could soon be up for grabs. If the number of buyers doesn't keep pace, it could push prices down further.
For those eyeing a property in Phuket, this could be a golden opportunity. With more homes than buyers, you might snag a deal as prices adjust to the market's rhythm.
Keep an eye on these trends if you're thinking about buying. Phuket's real estate scene is shifting, and it might just work in your favor.
Source: Thai Residential
2) Rental yields in Phuket will rise as tourism recovers and short-term rentals gain popularity
Phuket's tourism is booming, with over 28 million visitors in 2023.
This surge means more than 2 million tourists are arriving each month, and the trend is holding strong into 2024. With 4.3 million visitors in the first half of the year, international arrivals have jumped by 42% from last year.
As more tourists flock to Phuket, the demand for short-term rentals is skyrocketing. Hotel occupancy rates have hit 84%, even higher than before the pandemic. This shows a clear preference for short-term stays, which are becoming a hot choice for travelers.
Room rates for these rentals have climbed significantly, with a 32% increase year-on-year and a whopping 64% rise compared to pre-pandemic times. This trend is fueled by government moves like the free visa policy and a weaker Thai baht, drawing in more foreign visitors.
Phuket's airport is set for expansion, aiming to handle more international flights. This will make the island even more accessible, likely bringing in even more tourists. All these elements point to a promising future for rental property yields.
Sources: Luxe Phuket, Thai Websites, Bangkok Post, The Investor
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.
3) Fewer buyers will invest in Phuket beachfront properties due to growing climate change concerns
Buyers are becoming more cautious about investing in beachfront properties in Phuket due to climate change concerns.
With sea levels expected to rise significantly, coastal areas face increased flooding and erosion. This makes potential buyers wary of properties that might be affected by these changes. In some parts of Phuket, the shoreline is eroding at a rate of up to 4.10 meters per year, which is alarming for anyone considering a beachfront investment.
Insurance companies are reacting to these risks by raising premiums or denying coverage for high-risk properties. This financial burden adds another layer of hesitation for buyers. As people become more environmentally conscious, there's a noticeable shift towards sustainable and eco-friendly properties, often steering clear of beachfront locations.
Real estate market reports highlight this trend, showing a preference for properties that align with sustainability goals. Media coverage has also played a role, making buyers more aware of the climate change impacts on Phuket's coastal areas. This awareness is reshaping the real estate landscape, with fewer people willing to take the risk on beachfront properties.
Sources: MDPI, Thai Science, Ocean WWP
4) Demand for international schools and family-friendly areas in Phuket will grow as the expat community expands
The growing expatriate community in Phuket is a major driver for the demand for international schools and family-friendly neighborhoods.
In 2024, Phuket's population hit approximately 455,102, a jump from 449,389 in 2023, largely due to expatriates settling in. This influx is reshaping the island, making it a hotspot for international families looking for a slice of paradise with all the comforts of home.
International schools are booming, with the British International School reporting that 85% of their 360 students are foreigners from 57 different countries. This isn't just a one-off; there's been a 10.2% increase in international school enrollments over the past year, according to the Kasikorn Research Centre. It's clear that education is a top priority for these families.
Real estate is feeling the heat too. Property prices are climbing in areas known for good schools, showing that expatriate families are keen on neighborhoods that offer quality education. This trend is pushing developers to focus on creating more family-friendly environments.
New international schools are popping up, further highlighting the demand for family-oriented communities. These schools are not just about education; they are becoming cultural hubs for expatriate families, offering a sense of community and belonging.
Sources: Statista, Nation Thailand, BKK Kids, World Population Review, Tranio
5) Demand for homes near healthcare facilities in Phuket will grow as the population ages
Phuket's aging population is driving up the demand for homes near healthcare facilities.
By 2030, a large chunk of Thailand's population will be 60 or older, and Phuket is no exception. Known as a retirement hotspot, the island is seeing more seniors who need easy access to medical care. This shift is making healthcare-adjacent properties more attractive to buyers.
People are living longer these days, with life expectancy jumping from 45 years in 1950 to over 76 years in 2024. This means more folks are sticking around longer and need healthcare services close by. Naturally, this boosts the demand for homes near hospitals and clinics.
Phuket is not just a pretty beach destination; it's becoming a medical hub. Thanks to government efforts like the Phuket Smart City Project, the island is drawing in more healthcare services and investments. This makes it a prime spot for those looking to live near top-notch medical facilities.
High-end wellness centers are popping up all over Phuket, adding to its appeal. These centers are part of the island's transformation into a world-class medical destination. For retirees and those seeking a healthy lifestyle, living near these wellness hubs is a big plus.
With all these developments, it's no wonder that healthcare-adjacent properties are in high demand in Phuket. The island's aging population and its growing reputation as a medical hub make it a smart choice for those looking to invest in real estate.
Sources: KPMG International, Earth Database, Thailand Now, Travel and Tour World, Nestopa
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6) Interest in properties with gyms and wellness centers in Phuket will grow due to health and wellness trends
Phuket is becoming a hotspot for wellness-focused property developments.
Imagine living in a place where your home feels like a retreat. In Phuket, new projects like the Clinique La Prairie Wellness Resort and Bumrungrad Hospital Phuket are doing just that. They're blending physical, mental, and nutritional health into their designs, catering to the growing demand for wellness-oriented living spaces.
People are increasingly drawn to properties that offer health-focused amenities. The wellness real estate market is booming, with expectations to nearly double from USD398 billion in 2022 to USD887.5 billion by 2027. This means more homes with gyms and wellness centers are on the horizon.
Social media and media coverage are also fueling this trend. They highlight the benefits of a healthy lifestyle, making wellness travel and living more appealing. This buzz is encouraging more buyers to seek out properties with wellness amenities.
Phuket's appeal isn't just about the beautiful beaches anymore. It's about a lifestyle that promotes extended healthier living and improved quality of life. This shift is resonating with many potential property buyers who are looking for more than just a place to live.
As the wellness tourism market is projected to reach $1 trillion by 2024, it's clear that the focus on well-being is here to stay. This trend is particularly strong in places like Phuket, where the integration of wellness into everyday living is becoming the norm.
Sources: WellSpa360, 4Hoteliers, TTR Weekly
7) High-net-worth individuals will continue to buy luxury villas in Phuket, keeping prices high
Luxury villas in Phuket are a magnet for high-net-worth individuals, and this isn't changing anytime soon.
In early 2024, there was a boom in new villa launches, with 1,285 units worth 36.3 billion baht from 65 projects, outpacing all of 2023. This surge is largely driven by international buyers, especially from Russia, who are keen on investing in Phuket's premium real estate.
As the global economy recovers, the wealth of high-net-worth individuals is climbing, which means more money is flowing into luxury properties like those in Phuket. These affluent buyers are on the lookout for top-tier real estate investments, and Phuket fits the bill perfectly.
Phuket's tourism scene is bouncing back strong, with 4.3 million visitors in the first half of 2024. The island is drawing in tourists from Russia, China, India, and Australia, making it a hot spot for luxury seekers. This wave of international arrivals is boosting the demand for high-end villas, as tourists often prefer lavish accommodations.
With its stunning beaches and vibrant culture, Phuket continues to be a top choice for those looking to invest in luxury living. The island's appeal is undeniable, and the influx of wealthy tourists only strengthens its position as a premium destination.
For those considering a property purchase in Phuket, the market is ripe with opportunity. The combination of rising global wealth and a thriving tourism industry ensures that luxury villas will remain in high demand, maintaining their premium pricing.
Sources: Bangkok Post, Ocean WWP, Luxe Phuket
8) Interest in northern Phuket real estate will surge as infrastructure projects enhance connectivity
The northern areas of Phuket are becoming a hot spot for real estate buyers.
Thanks to major infrastructure projects, getting around northern Phuket is now a breeze. The Transport Ministry has been busy expanding Phuket International Airport and building new highways, making the north more accessible than ever. This ease of travel is a game-changer for those considering a move or investment in the area.
There's also talk of a new tram project by the Mass Rapid Transit Authority of Thailand, which promises to boost public transport options in the north. With these developments, commuting is set to become even more convenient, adding to the area's appeal. It's no wonder international investors are eyeing northern Phuket, drawn by its stunning beaches and promising investment potential.
As property prices in central and southern Phuket climb, buyers are naturally looking north for more affordable options. Real estate market analyses back this trend, predicting continued growth in these northern areas. The combination of new residential and commercial projects and savvy marketing by developers is fueling this interest.
Insider knowledge suggests that northern Phuket's charm lies not just in its affordability but also in its blend of natural beauty and modern conveniences. The region offers a unique lifestyle that balances tranquility with easy access to urban amenities, making it a compelling choice for both living and investing.
With all these factors in play, it's clear that northern Phuket is on the rise as a prime real estate destination. The ongoing improvements in infrastructure and the area's inherent attractions are setting the stage for a vibrant future.
Sources: Nation Thailand, World Estate, Bangkok Post
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.
9) Fewer European buyers will invest in Phuket properties due to economic uncertainties in Europe
European buyers might pull back on Phuket properties due to economic uncertainties back home.
With the EU's GDP expected to drop from 6.4% in 2023 to 2.2% by 2025, Europeans could find themselves tightening their belts. This economic slowdown means less disposable income, making people cautious about big purchases like overseas properties.
Consumer confidence in Europe is also taking a hit. In December 2024, it fell to -14.5, below the long-term average, hinting that Europeans might hesitate to invest in properties. Plus, the Euro's fluctuations are not helping. A weaker Euro means buying property in places like Phuket could become pricier for Europeans.
Interest rates in Europe are climbing, making mortgages more expensive. Higher rates could deter potential buyers from diving into the property market. On top of that, many European households are focusing on saving more to pay off debts and build up their financial safety nets, leaving less money for property investments.
Sources: CEPR, Trading Economics, Real Samui Properties
10) Real estate investment in central Phuket will grow as urbanization expands
The central neighborhoods of Phuket are becoming hotspots for real estate investment as urbanization continues to expand.
In 2024, property sales in Phuket doubled compared to 2023, with a remarkable fourfold increase from the average, according to CBRE Thailand. This surge is drawing attention from both Thai and foreign buyers, especially in areas like Bang Tao and Cherng Talay.
These neighborhoods are seeing a boom in villa sales, which jumped by 383% in the first half of 2024. The allure of these areas is not just about the properties themselves but also the lifestyle and amenities they offer.
Government infrastructure projects are playing a crucial role in this transformation. Enhanced connectivity in central areas is making them more appealing to investors and tourists, boosting their attractiveness as investment hotspots.
Alongside infrastructure improvements, the expansion of commercial and retail developments is further fueling growth. These developments are turning central Phuket into a vibrant hub, drawing in more people and businesses.
As urbanization continues, the central neighborhoods of Phuket are poised to become even more desirable. The combination of rising property values, improved infrastructure, and expanding amenities is creating a perfect storm for real estate investment.
Sources: Bangkok Post, Phuket Serenity Villas, Khaosod English
11) Demand for hillside properties in Phuket will grow as they are seen as safer from flooding
Phuket has been grappling with severe flooding issues in recent years.
In 2023, the island was hit hard, with major floods in October that left parts of Phuket town underwater twice. The situation worsened in 2024, when floods led to 10 deaths, 1 missing person, and 19 injuries, along with landslides that claimed 13 lives and damaged over 50 homes.
These disasters have sparked a surge in flood-related insurance claims across Thailand. While specific figures for Phuket aren't available, the national trend shows a growing worry about flood risks. This anxiety is driving people to seek out properties that seem safer from flooding.
Reports from the Thai real estate market, like those by Krungsri Research, show a rising interest in hillside properties. These homes are considered safer because their elevation helps protect them from floods. Media outlets, such as the Bangkok Post, frequently emphasize the safety of elevated areas, reinforcing the idea that hillside properties are a more secure investment.
For those considering buying property in Phuket, the trend is clear: hillside locations are becoming increasingly popular due to their perceived safety from flooding. This shift in preference is not just about avoiding water damage but also about peace of mind.
As the island continues to face environmental challenges, the demand for properties that offer a sense of security is likely to grow. Investing in elevated areas could be a wise choice for those looking to safeguard their assets and well-being.
Sources: Bangkok Post, ReliefWeb, Krungsri Research
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12) More foreign retirees will buy homes in Phuket, boosting demand for retirement communities
Phuket is becoming a hotspot for foreign retirees looking to buy homes.
Over the years, the number of foreigners on retirement visas in Thailand has grown, even with a brief pause during the COVID-19 pandemic. This trend is set to continue as Thailand remains an attractive option for retirees from countries with lower incomes.
Phuket's charm lies in its tropical beauty and luxurious amenities, making it a favorite among retirees from Western countries and beyond. The introduction of the Long-Term Resident Visa (LTR), which offers a 10-year renewable visa with special perks, adds to its allure for affluent retirees.
New retirement communities and improved healthcare facilities are popping up in Phuket, making it an even more enticing choice for retirees. Compared to traditional Western retirement spots, Phuket offers a more affordable and appealing alternative due to rising property prices elsewhere.
With these developments, the market for retirement communities in Phuket is set to boom, drawing more foreign retirees to its shores.
Sources: Bangkok Post, JTJB, University of Vienna, Fulcrum
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.