Phuket’s real estate sector has entered a new phase of rapid growth, prompting Siam Legal Phuket to issue a legal advisory to foreign buyers navigating the island’s evolving property landscape.

Between 2021 and 2025, more than 45,000 residential units valued at approximately THB 470 billion were launched across Phuket. Nearly 60 percent of recent property transactions now involve foreign purchasers, reflecting the island’s shift from a seasonal tourism destination to a global investment market.

Rising foreign demand is driving price growth and accelerating new project launches. Branded residences and large-scale luxury developments are increasingly targeting international investors, many of whom are purchasing for both lifestyle use and rental yield potential. As competition for prime units intensifies, reservation timelines have shortened, placing pressure on buyers to act quickly.

Legal professionals caution that speed should not replace proper due diligence.

“Phuket’s growth is substantial, but the legal framework governing foreign ownership has not fundamentally changed,” said Omar O Manee, Senior Legal Advisor at Siam Legal Phuket. “Investors must clearly understand the restrictions and structure their transactions carefully.”

Under Thai law, foreign nationals cannot directly own land. Foreign buyers may purchase condominium units within the statutory 49 percent foreign ownership quota or enter into leasehold arrangements for land-based property. Once the foreign quota in a condominium project is filled, additional foreign buyers cannot register freehold ownership in that development.

Leasehold agreements remain limited to 30 years under the Civil and Commercial Code. Recent Supreme Court rulings have reinforced that automatic renewal clauses extending beyond this term may not be enforceable, increasing the importance of properly structured agreements.

Siam Legal Phuket advises that engaging an experienced Phuket lawyer early in the transaction process can significantly reduce exposure to regulatory and contractual risks. Foreign buyers should conduct full legal due diligence before committing funds, including title deed verification, confirmation of foreign quota availability prior to deposit, developer background review, and careful examination of sale and purchase agreements. Poorly structured nominee arrangements or inadequate contract review can expose buyers to substantial legal and financial consequences.

As Phuket continues to attract international capital, legal structuring and compliance have become critical components of property acquisition strategy rather than administrative formalities.

Siam Legal International maintains offices in Bangkok, Chiang Mai, Phuket, and Pattaya, providing legal services in property law, immigration, corporate structuring, and dispute resolution. The firm has advised foreign investors in Thailand for more than two decades.

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For more information about Siam Legal Phuket, contact the company here:

Siam Legal Phuket
Omar O Manee
+66 76 326 322
info@siam-legal.com
123, Cherngtalay, Thalang,
27-28 BangTao Place Thalang District,
Phuket 83110, Thailand