🏝️ Phuket is once again in the spotlight for resort property investors. A recent market overview on Thailand indicates that gross rental yields on the island may reach 7–9% annually in 2026. For a popular tourist destination, this is a strong figure, especially compared with European resorts, where entry budgets are often higher and yields are lower.

📊 Demand is supported not by a single factor, but by a combination of tourism, long-term rentals, and interest from digital nomads. Thailand expects more than 35 million foreign tourists in 2026, and a significant share of this flow traditionally goes to resort destinations. For Phuket, this means stable demand for apartments and villas, especially in areas close to beaches, infrastructure, and international schools.

🏠 The average property price in Phuket is estimated at around 120,000–160,000 baht per sq m. The minimum realistic entry budget starts at approximately $97,000, while a more typical option for an investor considering a small studio in a condominium is closer to $125,000.

💰 One calculation example shows how the economics of such a purchase may work. A 32 sq m studio in the Bang Tao area, priced at around 4.5 million baht, could generate about 370,000 baht in annual gross income with 72% occupancy and an average nightly rate of 2,800 baht. After management, maintenance, insurance, and tax expenses, the net yield falls to approximately 5.3–5.8% annually.

🌍 One of Phuket’s key advantages over many resort markets is that demand is not limited to the high season. European tourists are most active from December to April, but digital nomads support the market throughout the year. Even during the rainy season, from May to October, occupancy may fall to 45–55%, while rental rates usually decline only moderately, by around 15–20%.

⚙️ Compared with other Thai markets, Phuket stands out for its balance between entry price and rental yield. In Bangkok, yields are usually lower, at around 4–6%, although demand is more stable throughout the year. Pattaya offers a lower entry budget and yields of 6–8%, but it is more dependent on seasonality and price competition. Samui can deliver high gross yields in the villa segment, but expenses for pool maintenance, garden care, and security can noticeably reduce the final return.

⚖️ Investors should also take legal restrictions into account. Foreigners in Thailand cannot directly own land. Apartments in condominiums can be purchased as freehold property, but only within the foreign ownership quota, which is limited to 49% of the building’s total area. Villas are more often structured through long-term land lease arrangements, so such transactions require more careful legal due diligence.

🧾 Another important point is management costs. For short-term rentals, a foreign owner almost always needs a local property management company. It handles guest check-ins, cleaning, property maintenance, and work with booking platforms. Such services usually take 25–35% of gross income, which means the real yield is always lower than headline figures.

🏗️ Despite these limitations, Phuket remains one of Southeast Asia’s most notable markets for investment in resort real estate. The island combines international tourist demand, developed infrastructure, growing interest from digital nomads, and a relatively clear entry budget. This is why buyers increasingly view Phuket not only as a holiday destination, but also as a market for generating rental income.

🏡 Current property listings in Phuket and other regions of Thailand are available on our website.