For the price of a studio in a major city, you can today buy an apartment with a pool just a few minutes from the beach in Phuket. It sounds like an advertising slogan - but the numbers often back it up. We compare a home in Phuket and one back home in terms of price, rental yield, costs and risk, to show when Thailand really pays off.
Purchase price
New-build apartments in Phuket start at around 3.5-4 million THB (roughly EUR 90,000-105,000) - similar to the price of a studio in a major city. The difference is what you get: in Phuket it's often an apartment in a resort with a pool, gym and reception, in a warm climate and close to the beach. Premium locations (Bangtao, Surin, Kamala) cost more - just like prestige districts anywhere. We give current price ranges in our guide to property prices in Thailand.
Rental yield (ROI)
This is where the difference can be largest. Long-term rentals back home typically deliver around 4-6% gross per year. In Phuket, short-term (holiday) rentals are estimated at 8-12% ROI per year - with a good location, project and management, though without guarantees and with seasonality. How this works in practice (rental pool, management) is covered in our guide to ROI and rentals in Phuket.
A similar entry price, but in Phuket usually a higher potential rental yield and better property "quality" for the money - in exchange for seasonality, remote management and currency risk.
Costs and taxes
A purchase in Thailand involves transfer fees and taxes, and renting adds management and maintenance (in resorts: common-area fees, sinking fund). You'll find the full breakdown in our guide to purchase costs and taxes. Back home, in turn, there's transfer tax/VAT, rental tax and often higher financing costs. It's worth calculating the whole picture, not just the price per square metre.
Risk and currency
Every foreign investment has its own characteristics. In Phuket you need to account for: THB exchange-rate risk, rental seasonality, remote management and the ownership rules (apartment - freehold within the 49% quota; villa with land - leasehold or a company). These can all be controlled with good support - the key is buying with a trusted, dedicated partner.
Who Phuket suits, and who is better off at home
Staying at home can be more convenient when you want your investment "within reach" and want to finance it with a mortgage. Phuket wins when you're after a higher ROI, a second home in a warmer climate or a retirement plan, plus diversification beyond your home market. Many of our clients combine both worlds: a home back home for daily life and an apartment in Phuket that earns when they're not using it. If you're thinking about the latter, take a look at our investment apartments and the full portfolio.