Phuket isn’t just Thailand’s most iconic island—it’s also one of the country’s hottest property markets in 2025. With stunning beaches, rapid infrastructure growth, and rising interest from both local and international buyers, the real estate scene is booming.
What’s especially noteworthy is that Thai nationals still hold a strong share of the market, particularly in condos and landed homes, despite growing foreign demand. Backed by high rental yields, steady capital growth, and government support, Phuket remains one of Southeast Asia’s top investment destinations—especially for Thai owners.
Who Owns Phuket Property?
While it may seem like Phuket is overrun with overseas buyers, the numbers tell a different story.
- Foreigners account for 60–70% of residential purchases
- Thai nationals still hold 30–40%, especially in villas and land
- Condominium law mandates 51% local ownership
Bottom Line: Foreign buyers dominate the market activity, but Thai nationals own the majority of overall property stock—especially in houses, land, and condos with majority local ownership.
Rental Yields & Capital Growth
Investment Performance
| Location | Rental Yield (2025) | 10-Year Price Growth | Notes |
|---|---|---|---|
| Phuket | 6–10% | 300%+ | High growth; strong tourism recovery |
| Bangkok | 5–6% | Steady | Urban condos in demand |
| Pattaya | ~5–8% | Growing | Gaining popularity |
| Singapore | ~2–3% | Moderate | Very high price per sqm |
| Hong Kong | ~1–2% | Volatile | Very restricted ownership |
Phuket’s average gross rental yield sits at approximately 6.17%, with villas and premium condominiums often reaching returns of 7–10% or more (source). This strong rental performance is complemented by consistent capital appreciation. In 2025 alone, property prices in Phuket are expected to rise by 10–15%, according to market forecasts (source). Over the past decade, certain prime areas have recorded land value increases of over 300%, reinforcing Phuket’s position as a high-ROI property market.
Key Advantages for Thai Investors
Why It’s Great for Thai Buyers
Ownership Security
Thai buyers can own land, houses, and full condos directly—no need for foreign legal structures.
Financing Access
Thais get easy local bank financing, while foreigners often pay cash—adding long-term market stability.
Rental Demand
9M+ tourists expected in 2025, driven by “Amazing Thailand,” a cruise terminal, and high-speed rail.
Thai buyers enjoy early access to exclusive pre-launch pricing through trusted local agent networks, giving them a clear advantage in new developments. In addition, Thailand’s exemption from annual property tax on non-rented residential homes provides significant long-term savings. With Phuket International Airport set to expand with a second terminal—designed to handle over 20 million passengers per year—accessibility and tourism demand are only expected to rise, reinforcing the island’s appeal for long-term investment.
Data Overview & Ownership Structure
Market Data at a Glance (Q1 2025)
| Metric | Value |
|---|---|
| Total Residential Units | 40,600+ |
| Condo Share | 83% of market |
| Thai Ownership in Condos | Minimum 51% (by law) |
| Rental Yields | 6–10%, depending on location |
| 2025 Price Growth Forecast | 10–15% |
| 10-Year Land Value Growth | Over 300% in top locations |
Investment Strategies
Villas Vs. Condos
New legislation under consideration may soon allow foreigners to own up to 75% of condominium units in designated tourist-heavy zones like Phuket. This proposed change aims to attract more international investment in key resort destinations. However, despite the potential shift, Thai investors are expected to continue holding the majority share, especially given existing ownership advantages, legal protections, and longstanding local presence in the property market.
Villas
Villas offer higher upfront costs but greater long-term value, making them ideal for Thai families and retirement planning. They also deliver strong luxury rental yields.
Condos
Condos are more affordable and easier to rent short-term. With Thai ownership required at over 51%, they’re well-suited for buy-to-let strategies in high-demand areas.
A Clear Path Forward
Phuket’s property market continues to offer a strategic edge for Thai investors. With clear legal ownership rights, strong rental yields, and long-term growth supported by a booming tourism sector, it provides both stability and opportunity. Unlike many global markets, Phuket remains largely cash-driven and insulated from mortgage risks, giving local buyers an additional layer of protection. Whether you’re building a family legacy or growing your portfolio, Phuket stands out as one of Thailand’s most resilient, rewarding, and secure investment destinations.
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