Phuket offers a wide range of premium housing options. Luxurious villas are available for purchase by foreigners, and in this guide, we’ll explain how to become the owner of your own home on the island.
Types of Property Ownership in Thailand
There are two types of property ownership in Thailand: Freehold and Leasehold.
Freehold – “full ownership” – is complete and indefinite ownership of the property. The owner has absolute rights to the property and can use it at their discretion: rent it out, sell it, or pass it on as inheritance.
Leasehold – is limited-term ownership based on a long-term lease. The owner leases the property for a long period but does not own it outright. The lease term is 30 years, with the option to renew the lease twice, for a maximum term of 90 years. Inheritance of such property may be restricted by the terms of the lease.
When purchasing a property with land, the house can be registered as Leasehold or Freehold, but the land itself can only be held through a long-term lease (Leasehold).
To ensure smooth renewal of a Leasehold agreement, it is essential to maintain ongoing contact with the landowner.
Buying property is an important and responsible step. We have reviewed and selected the top 3 companies that assist with finding and purchasing villas in Phuket to help you close the deal on the most favorable terms.
If you’re looking for rental properties, check out our articles on Apartments Rental and Villas Rental.
Types of Real Estate for Purchase in Phuket
A villa is a type of structure located on a private plot of land. It is distinguished by having a spacious garden and often a pool. Villa sizes range from a few hundred to several thousand square meters.
A house can be situated on a private lot or be part of a complex managed by a property management company. Houses are typically two or three stories but without a pool, while villas are usually one or, at most, two stories, with a large lot and a pool.
Villas are generally divided into economy, premium, and luxury classes. This classification is based on different sizes, quality of finishing materials, and available equipment and furnishings. Villa prices are also influenced by proximity to beaches and surrounding views.
Residential Villa Complexes are a popular type of development in Phuket. These are built in areas away from beaches and tourist zones and are designed for those planning long-term stays in Phuket. The layout includes basic infrastructure to make these properties attractive to foreigners. Typically, the complex is guarded and has maintenance staff. This type of property is convenient for those who visit Phuket periodically, as the property management company looks after the house during the owner’s absence.
Hotel Villas are an option for those who want to enjoy their property while also earning rental income. Some five-star hotels build luxury villas on their premises and sell them to private owners. This gives the owner access to all hotel infrastructure (restaurants, pools, gyms, etc.). This option is convenient for owners since hotel staff will take care of villa maintenance.
In the owner’s absence, the villa can be rented out through the hotel operator, which is a clear advantage. The owner doesn’t need to worry about finding renters or maintaining the home — these responsibilities are managed by the property management team. However, occupancy rates for such villas may be lower due to the high cost. Owning a villa at a hotel is more about status and convenience for the owner.
If you’re looking for a more affordable property option, see our article on Apartments Purchase.
How to Choose an Area for Villa Purchase
Villas in Phuket are available in a variety of locations: in busy tourist areas, near beaches as part of residential complexes, or on secluded, scenic hills. First, decide which setting suits you best and the purpose of your purchase.
For personal residence, choose areas with developed infrastructure. For investment and rental income, consider tourist areas near popular beaches.
Buyers looking to move to Phuket typically avoid busy tourist areas. The eastern and southern coastal areas are better suited for permanent residence, as they have all the necessary infrastructure. For example, families with children prioritize education. Phuket has several international schools, with some located in the expat-friendly area of Chalong. Phuket Town, Kathu, Bang Tao, Nai Harn and Rawai are also well-developed areas ideal for long-term living.
For investment purposes, buyers often choose villas in dedicated complexes with organized rental management. In these cases, the owner doesn’t handle occupancy rates, leaving it to the management company.
Villas in bustling tourist areas like Patong, Bang Tao, Karon and Kata offer profitable rental opportunities. Surin, Kamala, Nai Harn, Rawai, Nai Thon and Mai Khao are quieter but still popular among tourists.
For some buyers, aesthetics are a priority, and Phuket has numerous luxury options. Premium villas are typically built by the water or on scenic mountain plots. However, it’s worth noting that mountain plots are on slopes, limiting the potential for large outdoor areas. Choosing a villa with a beautiful view often means sacrificing space. This may not be ideal for families with children who want outdoor play areas. Additionally, access to these villas often involves navigating steep slopes.
Buying property is an important and responsible step. We have reviewed and selected the top 3 companies that assist with finding and purchasing villas in Phuket to help you close the deal on the most favorable terms.