Breaking down the 2025 analytics. Thailand's GDP grew by 2.4%, and inflation turned negative for the first time in five years. Tourist arrivals to the country fell by 7.2%, but Phuket increased tourism revenue by almost 10%. We show who is buying real estate on the island according to REIC data, how much a square meter costs, and what the actual rental returns are now, gross and net.
The KVARIS team lives on Phuket and observes daily how the island's housing market is changing. 2025 turned out to be mixed: some indicators grew, while others declined..
The country's economy continues to grow, although more slowly than a year earlier.
Thailand's GDP in 2025 grew by 2.4% and reached $558.6 billion (data from Thailand's Ministry of Economy and Social Development). In 2024, growth was 2.9%.
Main growth drivers: recovery of the tourism sector and stable domestic demand, supported by government stimulus measures.
Inflation entered negative territory for the first time in five years: according to the Ministry of Commerce, 2025 ended with deflation at 0.14%. The main reason is the decline in energy prices against the backdrop of a favorable situation in the global oil market and baht strengthening.
Core inflation, excluding food and energy, remained positive, so there is no full-fledged deflationary spiral in the country.
The Bank of Thailand has kept inflation significantly below the target corridor of 1% to 3% for several months in a row, and authorities forecast a return to positive values during 2026.
For the real estate market, such a background works as a stabilizer: prices for construction materials and property maintenance grow slowly, and the purchasing power of the baht within the country is not eroded.
2025 was the first decline year in several years for Thailand's tourism industry as a whole.
Foreign tourists to the country: 32.97 million, which is 7.2% less than the record 2024, when 35.5 million people visited.
International tourism revenues: approximately 1.53 trillion baht, a decline of almost 5%.
Average spending per trip increased by approximately 1.7%, meaning tourists spent more even though the overall tourism flow decreased.
The trend is shifting from mass tourism to higher quality tourism, with emphasis on premium services.
From January to November 2025, the island received 12.74 million tourists, with tourism revenue of 491.6 billion baht.
Almost 74% of the island's guests were foreigners.
Based on the year's results, the cumulative tourism revenue on Phuket is estimated in the range of 546 to 550 billion baht, approximately 10% more than the 2024 figure of about 498 billion baht.
More than 90% of this amount is brought by foreign tourists, whose share in Phuket's income is one of the highest in the country.
Hotel occupancy rates remain above 90%, and on peak days the island receives 60 to 80 thousand tourists daily (data from the Phuket Tourist Association).
The top source markets for the island include Russia, China, India, Great Britain, and Australia, meaning the tourism flow remains diverse geographically and is not dependent on a single market.
The market of foreign buyers in Thailand in 2025 has become noticeably more diversified. This is arguably the main analytical news of the season.
According to the Real Estate Information Center (REIC) under Thailand's Government Housing Bank:
Foreigners completed 14,899 condominium transactions throughout the country, 2.2% more than a year earlier.
Foreign buyers accounted for 14.7% of all property transfers by quantity and 25% by value.
The total value of transactions with foreigners, nevertheless, decreased despite the increase in the number of transactions: some buyers are choosing more compact and affordable properties.
China | First place by number and value of condominium transactions |
|---|---|
Taiwan | One of the fastest growth rates among all buyer countries thanks to visa-free entry to Thailand |
Great Britain, France, Germany | Countries that form the main part of demand for tropical villas |
India | A top-10 country among foreign investors and stands out with the largest average purchase size among all foreign groups |
Russia | Strong position in resort locations |
The median price of condominiums on Phuket in 2025 was approximately 144 thousand baht per square meter, roughly $4,000 at the current rate.
Gross rental returns on the island range from 6% to 10% per year (data from CBRE Thailand and Knight Frank Thailand).
Net returns after deducting management company commissions, maintenance, and taxes typically range from 5% to 8% per year.
The share of unoccupied supply in the quality condominium segment on the island is less than 12%, one of the lowest figures in the region (data from CBRE Thailand).
Some developers offer guaranteed returns for a period of three years, usually 5% to 7% per year. With such offers, it is important to read the conditions carefully: the guarantee is usually limited by time and factored into the property price.
Thailand's economy continues to grow, inflation entered negative territory for the first time in five years, but without signs of crisis.
Tourism flow to the country decreased, but Phuket's tourism revenue nevertheless increased due to higher spending per person.
Foreign buyer demand has become more diverse: Asia is strong in condominiums, Europe traditionally dominates in the villa segment.
The gap between gross and net rental returns is now openly discussed and serves as a useful reference point when selecting a property.
Yes. Foreigners can purchase condos as Freehold subject to quota, and also use long-term leasehold structures. We advise on transaction structure for both primary and secondary markets.
Off-plan often allows entry at an earlier price with installment plans. The resale market offers a ready property with clear ownership history.
Phuket combines developed infrastructure, international schools, private hospitals, and high service levels. We help select areas and projects that fit your family's lifestyle.
In most cases, yes. We support clients outside Thailand and arrange the remote purchase process.
Yes. We advise on management, rental, and possible resale of your property.
Yes, through separate rights: the villa is registered as Freehold, full ownership, while the land under it is taken on a long-term lease for 90 years. This is the most common and effective method for foreigners in Phuket, and we arrange it for most of the villas we select for clients.
