Market Guide
October 23, 2026 · 6 min read · By Siam Keyholder Editorial
Phuket's villa market just posted one of its most active half-years on record. New figures from CBRE show developers racing to launch villa projects even as condo completions slow down, while a parallel wave of buyer interest from the Middle East is reshaping who is actually signing the contracts. For anyone weighing a move to the island, or browsing properties as an investment, the data point to a **Phuket villa market** growing selectively rather than everywhere at once.
According to CBRE's Phuket Overall Figures for H1 2026, developers launched 16 new villa projects in the first six months of the year, totalling 224 units — a meaningful jump for a segment that usually moves in small batches of ultra-premium stock. More than a third of that activity, 35.3%, is concentrated in Phuket's West Coast (Central) area, the stretch running through Bang Tao, Laguna and Kamala that has long been the island's premium villa corridor. The Mid-range band, priced between THB 15 million and THB 35 million, accounted for the largest share of new launches, suggesting developers are betting on buyers who want a genuine villa lifestyle without stretching into the ultra-luxury tier above THB 50 million.
The condominium side told a different story. New condo project launches rose 44.8% compared to the second half of 2025, a sign that developers are still confident enough to bring fresh stock to market. But completions tell a more cautious tale: only three condo projects were finished in H1 2026, delivering 1,196 units, a 56.8% drop from the previous half-year. CBRE points to project delays and extended construction timelines among the large, publicly listed developers who dominate the sector — a reminder to check a project's actual construction progress, not just its brochure, before signing anything.
That renewed confidence has an unmistakable geographic source. Banyan Group Residences, the development arm behind several of Laguna Phuket's best-known beachfront projects, told Thailand Business News that its Middle East sales climbed 4.5 times in the first half of 2026 compared with the same period a year earlier. The company followed up with a two-day sales event on 23–24 October at the Banyan Tree Dubai business centre in Bluewaters, showcasing six Laguna Phuket developments by RSVP and private consultation — among them Banyan Tree Beach Residences Mazu, five absolute-beachfront villas on Bang Tao Beach with three already sold, and Oceanus, sixteen beachfront residences of up to 768 square metres, five of which have also sold.
Managing director Stuart Reading framed the shift simply: "In uncertain times, international buyers are increasingly looking for homes in destinations that combine lifestyle, long-term appeal and proven infrastructure." The company now plans to launch up to USD 1 billion in new luxury projects over the next two to three years — a scale of commitment suggesting Middle East demand is a sustained shift in Phuket's buyer base, not a one-off marketing push, sitting alongside the Russian, Chinese and European buyers who have historically dominated the island's villa market.
Thailand's ownership rules haven't changed to accommodate this new demand, and understanding them still matters more than any single market statistic. Under Section 19 of the Condominium Act B.E. 2522, foreigners may own up to 49% of the total saleable floor space in any single condominium building outright — a freehold right, provided funds are transferred into Thailand in foreign currency and the building's foreign quota hasn't already been filled.
Villas and land work differently. Thailand's Land Code bars foreign nationals from owning land outright, so most of the villa purchases driving the figures above are structured as long-term leaseholds, typically registered for a maximum of 30 years. A March 2025 Supreme Court ruling closed off a popular workaround, confirming that any lease clause promising more than 30 years is void beyond that initial term — developers can still offer renewal options, but buyers should treat them as contractual promises rather than guaranteed rights. Usufruct and superficies structures, which grant lifetime use or building rights over land owned by a Thai company or individual, remain available alternatives worth discussing with a property lawyer before committing to a project.
The West Coast's dominance in new launches lines up with where international buyers already want to be: walking distance to Bang Tao Beach, inside the gated infrastructure of Laguna Phuket, and close to the island's international schools and private hospitals. That concentration cuts both ways. It means strong resale liquidity and rental demand in a proven location, but it also means the mid-range and premium segments in this corridor are the most competitive, with well-located stock selling before public launch — as the Mazu and Oceanus sell-through rates show.
Buyers looking outside this established belt, in areas like Rawai, Cherngtalay or the island's east coast, may find more room to negotiate, though with less certainty about established rental demand. Comparing a shortlist of properties across these different pockets of the island, rather than anchoring on one project, is usually the fastest way to see where price and location genuinely line up — our team can walk through that comparison on a call if you're narrowing down a shortlist.
**Can foreigners buy a villa in Phuket outright?** No. Foreign nationals cannot own land under Thailand's Land Code, so villas are typically purchased via a registered leasehold of up to 30 years, sometimes paired with a Thai company structure or a usufruct right, rather than outright freehold ownership of the land itself.
**What percentage of a Phuket condo can a foreigner own?** Up to 49% of the total saleable floor space in a single condominium building, under Section 19 of the Condominium Act B.E. 2522 — this is calculated on floor area, not the number of units, and only applies once funds are transferred into Thailand in foreign currency.
**Why are Middle East buyers increasingly interested in Phuket?** Developers including Banyan Group Residences report Middle East sales rising 4.5 times in H1 2026, driven by buyers seeking a stable, well-established lifestyle destination with international schools, healthcare and tourism infrastructure amid global economic uncertainty.
