Is Phuket a Good Place for Foreigners to Invest in Property?
Phuket remains one of Asia’s most attractive destinations for international property investment—and with good reason. Known for its stunning beaches, vibrant tourism industry, growing expat community, and steadily rising property values, Phuket offers a unique combination of lifestyle appeal and financial opportunity. A good and experienced Phuket real estate agency can help you find the most suitable property for you.
In 2025, we continue to see strong momentum in both demand and property values across the island. Whether you’re a seasoned investor or a first-time buyer looking to secure a tropical asset, in this guide, we will look further into how foreigners can buy and own property in Phuket.
Why Invest in Phuket Property?
Foreigners are drawn to Phuket for more than just beautiful scenery and a laid-back lifestyle. The real estate market here is driven by a few core fundamentals:
High Rental Yields
Phuket’s status as a global tourist hotspot results in strong demand for short-term and long-term rental accommodations. Well-positioned properties can earn annual rental yields between 5% and 15%, depending on location, property type, and management.
Capital Growth Potential
Property prices across the island have appreciated steadily, especially in areas with ongoing infrastructure development such as Bangtao, Layan, Cherngtalay, and Rawai. Projects like the new airport in Phang Nga and expanded road networks are expected to further drive long-term price appreciation.
Variety of Investment Options
Phuket offers something for everyone—from beachfront condominiums and hillside villas to modern townhomes and boutique developments. Investors can tailor their strategy to match their budget, rental goals, and risk tolerance.
Expat and Retiree Demand
Phuket has become a second home for many expats and retirees from Europe, Russia, China, and the Middle East. This fuels demand for long-term rentals, especially in areas close to international schools, medical facilities, and lifestyle amenities.
Guaranteed Rental Return Programs
Many developers in Phuket offer guaranteed rental return (GRR) schemes, providing fixed annual returns ranging from 5% to 10% for terms between 3 and 15 years. These programs are popular among passive investors who prefer a hands-off approach.
Under a typical GRR scheme, the developer manages all aspects of property rentals, including marketing, tenant screening, maintenance, and operations. In return, the investor receives a consistent payout regardless of actual occupancy levels.
Some projects even offer buy-back clauses, giving investors an exit option once the guarantee period ends. While these schemes are attractive, it’s important to evaluate the developer’s track record, occupancy forecasts, and contract terms carefully.
Best Areas in Phuket to Invest for Rental Income
Phuket’s diverse neighborhoods offer various strengths for different investor goals. Here are some of the top-performing zones:
Bangtao & Laguna
This area offers high-end beach living, international branding, and strong rental demand. It’s home to luxury villas, golf courses, beach clubs, and premium developments. Bangtao attracts tourists, digital nomads, and long-term expat tenants.
Cherngtalay
A rapidly developing neighborhood just inland from Bangtao, Cherngtalay offers a balance of tranquility and accessibility. Boutique villa estates and modern condominiums are growing here, appealing to both renters and buyers.
Layan
Known for its quiet, low-density beachfront and exclusive estates, Layan appeals to investors seeking upscale rental yields or private luxury living. Villas here are often rented at premium rates to discerning travelers.
Rawai & Naiharn
Located in Phuket’s south, these areas are popular with long-term expats, retirees, and digital nomads. The relaxed lifestyle and access to scenic beaches make this an excellent choice for long-term rental strategies.
Kata & Karon
Ideal for families and short-term holidaymakers, these neighborhoods offer mid-range to high-end rental opportunities. They combine beach access with restaurants, cafes, and a family-friendly atmosphere.
Patong
The island’s entertainment capital, Patong offers unbeatable tourist traffic and high occupancy for short-term rentals. While competition is fierce and management needs are higher, yields here can be substantial.
Short-Term vs. Long-Term Rentals: Pros and Cons
When planning a property investment in Phuket, deciding between short-term or long-term rentals is essential.
Short-Term Rentals
Higher Income Potential: Especially during peak tourist seasons
Dynamic Pricing: Ability to adjust rates based on demand
Tourist-Driven: Great for properties near beaches and nightlife
Higher Involvement: Requires more frequent management, cleaning, and guest communication
Long-Term Rentals
Steady Monthly Income: Predictable cash flow over time
Lower Turnover Costs: Fewer vacancies and transitions
Ideal for Expats: Especially near schools and hospitals
Lower Gross Yields: But more stable and passive
Some investors adopt a hybrid approach, offering short-term rentals during the high season and switching to long-term leases during low tourist months.
Financing Property in Thailand as a Foreigner
Phuket is primarily a cash-driven market. Foreigners face significant limitations when it comes to bank financing.
That said, some avenues exist:
Developer Financing: Offered by select developers, typically interest-free for 1–2 years
Private or Offshore Loans: Can be arranged with some effort and collateral
Thai Company Ownership: A legal structure used to buy landed properties, although this approach must comply with Thai regulations
Because of these constraints, most foreign buyers fund their purchases through direct payments or international transfers.
Phuket vs. Other Thai Islands
Compared to other islands like Koh Samui, Koh Tao, or Koh Phangan, Phuket stands out for its infrastructure, accessibility, and diversity of properties.
Phuket has an international airport, world-class hospitals, international schools, and an established luxury market. While other islands may offer lower entry prices, they often lack the consistency and market depth of Phuket.
Market Outlook: Where Is Phuket Headed?
Over the past 10 years, Phuket’s real estate market has shown steady upward momentum. Despite global disruptions like the COVID-19 pandemic, the island bounced back quickly thanks to resilient tourism and strong local demand.
Land scarcity, improved infrastructure, and global interest in lifestyle destinations have all contributed to consistent price appreciation. New developments continue to evolve, offering high-quality, design-forward properties for both residents and investors.
With tourism thriving and international interest on the rise, Phuket is poised for continued growth, making it one of Southeast Asia’s strongest property investment destinations in 2025 and beyond.