Israeli investors are increasingly opting for long-term leasehold agreements on Koh Samui, a trend occurring as the island's villa supply grows faster than Phuket's. This shift is prompting discussions about stricter property regulations and tax adjustments in Thailand.
Property Market Shifts
Thailand's established resort islands, Phuket and Koh Samui, are evolving. They are no longer solely holiday spots but are becoming significant centres for international property investment. This change is influenced by a diversifying group of international buyers and the expansion of private investment channels.
While Russian buyers continue to be a major force in Phuket's property market, a notable increase in Israeli investors is being observed on Koh Samui and the neighbouring island of Koh Phangan. This development indicates a changing landscape in property acquisition for those seeking investment opportunities in Thailand.
Villa Supply and Demand
Koh Samui has seen an unprecedented increase in new residential villa construction. During the first half of 2026, over 800 villa units were introduced to the market, spread across approximately 70 to 80 different developments. This pace of new construction outstrips that of Phuket.
Phuket, in the same six-month period, saw the introduction of around 700 new villa units from between 40 to 50 projects. This acceleration in Samui's villa supply is a development not seen in many years. Current annual villa demand in Phuket typically falls below 1,000 units. However, overall international demand for property across both islands is expected to remain robust over the next three to five years. This sustained demand could influence property values and rental yields for expatriates and investors alike.
Reviewed by the Thailand Guide Editorial Team • Last reviewed: 1 August 2026
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