Strong Rental Yields in Phuket: What the Data Shows
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The average gross rental yield in Phuket stands at approximately 5.88%, slightly above Thailand’s national average of 6.17%
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Two-bedroom units in Phuket have shown yields of up to 7.0%, outperforming many other cities in mainland Thailand
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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
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Tourist recovery is strong — Phuket welcomed over 35 million international visitors in 2024, boosting short-term rentals and seasonal occupancy
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Remote work and expat growth are here to stay — digital nomads and retirees now in high numbers support longer-term rental demand.
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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
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Short-term (holiday rental): Seasonal peaks drive higher nightly rates in tourist hotspots (Patong, Kata, Kamala).
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Long-term rentals: Consistent rental demand around expat hubs (Phuket Town, Cherng Talay, Bang Tao).
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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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