As Thailand’s broader property market faces mounting pressure, the island markets of Phuket and Koh Samui continue to stand out. While mainland regions struggle with oversupply, tightening credit, and slower domestic demand, these two destinations remain supported by tourism recovery, foreign interest, and lifestyle-driven rental demand.
For villa and condominium owners, 2026 is not about blind optimism — it’s about understanding where demand is coming from, what risks are emerging, and how to position properties correctly in an increasingly competitive market.
This article breaks down the latest real market insights, rental trends, and external factors shaping Phuket and Koh Samui — with a clear focus on what matters most to property owners.
Why Islands Are Different
Thailand’s Property Market Context
Thailand’s national real estate sector is under strain. High household debt, stricter mortgage approvals, and a growing volume of unsold condominium stock are weighing heavily on buyer confidence. This broader slowdown is well documented in Thailand’s Property Market Faces Extended Slowdown (The Nation Thailand), which highlights how financing conditions and demand weakness are impacting the mass residential market.
Further analysis in Thailand’s Real Estate Market Slump Deepens in 2025–2026 (The Nation Thailand) suggests that the slowdown may persist longer than many developers initially expected, particularly in areas dependent on domestic buyers.
However, Phuket and Koh Samui operate under very different fundamentals. These markets are not driven primarily by local mortgages or first-time buyers. Instead, demand comes from tourism, long-stay visitors, retirees, remote workers, and international buyers who are less sensitive to Thai lending conditions. This distinction is critical for property owners to understand.
Phuket Property Market 2026: Stable, Mature, and Selective
Phuket enters 2026 as Thailand’s most established resort property market. Rather than rapid expansion, the market is now defined by stability and selectivity. The island continues to benefit from limited prime land supply, consistent international interest, and rental demand tied closely to tourism and lifestyle migration.
Foreign buyers from Europe, Australia, the Middle East, and parts of Asia increasingly view Phuket as a long-term base rather than a short-term speculative investment. This mindset supports both rental income stability and resale values, especially for well-located villas and legally compliant condominiums.
An important shift in Phuket’s market is the growing strength of resale properties. As reported in Phuket Enters a New Real Estate Cycle as Resale Market Gains Traction (The Thaiger), buyers are showing increased preference for completed properties with proven rental performance over off-plan developments. This trend reflects a maturing market where income generation, management quality, and property condition matter more than speculative future pricing.
For existing owners, this is positive news. Well-maintained properties with clear rental histories are becoming more liquid and attractive, provided they are priced realistically and professionally managed.
Market Stability
Limited land and steady international demand support stability.
Long-Term Buyer Shift
Buyers increasingly favour long-term ownership over short-term speculation.
Resale Market Strength
Completed, income-producing properties are preferred over off-plan projects.
Villas and Condos in Phuket: Performance and Challenges
Private villas continue to lead Phuket’s rental market, driven by demand from families, groups, and long-stay guests who prioritise privacy, outdoor space, and exclusive amenities. At the same time, guest expectations have risen sharply. Renters now expect hotel-level cleanliness, fast maintenance response, clear communication, and transparent pricing. Villas that fail to meet these standards often see weaker reviews and declining occupancy, regardless of location.
Condominiums remain attractive to long-term tenants, retirees, and remote professionals, with monthly and annual rentals providing more stable income and reduced exposure to seasonality. However, owners must be mindful of legal and building-specific restrictions on short-term rentals. Compliance with condominium bylaws and the Hotel Act can no longer be ignored, as enforcement across Phuket has become more consistent.
Koh Samui Property Market and Outlook for 2026
Koh Samui presents a different profile from Phuket. While Phuket offers scale and maturity, Samui is in a faster growth phase, driven by rising foreign demand and a growing international profile. According to Samui Real Estate Booms as Foreign Demand Accelerates (REIC Thailand), new villa and condominium supply has expanded significantly, reflecting confidence from both developers and buyers.
Foreign buyers, particularly from Europe, are drawn to Samui’s lower density, natural environment, and luxury villa offerings. This has translated into stronger sales activity and improving rental performance, especially for sea-view and well-located properties. Rental demand has also strengthened, with Condo and Villa Rentals Surge in Koh Samui (Forbes Thailand) reporting higher occupancy levels for professionally managed properties during peak travel periods.
Looking ahead, Koh Samui Real Estate Market Forecast 2026 (Conrad Properties) highlights limited land availability, improving infrastructure, and growing international awareness as key drivers of future value. At the same time, Samui is less forgiving when it comes to poor construction quality, weak maintenance, or unclear ownership structures, making professional management and legal clarity essential.
Rental Demand, Risks, and What Owners Should Focus On
Across Phuket and Koh Samui, rental demand remains supported by longer tourist stays, remote work flexibility, and lifestyle migration. Monthly and multi-month rentals are increasingly common, with remote workers prioritising furnished properties, reliable internet, and convenient locations, while long-stay residents focus more on safety, condition, and service quality than headline pricing.
Despite these strong fundamentals, risks remain. Economic pressure, rising competition from new and upgraded properties, and legal compliance around short-term rentals all affect performance. Owners who continue to perform well in 2026 typically work with professional property managers, maintain their properties proactively, and adjust pricing strategically throughout the year.
