7 Reasons to Invest in Phuket Real Estate in 2025
March 17, 2025
In 2024, Phuket welcomed 8.65 million visitors. This nearly reached the record figures of 2019 — falling short by only 5%. A stable flow of renters comes from the top 5 countries leading in tourist numbers: Russia, China, India, Australia, and the United Kingdom.
This high tourism activity creates ideal conditions for the rental property market — many apartment and villa owners report stable occupancy rates and growing rental prices, which directly impacts investment yield growth. But tourist flow is far from the only factor making the market attractive in 2025.
In this article, we will examine 7 key factors that transform the Kingdom of Smiles into a territory of great opportunities for preserving and multiplying capital.
Competitive Prices for Premium Real Estate
Investors from around the world are attracted by the unique combination of premium quality and affordable prices in the Thai market. This is particularly evident when comparing the cost per square meter of luxury real estate with other popular destinations:
- Dubai: $28,105
- Miami: $19,680
- Marbella: $13,416
- Phuket: $6,415
The entry threshold for the Thai real estate market is significantly lower than in other premium locations. For $100,000, you can purchase quality apartments in attractive areas, while villas with private pools and gardens are available from $500,000.
For comparison: in the UAE, the minimum cost of apartments starts at $200,000, and villas with pools will cost no less than $3,000,000. Such a price difference with comparable quality makes the Thai market particularly attractive for the rational investor.
High Investment Returns
The Phuket residential real estate rental market demonstrates exceptional performance. According to data from consulting company CBRE Thailand, in 2024, the yield on premium properties exceeded 10% annually — a historic maximum for the region.
These impressive figures are ensured by several factors:
- Year-round occupancy: quality resort complexes maintain an average annual occupancy rate of 80%
- Professional management from international brands guarantees high service standards
- Flexible yield programs: investors can choose between guaranteed returns of 6-8% or participation in the actual profits of the complex
Economic Stability
Thailand is confidently moving along the path of sustainable economic development, implementing ambitious projects in various sectors of the economy. Key advantages:
- Stability of the national currency: the Thai baht exchange rate has remained in the range of 32-36 baht per dollar for the past 15 years
- Low taxes: 2-3% when purchasing real estate
An important strategic factor has been Thailand's entry into BRICS as a partner country, which opens new prospects for simplifying financial operations and attracting major investments into the economy.
Developed Tourism Sector
The tourism sector, which forms 50% of Phuket's GDP, demonstrates sustainable growth even after global upheavals, making real estate investments particularly attractive.
Advantages of the tourism sector:
- Year-round season: average occupancy of quality resort complexes reaches 80%
- Diversified flow: tourists come from dozens of countries worldwide
- Beyond beach vacations, medical tourism and wellness direction are actively developing
International clinics, premium wellness resorts, and modern health centers are already operating in Phuket. Among them is the recently opened VitalLife Scientific Wellness Center. By 2026, three more landmark projects will begin operations:
- Clinique La Prairie Health Resort in the Tri Vananda complex
- Bumrungrad Phuket Clinic
- International Medical Center in the Mai Khao area
Premium Infrastructure
Phuket offers a full spectrum of premium-class amenities that attract wealthy audiences from around the world.
Education and Medicine
- Prestigious international schools whose graduates enter leading universities worldwide
- Modern medical centers with international JCI and ISO accreditation
Premium-Class Infrastructure
- Elite shopping at Central Floresta with boutiques like Hermès, Louis Vuitton, Gucci, Bulgari, and others
- Prestigious beach clubs: Café Del Mar, Catch Beach Club, Maya Beach Club
- World-class golf courses: Blue Canyon Country Club, Red Mountain, Laguna Golf
- Fine dining restaurants: PRU, Acqua, Blue Elephant, L'Arôme by the Sea
Transport Accessibility
- International airport with a VIP terminal for private aircraft
- Prestigious marinas: Yacht Haven, Ao Po Grand Marina, Boat Lagoon, Royal Phuket Marina, and the new ONE° 15 Marina Panwa Phuket
This level of infrastructure fully corresponds to the lifestyle of wealthy individuals, providing a familiar level of comfort and service, and also guarantees stable growth of investments in premium real estate.
Favorable Prospects for Legislative Changes
The Thai government is actively working to improve the investment climate.
As of December 14, 2024, the ban on construction on land plots located higher than 80 meters above sea level has been lifted. This initiative opens new opportunities for development in the mountainous areas of Phuket and will expand offerings in the segment of villas and apartments with sea views, which are currently in short supply.
The Bill on Legalization of Casinos and Gambling is under consideration in parliament (approved by the cabinet in January 2025). In connection with its discussion, MGM Hospitality, creator of the legendary Bellagio in Las Vegas and MGM Grand in Macau, is planning to build a large-scale entertainment complex in Phuket and is already searching for a site with a private beach or direct access to the sea.
The government is also discussing the possibility of extending land lease terms from 30 to 99 years and increasing the permissible quota of condominium ownership for foreigners from 49% to 75%.
These changes could significantly increase the attractiveness of investments in Phuket real estate and increase the potential return on investment.
Conclusion
In 2025, Phuket offers a rare combination of favorable prices and high returns. Premium real estate here costs 2-3 times less than in Dubai or Miami, while yielding up to 10% annual income in US dollars from rentals. The large-scale island development projects ensure stable growth in real estate value.
We see Phuket transforming into an international center for luxury tourism, medicine, and the wellness industry. By our estimates, legislative changes and major infrastructure projects can increase the value of quality real estate by 30-40% in the next 5-7 years.
To maximize these opportunities, we recommend considering investments in Phuket real estate right now—while prices remain attractive and growth potential is at its maximum. Contact us to select a property with optimal returns for your goals.