Investing in Phuket New Developments 2025: Demand Outpaces Supply
Investing in Phuket New Developments 2025: Demand Outpaces Supply
Over the past two years, Phuket has become one of the hottest real estate markets in Thailand. Tourists are back, construction sites are active again, and demand for condos and villas has surpassed pre-COVID levels.
The main issue: supply can’t keep up. New projects are launched, but units sell out right at the pre-sale stage. In some Bang Tao complexes, available lots disappear within weeks. For investors, this is a clear signal: the market is overheated with demand, and property prices are rising faster than developers can deliver new projects.
Market Overview
According to agencies, fewer than 20 major projects were launched in Phuket in 2024. For the island, this is relatively low. The reason is limited land supply: prime beachfront plots are already taken, and construction bureaucracy remains a challenge.
Meanwhile, tourism keeps growing. In 2025, Phuket and nearby regions are forecasted to welcome 16–17 million foreign tourists — almost back to the record levels of 2019.
The demand is obvious: tourists want short-term rentals, expats are looking to live by the sea, and investors want to preserve capital in hard assets. Yet, ready-to-move-in properties are still in short supply.
Meanwhile, tourism keeps growing. In 2025, Phuket and nearby regions are forecasted to welcome 16–17 million foreign tourists — almost back to the record levels of 2019.
The demand is obvious: tourists want short-term rentals, expats are looking to live by the sea, and investors want to preserve capital in hard assets. Yet, ready-to-move-in properties are still in short supply.
Price Growth
Over the last 18 months, new development prices in Phuket have increased by 15–20% on average. Seaside condos have appreciated the most. What cost 2.5 million THB in 2022 now sells for 3.2–3.5 million.
Villas are rising even faster. On popular beaches like Bang Tao and Kamala, prices jumped 25% in just two years. In luxury areas, the price per square meter has already surpassed central Pattaya.
For reference: in 2021, you could buy a pool villa for 12 million THB. Today, similar projects start from 16 million.
Villas are rising even faster. On popular beaches like Bang Tao and Kamala, prices jumped 25% in just two years. In luxury areas, the price per square meter has already surpassed central Pattaya.
For reference: in 2021, you could buy a pool villa for 12 million THB. Today, similar projects start from 16 million.
Rental Yields: How Much Can You Earn?
Phuket stands out compared to Pattaya because rental rates here are higher. Tourists are willing to pay 30–35k THB per month for a studio near the sea, and villas rent from 120k THB and above.
As a result, condos generate 7–9% annual yields in foreign currency, while villas reach up to 10–11%. This is above Thailand’s average.
To simplify: a 3.5M THB condo can generate around 280–300k THB per year. That’s roughly 700–750k RUB at a 2.6 exchange rate — significantly more attractive than renting out an apartment in Moscow or Sochi.
As a result, condos generate 7–9% annual yields in foreign currency, while villas reach up to 10–11%. This is above Thailand’s average.
To simplify: a 3.5M THB condo can generate around 280–300k THB per year. That’s roughly 700–750k RUB at a 2.6 exchange rate — significantly more attractive than renting out an apartment in Moscow or Sochi.
What Buyers Look For
- Studios and 1-bed condos near the sea — highly liquid rental properties, rented out quickly even off-season.
- Pool villas — popular with families and groups. The closer to the beach, the higher the rental rate.
- Managed apartments (condotels) — where the management company handles tenants and revenue sharing.
Beyond unit size, infrastructure is key. Complexes with pools, gyms, and cafes enjoy much stronger demand.
Why Supply is Limited
Land on Phuket is a scarce resource. Beachfront plots are nearly gone, while inland projects attract less interest. This means every new development near the beaches automatically gets high demand.
In addition, developers are more cautious after the pandemic. Many launch projects only when a high level of pre-sales is secured: if half the units aren’t sold upfront, construction simply doesn’t start. This further limits supply and pushes prices even higher.
In addition, developers are more cautious after the pandemic. Many launch projects only when a high level of pre-sales is secured: if half the units aren’t sold upfront, construction simply doesn’t start. This further limits supply and pushes prices even higher.
Phuket vs. Pattaya
Investors often ask: which is better — Pattaya or Phuket? The answer depends on goals.
Bottom line: Pattaya is mass-market, Phuket is premium — and both markets are growing.
- Pattaya: cheaper entry point. Studios start at 2.3–2.5M THB, rental yields around 7–8%. Plus, strong connectivity to Bangkok with a new high-speed rail and airport expansion.
- Phuket: more expensive, but higher rental returns. Villas yield 10–11%, beachfront condos sell out faster. Tourists are willing to pay a premium, as the island is seen as a higher-end destination.
Bottom line: Pattaya is mass-market, Phuket is premium — and both markets are growing.
Why It Matters for Russian Investors
Russian buyers are consistently in the top 3 foreign client groups in Phuket. Many initially buy a condo or villa as a “second home” and later realize that rental income not only covers maintenance costs but also generates steady profit.
Another advantage: purchases can be made without a mortgage. Interest-free developer installment plans remain the key tool: down payment from 25–30%, balance spread over 2–4 years.
This allows investors to lock in the current price, while by the time the project is completed, the unit is already worth 20–30% more.
Another advantage: purchases can be made without a mortgage. Interest-free developer installment plans remain the key tool: down payment from 25–30%, balance spread over 2–4 years.
This allows investors to lock in the current price, while by the time the project is completed, the unit is already worth 20–30% more.
FAQ
Will prices drop?
No. Limited land and high demand make Phuket a strong “bullish” market.
What’s better: condo or villa?
For short-term rentals, condos are more liquid. For long-term stays and families — villas.
What are current yields in Phuket?
7–9% for condos, up to 10–11% for villas.
Is there seasonality risk?
Yes, but it’s decreasing: Chinese and Indian tourists now fill the low season.
Can I buy remotely?
Yes. Transactions can be completed online via power of attorney, without traveling to Thailand.
No. Limited land and high demand make Phuket a strong “bullish” market.
What’s better: condo or villa?
For short-term rentals, condos are more liquid. For long-term stays and families — villas.
What are current yields in Phuket?
7–9% for condos, up to 10–11% for villas.
Is there seasonality risk?
Yes, but it’s decreasing: Chinese and Indian tourists now fill the low season.
Can I buy remotely?
Yes. Transactions can be completed online via power of attorney, without traveling to Thailand.