The Phuket Investment property has continued into 2025 with momentum, driven by tourism, expanding infrastructure, and strong demand from both international buyers and long-term expats. In this 2025 investment snapshot, we reveal the best-performing areas, current ROI trends, and where savvy investors are putting their money right now.

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.

1. Why Make a Phuket Property Investment in 2025

Phuket’s property market is entering 2025 in one of its strongest positions in years. International tourism has not only recovered but could possibly surpass the pre-2020 visitor numbers, with this surge driving demand for both short and long-term rentals.

Key infrastructure projects are also set to transform the island this year, including the completion of many new roads, tourist attractions shopping malls. These improvements are making travel between key residential and resort areas smoother, as well increasing the appeal of previously under-served neighbourhoods.

With rental demand now fuelled by both holidaymakers and a growing community of long-stay expats, 2025 presents a rare combination of high occupancy potential and strong capital growth prospects.

Why Invest in Phuket Property in 2025?

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. Especially if you are making a Phuket property investment with the sole intention of generating income.

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.

Best Areas for Phuket Property Investment

  • Rawai & Nai Harn – Continues to be a hotspot for expats and retirees, with villa prices still offering value compared to the north. In 2025, we’re seeing more boutique villa developments aimed at long-term rental markets, boosting yields.

  • Bang Tao & Laguna – The luxury segment remains strong, with branded residences and high-end villas maintaining high occupancy rates. Over the past 12 months, average prices in this area have risen by approximately 15%, driven by ongoing resort expansion and limited supply of premium beachfront units.

  • Kata & Karon – Popular with holidaymakers and surfers, these areas have seen a steady return of tourism in 2025, pushing short-term rental rates higher during peak months. New condo launches in the last year have been selling fast, showing strong buyer confidence.

  • Chalong – With new roadworks easing congestion and its proximity to schools and marinas, Chalong remains a top choice for long-term renters. In 2025, family-sized villas are in especially high demand, keeping vacancy rates low.

Expected Returns in 2025

For investors in 2025, rental yields remain attractive across Phuket, though they vary by area and property type:

  • Short-term rentals: In prime tourist areas like Bang Tao, Laguna, Kata, and Karon, yields of 6-10% per annum are achievable with proper licensing and professional management. This is supported by record high-season occupancy rates in 2025.

  • Long-term rentals: In expat-heavy areas such as Rawai, Nai Harn, and Chalong, steady yields of 6-7% per annum are common. Demand for well-maintained villas and family homes has remained consistent throughout 2025, reducing tenant turnover. Some carefully selected properties around the island can even generate long term rental returns of up to 10% per annum.

  • Capital appreciation: Select areas have seen annual growth between 5-15% in the last year, with Bang Tao and Laguna leading the market. New infrastructure and limited land availability suggest prices could continue climbing in late 2025 and into 2026.

What Makes a Property Truly Investable?

1. Sea Views

Sea view properties remain top of the wish list for many buyers looking at a Phuket property investment. 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?

Investment Villas in Phuket

– 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.

Browse Phuket Villas For Sale 

And:

Read our comprehensive and renowened Phuket Property Guide on how to own Phuket real estate 

Investment Condos in Phuket

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

– Clear ownership title registered at the local Land Office

– Lower maintenance and hassle-free management

– Ideal for rental income and resale

– Branded Residences offer solid investment with excellent management

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. If you are intent on making a Phuket property investment, don’t get taken in by the hype.

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 For Your Phuket Property Investment 2025

– 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 Phuket Property 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”.

Why 2025 Is the Right Time For a Phuket Property Investment 

Phuket’s real estate market continues to show strength in 2025, especially in high-demand areas like Rawai, Kamala, Kata, and Bang Tao. With increasing international interest, expanding infrastructure, and limited land supply, the island remains a top destination for property investment in Thailand. Whether you’re focused on capital appreciation, rental yields, or securing a lifestyle asset, investing in Phuket property now positions you for long-term success in a resilient and growing market.

2025 Phuket Property Market Overview

A Market at a New Peak

Phuket in 2025 is set to welcome more than 13 million visitors, almost matching its all-time tourism high. This surge is driving strong demand for both short-term rental properties and prime coastal homes, putting well-positioned assets in the spotlight for investors. Phuket saw 8.65 million passenger arrivals in 2024, a 23% increase from 2023 and just 5% shy of the 2019 high of 9.07 million.

Growth Potential with Stability

While Thailand’s national property forecasts point to 2-5% price growth this year, Phuket continues to outperform. Branded residences, sea-view villas, and well-located condos are achieving rental returns of 6-10%, making the island one of Asia’s most appealing lifestyle-investment destinations.

Infrastructure & Legal Confidence

Major developments, such as the proposed Phuket Light Rail Transit, a new Phang Nga airport, and expansion at Phuket International Airport, are reshaping connectivity and future-proofing the market. Since 2024, tighter enforcement of foreign ownership regulations has created a safer, more transparent environment for legitimate buyers, especially within the foreign freehold condo quota.

Trusted Local Insight

With over 25 years of experience navigating Phuket’s property cycles, we’ve helped clients secure opportunities that deliver both lifestyle rewards and long-term capital growth. Our market knowledge ensures you’re ahead of the curve in this competitive environment.

Why Act Now

Well-located villas and high-end condos are already attracting multiple offers, waiting could mean paying more for the same property within months. Imagine enjoying your private terrace at sunset while your investment works quietly in the background.

Key Takeaways & Recap:

  • Strong tourism and rental demand in 2025

  • Growth rates outpacing much of Thailand

  • Infrastructure upgrades enhancing long-term value

  • Legal clarity improving buyer security

  • Limited prime supply driving competition

With fundamentals strong and momentum building, now is the time to explore Phuket’s prime investment opportunities. Contact our expert team today and let us guide you to the perfect property.

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Investing in Phuket Property: Where Smart Buyers Are Putting Their Money

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