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 is happening in Phuket’s real estate market? Are prices rising or falling? Is Phuket still a prime destination for international buyers? How are local regulations and policies shaping the real estate landscape in 2025?
These are the questions we hear every day from investors, homeowners, and industry experts, from Patong to Rawai and beyond. Maybe you’re curious about these trends too.
We know this because we stay closely connected with local experts and people like you, exploring the Phuket real estate market daily. That’s why we crafted this article: to offer clear insights, thoughtful analysis, and a comprehensive view of market trends and dynamics.
Our aim is straightforward: to make sure you feel informed and confident about the market without needing to search elsewhere. If you think we missed something or could improve, we’d love to hear your feedback. Feel free to reach out with your thoughts, and we’ll strive to enhance 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) European buyers will renew interest in Phuket properties thanks to favorable exchange rates
In 2023, the Euro to Thai Baht exchange rate was particularly favorable for European buyers.
With rates peaking at 1 Euro = 39.141 Thai Baht, Europeans found themselves getting more bang for their buck, making Phuket properties more enticing. This favorable exchange rate meant that European buyers could stretch their budgets further, opening up opportunities to invest in more luxurious or larger properties than they might have considered before.
During this time, there was a 57% increase in property inquiries from European buyers in the first quarter alone. This surge wasn't just a coincidence; it was partly driven by the situation in the Turkish market, which had become less appealing, pushing potential buyers to look towards Thailand as a viable alternative.
Real estate agencies like Tranio and CBRE Thailand noticed this trend, reporting a growing interest in Phuket properties from European investors. Historically, whenever the exchange rate favored the Euro, European investment in Phuket saw a significant uptick, and 2023 was no different.
Phuket's allure isn't just about the numbers; it's about the lifestyle. The island offers a unique blend of natural beauty, vibrant culture, and modern amenities, making it a dream destination for many. This combination of factors makes it an attractive option for Europeans looking to invest in a second home or a rental property.
With the current economic climate and exchange rates, European buyers are likely to continue showing interest in Phuket's real estate market. The potential for a good return on investment, coupled with the island's charm, makes it a compelling choice.
Sources: Tranio, Exchange Rates, Bangkok Post
2) Phuket's rental yields will rise with tourism recovery and growing demand for short-term rentals
In 2024, Phuket experienced a remarkable surge in tourism, with 4.3 million visitors arriving in just the first half of the year.
This influx represents a 42% increase from the previous year, nearly reaching the bustling pre-pandemic levels. With more tourists flocking to the island, the demand for places to stay, especially short-term rentals, is on the rise.
Short-term rentals in Phuket are thriving, with an average occupancy rate of 66% and properties being booked for about 241 nights annually. This high demand, paired with an average daily rate of THB2,445, means property owners are seeing strong rental income potential.
Foreign buyers are returning for the high season, fueling the demand for rental properties. Platforms like Airbnb are expanding, with 10,863 active listings in Phuket as of September 2024, making it easier for tourists to find short-term rentals.
Real estate agencies are buzzing with activity as the combination of increased tourist arrivals and a robust short-term rental market paints a promising picture for rental yields. The trend of tourists opting for short-term rentals over traditional hotels is expected to continue.
Sources: Luxe Phuket, Airbtics, 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.
3) Mid-range rental yields will rise as expatriates and long-term tourists look for affordable housing
Phuket is becoming a hotspot for those seeking mid-range rental properties.
In 2023 and 2024, the island saw a surge in condo leads from 5,000 to 7,500 in just one quarter, alongside a 68% rise in villa inquiries. This shows a clear trend: people are increasingly interested in affordable housing options. With its beautiful beaches and vibrant culture, Phuket is drawing more expatriates and long-term tourists who are looking for a place to call home.
Phuket's charm is undeniable, and it's attracting more international visitors than ever. In the first half of 2024, 2.6 million international arrivals were recorded, a 42% jump from the previous year. This influx is not just about vacations; many are seeking longer stays, driving up the demand for mid-range rentals. The island's lifestyle, combined with its affordability, makes it an ideal choice for those looking to settle down for a while.
There's a noticeable shift happening from short-term to long-term rentals. Expatriates and long-term tourists are increasingly opting for more permanent housing solutions. This trend is backed by surveys showing a strong preference for affordable housing. As a result, there's been a boost in investment in mid-range property developments and infrastructure improvements across Phuket.
These changes are not just about numbers; they reflect a broader movement towards stability and affordability. More people are choosing Phuket as their base, and the island is responding with better housing options. The mid-range rental market is poised to grow as more expatriates and long-term tourists seek out these affordable solutions.
Sources: FazWaz, Luxe Phuket, Bangkok Post
4) Foreign investment will focus more on sustainable, eco-friendly developments as global environmental awareness increases
Foreign investments are increasingly focusing on sustainable and eco-friendly developments due to rising environmental awareness.
Take the global wellness tourism market, for example, which is set to hit $1.12 trillion by 2025. This includes eco-friendly travel options and mirrors a larger shift towards sustainability. In Thailand, wellness tourism was already booming before COVID, bringing in around $2 billion annually and still growing.
There's also a surge in demand for sustainable housing. More companies are committing to green practices, with Thailand seeing a tenfold increase in firms joining the Science Based Target Initiative since 2020. In real estate, a survey showed that 96% of occupiers in Thailand want their offices fully green-certified by 2030, a big leap from just 17% before.
LEED O+M certifications in Thailand skyrocketed in 2023, with a 384% rise in registrations and a 729% increase in certifications compared to the previous year. This shows a clear preference for eco-friendly building practices.
Phuket is also getting in on the action with its Sustainable Tourism Flagship Projects. These aim to make Phuket a low-carbon destination by improving building standards and promoting renewable energy.
Sources: Green Building Trends, CBRE Thailand Contributes to Sustainability Efforts, Phuket Sustainable Tourism Flagship Projects, A Closer Look at Bangkok CRE's Flight-To-Green
5) Phuket’s property prices will stabilize after rapid growth, creating more opportunities for strategic investments
Phuket's property market has been on a rollercoaster, with rapid price growth driven by tourism and real estate demand.
By early 2024, the island saw a surge in real estate projects, with 500 developments offering 72,000 units. Out of these, 62,000 units have already been snapped up, leaving a balanced market with 10,000 units still available. This healthy absorption rate suggests that the market is stabilizing, which is good news for potential buyers.
Developers are busy, launching new projects to meet demand, and sales peaked in 2023. The expansion of Phuket International Airport and other infrastructure projects are expected to boost property values by 10% to 15% in the coming years.
The Thai government is playing its part by regulating the market, making Phuket even more attractive for investors. With the economy growing by 3.4% in 2023 and a projected 3.6% in 2024, the backdrop for property investments is stable and promising.
Phuket's real estate market has its ups and downs, but the trend is towards moderate growth. Expect a 5% to 7% annual growth rate in 2025, indicating a slowdown in the rapid price hikes of the past.
Foreign buyers are keen, with Russians making up 70% of foreign purchases in 2023. Chinese and European investors are also eyeing Phuket, drawn by its tropical charm and luxury amenities.
With more properties on the market, the shift from a seller's to a buyer's market gives purchasers more options and bargaining power. This change means buyers can find properties that fit their needs and budgets more easily.
Sources: Bangkok Post, Singha Legal, Sunway Estates, The Thaiger
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6) Younger buyers will increasingly favor condominiums for their low-maintenance lifestyle
Condominium sales in Phuket have skyrocketed, with a growth of over 140% in the first half of 2024.
Young buyers are flocking to the real estate market, driven by Phuket's population growth of about 7.4% annually. This shift shows that more young people are eager to find their own homes.
Condominiums are being marketed as the perfect lifestyle choice for young professionals. They come with amenities like fitness centers and swimming pools, which are exactly what millennials want for convenience and modern living.
These condos are also affordable, with entry-level prices around 8 million Thai baht. This price point, along with better financing options, makes them a great choice for young buyers.
With these factors in play, it's no wonder that condos are becoming the go-to option for those seeking low-maintenance living. The trend is clear: young people want homes that fit their busy lifestyles.
Sources: Statista, Properstar, Silk Estate
7) Demand for properties with health and fitness amenities will grow as wellness-focused living becomes more popular
There's a growing trend towards wellness-focused living, especially in places like Phuket.
Phuket is a hotspot for wellness tourism, with the industry valued at THB 1,200 billion in 2022. This boom is evident as wellness tourists spent THB 296 billion in Phuket alone that year. People are increasingly prioritizing their health, and this is driving up the demand for properties with health and fitness amenities.
Globally, the wellness market is on track to hit $7 trillion by 2025. This surge shows that more people want wellness features in their homes. In Phuket, this is reflected in the rise of wellness retreats and spas, such as the famous Keemala, which offers tailored wellness programs that are gaining popularity.
New facilities like the VitalLife Scientific Wellness Center are popping up, showcasing advanced health offerings. These developments highlight Phuket's dedication to wellness, making it an attractive place for those seeking a healthier lifestyle.
As wellness becomes a priority, properties with amenities like gyms, spas, and wellness centers are in high demand. This shift is not just a trend but a lifestyle change that is influencing real estate choices.
Investing in a property in Phuket means tapping into a market that values health and well-being, with a community that supports this lifestyle. The demand for such properties is only expected to grow as more people embrace wellness-focused living.
Sources: Hospitality Net, Nation Thailand, Keemala
8) Stricter short-term rental regulations will affect the profitability of Airbnb-style investments
In popular tourist spots like Phuket, regulations on short-term rentals are tightening.
Local authorities are cracking down on illegal rentals, with places like Hua Hin already fining property owners who rent without licenses. This signals a shift towards stricter enforcement of existing laws. The Hotel Act 2004, for example, restricts rentals of less than a month without a proper license, and now, enforcement is more consistent.
Condominium juristic persons are interpreting these laws more strictly, leading to higher fines and penalties for non-compliance. In Bangkok, some fines have reached up to 70,000 Thai baht, making it crucial for property owners to stay informed and compliant.
Public statements from local authorities emphasize the need for effective regulation of short-term rentals. The Thai government has even offered amnesties for illegal hotels to comply with regulations, showing a clear intent to enforce these laws. This move is partly due to increased public pressure from media coverage highlighting the negative impacts of short-term rentals on local communities.
Issues like housing shortages and neighborhood disruptions have been brought to light, pushing for tighter regulations. If you're considering investing in a property for short-term rental, it's essential to understand these changes and how they might affect your investment.
Sources: Thai Residential, Bangkok Post, Bangkok Post, Touch Stay
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) Phuket's central region will gain popularity for its mix of urban convenience and natural beauty
The central region of Phuket is becoming a hot spot for property buyers, thanks to its perfect mix of city life and natural beauty.
In recent years, property sales have surged in this area, with luxury developers like Botanica jumping in with ambitious projects. They're rolling out high-end condos in central Cherng Talay, and these have already seen strong pre-launch sales, showing just how much interest there is.
Infrastructure is getting a major boost too. The government is planning to make commuting a breeze with an expressway linking Patong Beach to Phuket Airport and a new monorail system. These upgrades are set to attract more residents and businesses to the central region.
Plus, the area is getting a lifestyle upgrade with new amenities. Projects like "Botanica Grand Avenue" are adding green spaces and art-inspired walking streets, which not only improve life for locals but also preserve Phuket's natural charm.
All these changes are turning the central region into a hub for those who want a balanced lifestyle. It's becoming the go-to place for people who want the best of both worlds—urban convenience and natural beauty.
Sources: Nation Thailand, The Phuket Express, Bangkok Post
12) Luxury property investments will surge in western coastal areas due to scenic views and beach access
The western coastal areas of Phuket are now a hotspot for luxury property investments thanks to their stunning views and beach access.
Imagine waking up to the sound of waves and a view that takes your breath away. That's what draws investors to these areas, where property prices have been steadily rising. Compared to other global destinations, Phuket offers a competitive edge, making it an attractive option for those looking to invest in luxury real estate.
Take, for example, the average price per square meter for luxury properties in Phuket, which is about THB 231,579 (USD 6,415). This is quite competitive on a global scale. The market has shown robust growth with condominium prices increasing by 113% in transaction value as of Q3 2023 compared to the previous year. This growth is not just about numbers; it's about the island's charm as a tourist destination and the luxurious amenities available.
What really sets the western coast apart is the demand for properties with scenic views. The beautiful beaches and crystal-clear waters here attract more buyers than other areas. It's not just about owning a property; it's about owning a piece of paradise.
Branded residences with five-star hotel services are particularly popular among luxury clients. These properties offer prime locations and stunning views, making them a top choice for those who want the best of both worlds—luxury and nature.
Sources: 4Hoteliers, CBRE, Thai Residential
13) Phuket's northern areas will attract more interest with new infrastructure projects linking them to the airport
The northern areas of Phuket are catching more eyes lately, and this trend is set to grow.
Thanks to the Transport Ministry's plans, new infrastructure projects are on the horizon. These include expanding highways and developing a second airport, which will boost Phuket's tourism and logistics. With these changes, getting to the island will be a breeze, especially for those heading north.
In 2023, the government decided to pour 148 billion baht into Phuket's infrastructure. This hefty investment is all about making travel smoother, both by land and air. As these projects unfold, the northern parts of Phuket are expected to draw more tourists and investors, eager to explore the improved access.
Looking ahead to 2025, property prices in northern Phuket are predicted to climb between 3% to 7% compared to 2024. This uptick is fueled by high demand and limited supply, signaling a growing interest in the area. The new infrastructure will make the airport more accessible from the north, further piquing interest.
Real estate is already buzzing, with the total value of land and building transactions in Phuket jumping 46.3% year-over-year in the first ten months of 2023. This surge in transactions shows a strong interest in the region, likely to keep rising as infrastructure projects advance.
Sources: Nation Thailand, Global Property Guide, Bangkok Post
14) Property values in Phuket will rise in areas linked by the expanding public transportation network
The expansion of Phuket's public transportation network, including the new monorail and expressway, is set to boost property values in connected areas.
Historically, properties near transportation hubs, like light rail systems, tend to become more valuable. This is because they become more accessible and desirable. For instance, in Minnesota’s Twin Cities, properties close to transit stations have shown better value retention compared to other areas.
In 2023 and 2024, the Thai government rolled out plans to upgrade Phuket's transportation infrastructure. This aims to make travel easier for both tourists and locals, which is expected to increase demand for properties in popular spots like Phuket Town and Patong.
Looking at other cities, like Istanbul, we see that when transportation infrastructure improves, property values often rise, especially in downtown areas. This trend suggests that Phuket could experience similar growth in property values.
Experts predict economic growth in areas with better transit access. Government reports highlight the expected positive impact on local economies, including property values. Real estate market analyses suggest that the new light rail system and expressway in Phuket are likely to lead to urban renewal and increased property development.
With these changes, Phuket's real estate market is poised for a transformation. The expansion of the public transportation network is expected to drive up real estate values, making it a potentially lucrative time for property investment.
Sources: Bangkok Post, USF Digital Commons, FazWaz, Number One Property
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) Property values will rise in previously inaccessible areas due to road expansions and infrastructure improvements
Road expansions can significantly boost property values in previously hard-to-reach areas.
When roads get wider, it’s like opening a door to new opportunities. Suddenly, these once remote spots become easier to access, making them more appealing to buyers and investors. Imagine being able to reach a beautiful countryside home without the hassle of a long, bumpy drive.
Take Phuket, for example. In 2023 and 2024, projects like the Chalong and Kathu Patong tunnels made a big splash. These tunnels transformed travel across the island, turning previously overlooked areas into hot property spots. As more people could easily visit, property values naturally climbed.
Improved infrastructure doesn’t just stop at making travel easier. It often sparks economic growth. With better roads, businesses can reach more customers, and people find it easier to get to jobs and services. This economic boost can make areas even more attractive, pushing property values higher as more people flock to thriving communities.
In Phuket, experts are buzzing about the future. They believe that as infrastructure keeps improving, property prices will keep rising. The tourism sector is bouncing back, and foreign investors are taking notice, adding to the excitement. Ongoing developments are expected to keep driving up property prices.
Sources: Vanguard Realty Phuket, GovInfo, Ocean WWP
16) Sustainable building incentives will boost eco-friendly developments in Phuket
Phuket is becoming a hotspot for eco-friendly property developments.
In 2023 and 2024, Thailand made a big move by promoting green building practices, focusing on making homes and government buildings more sustainable. This push has laid the groundwork for eco-friendly projects in Phuket.
Phuket is now home to several eco-friendly resorts like Anantara Mai Khao Phuket Villas and The Racha Eco Hotel, which are recognized for their sustainable practices. These places are setting the standard for future developments, showing that eco-friendly is not just possible but profitable.
The local government is also on board, encouraging renewable energy in construction through the Phuket Sustainable Strategies 2030. This plan aims to diversify tourism and support developers who want to go green.
There's also a growing demand for sustainable living options, driven by international travelers from places like Russia and China. This trend shows developers that eco-friendly properties have a market and are in demand.
Sources: UNEP, Green Guides, TTG Asia, Luxe Phuket
17) Blockchain will streamline property transactions, enhancing transparency and efficiency
Blockchain is revolutionizing how we buy and sell property.
In Florida, a pilot project with Propy showed that blockchain can cut closing times by 20%, making buying a home faster and smoother. Imagine not having to wait weeks to finalize your purchase! Over in the Netherlands, a similar project with the Land Registry slashed land transfer times by 50%, which is a huge leap forward for an industry known for its slow pace.
One of the biggest perks of using blockchain is its ability to prevent fraud. The technology creates a secure, unchangeable record of every transaction, so you can trust that your property deal is safe. This is a big deal because it means fewer errors and less chance of someone tampering with your documents.
Cost savings are another bonus. While the Florida project didn't give exact numbers, it did show that using blockchain can save money. In Illinois, a partnership with Ubitquity cut document processing errors by 30%, which means fewer mistakes and less money spent fixing them.
People are starting to trust blockchain more and more for property deals. This trust is growing because of successful case studies and media reports that highlight how transparent and efficient blockchain is. Experts are even predicting that blockchain will play a big role in the future of real estate.
As more people see the benefits, blockchain is likely to become a standard part of property transactions, making the whole process easier and more reliable for everyone involved.
Sources: IdeaUsher, SeSo Global, ELITEX, ACM Digital Library, Scoop Market
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.