Phuket Luxury Villa for Sale: Key Points for Investors

Phuket’s rise as Thailand’s premier luxury real estate destination has been shaped by consistent infrastructure development, excellent international air connectivity, high-net-worth investment, and a resilient tourism-led economy. In this article, we highlight the key points for investors looking for luxury villas for sale in Phuket.

Phuket’s Real Estate: Stability and Consistent Growth

Unlike many global property markets, Phuket’s residential real estate market operates on a cash-driven model (because non-Thai nationals cannot secure mortgages from Thai lenders), reducing vulnerability to global financial crises. This factor, combined with the island’s robust tourism sector, provides a stable foundation for real estate investment.

Market Performance and Post-Pandemic Rebound

Phuket’s real estate market rebounded swiftly post-pandemic, fuelled by surging tourism and renewed foreign investment. As noted by CBRE, in 2023 over 3,300 condominium units were sold, surpassing pre-pandemic figures. The villa market also experienced an equally impressive surge, driven by demand from international investors and affluent Thai buyers.

Numerous reliable sources have highlighted tourist numbers for 2024 reaching 35 million, with 2025 expected to yield similarly impressive figures, further driving the upward trajectory of the property market. Since the Covid pandemic, there has also been a notable shift towards the luxury sector. This trend has been significantly influenced by a large influx of wealthy Russian investors, many of whom have chosen Phuket not only as a place to invest but also as a permanent residence, following tensions related to the war in Ukraine. The overall repositioning of Phuket as a premier luxury investment hotspot has been further reinforced by the rapid rise of high-end branded residences.

Phuket vs. Koh Samui: Comparing the Luxury Sectors

Both islands attract affluent overseas buyers, but if you are searching for a luxury villa for sale in Phuket, you’ll find the market commands noticeably higher prices. In Phuket, super-luxury villas command between $20 and $30 million USD, with the most exclusive homes often not on the open market.

Phuket also has a more mature property market, attracting premier developers, market-leading architects, and top design teams.

Luxury Property Ownership Options in Phuket

Foreign buyers typically acquire a Phuket luxury villa for sale through one of two structures:

• Thai Limited Company Ownership: Allows foreign freehold villa acquisition but requires strict compliance with local laws, including a minimum Thai shareholding of 51%. These shareholders must not be nominees, and they must have a genuine interest in the business and receive dividends. The company must also be set up for genuine business purposes, not purely as a vehicle for holding land. Within the luxury sector, it is common practice for tax efficiency to use an offshore company as the foreign shareholding within the Thai company.
• Renewable Lease Agreements: Offering a 30-year lease term, often with renewal clauses, though investors should verify legal security, particularly with independent developers.

Branded residences often provide more secure lease renewal terms, which is particularly important when purchasing a luxury villa for sale in Phuket, as these developers have a vested interest in long-term brand protection.

Branded Residences in Phuket

Though significantly smaller than Dubai’s branded property market, Phuket is a leader in branded real estate in Asia, with developments such as The Standard Residences and Tri Vananda catering to high-net-worth investors.

Branded real estate blurs the line between hospitality and residential property investment, offering high-end amenities, professional management, and hotel-style services. This trend aligns with the growing demand for resort-style living, where investors benefit from both lifestyle and rental opportunities.

Superior Infrastructure & Amenities

Phuket offers world-class infrastructure, making it a more developed luxury hub compared to other Thai resort markets. Key advantages include:

• Superior international air connectivity
• 15+ international schools (depending on definition)
• Multiple world-class hospitals & clinics
• Seven 18-hole golf courses (compared to one in Koh Samui, Santiburi in Maenam)
• Numerous shopping malls, with Central Festival opening as the first major mall in 2004

Since direct international flights commenced in 1984, both passenger numbers and air connectivity have steadily improved. The expansion of Phuket International Airport will further increase annual capacity from 12.5 million to 18 million passengers, cementing its status as a global investment hotspot.

The Future of Phuket’s Luxury Real Estate Market

As long as Phuket’s thriving tourism sector continues its upward trajectory, the real estate market will follow suit – and all signs suggest it is only getting stronger. However, the market is no longer solely reliant on tourism; Phuket has become a lifestyle choice for families and digital nomads who choose to live on the island full-time.

With firm long-term government commitment to sustained infrastructure investment, rising international demand, and a maturing high-end property sector, Phuket remains a top choice for discerning investors looking for luxury property opportunities.