Phuket real estate market in May 2026: the west coast has pulled away from the rest of the island

MORE Group published an updated overview of the Phuket real estate market on May 10, 2026. The main conclusion is concise: the market remains positive but has become selective. The west coast — Bang Tao, Laguna, Kamala, Surin — has shown price growth of 23–29% since 2023. Other parts of the island are either stagnant or under pressure due to oversupply.

The buyer profile has fundamentally changed. Five years ago, a typical buyer in Phuket was a European retiree looking for an affordable house by the sea. Today, it is an investor with a clear financial model: from Russia and the CIS (25–30% of the market), Europe and the UK (25%), the Middle East (a rapidly growing segment at about 10%), and India. The market has essentially de-Chineseized after the pandemic and has become one of the most geographically diversified resort markets in Asia.

Rental yields in well-managed condominiums and villa pools are 5–8% per annum. Branded residences — Laguna, Six Senses, Banyan Tree — are at the top of the range and attract buyers for whom management infrastructure is no less important than the property itself. For a foreign buyer in 2026, only one full form of ownership remains available: a condominium within the 49% foreign quota of a building. A villa with land requires special legal structures, and it is in this segment that most costly mistakes are concentrated.

The Thai government maintains a reduced property transfer tax rate from 2% to 0.01% for certain properties — this incentive is valid until the end of June 2026 and creates a real window of opportunity for those who have already made their choice. The Bank of Thailand has also extended the temporary relaxation of LTV rules until mid-2026.

Asia Lifestyle Magazine in its review of May 11 emphasises: Phuket has ceased to be a cheap tropical market. Prices in premium areas — Layan, Bang Tao, Surin — are already comparable to the Sukhumvit corridor in Bangkok. The market rewards those who understand the legal structure of the transaction, the logic of property management and resale potential — and punishes those who start by looking at beautiful renderings.

Properties in Thailand — Phuket and Bangkok: discount-house.com/thailand