Editor's note: This interview was originally published in 2012. Market conditions have evolved considerably — Phuket villa prices have risen significantly and the market has seen record foreign buyer interest in 2023–2024 — but the insights on buying property in Phuket remain valuable.
Luc Montens is the driving force behind Tropical Properties, one of Phuket's most established real estate agencies. Originally from Belgium, Luc relocated to Phuket in 2001 after — in his own words — falling irreversibly in love with the island on a holiday. More than two decades later, he remains one of the most respected agents on the island. We sat down with him for a candid conversation about the Phuket property market, what has changed, and what buyers need to know.
The Interview
Please introduce yourself and Tropical Properties.
Tropical Properties is one of Phuket's premier real estate agencies. I founded the business with my partner Annick Ameel, and we have grown it over more than two decades to become one of the most established agencies on the island. Our philosophy is entirely relationship-driven. We do not simply list and sell properties — we listen carefully to what a client actually needs and match them to the right property for their budget, lifestyle, and investment goals. We have built our business almost entirely through client recommendations, which is something we are genuinely proud of.
You came to Phuket on holiday and stayed. Tell us about that journey.
Like many foreigners who end up living here, Annick and I came for a holiday and simply could not stop thinking about the place when we returned to Belgium. The people, the climate, the culture — everything about it appealed to us. In 2001 we made the decision to move. I started by working with another established Phuket real estate company, set up a successful additional office for them, and then felt the time was right to start something of our own. It was a gamble, but we have never regretted it.
Why, in your view, should someone buy property in Phuket?
The combination of exceptional beaches, an international lifestyle, and genuine investment fundamentals is difficult to find anywhere else in the world at this price point. Phuket has a thriving expat community of over 100,000 people, an international airport served by dozens of airlines, quality international healthcare facilities, and a year-round rental market. It is not a frontier destination — it is a mature, liquid market with decades of international buyer experience behind it.
Rental yields for well-located, well-managed villas can be attractive, supported by Phuket's consistently strong tourist arrivals. The island received over 10 million international visitors in 2023 — a full recovery and then some from the pandemic trough — and arrivals have continued to grow strongly into 2024. Buyers who purchase quality property and manage it professionally can generate meaningful income while enjoying personal use of the property during quieter periods.
How has the Phuket market evolved over the years you have been here?
The transformation has been remarkable. When I arrived in 2001, most international buyers were coming from Europe and Australia, and the market was relatively unsophisticated by today's standards. Over the following decade, a wave of investment from the Middle East, Russia, and China reshaped the upper end of the market and drove a significant round of development and price appreciation.
Since 2020, the market has undergone another transformation. Post-pandemic demand from buyers who reassessed their priorities — more space, more nature, the ability to work remotely from somewhere beautiful — drove a sharp increase in enquiries and a meaningful rise in prices. Quality villas in prime locations are now achieving THB 15–50 million and above, representing significant appreciation from the levels seen a decade ago. The upper end of the market — branded residences and bespoke villas in Surin, Bang Tao, and Layan — has moved even more dramatically.
The market today is more diverse, more professional, and more transparent than it has ever been. Developer-quality branded residences, professional property management companies, and reputable legal practices have collectively raised the standard of the industry. At the same time, buyers are better informed — they research extensively before visiting, and they ask harder questions. This is good for the market overall.
What should buyers know about the legal structure for foreign ownership in Thailand?
This is the most important practical question for any foreign buyer. Thai law does not allow foreign nationals to own land freehold. The main structures available are condominium ownership (foreigners can own up to 49% of the total floor area of any condominium building in registered freehold title), long-term leasehold (typically 30 years, with options to renew for further terms), and company-held title. Each structure has different implications for control, transferability, inheritance, and — importantly — rental income reporting.
I cannot stress enough the importance of engaging a reputable Thai lawyer — not the developer's lawyer — to advise on the specific structure before you sign anything. The quality of legal advice available in Phuket has improved significantly, but the stakes are high and independent counsel is essential. A lawyer who works exclusively for buyers and has no commercial relationship with any developer is what you should be looking for.
What are the best areas in Phuket for a holiday home buyer today?
It depends entirely on the buyer's priorities. For lifestyle buyers who want to be at the centre of the island's international dining, nightlife, and beach scene, Surin, Bang Tao, and the Laguna area offer the best combination of infrastructure and beach quality. For buyers who prioritise seclusion and value, the southern beaches — Nai Harn, Rawai, Cape Panwa — offer excellent properties at a somewhat lower price point relative to the north and west coasts.
For buyers focused primarily on rental yield, proximity to the main tourist corridors and having a compelling private pool are the two most important factors. Properties in Bang Tao and the Bangtao-Cherngtalay corridor have performed particularly well on yield metrics in recent years, driven by their central position between the airport and the island's main leisure amenities.
I advise buyers to think carefully about whether they are buying primarily for personal enjoyment or primarily as an investment. The optimal location for each goal is not always the same — and mixing the two objectives without being clear about their relative priority often leads to disappointment on both counts.
What kind of returns can a buyer realistically expect from a rental property in Phuket?
Gross rental yields of 6–10% per annum are achievable for well-located, professionally managed villas in popular areas. Net yields after management fees, maintenance, and other costs typically come in at 4–7%. These are not guaranteed figures — actual performance depends enormously on the quality of the property manager, the marketing effort, the villa's positioning and design, and the prevailing level of tourist arrivals in any given year.
What I tell buyers is this: do not buy in Phuket purely for yield. Buy because you want to use and enjoy the property, and treat the rental income as a welcome contribution to carrying costs. Buyers who approach the market with this mindset tend to be the happiest with their decision five or ten years on.
How has the buyer profile changed over the years?
Enormously. In the early 2000s, the market was almost entirely European and Australian. Over time, Russian buyers became a significant force, followed by Chinese buyers, and more recently we have seen very strong interest from buyers in the Middle East — particularly from the UAE and Saudi Arabia. Indian buyers, too, have become a notable presence in recent years, particularly at the upper end of the market.
The post-2020 wave has also brought a new type of buyer: younger, digitally connected, often running location-independent businesses, and looking for a property that functions as both a home and a lifestyle statement. These buyers are less focused on pure investment return and more focused on quality of life. They are sophisticated, they do their research, and they have high expectations of the properties they purchase and the agents they work with.
What is your outlook for the Phuket market over the next five years?
Very positive, with the usual caveats. The demand fundamentals are strong: Phuket's international tourist arrivals are growing, the quality of infrastructure on the island continues to improve, and the global appetite for luxury second homes in premium tropical locations shows no sign of waning. Supply of truly prime land in the island's best locations is genuinely constrained.
The key risks are external: a global economic slowdown, currency movements that affect the relative attractiveness of the market to specific buyer nationalities, or political instability in Thailand. These are manageable risks for a long-term buyer with realistic expectations. For anyone considering entering the Phuket market today, my advice is: focus on quality, location, and legal structure. Buy well, and be patient.