Phuket and Koh Samui are still the centers of attraction for international real estate investors. According to the publication The Nation Thailand, with reference to the Savills report, these two areas are now competing for the capital of foreign buyers, radically changing the structure of the local market.
Phuket is still dominated by Russian buyers. Analysts predict that their activity will continue for at least another three years. At the same time, a new wave of Israeli investors is gaining momentum on Koh Samui, whose presence on the island and neighboring Phangan is actively growing. The number of Israeli tourists has grown from 70,000 to more than 200,000 since the pandemic, which has created a solid base for the transition from leisure to long-term investments.
The first half of 2026 was marked by a historic supply record. 70-80 villa projects (more than 800 properties) have been launched in Koh Samui, and 40-50 projects (about 700 villas) in Phuket. This is despite the fact that the annual demand in Phuket traditionally does not exceed 1,000 villas, meaning that in just six months the market has received 70% of the annual rate. In Koh Samui, the situation is even more revealing: the launch of more than 800 villas in six months indicates unprecedented construction activity, which is far ahead of the historical level of demand. Nevertheless, Savills experts predict that high international interest will continue on both islands in the next 3 to 5 years.
The long-term rental strategy is becoming a key trend. In order to reduce initial costs and circumvent restrictions on the purchase of land by foreigners, investors prefer to conclude lease agreements for 10-30 years rather than purchase real estate. Koh Samui, where land prices are lower than in Phuket, is actively developing a model of boutique projects for 10-25 villas, which are then sublet through private investment networks, forming a closed ecosystem from construction to management and tenant search.
High profitability remains the main magnet. During the peak season, renting a medium- and high-class villa earns several hundred thousand baht per month, and apartments - tens of thousands. Developers estimate an average annual return on investment of 8-10%, which is noticeably higher than in many Western markets.
Along with the growth of foreign investment, serious regulatory challenges are also emerging. In particular, schemes have become widespread in which foreign buyers use nominee shareholders of Thai citizens to hide the real owner and circumvent the legal ban on the purchase of land by foreigners. Although such actions qualify as a violation of the law and are subject to investigation, in practice, the effectiveness of combating this practice raises questions from experts.
Source: Nation Thailand
