Phuket short term rental investment

Phuket welcomed 39.4 million visitors in 2024 — smashing pre-pandemic records by 7%. For short-term rental investors, the math is compelling.

What Do Phuket Short-Term Rentals Actually Yield?

Savills Thailand data shows well-managed units in the Bangtao–Laguna and Kata–Karon corridors deliver 8-12% net annually at 75-85% occupancy. Key numbers:

• Entry price: from 3.5M THB (~$100K) for a 30 sqm studio in a new project
• Average daily rate: 3,200-6,500 THB depending on location and season
• High season (November–April) pushes occupancy above 90%
• Management fees: 20-30% of gross revenue via licensed operators

For context — Bangkok condos yield 4-6% net; European resorts typically return 3-5%.

Regulations and Risks for Foreign Investors

Thailand requires a hotel license for properties rented under 30 days. Many condominiums operate in a gray zone. Since 2024, Phuket authorities have tightened enforcement — only invest in projects with a legal rental program run by a licensed operator.

Foreigners can own units freehold up to 49% of total building area. Beyond that quota, leasehold (30+30 years) applies.

Recommendation: target units in the 4-6M THB range with a guaranteed rental pool program and valid hotel license. This strikes the right balance between yield and legal security.