Buyers shift to Phuket amid instability

Dubai-based business owner Steven Swindells has just finished a trip in Thailand in search of a second home.

Mr Swindells, 53, has been living in the United Arab Emirates for nearly three decades, but he is exploring options to see if Thailand can be a retirement option in the future.

With his 25-million-baht budget, he has been searching for properties in Bangkok, Pattaya, Chiang Mai, Phuket, and Hua Hin, looking for a long-term stay opportunity and a rental yield, if possible, with his future home in Thailand.

Mr Swindells also said there are a few things Thailand may improve to help a foreigner own a home. "There should be less tax for foreign ownership of homes in Thailand and an opportunity to obtain a 100% ownership and a mortgage."

While Mr Swindells said geopolitics and the recent strikes in various locations in the Middle East played no part in his decision which is rather an asset diversification approach, analysts say the status of Thailand, long viewed as a safe haven both for digital nomads and ultra-high-net-worth individuals, has been highlighted for wealthy international buyers looking for a base amid increasing geopolitical uncertainty.

SHIFTING LOCATIONS

Prasert Taedullayasatit, an honorary president of the Thai Condominium Association, said there has been a sharp increase in inquiries from affluent Middle Eastern clients seeking premium condominiums and luxury villas priced from 50 million baht upward.

Many of these buyers initially arrive in Thailand on extended stays, often living in luxury hotels or serviced apartments before committing to long-term investments and after becoming familiar with the country's healthcare system, lifestyle, and international education infrastructure, he said.

"Thailand has benefited from geopolitical shifts almost every time they occur since at least Covid-19 and the Russia-Ukraine war," said Mr Prasert, referring to events that saw the surge of Chinese and Russians seeking properties in Thailand.

"Many from the Middle East are still in a "trial stay" phase because the Middle East has been peaceful for such a long time, so they are not yet fully certain about relocating permanently."

Felix Desjardins, Head of Acquisitions for Phuket and Koh Samui at List Sotheby's International Realty Thailand, said geopolitical instability tends to "accelerate conversations" particularly at the ultra-prime real estate segment.

"We are seeing continued interest from Middle Eastern buyers and internationally mobile families who view Phuket less as a speculative purchase and more as a lifestyle and diversification decision."

"The Dubai–Phuket corridor is becoming increasingly established, with more Dubai-based buyers now viewing Phuket as part of their broader lifestyle and real estate allocation," he said.

A RESILIENT PLACE

Property data agency Juwai IQI co-founder and group managing director Daniel Ho said Phuket has been resilient even though a reduction in global tourism may affect the arrivals of digital nomads and expatriates who have helped support the market for condominiums and villas on the island.

"Phuket is the third most popular destination in Thailand so far in 2026, when ranked by Chinese buyer inquiries, after Bangkok and Chiang Mai."

Titiwat Kuvijitsuwan, chief executive officer for real estate developer Capstone Asset said Phuket has "historically demonstrated strong resilience through previous global events and market cycles".

"We have observed certain internationally mobile buyers shifting part of their focus from GCC [Gulf Cooperation Council] markets toward Phuket…driven by the view that Phuket compares favourably against destinations such as Dubai from a long-term lifestyle and investment perspective."

Capstone Asset is a developer of PEYLAA Phuket, Autograph Collection Residences, a branded residential project targeting affluent international buyers.

"Other markets such as Singapore, Dubai, Bali, and parts of Japan are also attracting capital, but Phuket sits in a unique position between lifestyle, accessibility, and value," he said.

Yana Chuvalova, marketing and sales director of Gardens of Eden, a Phuket-based property project, said Phuket offers significantly better value for money when compared to Singapore where foreign buyers are subject to approximately 60% additional buyer stamp duty taxes, making the country one of the most expensive property markets in the world.

"In Thailand, buyers can access freehold condominium ownership, while in Bali foreign buyers are generally limited to leasehold structures, often for around 30 years. This makes Phuket more attractive for long-term ownership and investment security."

STRUCTURAL GAPS

While Thailand's domestic demand for property remains sluggish as slow growth in recent years has led banks to tighten lending policies, Thailand's condominium market continues to attract strong interest from overseas buyers.

Foreign ownership of Thai condominiums rose by 2.2% in 2025, with foreign condominium purchases in the fourth quarter increasing 9.3% compared with the same period in 2024, according to Juwai IQI, with the Chinese, Russian and Burmese as the biggest buyers last year.

Mr Prasert, from the Thai Condominium Association, said he hoped that even a modest inflow could help revive the real estate industry, which accounts for approximately 8-12% of gross domestic product when combined with the construction and related sectors.

"Thailand's property market has already faced excess supply for the past two years, while domestic demand -- particularly among middle- and lower-income buyers -- continues to weaken.

"At the same time, there are few visible signs of strong government measures to stabilise or stimulate the sector," he said.

The country needs to reform its tax and legal systems, he said. Tighter regulations for foreigners in the process of obtaining ownership, leasing rights, or other related transactions could create new tax revenues that could then be used to support housing affordability programmes for Thai citizens.