Where to Buy a Rental Apartment in Phuket in 2026

The real estate market in Phuket in 2026 remains one of the most dynamic and at the same time stable investment markets in Southeast Asia. The growth of tourism, strong inflow of foreign capital, and limited supply of land in the best locations make buying an apartment in Phuket for rental one of the most logical investment decisions.

According to market data and analyses by CBRE, Global Property Guide, and other industry reports, average rental yields in Phuket range from 6% to even 11% gross, and in the case of well-managed short-term rentals can reach 8–15% annually.

In this article, we show where to buy an apartment in Phuket for rental to maximize ROI while minimizing investment risk.

WHY PHUKET IS ONE OF THE BEST RENTAL MARKETS IN 2026

Phuket is a market based on three fundamentals:

• international tourism

• foreign investors

• cash-based transactions

Importantly, most transactions in Phuket are carried out without financing, which significantly reduces the risk of a speculative bubble and stabilizes prices.

Additionally:

• Phuket accounts for over 35% of premium condo transactions in Thailand

• average rental prices and occupancy remain stable

• the market is shifting toward the premium segment

This makes Phuket not only a tourist market, but above all an investment market.

HOW APARTMENT RENTAL WORKS IN PHUKET

Key investment data:

• average occupancy: 75–78% annually

• average rental rate: approx. 5,800 THB per night

• net ROI: 6–9% annually

Additionally:

• short-term rental: 8–15% annually

• long-term rental: 6–8% annually

Conclusion: the short-term model generates higher returns but requires management.

BEST LOCATIONS IN PHUKET FOR RENTAL

1. BANG TAO / CHERNGTALAY - THE BEST INVESTMENT CHOICE

This is currently the most important investment market in Phuket.

Why?

• consistent demand throughout the year

• developed premium infrastructure (Laguna, beach clubs)

• strong short-term and long-stay rental demand

Rental yields:

• condo: 7–11% gross

• short-term: even above 10%

The best location for investors seeking stability and high ROI.

2. PATONG - THE HIGHEST CASHFLOW

Patong is the tourism center of Phuket.

Advantages:

• the highest tourist traffic

• highest occupancy rates

• fast return on investment

Rental yields:

• average 8–12% gross

Disadvantages:

• lower capital appreciation potential

• higher competition

Ideal for investors focused on cashflow.

3. RAWAI / NAI HARN - STABLE YEAR-ROUND RENTAL

One of the most underestimated investment locations.

Why?

• large expat community

• year-round demand

• lower entry prices

Rental yields:

• 6–8% annually (long-term)

Ideal for investors seeking stable passive income.

4. KAMALA / SURIN - PREMIUM SEGMENT

This is the luxury market:

• branded residences

• premium villas

• limited supply

Rental potential:

• 5–7% for luxury villas

• even higher for branded projects

Additionally:

• branded residences can generate 50–80% higher ROI than standard projects

Strategy: long-term growth + prestige.

5. PHUKET TOWN / KATHU / WICHIT - LOWER ENTRY LEVEL

This is a more local segment.

Characteristics:

• lower prices

• stable long-term rental demand

• lower risk

Rental yields:

• 5–8% gross

Ideal for beginner investors.

CONDO VS APARTMENT VS VILLA - WHAT TO CHOOSE?

Condo (apartment)

• stable cashflow

• easy to rent

• lower costs

Villa

• higher seasonal income

• greater variability

• higher management costs

Condo is the best choice for most investors.

KEY INVESTMENT COSTS (OFTEN OVERLOOKED)

Real ROI depends on costs:

• property management: 15–25% of revenue

• maintenance fees

• repairs and upkeep

Always analyze net ROI, not gross.

2026 TREND - PREMIUM AND LOCATION WIN

Key conclusions:

• the best locations grow the fastest

• the premium segment dominates the market

• investors choose quality

“Location + quality = ROI”

HOW TO CHOOSE AN APARTMENT FOR RENTAL

Key principles:

1. Location (Bang Tao, Patong, Rawai)

2. Price per m² (real, not marketing-driven)

3. Year-round rental demand

4. Property management

5. Net ROI, not gross

70–80% of properties on the market do not meet these criteria.

SUMMARY - WHERE TO BUY AN APARTMENT IN PHUKET

Best locations in 2026:

1. Bang Tao / Cherngtalay - best ROI + growth

2. Patong - highest cashflow

3. Rawai / Nai Harn - stability

4. Kamala / Surin - premium

5. Phuket Town / Kathu - lowest entry level

SOURCES

https://www.cbre.co.th/insights/figures/phuket-overall-figures-h2-2025
https://property.cbre.co.th/useful-information/phuket-condos-and-villas-2025
https://charlesdel.com/phuket-real-estate-trends/
https://alestriaproperty.com/blog/phuket-rental-yields-in-2025-what-investors-can-expect
https://sunwayestates.com/blog/post/phuket-2025-market-trends-and-the-winners-in-real-estate
https://phuket.net/articles/2025/09/5-reasons-phuket-property-remains-top-choice-2025/