Realistically, net rental yields in Phuket tend to sit in the mid-single-digits — in the region of 4-5% — not the double-digit headline figures some advertise, and they are never guaranteed; your capital is at risk.
It's the first question most investors ask, and it deserves an honest answer. Across Phuket, realistic net rental yields tend to sit in the mid-single-digits — in the region of 4-5% — once you account for costs. That's a genuinely solid income return for a lifestyle asset in a growing market, but it's well below the double-digit 'guaranteed' figures you'll sometimes see advertised.
Be careful with headline numbers. A quoted gross yield ignores service charges, management fees, maintenance, furniture wear, void periods and taxes — all of which sit between the gross figure and the money that actually reaches you. A net yield, after those ongoing costs, is the number that matters, and it's usually a good deal lower than the gross figure on the brochure. Treat any 'guaranteed 8-10%' claim with real caution.
Yield also depends heavily on area and strategy. Busy tourist areas can drive high short-let occupancy; the upscale north-west balances demand with premium, resilient stock; and residential areas suit steady year-round tenancy. See how Phuket's areas compare on rental yield. Whichever you choose, your capital is at risk and returns are never guaranteed — projections are just that.
Because the eye-catching figures are almost always gross, and often assume perfect occupancy at peak rates. Once you subtract the common-area service charge, management and letting fees, maintenance and furniture refresh, insurance, void periods between guests and any tax, the net yield that reaches your pocket is materially lower — commonly the mid-single-digits rather than double digits. Honest, net numbers are the only ones worth planning around, and we go through them for a specific development with you privately.
Start from a net basis: realistic annual rental income at sensible occupancy, minus every ownership cost, divided by the all-in purchase price. Our free rental-yield calculator lets you sanity-check a figure, and our guide to the ongoing costs of ownership shows what to subtract. Then we confirm the real net numbers for an actual development privately — because averages only get you so far.
Thinking about buying in Phuket?
See if you qualify →For a lifestyle asset in a growing market, a net yield in the region of 4-5% is a realistic and reasonable income return — especially alongside any long-term capital growth. It's far more honest than the double-digit gross figures some advertise. Returns are never guaranteed and your capital is at risk.
Treat 'guaranteed' yields with caution. A guarantee is only as good as the developer behind it, it's usually funded from the purchase price you paid, and it typically expires after a few years. We'd always rather show you a realistic, net projection than lean on a headline guarantee.