Phuket Real Estate Market in 2026: Why the Island Remains a Strong Investment Destination

Thailand's real estate market in 2026 is becoming more mature and selective. After several years of active growth, buyers have become more careful in evaluating projects, banks more cautious about lending, and developers more measured in launching new properties.

At first glance, this may look like a market slowdown. But on closer examination, it becomes clear: Phuket develops according to its own logic. Unlike many of Thailand's local markets, the island is supported not only by domestic demand but also by steady interest from foreign buyers, tourists, expats, investors, and families who view Phuket as a place to live, holiday, and hold an asset over the long term.

That is why the main question for buyers today is not “Should I buy property in Phuket?” The more relevant question is: which specific property to choose so that it is liquid, in demand, and aligned with the real purpose of the purchase?

Phuket cannot be assessed as an ordinary local market in Thailand

According to Bualuang Securities, Thailand's real estate market in 2026 remains uneven: different segments show different dynamics, and demand depends heavily on the type of property, its price, and its target audience. In some local segments, developers face more cautious demand, high competition, and buyers' reliance on bank financing.

Phuket differs from this picture.

Foreign demand plays a significant role on the island. Buyers from Russia, China, Europe, Australia, the United States, and other countries see Phuket property not only as a holiday destination but also as a tool for preserving capital, a rental asset, a vehicle for family relocation, or a place for seasonal living.

This is precisely why Phuket property should be analyzed separately from the average Thai market. Here, other factors matter:

• international demand;
• tourist flow
• infrastructure development;
• the limited supply of quality locations;
• rental potential;
• the option of personal use of the property;
• liquidity on resale.

For the buyer, this means that Phuket remains a strong market, but the choice of property must be professional and strategic.

New project launches: the market is becoming more cautious, but quality properties remain in demand

According to Bualuang Securities data, the total volume of new project launches in Thailand in 2026 is expected at around 313.9 billion baht, representing a recovery of about 8% year on year. At the same time, the market still remains below its historical highs, and developers maintain discipline due to tighter lending conditions and a changing demand structure.

This is an important point: developers no longer launch projects as aggressively as in previous years. The market is gradually shifting from quantitative growth to more precise product positioning.

For Phuket, this can be a positive factor. When launching new projects becomes more expensive and complex, properties in the right locations — near beaches, infrastructure, schools, restaurants, retail areas, and districts with steady rental demand — become especially valuable.

For the investor, this means: do not look only at the price per square meter. It is more important to understand whether the property will be in demand in 3–5 years, who will rent it, and how easily it can be resold.

Low-rise houses: why large developers are starting to look at foreign buyers

One of the important conclusions from Bualuang Securities concerns the low-rise segment — private houses, townhouses, and villas. After the pandemic, Thai developers actively increased the launch of such projects because local buyers wanted more space, privacy, and standalone living.

However, it is important to interpret this data correctly. This primarily concerns the Thai local market, where buyers often depend on bank mortgages, income levels, and banks' lending policies. In certain low-rise segments, a high volume of supply has built up, and banks have become more cautious about approving loans.

For large Thai developers, this has become a signal: if local demand is limited, new sales channels must be found. This is precisely why companies such as Pruksa are beginning to look toward foreign buyers, including in Phuket.

This is an important change for the market. Previously, many large Thai low-rise developers worked mainly with Thai buyers and were not focused on selling such properties to foreigners. Now the situation is changing: Phuket offers the opportunity to adapt the low-rise product for international demand.

For foreign buyers, this may open up interesting opportunities. Houses and villas in Phuket may be attractive to those seeking:

• a property to live in;
• real estate for family relocation;
• a home for seasonal living;
• an investment property for long-term or medium-term rental;
• a more spacious alternative to an apartment.

But such purchases require especially careful due diligence. For a foreign client, it is important not only that the house is of good quality but also the legal structure of the transaction: leasehold, building rights, land lease terms, the ability to rent out the property, sublease rules, taxes, service charges, and property management.

Therefore, the low-rise segment in Phuket may become a promising direction, but only with the right adaptation of the product for the foreign buyer. If a developer can offer a clear legal structure, a transparent contract, an adequate price, and quality management, such properties can gain steady demand.

Condominiums: the decline in new launches may support the value of quality properties

Bualuang Securities notes that the decline in new condominium launches is not only a cyclical phenomenon but also a structural change in the market. This segment is affected by stricter bank requirements, rising land costs, regulatory procedures, and longer approval timelines, including the EIA — Environmental Impact Assessment.

For Phuket, this is especially important. The island has a limited number of truly strong plots in popular areas. Land near beaches, tourist infrastructure, and established lifestyle zones is becoming increasingly valuable. Therefore, the launch of new quality projects in good locations cannot grow indefinitely.

This supports the long-term value of well-chosen condominiums.

For the buyer of an apartment in Phuket, the key question is not simply “what is the price?” but “why will this property be in demand?” A good condominium should have a clear scenario:

• personal use;
• renting out;
• a clear management model;
• a strong location;
• liquidity on resale;
• a legally correct form of ownership, including foreign freehold or leasehold.

In a mature market, it is not the cheapest properties that win, but those where price, location, and product match real demand.

The market is entering a phase of selective recovery

One of the key theses from Bualuang Securities is the start of a selective upcycle — that is, a selective recovery of the market. This means the market is not growing evenly. Strong projects and developers with the right product can show good sales, while weaker properties will move more slowly.

According to Bualuang Securities' forecast, condominium presales in 2026 may recover to around 58 billion baht, representing growth of about 16% year on year after several years of contraction. This is an important signal: demand has not disappeared but has become more demanding.

For Phuket, this is especially relevant. Buyers have become more attentive. They compare projects, study the developer, and ask questions about rentals, legal structure, management, construction timelines, and future liquidity.

This is not a negative for the market. On the contrary, for professional agencies and quality developers it creates an advantage. The more complex the market, the higher the value of expertise.

It is no longer enough to show the buyer a beautiful render. They need to be told:

• who will rent the property;
• why this location will be in demand;
• how realistic the yield is;
• what costs will arise after the purchase;
• what the legal ownership structure is;
• how the property can be resold;
• what distinguishes the project from competitors.

This is precisely why demand for professional analytics, project due diligence, and competent transaction support will grow in Phuket.

Demand depends on the type of property and price segment

Bualuang Securities data shows that demand for real estate differs significantly depending on the type of property and price segment. In some categories, local demand is constrained by mortgage rejections, especially in more affordable price ranges. The presentation notes that in the segment below 3 million baht, the mortgage rejection rate can reach about 70%, while the average rejection rate in the market is roughly in the 40–50% range.

For Phuket, this has separate significance. Foreign buyers more often purchase property with their own funds and depend less on Thai bank mortgages. Therefore, quality properties aimed at foreigners may feel more stable than projects designed primarily for local buyers relying on mortgages.

This is especially important for the segments of:

• apartments in tourist and lifestyle locations;
• villas for living and rental;
• branded or managed residences;
• properties near beaches, schools, and developed infrastructure;
• completed real estate with clear rental potential.

For the investor, the conclusion is simple: you need to look not only at the overall market but at the specific demand for a specific property.

High bank deposits create competition for real estate

In 2026, investors compare real estate not only with other properties but also with financial instruments. The yield on bank deposits and conservative instruments at around 4–6% creates natural competition for real estate. This thesis was also discussed as part of market analysis and investment alternatives.

For the buyer, this means that a real estate investment must be clear. It is no longer enough to say, “The property will generate income.” It is necessary to explain how exactly it will work.

A good investment property in Phuket should combine several factors:

• rental income;
• personal use;
• preservation of capital in an international jurisdiction;
• potential appreciation in value;
• liquidity in an in-demand location;
• the possibility of resale;
• demand from tourists, expats, and long-term tenants.

This is precisely what makes Phuket property different from an ordinary deposit. The buyer receives not only a financial asset but also a real property that can be used.

Completed properties and the secondary market are becoming more attractive

Against the backdrop of a more cautious market, interest in completed real estate and the secondary market is growing. This is logical: a completed property can be seen, its quality checked, its surroundings assessed, and it can be used or rented out more quickly.

For some buyers, completed property in Phuket becomes especially attractive because it reduces construction risk. The investor understands exactly what they are buying, what costs await them, how the property looks in reality, and how suitable it is for rental.

At the same time, new builds also retain strong positions, especially if the project is located in a promising location, offers a clear installment plan, a strong management concept, and the potential for value growth before construction is completed.

The optimal strategy depends on the client's goal:

• for immediate rental income, a completed property may be suitable;
• for potential capital growth, a quality off-plan project;
• for living and rental, a villa or apartment in a strong residential location
• for capital preservation, a liquid property from a reliable developer.

The main thing is not to choose a property based only on price or emotion. You need to understand the purchase strategy.

Good projects still sell quickly

Even in a more cautious market, strong projects continue to show high sales momentum. In market discussions, it was noted that projects with the right location, price, and product can sell a significant share of their volume within the first weeks after launch. In some examples, the take-up rate reached about 50–60% over a short period.

This confirms the main thesis: demand exists, but it has become more selective.

Buyers are ready to make decisions if they see:

• a strong location;
• a clear price;
• trust in the developer;
• real rental potential;
• transparent documents;
• quality management;
• liquidity of the property.

In Phuket, this is especially noticeable. Projects in the right areas with a clear concept continue to attract the interest of foreign buyers, because the island remains one of the most understandable and sought-after destinations in Thailand.

Foreign demand remains Phuket's main driver

Foreign buyers continue to play a key role in the development of Phuket's real estate market. Clients from Russia, China, Europe, Australia, the United States, and other countries view the island as a place to live, holiday, rent, and diversify capital.

The main motivations of buyers:

• a safe and comfortable environment;
• a warm climate;
• international infrastructure;
• a developed rental market;
• schools and healthcare;
• the option of seasonal living;
• long-term relocation;
• purchasing an asset in another country.

For many clients, Phuket has already ceased to be merely a tourist destination. It is gradually becoming an international residential market — a market where people not only holiday but also live, work remotely, raise children, invest, and build long-term plans.

This is precisely what supports demand for residential investment property: apartments, villas, and houses that can be used personally and rented out the rest of the time.

What is important to check before buying property in Phuket

In 2026, the main risk for the buyer is not the Phuket market itself, but the wrong choice of property.

Even in a strong market, you can buy a weak asset if you fail to check key parameters. Therefore, before buying property in Phuket, it is important to analyze:

• the location and infrastructure;
• rental demand;
• the target tenant audience;
• the developer's reputation;
• the legal ownership structure;
• the ability to rent out;
• leasehold or freehold terms;
• the payment schedule;
• service charges and additional costs;
• competition in the area;
• liquidity on resale;
• the realism of the stated yield.

Particular attention should be paid to the developer. Amid rising construction costs, logistics expenses, and material prices, the reliability of the developer becomes one of the key factors. It is better to choose projects with a clear track record, financial stability, transparent documents, and a realistic delivery plan.

Why Phuket remains attractive for investment

Despite the more cautious situation in the overall Thai market, Phuket retains strong fundamentals.

First, the island remains one of Asia's main tourist destinations. Second, Phuket is becoming an increasingly popular place for long-term living. Third, quality locations are limited. Fourth, demand is generated not only by tourists but also by expats, families, entrepreneurs, remote professionals, and investors. Fifth, property in Phuket can be used flexibly: live in it yourself, rent it out, hold it as capital, or resell it.

It is precisely this combination of factors that makes Phuket not just a resort property market but a full-fledged international market for residential and investment properties.

Conclusion for buyers

Phuket's real estate market in 2026 remains attractive but is becoming more professional. It is no longer enough to buy “any property by the sea.” Buyers need to understand why a particular property will be in demand, who will rent it, how reliable the developer is, and how the property can be used or sold in the future.

Phuket still offers strong opportunities for investors, but the best results will go to those who choose a property strategically rather than emotionally.

The right property in Phuket is an asset that can combine personal use, rental income, capital preservation, and long-term liquidity.

How Undersun Estate helps buyers

Undersun Estate specializes in residential and investment real estate in Phuket. We help clients not just find an apartment, villa, or house, but choose a property that matches the real purpose of the purchase: investment, rental, relocation, personal residence, or capital preservation.

We analyze locations, projects, developers, legal structures, rental potential, and the future liquidity of the property. This approach helps the buyer make a decision based not on emotion but on clear market logic.

If you are planning to buy property in Phuket in 2026, it is important to start not with choosing a beautiful picture but with the right strategy. It is the strategy that determines whether the property will truly work as an investment.