Strong Rental Yields in Phuket: What the Data Shows

  • The average gross rental yield in Phuket stands at approximately 5.88%, slightly above Thailand’s national average of 6.17%

  • Two-bedroom units in Phuket have shown yields of up to 7.0%, outperforming many other cities in mainland Thailand

  • Luxury villas in high-demand zones such as Bang Tao, Kamala, and Patong deliver gross yields between 6–10%, with prime beachfront locations offering potentially 10% returns or more

See the comparison table in-market:

Property Type Average Gross Yield
Phuket condos (2-bed) ~7%
General condo stock ~5.9%
Luxury villas 6–10%+

What’s Fueling Demand on the Island

  • Tourist recovery is strong — Phuket welcomed over 35 million international visitors in 2024, boosting short-term rentals and seasonal occupancy

  • Remote work and expat growth are here to stay — digital nomads and retirees now in high numbers support longer-term rental demand.

  • New branded residences and serviced condos offer hassle-free rental solutions for overseas buyers.

You can read more about owning a hotel licensed condominium here:

Owning a Freehold Hotel-Licensed Condominium in Thailand

Short-Term vs Long-Term Rental Models

  • Short-term (holiday rental): Seasonal peaks drive higher nightly rates in tourist hotspots (Patong, Kata, Kamala).

  • Long-term rentals: Consistent rental demand around expat hubs (Phuket Town, Cherng Talay, Bang Tao).

  • Effective property management is crucial to maintaining occupancy and yield performance year-round.

FAQ: Phuket Rental Income Demand

Q: What gross rental yield can I expect from Phuket property?
A: Rental yields for condos range from 5–7%, while luxury villas can deliver 6–10% gross annually, depending on location and season

Q: Which areas in Phuket have the highest rental demand?
A: High-demand zones include Bang Tao, Kamala, Kata, and Patong for short-term rental; Cherng Talay and Phuket Town are strong for long-term renters.

Q: Should I invest in a condo or villa for better rental returns?
A: Phuket Condos offer consistent yields with lower entry costs. Villas typically require higher investment but may yield better returns if managed as holiday rentals.

Q: What reduces effective rental returns?
A: Operating expenses—property management, cleaning, utilities, repairs, insurance, and taxes—typically reduce net return by 1.5–2% from gross yield.

If you’d like to read more about the Phuket real estate market, please read our comprehensive Phuket Property Guide 

Related Reading & Internal Links

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