As the island develops, Phuket property remains an intriguing investment opportunity for many foreigners seeking a new home in the sun or an interest generating asset. The pace of development across the island continues to accelerate, making it increasingly appealing to property investors.

Many buyers aren’t just looking for a residence or holiday retreat – they’re strategically targeting Phuket’s booming tourism market. To ensure strong returns, investors must consider several key factors that affect both rental yields and long-term resale potential.

Why Invest in Phuket Property?

With traditional bank interest rates struggling to keep pace with inflation, many investors are seeking alternatives that offer stronger growth and income potential. Even during lean periods, well-chosen Phuket properties typically outperform standard savings or fixed income products.

But returns aren’t only about rental income — resale value matters too. A sound investment is one that remains in high demand and sells easily when it’s time to exit.

Location Still Reigns Supreme

We’ve all heard it before: “location, location, location.” In Phuket, this still rings true.

East vs. West Coast

While the east coast has seen more development recently – with scenic views over Phang Nga Bay – it lacks the tourism infrastructure and rental demand of the west coast. Serious investors are far better served focusing on the west, where over 90% of tourists choose to stay, particularly in areas like Rawai, Nai Harn, Kata, Karon, Patong, Kamala, Surin, Bang Tao, and Laguna.

Explore Phuket villas for sale in high-demand west coast areas.

What Makes a Property Truly Investable?

1. Sea Views

Sea view properties remain top of the wishlist for many buyers. While they command a premium, they also offer stronger rental yields and better resale prospects.

2. Proximity to the Beach

If a sea view isn’t within budget, then being close to the beach is the next best thing. Properties within walking distance to popular west coast beaches tend to rent more successfully.

3. Popular West Coast Locations

Areas with superior infrastructure such as a broad selection of restaurants, even some nightlife, tend to outperform more remote locations. For better rental income, for example, Laguna, Nai Harn and Rawai have been consistently top performers.

Villa or Condo: Which Is Better for Investment?

Villas

– Higher rental potential during peak season

– Greater privacy and space

– Private pool

Limitation with villas: Foreigners cannot own land directly. Leasehold or legitimate Thai company structures are required for ownership.

Read our comprehensive guide on the options for owning property in Phuket

Condos

– Foreigners are allowed to own a foreign freehold unit (the Condominium Act allows this for  up to 49% of each building)

– Clear title registered at the local Land Office

– Lower maintenance and hassle-free management

– Ideal for rental income and resale

Browse condos for sale in Phuket

Studio or Multi-Bedroom?

Studios and one-bedroom condos in rental pools can generate attractive yields, especially in hotel-licensed buildings. Larger villas (3-4 bedrooms) on the west coast also achieve near-full occupancy in high season.

Guaranteed Rental Returns

Some off-plan condominiums try to entice buyers by offering guaranteed returns. These may be anything between 4% and 7% per annum, and usually for periods of between 3 and 5 years. However, be wary of offers that seem too good to be true (e.g., 10% for 15 years). Developers may default under “force majeure” clauses, as seen during the COVID-19 pandemic.

Importance of Hotel Licensing

Short-term rentals (under 30 days) are only legal in hotel-licensed properties. For investment condos targeting Airbnb or daily rentals, a hotel license is non-negotiable. Always verify that the Condominium Juristic Person (CJP) allows short-term letting.

Legal and Structural Considerations

  • Secured Leaseholds: Some estates offer renewable lease structures with collective owner voting rights – which are better than basic leaseholds.
  • Thai Company Ownership: The Thai company must adhere 100% to all the corporate laws of Thailand and be legally compliant, but involves added costs and complexity.
  • Due Diligence: Use an experienced independent lawyer – not one affiliated with the developer.

Buyers should always ensure properties are legal, titles are clean, and agreements are bulletproof. Avoid hard selling techniques which may lead to poorly advised purchases. Don’t be pushed into a purchase by a persuasive agent or developer.

Unique Features That Boost Value

– High ceilings (volume as well as square metres)

– Floor-to-ceiling concertina windows

– Spacious balconies

– Modern kitchens and amenities

– On-site facilities, such as a gym, pool bar, restaurant etc.

Final Word: Is Your Investment 100% Legal?

If you’re buying through a shopping mall kiosk from a part-time agent, or skipping legal advice, you’re asking for trouble. It pays to work with an experienced agency and a reputable and experienced lawyer.

Some developers have sold land they don’t own, or properties on protected forest land – leaving buyers in precarious legal situations. Use a reputable lawyer, do your homework, and verify “everything”.

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