Are you considering property investment in Thailand but torn between the beaches of Phuket and the historic charm of Chiang Mai? Both cities stand out for foreign investors, but each offers a different approach to returns, capital growth, and lifestyle.
Phuket: High Yields and Tourism-Driven Growth
Phuket remains one of Southeast Asia’s most sought-after real estate destinations, driven by its world-class beaches, luxury developments, and growing international tourism sector. Before the pandemic, the island consistently welcomed over 10 million visitors annually. As of 2025, tourism in Phuket has reached record highs, ensuring consistent demand for rental and resale properties.
Rental Yields: 6–10% per year, especially for condos and villas located near Patong, Kamala, Kata, Bang Tao and developing Nai Yang beaches. Short-term rental platforms and high tourist turnover drive this impressive ROI.
Capital Growth: Prime properties in Phuket have seen annual growth rates of 8–10% in recent years, outpacing many other Thai locations.
Typical Entry Price: $2,000–$3,500 USD per square meter for new, prime condos.
Best For: Those seeking higher risk/higher reward, short-term rental income, and exposure to tourism cycles and luxury demand.
Market Volatility: Strongly tied to external tourism, with rapid rebounds and occasional dips aligning with global trends.
Chiang Mai: Steady Income and Lifestyle Stability
In contrast, Chiang Mai offers a slower pace and a distinct type of appeal: a year-round temperate climate, historic temples, stunning mountain views, and a thriving expat/digital nomad scene. The city focuses less on short-stay tourism and more on long-term rental demand, making it popular with retirees and those seeking stability.
Rental Yields: 5–6.5% for condos, up to 7% for townhouses. Demand is led by digital nomads, long-term expats, and retirees.
Capital Growth: 3–5% per year—steady and less speculative compared to the major coastal resorts.
Typical Entry Price: $1,200–$2,400 USD per square meter, with abundant options for condos and houses.
Best For: Long-term, passive income investors, those prioritising low volatility, and individuals who value a high quality of life for themselves or their tenants.
Market Volatility: Low—returns are more predictable due to consistent rental demand and less dependence on short-stay tourism.
Quick Comparison Table
| Metric | Phuket | Chiang Mai |
| ROI (Rental Yield) | 6–10% | 5–6.5% |
| Capital Growth | 8–10% (prime) | 3–5% |
| Price/Sqm (USD) | $2,000–$3,500 | $1,200–$2,400 |
| Tourism | 10M+ arrivals/year | Strong for long stays |
| Best For | Short-term, luxury | Long-term, passive |
| Volatility | Higher | Lower |
Which Should You Choose?
Choose Phuket if you want the potential for high capital appreciation and are targeting the lucrative, high-turnover tourist rental market. It’s ideal for investors interested in resort, luxury, or branded properties, as well as those willing to ride the ups and downs of international tourism trends.
Choose Chiang Mai if your priority is steady, reliable returns with a low entry cost and strong appeal for expats, long-term tenants, and retirees. It’s best for buy-to-hold strategies, providing stability over spectacular short-term gains.
Whichever city you choose, always undertake careful due diligence, understand local regulations (especially for foreign buyers), and align your strategy with your financial goals and appetite for risk. In 2025 and beyond, both Phuket and Chiang Mai offer great opportunities for the right investor.
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