Phuket Real Estate in 2025: Prices, Returns, Analytics
The KVARIS team lives in Phuket and observes daily how the housing market on the island is changing. 2025 turned out to be mixed: some indicators grew, some declined..
Thailand's Economy in 2025: Growth with Weak Inflation
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 dollars (according to Thailand's Ministry of Economy and Social Development). In 2024, growth was 2.9%.
Main drivers of growth: recovery of the tourism sector and stable domestic demand, supported by government stimulus measures.
Inflation has gone into negative territory for the first time in five years: according to the Ministry of Commerce, 2025 ended with deflation at 0.14%. The reason is mainly a decrease in energy prices against the backdrop of a favorable situation in the global oil market and strengthening of the baht.
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 range of 1% to 3% for several consecutive months, and the authorities forecast a return to positive values during 2026.
For the real estate market, this background works as a stabilizer: prices for building materials and property maintenance are growing slowly, and the purchasing power of the baht within the country is not eroding.
Tourism in 2025: The Country Loses, Phuket Holds Its Ground
2025 became the first year in several years of decline for Thailand's tourism industry as a whole.
Foreign tourists across the country: 32.97 million, which is 7.2% less than the record 2024, when 35.5 million people visited.
Income from international tourism: approximately 1.53 trillion baht, a decrease of almost 5%.
Average spending per trip increased by approximately 1.7%, meaning the tourist spent more, even though the overall tourist flow decreased.
The trend is shifting from mass tourism to higher quality tourism, with an emphasis on premium services.
Phuket Looks More Resilient Against the Overall Background
From January to November 2025, the island welcomed 12.74 million tourists, with tourism revenue of 491.6 billion baht.
Almost 74% of the island's guests were foreign.
For the year, the combined tourism revenue in Phuket is estimated in the range of 546 to 550 billion baht, approximately 10% more than 2024's figure of about 498 billion baht.
More than 90% of this amount is generated by foreign tourists, whose share in Phuket's income is one of the highest in the country.
Hotel occupancy remains above 90%, and on peak days the island receives from 60 to 80 thousand tourists daily (according to the Phuket Tourism Association).
The top source markets for the island include Russia, China, India, the United Kingdom, and Australia, meaning the tourist flow remains diverse geographically, rather than tied to a single market.
Who Buys Real Estate in Phuket
The market of foreign buyers in Thailand in 2025 has become noticeably more diversified. This is perhaps 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, however, decreased despite the increase in the number of transactions: some buyers are choosing more compact and affordable properties.
The composition of buyers in 2025 looks like this:
China maintains first place in both the number and value of condominium transactions.
Taiwan shows one of the fastest growth rates among all buyer countries due to its visa-free regime with Thailand.
In the villa segment, Europe traditionally leads: buyers from the United Kingdom, France, and Germany form the main part of demand for this type of property.
India has established itself in the top 10 foreign investors and stands out with the largest average square footage of purchases among all foreign groups.
Russia remains among notable buyers, primarily in resort locations, including Phuket, although its share, like China's, has decreased somewhat compared to peak years.
Prices and Returns in Phuket in 2025
The median price of condominiums in Phuket in 2025 was approximately 144 thousand baht per square meter, roughly 4,000 dollars at the current exchange rate.
Gross rental yield on the island ranges from 6% to 10% per year (according to CBRE Thailand and Knight Frank Thailand).
Net return after deducting the management company's commission, maintenance, and taxes usually amounts to 5% to 8% per year.
The share of unsold inventory in the quality condominium segment on the island is less than 12%, one of the lowest figures in the region (according to CBRE Thailand).
Some developers offer guaranteed returns for a period of three years, usually from 5% to 7% per year. With such offers, it is important to read the terms carefully: the guarantee is most often limited in time and built into the property's price.
Summary
Thailand's economy continues to grow, inflation has gone negative for the first time in five years, but without signs of crisis.
Tourist flow across the country has declined, but Phuket's tourism income has grown due to higher spending per person.
Demand from foreign buyers has become more diverse: Asia is strong in condominiums, Europe traditionally dominates the villa segment.
The gap between gross and net rental returns is now openly discussed and serves as a useful guide when selecting a property.
