How to Maximize Income from Phuket Real Estate: Effective Tips for Owners
Phuket remains one of the most attractive resort destinations for real estate investment. In early 2024, the real estate market on the island showed impressive results: more than 3.6 million tourists visited in the first quarter, a 30% increase compared to the same period last year. By the end of the year, tourism revenues are expected to exceed 400 billion baht, approximately 12 billion USD. These numbers highlight the incredible potential for hotel and rental property owners.
For 15 years, we have been helping foreign investors earn from Phuket real estate by using a comprehensive approach: from strategy development to full support during transactions. Our assistance doesn’t end with the purchase—we continue to consult our clients throughout their property ownership, helping with tax and legal matters. When buying property in another country, it’s essential to have reliable partners on the ground. We are ready to be those partners for you. Moreover, our services are free for clients.
Which Properties Generate the Most Income in Phuket?
One key factor in successful investment in Phuket is choosing the right property. The western coast of the island is the most prestigious and attractive for tourists. The best beaches are located here, while the eastern part is less suitable for swimming and less popular. Most of the hotels and residential complexes that generate stable rental income are situated on the western coast.
If you want to get the maximum return on your investment, choose properties on the beachfront. These apartments and villas are always in high demand among tourists, and their value is usually higher. This is especially important if you plan to rent out your property to tourists.
Short-Term or Long-Term Rentals?
When it comes to renting out real estate in Phuket, short-term rentals generally offer more profit than long-term ones. For example, a tourist renting a one-bedroom apartment for a few months might pay 50,000-60,000 baht per month. However, long-term rentals often come with discounts of up to 50%. In contrast, short-term rentals can charge between $100 and $150 per night. The average occupancy rate for apartment hotels in Phuket is 74% throughout the year. In high season, it can reach up to 90%, and during holidays—100%.
Thus, short-term rentals can bring in $2,220 to $3,330 per month, which is significantly higher than long-term rentals. This is especially relevant during the high season when rental prices rise significantly.
What Should You Know About Short-Term Rentals?
In Thailand, short-term rentals require a hotel license. Such licenses are usually held by residential complexes located in tourist zones and built according to hotel standards. For investors aiming for maximum profit, it’s essential to choose properties with this license, as it allows for more profitable short-term rentals. Residential complexes without a hotel license won’t be suitable for these purposes.
We are always ready to help you select the optimal investment property and provide full support throughout the transaction.