Phuket Rental Yields in 2025: What Investors Can Expect
Why Rental Yield Matters
When international investors look at Phuket, they often picture beaches, golf courses, and island lifestyle. But for many, the real attraction is yield. Rental returns are a key part of the investment case, especially in a market that attracts millions of tourists each year alongside a growing expat population.
So, how do Phuket’s condos and villas perform in 2025? And which locations stand out for strong returns?
Phuket Rental Yield Snapshot
Phuket short-term rental yields typically range from 8–15% per year, while long-term rentals usually deliver 6–8% per year.
These figures put Phuket at the higher end of Southeast Asia’s resort markets, outpacing many coastal destinations in Malaysia or Vietnam. The island’s ability to combine strong tourism flows with a growing base of long-stay expats underpins this performance.
Condos vs Villas: Yield Profiles
Both asset types generate attractive returns, but in different ways.
Condos benefit from professional rental pools, predictable tourist demand, and lower operating costs. Occupancy tends to be consistent, making them a reliable cash-flow investment.
Villas, by contrast, can command premium nightly rates from families and groups. Average daily rates (ADRs) are often multiples of condos. But occupancy is more variable, and management costs are higher, making cash flow less predictable.
In short: condos deliver stable income, while villas offer higher peaks but greater variability.
Location Matters: Where Yields Are Strongest
Phuket is not a uniform market. Returns vary significantly by location, and the choice of area often defines the balance between yield and lifestyle.
Bang Tao: & Cherngtalay: One of Phuket’s most established investment zones, anchored by Laguna Phuket and international schools. Developments like Siamese Bangtao, The Zero Bang Tao, Villa Qabalah and Mouana Serenity benefit from strong year-round rental demand and some of the island’s most consistent yields.
Layan: A quieter luxury enclave north of Bang Tao, offering space, exclusivity and easy access to Phuket International Airport. Ayana Heights sits here, appealing to both lifestyle buyers and long-term tenants.
Patong: Phuket’s best-known tourist hub, with constant short-term rental demand. Projects like ABOV Patong are positioned to capture high occupancy during peak season, though yields can fluctuate more with seasonality.
Chalong Bay: Growing in popularity among expats and families thanks to its marina access and proximity to international schools. Mouana Grande villas here are suited to longer-term renters as well as lifestyle-driven owners.
Each of these areas has its own profile — Bang Tao delivers year-round strength, Patong thrives on tourism, Layan offers exclusivity, and Chalong Bay appeals to families and long-stay residents.
Short-Term vs Long-Term Strategy
Short-term rentals deliver the higher yields (8–15%), particularly in tourist hotspots. They require active management, strong marketing, and regular maintenance.
Long-term rentals provide more stable cash flow (6–8%), appealing to expats and long-stay visitors. They require less day-to-day management, but headline yields are lower.
Many investors combine both: peak-season short-term bookings and long-term tenants during the quieter months.
Why 2025 is a Strong Year
Phuket continues to rank among the world’s top tourist destinations, with direct flights from over 60 cities. Infrastructure is expanding, new roads, hospitals, and schools, making the island not just a holiday spot but a viable year-round base.
This dual demand from holidaymakers and expats supports both short-term and long-term rental strategies, helping yields remain strong in 2025.
What Investors Should Watch
Strong yields aren’t automatic. Success depends on:
Quality of management - who handles bookings and guest services.
Reputation of the project or developer.
Location fundamentals: proximity to beaches, schools, retail, and transport.
Unit type: smaller condos rent faster, while villas earn higher nightly rates but require consistent occupancy.
Conclusion: Phuket Remains a Yield Leader
Phuket’s rental yields in 2025 remain among the most attractive in Asia. Condos deliver reliable, steady cash flow, while villas offer the chance of premium returns for those comfortable with higher variability.
For investors, the opportunity is clear: choose the right project, location, and management partner, and Phuket can deliver some of the strongest rental income in the region.
If you’d like to see current Phuket projects with rental programs in place, explore our curated Phuket property listings.
Phuket Rental Yields FAQs
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Short-term rental yields are typically 8–15% per year, while long-term rentals average 6–8%.
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Villas can achieve higher nightly rates, but occupancy is less predictable. Condos usually provide steadier cash flow with more consistent occupancy.
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Bang Tao and Cherngtalay deliver consistent demand year-round, Layan attracts premium long-term tenants, Patong thrives on short-term tourism, and Chalong Bay appeals to expats and families.
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Short-term rentals can deliver higher returns but require active management. Long-term rentals provide more stable, lower-maintenance income.
