Phuket's real estate sector is posting its strongest numbers since the pre-pandemic era. The island welcomed over 13 million visitors in 2024, villa launches jumped 51% year-over-year, and branded condominium prices are setting new records across the west coast.
Tourism Recovery Drives Demand
Between January and October 2025, Phuket received more than 4.16 million international arrivals — reaching 97.5% of pre-pandemic visitor levels. The New Year holiday period alone (December 31 to January 4) brought 325,686 visits and generated over 1.14 billion baht in tourism revenue.
This sustained visitor flow translates directly into property demand. Buyers who first discover Phuket as tourists return as investors, attracted by the island's combination of lifestyle appeal and strong rental returns. Russian and Chinese nationals continue to lead foreign purchasing activity, particularly in Bangtao, Rawai, and Cherng Talay.
New Supply Hits Record Levels
The construction pipeline reflects market confidence. Developers launched 1,263 new villas in 2024-2025 — a 51% increase compared to the previous year. Bangtao, Cherng Talay, and Phru Champa attracted the largest share of new villa projects. On the condo side, over 10,000 new units entered the market.
More importantly, buyers are responding. Villa sales reached 573 units, up 18% year-over-year, while condo transactions surged by 60% to over 6,000 units. Foreign buyers accounted for 15.3% of total transaction value in Q1 2025, confirming Phuket's position as one of Southeast Asia's most active cross-border property markets.
Prices: Steady Growth, Premium Highs
The island-wide average condominium price now stands at approximately 140,000 THB per square meter, a modest 0.59% increase year-over-year. However, the branded and luxury segment tells a different story.
According to C9 Hotelworks, Phuket's branded condominium average reached 197,745 THB per square meter, rising to 212,113 THB in the prime Bangtao-Kamala corridor. In January 2026, Etro Residences — a boutique ultra-luxury project in Bangtao by Gardens of Eden — set a new island price record at 830,000 THB per square meter, with 25% of units selling within the first three days of launch.
Villa prices in established locations like Bangtao, Kata, and Rawai recorded up to 4% year-over-year appreciation, with mid- to high-end properties performing strongest.
Segment Average Price (THB/sqm) YoY Change Island-wide condos 140,000 +0.59% Branded condos 197,745 +3-5% Prime west coast condos 212,113 +5-7% Villas (mid-to-high) 30-50M THB total +4%Rental Yields Remain Attractive
Phuket continues to deliver rental returns that outperform most Asian resort markets. Condominium yields range from 7% to 9% gross, depending on location and management quality. Studios in high-demand areas command 15,000-22,000 THB per month on long-term leases, while one-bedroom units fetch 18,000-30,000 THB. Short-term rental rates run 20-50% higher during peak season.
Three-bedroom villas in tourist zones generate 70,000 to 150,000 THB monthly, with premium properties exceeding these figures during the high season (November through April).
2026 Outlook: Quality Over Quantity
Industry analysts expect a shift toward higher-quality developments in 2026. Projects offering strong construction standards, professional management, modern amenities, and clear legal ownership structures are outperforming basic stock. The era of quick, low-cost builds is fading — today's buyers demand transparency and long-term value.
Thailand's government has set a target of 36.7 million tourist arrivals for 2026, representing over 10% growth. With Phuket capturing a significant share of this traffic, the property market outlook remains firmly positive.
InDreams Perspective
At InDreams Phuket, we have tracked this market since 2010 through multiple cycles. The current fundamentals — record tourism, diversified buyer nationalities, maturing legal frameworks, and rising rental yields — represent the healthiest market conditions we have seen. For buyers considering Phuket, the window of opportunity in well-located projects with professional management remains open, but pricing in prime areas is moving steadily upward.
Looking for investment opportunities in Phuket? Contact InDreams for a personalized market briefing. Browse our current property listings or explore rental options.
