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Phuket Property Market 2026.

· Shambala Editorial

Is Phuket property still a good buy in 2026, or has the market peaked? The short answer from the latest data: Phuket is holding up well, but it is no longer a market where everything rises together. Villas in prime locations are outperforming, while the condominium segment is becoming more competitive, which is good news for buyers who negotiate.

The numbers behind the market

According to Knight Frank Thailand’s year-end 2025 report, developers launched about 5,073 new condominium units in 2025, roughly half as many as the year before (−51.7%), bringing total condominium supply on the island to 42,061 units. Condominium sales reached 4,455 units, down 24.8% year on year.

Villas tell a different story. Only 774 new villas were launched (−48.2%), while villa sales rose 12.9% to 631 units. Buyers increasingly want privacy, space and a private pool, and there is simply less land available to build them on.

  • Where condos sell: Bang Tao accounted for 32.7% of condominium sales, followed by Karon (17.9%) and Kamala (9.4%).
  • Where villas sell: Cherng Talay led villa sales (19.9%), followed by Pa Khlok and Bang Jo.
  • Condo prices: new condominiums generally sold for ฿125,000–160,000 per sqm, with prime areas far higher: about ฿284,000 per sqm in Bang Tao, ฿197,000 in Layan and ฿182,000 in Kamala.

Who is buying and renting

An analysis of more than 54,000 real enquiries on the FazWaz property network between December 2025 and May 2026 gives a useful picture of everyday demand:

  • 71% of enquiries were for rentals, not purchases. Phuket remains, first of all, a place people come to live in.
  • The median rental budget was ฿35,000 a month; the median purchase budget was ฿7.5 million.
  • The busiest areas were Choeng Thale (Cherng Talay / Bang Tao) and Rawai.
  • After Thai residents, the most active nationalities were the United States, the United Kingdom, Russia and Germany.

The headwinds

  • Tourism has softened slightly. Thailand received about 20.9 million foreign visitors in January–August 2026, down 3.1% year on year, and CBRE reports Phuket airport arrivals in the first half of 2026 at 4.39 million, down 1.4%. That matters most for properties that depend on short-term holiday rentals.
  • More competition among off-plan projects. Knight Frank expects competition on price, promotions and sales incentives to intensify, and projects in secondary locations, or without a clear point of difference, to sell more slowly.
  • Seasonality. Rental income in Phuket still swings between high season (roughly November–April) and low season. Projections that assume full occupancy all year are rarely realistic.

The tailwinds

  • Land on the west coast is running out. Knight Frank expects land prices in Bang Tao, Laguna, Layan and Kamala to keep rising, supporting long-term values for both villas and condominiums, especially near the beach or with sea views.
  • Branded and well-managed projects stay in demand, particularly those with recognised hotel brands and professional rental management.
  • The north is opening up. Infrastructure work and the planned new airport in Phang Nga are expected to draw development towards Mai Khao, Nai Yang and the mainland coast.
  • Cheaper money. The Bank of Thailand cut its policy rate to 1.00% in February 2026, and has proposed extending its relaxed loan-to-value rules for home loans until June 2027. This mainly helps buyers financing through Thai banks.

What we expect for 2026–2027

Forecasts published by agencies range from about 2% to more than 10% annual price growth. Treat these with care: most come from companies selling property. Our view is more measured:

  • Prime villas in land-constrained areas (Bang Tao, Cherng Talay, Layan, Kamala, Nai Harn) are likely to keep appreciating steadily.
  • Mainstream condominiums, especially off-plan in crowded areas, are likely to see flat prices and more discounts, payment plans and free extras.
  • Rents should stay broadly stable for long-term tenancies, while short-term holiday income may be more uneven.

A home first, an investment second

If you are looking for your own corner of Phuket, somewhere to spend the winter or your holidays, or eventually to live, buying here can make a lot of sense. You get a home in one of the most beautiful places in Asia, it can earn some rental income while you are away, and good properties in areas where land is scarce tend to hold their value well over time.

As a pure business investment, the picture today is less convincing. Once you account for management and common fees, maintenance, furnishing, seasonal vacancies and buying and selling costs, net returns are often well below the figures in sales brochures. And with so many off-plan projects competing for buyers, selling quickly at a profit is harder than it was a few years ago. If financial return is your only goal, compare Phuket carefully with other options.

In short: buy in Phuket because you want to enjoy it, and treat any rental income or price growth as a bonus rather than the business plan.

Sources

Figures as of October 2026, from the sources listed above. This is general market information, not investment or financial advice. Property values can fall as well as rise; consider your own situation and take independent advice before buying.

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