Knight Frank says Phuket luxury property market to remain strong through 2026
Knight Frank Thailand says luxury and branded residential projects in Phuket’s prime west coast areas are set to outperform the wider market through 2026, with villa sales up 12.9% in 2025.
Luxury and branded residential projects in Phuket’s prime west coast locations are expected to continue outperforming the broader market through 2026, according to property consultancy Knight Frank Thailand.
The consultancy said developments in Bang Tao, Layan, Kamala and Cherng Talay remain the most sought-after, especially projects linked to internationally recognised hotel brands, professional rental management and integrated lifestyle facilities.
Nattha Kahapana, partner and managing director of Knight Frank Thailand, said luxury villas are continuing to outperform condominiums as affluent overseas buyers place more emphasis on lifestyle rather than investment alone. He said villa sales rose by 12.9% in 2025 despite softer condominium demand, reflecting stronger interest in larger homes that offer privacy and long-term value.
Knight Frank said buyers are increasingly selective, favouring projects backed by reputable developers, recognised brands and realistic rental income potential. It added that competition is likely to intensify, particularly among off-plan condominium projects launched over the past three to four years, as a large development pipeline increases pressure on pricing, promotions and sales incentives.
According to the consultancy, projects in secondary locations or those without clear product differentiation may face slower sales and longer absorption periods.
Land prices along Phuket’s west coast are also projected to keep rising because of limited development sites in Bang Tao, Laguna, Layan and Kamala. Knight Frank said the scarcity of beachfront and sea-view land is expected to support long-term capital appreciation for both luxury condominiums and villas.
Nattha said infrastructure improvements could open up new growth opportunities beyond Phuket’s traditional hotspots. He said the proposed airport in neighbouring Phang Nga, together with ongoing transport upgrades, is expected to stimulate residential development in northern Phuket and nearby areas. Emerging destinations including Mai Khao and Nai Yang are likely to draw more developer interest as connectivity improves.
Foreign buyers are expected to remain the main driver of Phuket’s residential market, with demand continuing to come mainly from Russia, China, Europe, India and the Middle East. Knight Frank also said Phuket’s rental market remains attractive, although rental performance is still closely tied to tourism cycles and seasonal occupancy patterns.
