Villa Investment in Phuket
The premium segment — higher returns, but more complex ownership structures for foreigners.
The Villa Market
Phuket's villa market is the premium segment, attracting high-net-worth buyers seeking luxury lifestyle or strong rental income. However, foreign ownership of villas is more complex because villas sit on land — which foreigners cannot own directly in Thailand.
Ownership Structures
Leasehold (30+30+30)
The most common structure. You lease the land for 30 years with options to renew twice. Legally recognized, but renewal isn't guaranteed — it depends on the landowner's cooperation.
Thai Company Structure
A Thai limited company owns the land, with you as director. Legal when structured properly with genuine Thai shareholders — but risky and under increasing government scrutiny if Thai shareholders are nominees.
⚠ Never Use a Nominee
Having Thai nationals hold shares on your behalf (nominee arrangement) is illegal. Land Department authorities actively investigate these structures. The penalty can be confiscation of the property.
Leasehold in Practice: 30 Years and What Comes Next
Thailand's Civil and Commercial Code limits the maximum lease period to 30 years. Renewal options can be written into the contract, but they are not automatically enforceable — they depend on the landowner's willingness to cooperate at the time of renewal. Marketing materials that promise '30+30+30 years' suggest continuity, but the second and third terms are not legally guaranteed in advance.
When evaluating a leasehold villa, factor in the remaining lease term, renewal conditions, and what happens at expiry. A 25-year-old lease with 5 years left is a very different proposition than a fresh 30-year term.
Land Titles & Due Diligence
Not all land titles in Thailand are equal. A Chanote (Nor Sor 4 Jor) is the strongest — it provides full legal ownership with exact GPS boundaries. Other titles like Nor Sor 3 Gor or Nor Sor 3 offer progressively fewer protections. Before any villa purchase, your lawyer must verify the title type, check for encumbrances, confirm boundaries, and ensure no disputes exist.
Land Title Types in Thailand — What Your Lawyer Checks Before You PayPrimary Market
New villa developments and branded residences offer modern design and resort-style amenities. But expect high markups, long construction times, and developer risk. Always inspect the developer's completed projects before committing.
Secondary Market — Our Sweet Spot
The secondary villa market is where the real opportunities are. Post-pandemic, many owners need to sell — creating opportunities for buyers who can see past cosmetic wear. With targeted renovation, a dated villa can become a high-yield rental property.
Rental Strategy
Villas offer two paths: luxury short-term (high rates, seasonal demand, hotel license needed) or long-term family rental (lower rates, stable occupancy, no license issues). We help you choose the strategy that matches your goals and risk tolerance.
Seasonality & Its Impact on Your Returns
Phuket's high season runs November through February (dry weather, peak tourism). Monsoon season (May–October) brings lower occupancy and rate pressure. For short-term rental villas, this means 3–4 strong months, 3–4 moderate months, and 4–5 quiet months. Your financial model must account for this — not just the high-season rate card.
Real Returns & What Most Often Goes Wrong
The gap between promised and actual returns on villas is often wider than with condos. Common pitfalls: overestimating occupancy, underestimating management costs, ignoring monsoon-season vacancies, and relying on 'guaranteed return' programs that inflate the purchase price. We model conservative scenarios so you're prepared for reality, not just the brochure.
Resale can be challenging in a market with high new supply. If you need to exit, your buyer pool is smaller than for condos (higher price point, more complex ownership). We help you think about exit strategy before you buy — not after.
Best Locations for Villas
Kamala
Growing demand, good beach access, increasingly popular with families. Our primary area of expertise.
Layan / Laguna
Established villa communities with strong rental track records. Premium prices but consistent demand.
Rawai / Nai Harn
Popular with long-stay expats. More affordable entry, strong long-term rental market.
Surin Headlands
Ultra-premium sea views. Rare properties that hold value through any downturn.