"Knight Frank" says the real estate market in 2026 will turn the risk game for luxury—Phuket leads the market

*"Knight Frank" says the real estate market in 2026 will turn the risk game for luxury—Phuket leads the market — confirmed details at this stage for Phuket readers.*

Published: 2026-03-17 20:44 UTC Event date: 2026-03-16

# "Knight Frank" Predicts Phuket to Lead Thailand’s Luxury Real Estate Market in 2026

International property consultancy Knight Frank (Thailand) Limited forecasts that Phuket will lead Thailand’s luxury real estate market in 2026, as developers shift strategies to manage risk amid global economic uncertainty. The company’s analysis, released on 16 March 2026, highlights how changing investment patterns and buyer behavior are reshaping the country’s property landscape.

Luxury Real Estate in Phuket Attracts International Investors

According to Nattha Kahapana, Managing Director of Knight Frank (Thailand) Limited, Phuket remains a top destination for international property investment, particularly in the luxury pool villa segment. Rental yields for pool villas in prime tourist areas can reach up to 10% per year during the high season. Key locations such as Laguna Phuket, Cherngtalay, and Bang Tao Beach continue to see high demand, though increased competition from major developers is challenging smaller local operators.

Limited land availability on Phuket’s west coast is driving up land prices, while infrastructure developments—such as the planned new airport in Phang Nga—are expected to further stimulate real estate growth in nearby areas including Thai Mueang, Na Tai, and Samet Nangshe. The focus is also shifting towards attracting high-spending, quality tourists, which is seen as vital for the long-term strength of both Phuket’s tourism and property sectors.

Tight Credit and High Household Debt Slow Mass Market, But Luxury Segment Grows

Frank Khan, Head of Residential Consultancy at Knight Frank (Thailand) Limited, notes that Thailand’s residential market in 2026 is under pressure from strict lending standards and high household debt. Loan rejection rates remain elevated, with as few as 2–3 out of every 10 mortgage applicants receiving approval. This has led to a slowdown in the mid to upper-mid market, where average property prices range from 7–11 million baht, and has resulted in a significant stock of unsold units from projects launched over the past 4–5 years.

To boost sales in a buyer’s market, many developers are offering discounts—sometimes up to 30% at launch. Despite the mass market slowdown, the luxury segment continues to expand, especially branded residences priced above 250,000 baht per square meter. These high-end properties attract high-net-worth individuals from countries such as India, Japan, South Korea, the United Kingdom, Australia, and the United States, with locations like Sukhumvit in Bangkok remaining especially popular for their prime positioning and international standards.

Infrastructure and Market Trends to Watch in 2026

The outlook for Thailand’s real estate sector in 2026 is shaped by divergent trends across different segments. While the mass market faces ongoing challenges from credit constraints, luxury and quality tourism-driven real estate—led by Phuket—are seeing sustained growth. Infrastructure improvements, notably the new airport in Phang Nga, are likely to open new investment opportunities in adjacent provinces.

Knight Frank emphasizes that in an era of persistent uncertainty, both investors and developers must adopt a “risk lens perspective” to navigate the evolving market. The focus is shifting from short-term growth to long-term risk management, especially in sectors such as luxury real estate and tourism-oriented developments. Market watchers are advised to monitor the impact of infrastructure projects and the evolving profile of international buyers in Phuket and other key regions throughout 2026.

Source: https://news.google.com/rss/articles/CBMiZ0FVX3lxTE5KUldMVFhRSnBXZ21FV1NwU2thelJ4S1poRWhLYXFob1MtbHFLTXhsVXJIdUVRLW5zUWhOZHphR1YxTGhIUV96LWk1TDN4RHltUGEtUWNUV0M5U0JsejNqODZWTXVYR2s?oc=5