Invest in Phuket Real Estate: what the data says in 2026

By PA Real Estate · 5 November 2026

Phuket used to be an island where people dreamed of owning a villa. Today it is a market: international developers are launching branded residences, a new hospital and an international school are on the way, and foreign buyers make up a large share of sales. It is also a market with real risks, which this guide does not hide.

We are a real estate team based in Phuket, at Royal Phuket Marina, helping buyers from Monaco, France, Thailand and beyond buy villas and condos on the island. Here is how we read the numbers.

Thailand: a growing economy and one of the world's most visited countries

Thailand's economy keeps growing: 2.4% in 2025, and around 2% expected in 2026. That stable base matters, but investors come to Phuket for what the island does best: attracting visitors and international buyers.

Tourism is the engine. About 33 million international visitors came to Thailand in 2025, and 17.4 million passengers went through Phuket's airport. When visitors keep coming, hotels, restaurants, rentals and resale demand follow. That is also why this market reacts when tourism slows, a point we come back to below.

What foreign buyers can buy in Thailand

Foreigners cannot own land in Thailand, but they can own a condo outright, as long as foreigners hold no more than 49% of the building. Villas are generally bought through other structures, which your lawyer must set up for your situation.

When you read market reports, you will see the word transfer. A transfer is the registered change of ownership at the Land Department, so it counts a purchase that has actually been completed, not a reservation. In 2025, foreigners completed about 14,900 condo purchases across Thailand, roughly one condo in seven.

Phuket: where the numbers get interesting

Phuket is the third-largest market in the country for foreign condo buyers, after Bangkok and Pattaya's province, Chonburi. In 2025 foreigners completed 1,190 condo purchases in Phuket, worth THB 6.09 billion in total, about THB 5 million each on average.

Villas have changed scale. Before the pandemic, Phuket recorded around 150 villa sales a year. In 2024 it recorded about 600, roughly four times more.

Who is buying? The same market report gives two figures:

• 43% of villa buyers are foreigners, mostly from the UK, Hong Kong and the United States.
• Among them, 68% buy as an investment, and the others for their own use.

What does a condo cost? It depends on the area, and the price per square metre is the easiest way to compare. For a condo, the typical prices per m² are:

• Bang Tao and Laguna: THB 120,000 to 200,000, so about THB 12 to 20 million for a 100 m² condo.
• Cherng Talay: around THB 220,000.
• Patong: THB 100,000 to 160,000.
• Rawai and Nai Harn (south): THB 85,000 to 140,000.

The most active launches are on the west coast, between Bang Tao, Cherng Talay and Layan. That is where the beaches, international schools and branded hotels cluster, and buying there means paying for that infrastructure, which is also what supports rental income and resale.

Phuket is moving: what is being built

The best proof that investors believe in the island is what is going up. Let us start with a project we know well.

Kiara is not alone. Here are other launches from the past year, all within a few kilometres of each other:

Branded residences are the clearest trend. A branded condo in Phuket averages about THB 198,000 per m², and a little more in Bang Tao and Kamala. Developers are betting that buyers will pay for a hotel name, services and a rental programme.

And the island is being equipped around them

Buying in Phuket also means buying next to services that are arriving now: a hospital, an international school, a large mall and, in the longer term, more airport capacity.

Images: developers' and operators' press material. Phuket airport (MNXANL) via Wikimedia Commons, CC BY-SA 4.0.

Returns: what to expect

We want to be careful here, because yield figures are where marketing tends to get ahead of reality. We found no independent, audited yield statistic for Phuket. What exists are estimates from local agencies, and they differ.

Two terms matter. The gross yield is the yearly rent divided by the purchase price, before any cost. The net yield is what remains after management fees, maintenance, taxes and empty weeks. Always compare net yields.

The gap between gross and net comes mostly from management fees, often 20% to 30% of the rent. Capital growth is the other half of the case, but we would not rely on any average either. Ask any developer for a documented rental history, not a projection.

The risks to price in

Market risks

• More condos than buyersCompleted condo supply has risen sharply, and developers have started to slow their launches.
• Hotels are slowingHotel occupancy fell by 3.3 points in 2025, and rental income depends on the same visitors.
• Tourism goes in cyclesInternational arrivals to Thailand were down 4.9% in the first half of 2026.
• Dependence on a few marketsChinese demand has weakened while other nationalities have grown. Currencies matter too.

Risks outside the market data: contracts, builders and construction

Many Phuket investors buy off-plan or build a villa from abroad. That adds risks no market report measures, and they are the most expensive ones. Phuket Advice Company, an independent Owner's Representative, can take care of each of them.

Where to buy: the case for Layan Bay

For buyers who want a premium, low-density address rather than the busiest beaches, Layan Bay stands out. It lies north of Bang Tao, about twenty minutes from the airport, with one of the island's few undeveloped beaches, an Anantara resort, restaurants, a wellness centre and sports facilities. These are the residences we present there:

And a selection of homes you can visit today:

We also work with other projects on the island. If you are comparing Bang Tao, Kamala, Surin or Rawai, we will tell you where each one makes sense for your goal: rental income, a second home or capital growth. See all our Phuket properties for sale.

How we work with international buyers

PA Real Estate is based at Royal Phuket Marina. Many of our clients buy without being on the island, so everything is built around that.

If you are considering an investment in Phuket and want an honest view of the market, contact our team.

Frequently asked questions