Phangan Island in the Gulf of Thailand (southern Thailand), formerly known primarily as a tourist mecca, is undergoing a structural transformation. According to analysts at Colliers (Thailand), in recent years, the volume of investments in residential real estate on the island has exceeded 7.94 billion baht. A key role in this boom has been played by foreign buyers from Israel, Europe and Australia, who view the island not as a seasonal resort, but as a place for long-term residence or the purchase of a "second home."
The main driving force of the market has become the segment of resort villas and luxury housing. Currently, 26 communal projects (294 objects) are on active sale, the total cost of which is estimated at 6.83 billion baht. For comparison, the condominium segment is represented by only four projects for 66 units (about 380 million baht), and closed residential complexes - 11 projects for 78 houses (about 730 million baht). Thus, the villas occupy a dominant position, accumulating more than 85% of all investments.
The greatest interest of investors and developers is concentrated along the western and northwestern coasts in the areas of Maehad, Haad Yao and Hin Kong. These locations are appreciated for their panoramic sea views, privacy and well-developed infrastructure for expats. It is here that closed enclaves with a high level of service are formed, focused on wealthy buyers who are willing to pay for privacy and quality of life.
Especially noticeable is the activity of Israeli investors, who have created a separate niche market on the island over the past few years. They prefer to purchase real estate for their own long-term residence, while at the same time handing it over to professional management to receive rental income. On the contrary, Europeans and Australians are more likely to choose the Sri Thanu and Hin Kong areas, where a healthy lifestyle culture has developed, yoga studios and organic cuisine cafes operate, which attracts digital nomads and fans of eco-friendly recreation.
Developers are actively responding to the growing demand: in 2024-2025 alone, 231 new facilities were put on the market, with a peak in 2025 (131 facilities). Since Thai law restricts the right of foreigners to own land, most transactions are executed under a 30-year lease (leasehold) scheme, which fully complies with local regulations and at the same time guarantees investors long-term protection of their investments.
Source: Nation Thailand
