Phuket is one of the most exciting markets for property investments. It always has been, and not only because of its beautiful nature and landscape but also because it’s one of the most visited holiday destinations in Southeast Asia. It’s always been popular among Australians, Europeans, and Americans, and over the past 10 years, the island has become very popular among Russian and Chinese tourists.

Prices per square meter depend on property type and location. That's solely because of the land prices. Land for sale in Phuket can be quite different in terms of pricing. The west coast of the island is more preferred, therefore the prices are much higher than on the east coast. Also, some areas are situated on a hill, so not much land space is available for development, such as Patong, Kata, and Karon. That also affects the land prices.

A large percentage of the visitors are interested in owning a holiday home in Phuket. That demand has brought a decent amount of supply of holiday homes over the past ten years, and more and more attractive properties are still being built. That supply has also increased the demand on the developers on the island to come up with attractive return on investment (ROI) opportunities through guaranteed rental returns in order to provide a handsome capital gain for the buyers.

Not too long ago, Phuket property developers came up with the great idea of having an agreement with international hotel chains to run their projects like a hotel when they’re completed. This increases the liability of the project as well as provides a good rental return guarantee to the investors.

Beyond guaranteed-return condominium models, investment villas represent one of Phuket’s strongest long-term performing asset classes. In prime rental locations, such as the Greater Bangtao Area, well-managed villas commonly achieve up to 10% annual ROI in the early ownership years. As tourism demand grows and the supply of quality private villas remains limited, rental rates have shown steady upward movement, allowing long-term investors to achieve 10%+ returns over time, alongside capital growth. This makes villas particularly attractive for buyers seeking both lifestyle use and scalable income performance.

High Guaranteed Rental Returns, Phuket

Generally, new Hotel Managed Developments offer 5-7% guaranteed yearly rental return to investors for no less than 3 years, and some projects offer even up to 15 years of guaranteed income generated from renting out your property. Most developers also allocate around one month per year for the owners to use their property. The rest of the year, it is being used as a hotel room, generating passive income for the owner. Everything regarding the rentals is handled by the management team, so it is a completely hands-free investment.

On top of all that, there are also developers who offer to buy back the property at the original purchase price +10-15% after a certain number of years.

Most projects have one condition on the owner in order for him to be able to join the rental pool, and that is that the owner has to go with the developers’ default furniture package and cannot change/personalize much in the unit.

That gives an opportunity to the hotel management to rent out the units as advertised.

We’ve put a couple of good deals together here to give you an idea about the rental return possibilities through owning a property investment in Phuket. You might also want to take a look at a more extensive list of the most attractive Investment Properties in Phuket.

Also, if you fill out our Property Finder Service form with your requirements, such as budget, preferred location, etc., we would be happy to compile a shortlist of properties. You might also be interested in our market report, which offers a clear breakdown of how to calculate Return on Investment (ROI) using our GEMS method — Growth, Earnings, Market, and Security.