Phuket Real Estate Market in 2025: How the Resort Segment Has Changed

Phuket’s real estate market demonstrates stable growth and high activity from foreign investors. Thailand is recovering after pandemic restrictions, and the resort area is becoming attractive for long-term capital once again. The reason is obvious – high liquidity, low entry threshold, and a stable flow of tourists, making investments in the city’s real estate particularly relevant.

The market interest on the island is supported not only by tourists but also by expatriates. Many prefer to spend winters in Thailand, and some stay on a permanent basis. These needs create a stable demand for rentals, which, in turn, guarantees rental income and quick return on investments.

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What Foreigners Can Buy in Phuket: Important Nuances

Not all forms of ownership are available to foreign citizens. However, there are fewer restrictions than it may seem at first glance.

Let’s take a closer look at the options for purchasing real estate in Phuket:

  • apartments in condominiums – can be owned in full private ownership;
  • villas through long-term lease – up to 90 years under a leasing scheme;
  • properties through a Thai company – a legal form for land ownership;
  • investment projects from developers – with a fixed rental contract;
  • commercial property – usually through company registration.

This format – purchasing real estate in Thailand by foreigners – most often occurs through the acquisition of an apartment, rather than land, which is legally simpler and faster.

Prices and Profitability: What’s Happening in Phuket’s Real Estate Market

In 2025, property prices continue to rise, especially noticeable in the premium segment of seaside residences and apartments. The average cost of apartments has increased by 8-10% compared to the previous year. Villas have become even more expensive – demand is stable, while supply is limited.

Profitability depends directly on the location. Tourism centers – Patong, Kata, Karon – provide quick returns through short-term rentals. The average profitability is 5-7% per year, with a possible increase to 9-10% during peak months.

Those who purchased property during the construction phase in 2025 are seeing a capitalization growth of up to 20%, making investments in island real estate particularly profitable in the long term.

What to Consider When Choosing a Property?

When choosing a property in Phuket, it is important to consider not only the price but also a number of factors that directly affect the profitability and stability of investments.

The key criterion is the location of the property – the more popular it is among tourists, the higher the potential rental income. Proximity to the beach is also important: this location makes the property more liquid and in demand for short-term rentals.

Having a professional management company allows the owner’s involvement to be minimized, which is especially relevant for investors living outside the country. Legal clarity of the transaction and having a complete set of documents play a crucial role in investment security.

An additional advantage can be a guaranteed contract providing a fixed rental income for a predetermined period.

All these parameters together allow for choosing an asset with high profitability and minimal legal or operational risks.

Expenses Associated with Real Estate Deals in Phuket

Buying property involves more than just paying for the property. There are a number of mandatory expenses that everyone entering the Phuket real estate market should consider. Let’s look at the parameters in more detail:

  • acquisition tax – 2-3% of the transaction amount;
  • registration fee – a fixed fee when completing the transaction;
  • complex maintenance – monthly payments for security, pool, infrastructure;
  • management – up to 30% of income goes to the management company;
  • agent commission – up to 5% of the property value.

All costs are part of the standard structure accompanying the purchase of property. They are not critical, but play a role in calculating profitability and payback periods.

Advantages of Investing

The reason why the region of Thailand continues to attract investors lies in the combination of stability, transparent rules, and favorable investment conditions.

Phuket’s real estate market shows confident price growth, and thanks to the developed infrastructure – with quality roads, medical facilities, schools, and shopping centers – the region becomes comfortable not only for tourists but also for permanent residence.

An additional advantage is the tax policy: there is no capital gains tax, and purchase fees are fixed and predictable. High rental demand is generated by a constant flow of tourists and a growing number of expatriates, making investments particularly attractive in terms of passive income.

The region’s position is strengthened by the stable exchange rate of the Thai baht, which allows for transactions on favorable terms.

All these advantages make buying property in Phuket not only a sensible strategy in conditions of global instability but also an opportunity to combine leisure with a profitable investment.

Seasonality and Rentals: When to Earn More

The high season on the island lasts from November to March. During this period, the tourist flow is at its peak, and the demand for rental properties is high. This is the best time to maximize rental income. In the low season, summer, occupancy decreases, but stability is maintained due to long-term rentals from expatriates and digital nomads.

To avoid downtime, many owners work with management companies that optimize occupancy even off-season, offering flexible accommodation conditions and promotions.

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Phuket Real Estate Market: Conclusions

In 2025, Phuket’s real estate market remains one of the most stable and promising in Southeast Asia. Transparent purchase schemes are provided for foreign citizens, and the advantages of investing are clear – rising prices, developed infrastructure, low taxes, and high liquidity.

If you are considering buying property in Phuket, it is important to consider not only the price per square meter but also all associated expenses. With a smart approach, investors can expect stable profitability, asset value growth, and reliable passive income against the backdrop of an exotic resort.

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