Is Phuket a good place for foreigners to invest in property?
Phuket remains one of Asia’s most attractive international property investment destinations and has good reason. Known for its amazing beaches, vibrant tourism industry, growing expatriate communities and steady rising property values, Phuket offers a unique combination of lifestyle appeal and economic opportunity. A good and experienced Phuket real estate company Can help you find the most suitable attributes for you.
In 2025, we continue to see strong momentum for demand and property value across the island. Whether you are an experienced investor or a first-time buyer looking to acquire tropical assets, in this guide we will further examine how foreigners buy and own property in Phuket.
Why invest in Phuket properties?
Foreigners are attracted to Phuket, not just beautiful scenery and leisurely lifestyles. The real estate market here is driven by some core fundamentals:
High rental output
Phuket’s position as a global tourist hotspot has led to a strong demand for short-term and long-term rental accommodation. Well-positioned properties can be between 5% and 15% based on location, property type and management’s annual rental yield.
Capital growth potential
Real estate prices throughout the island are steadily appreciated, especially in areas with ongoing infrastructure development such as Bangtao, Layan, Cherngtalay and Rawai. Projects such as Phang NGA’s new airport and extended road network are expected to further boost long-term price appreciation.
Various investment options
Phuket offers something for everyone – from beachfront apartments and hillside villas to modern townhouses and boutique developments. Investors can tailor their strategies to fit their budget, rental goals and risk tolerance.
Exploiters and retirees needs
Phuket has become the second home for many expats and retirees from Europe, Russia, China and the Middle East. This adds to the need for long-term rentals, especially in areas near international schools, medical facilities and lifestyle facilities.
Guaranteed rental return plan
Many developers in Phuket offer guaranteed rental income (GRR) plans, offering fixed annual returns for a period of 3 to 15 years, ranging from 5% to 10%. These plans are popular among passive investors who prefer the development approach.
Under a typical GRR program, developers manage all aspects of real estate rents, including marketing, tenant screening, maintenance and operations. In return, investors receive consistent spending regardless of the actual occupancy level.
Some projects even offer buyback terms, which provide investors with exit options after the guarantee period ends. Although these options are attractive, it is important to carefully evaluate the developer’s history, occupancy forecasts and contract terms.
Best areas of Phuket to invest in rental income
Different communities in Phuket offer various advantages for different investor goals. Here are some of the best performing areas:
Bangtao & Laguna
The area offers high-end beach living, international brands and strong rental demand. It is home to luxury villas, golf courses, beach clubs and premium developments. Bangtao attracts tourists, digital nomads and long-term foreign tenants.
Chengetale
Cherngtalay is a rapidly growing community from Bangtao’s inland area that balances tranquility and accessibility. Boutique villa estates and modern apartments are growing here, attracting renters and buyers.
Layan
Layan is known for its quiet, low-density waterfront and exclusive estates, calling on investors seeking premium rental income or private luxury living. Villas here often identify travelers with premium rents.
Rawai & Naiharn
Located in southern Phuket, these areas are popular among long-time expats, retirees and digital nomads. A relaxing lifestyle and access to the scenic beach make this an excellent choice for a long-term rental strategy.
Kata & Karon
These communities are ideal for families and short-term holidaymakers, providing mid-distance for high-end rental opportunities. They combine beach access with restaurants, cafes and family-friendly atmosphere.
Padon
The island’s entertainment capital Patong provides unparalleled tourist transportation and high occupancy for short-term rentals. Although competition is fierce and management needs are higher, yields here may be high.
Short-term and long-term rentals: Pros and cons
When planning a real estate investment in Phuket, a decision must be made between short-term or long-term rentals.
Short term rental
Higher income potential: Especially during peak tourism
Dynamic pricing: Able to adjust the rate according to demand
Travel Drive: Great for properties near beaches and nightlife
Higher participation: More frequent management, cleaning and communication between guests
Long-term rental
Stable monthly income: Predictable cash flow over time
Reduce turnover costs: Less vacancies and transitions
Ideal for expats: Especially near schools and hospitals
Low total output: But more stable and passive
Some investors adopt Mixed methodshort-term rentals are offered in high seasons and switch to long-term rentals in low-level tourist months.
Thailand property financing as a foreigner
Phuket is mainly a cash-driven market. Foreigners face significant restrictions on bank financing.
That is, there are some ways:
Developer financing: Provided by select developers, usually 1-2 years
Private or offshore loans: Some efforts and collateral arrangements can be made
Thailand company ownership: Legal structure used to purchase land properties, although this method must comply with Thai regulations
Due to these restrictions, most foreign buyers fund their purchases through direct payments or international transfers.
Phuket and other Thai archipelago
Compared to other islands such as Koh Samui, Koh Tao or Koh Phangan, Phuket stands out in terms of diversity in its infrastructure, accessibility and features.
Phuket has international airports, world-class hospitals, international schools and established luxury markets. Although other islands may offer lower inbound prices, they often lack the consistency and market depth of Phuket.
Market prospects: Where is Phuket?
Phuket’s real estate market has shown a steady upward momentum over the past 10 years. Despite global disruption like the 199th pandemic, the island rebounded quickly due to resilient tourism and strong local demand.
Land scarcity, improved infrastructure, and global interest in lifestyle destinations have contributed to ongoing price appreciation. New developments continue to develop, providing residents and investors with high-quality, designed property.
With the booming tourism industry and the rise of international interest, Phuket is expected to continue to grow, making it one of the most powerful real estate investment destinations in 2025 and beyond.
