Phuket Rental Yield: What Condo Investors Really Earn

A realistic Phuket rental yield for a condo in 2026 is roughly 6 to 7 percent gross and about 4 to 5 percent net once vacancy, management, building fees and tax are paid. Developers often advertise higher figures, but most are forecasts rather than guaranteed returns, and nightly rentals without a hotel licence carry legal risk.

Two recent data sets show where the numbers really sit and why the gap between brochure and bank account matters.

What is the average Phuket rental yield in 2026?

An October 2026 price and yield index from Layan Real Estate, covering 357 projects and 1,166 available units in 19 districts, found that 291 of 360 catalogued projects quote a rental yield. The median declared figure was 6 percent a year, with a range from 3 to 15 percent. Only 25 projects, about 7 percent, fixed a contracted yield in the sales agreement; the rest were developer forecasts.

A separate 2026 scan of 506 Phuket condo listings by analyst Stan Brinkman put the median advertised gross yield at about 6.7 percent. After allowing for 15 percent vacancy, a 12 percent management fee, the building's maintenance fee and property tax, the median net yield fell to about 4.3 percent, a cut of roughly a third. Both studies use asking prices and estimated rents, not completed deals, so treat them as benchmarks.

Gross vs net: how to calculate rental yield in Phuket

Gross yield is annual rent divided by the purchase price. Net yield deducts running costs first. A simple illustration for a condo bought for THB 5 million and let at THB 30,000 a month:

Line	Per year (THB)
Rent at 12 months	360,000 (7.2% gross)
Vacancy, 15%	-54,000
Management, 12% of rent collected	-36,720
Common area fee (example)	-20,000
Net before income tax	249,280 (about 5.0% net)

The example figures are assumptions for illustration only. Furnishing, repairs, insurance, the sinking fund and income tax on rent reduce the return further, and Thailand's Revenue Department treats rental income as taxable.

Which Phuket areas have the highest rental yields?

In the Brinkman scan, the highest area-level gross yields were in beach areas with strong tourist rental demand: Karon and Kata at about 8.5 percent, Patong at about 8.5 percent, and Rawai and Nai Harn at about 8.1 percent. Higher yield often comes with higher vacancy swings and more wear, so net results vary.

Purchase prices drive yield too. Layan's index shows median asking prices for condos per square metre:

• Surin: THB 197,742
• Layan: THB 179,784
• Bang Tao: THB 157,543
• Kamala: THB 151,838
• Kata: THB 148,000 and Karon: THB 142,857
• Patong: THB 136,386 and Rawai: THB 132,813
• Nai Harn: THB 120,000 and Chalong: THB 105,001

Across the island the median was THB 125,211 per square metre, and off-plan units were listed about 18 percent higher per square metre than finished ones. Our guide on how to invest in Phuket real estate compares the main areas.

Are guaranteed rental returns in Phuket really guaranteed?

Only if the rate is written into the contract, and even then it depends on the developer's ability to pay. Ask who runs the rental programme, how long any fixed return lasts, what happens after it ends and how costs are shared. Request past owner statements for completed buildings rather than relying on a sales presentation.

Can you legally rent out a Phuket condo on Airbnb?

This is the biggest risk to a high Phuket rental yield. Letting rooms by the day as a business without a licence is an offence under Section 15 of the Hotel Act of 2004. Lawyers and officials generally treat stays of under 30 days as hotel-style accommodation, while leases of 30 days or more are normal residential rentals. Many condo by-laws also ban short stays.

Enforcement is active. The Thaiger reported that on October 21, 2026, Phuket Deputy Governor Romdon Hajiawae led inspections of properties in Patong and Ratsada over rooms let by the day without a hotel licence, after a July case against a condominium operator in Wichit. Days earlier, the province had asked the government to review the rules separating condo rentals from hotel operations. Our earlier report on the new hotel law and residents' concerns covers the wider debate.

The safer routes are monthly or annual leases, or a unit inside a building whose operator holds a hotel licence.

Ownership rules that affect your return

Legal structure and fees also shape your Phuket rental yield over the full holding period.

• Foreigners may own condo units only within the 49 percent foreign quota of a building's unit area, and the purchase money must be brought in from abroad in foreign currency.
• A proposal to raise the quota to 75 percent is still under study by the Department of Lands and is not law.
• The reduced 0.01 percent transfer and mortgage fee, renewed to June 30, 2027, applies only to Thai individuals buying homes up to 7 million baht, according to Thai Law Online; foreign buyers pay the standard 2 percent transfer fee.
• Layan found that 88 percent of projects offer both freehold and leasehold units.

See also whether foreigners can buy property in Phuket and freehold vs leasehold in Phuket.

FAQ

What is a good Phuket rental yield?

A net return of around 4 to 5 percent on a condo is in line with 2026 market data. Gross figures of 8 percent or more are possible in busy beach areas but shrink after costs.

Is long-term or short-term rental better in Phuket?

Short stays can earn more per night but need a hotel licence. Monthly and annual leases earn less but are legal for ordinary condo units and simpler to manage.

Do foreigners pay tax on Phuket rental income?

Yes. Rental income from Thai property is taxable in Thailand. Rates and deductions depend on your situation, so check with the Revenue Department or a tax adviser.

Are developer yield forecasts reliable?

Treat them with caution. In Layan's October 2026 index, only 7 percent of projects quoting a yield fixed it in the sales contract.

Photo: Kata and Karon beaches seen from Karon Viewpoint, by Bennypc / Wikimedia Commons, CC BY-SA 4.0.