Many immigrants and investors wishing to buy property in Thailand are interested in Phuket, the largest island in the country. More than 50% of its area falls on the picturesque hills and jungle. There are plenty of mangroves, coconut palms, and beaches here. At the same time, Phuket is comfortable for everyone: young people, families with children, and seniors. The island has all the necessary infrastructure: schools, educational institutions, hospitals, markets, stores, shopping centers, and entertainment for every taste. Today there are many options to purchase real estate in Phuket, including the installment plan. This article unveils the details.
Content:
- Features of buying property in installments
- Buying on the installment plan: the advantages
- What must be specified in the contract when buying real estate in instalments
- Example of the conditions for buying a home on an installment plan
- Instalments, a mortgage or private lending
- What to check before the first payment
- We can help you buy property in Phuket
- Frequently asked questions
Features of buying property in installments
Buying apartments, houses, and villas in Thailand is available before the start of construction, off-plan, and on its completion. Even at the earliest stages, the builder must show you the exterior and interior of the future living space.
The contract must include the date of beginning and completion of construction as well as the following:
- the cost of the property
- terms of payment
- payment method
Having bought property off-plan in Thailand in installments, you can resell the object at a higher price after its delivery. The west coast of Phuket is indeed appreciating: buildable land is scarce and buyers arrive with cash. But the automatic uplift is gone — nationwide, 2025 was the worst year for new-build sales in 23 years, and growth held only in resort locations with tight supply. The median price on the island is around THB 144,000 ($4,350) per square metre, and THB 70,000–120,000 in the mass segment. If you are buying a home not for resale but for your residence, the installment plan is a great way to reduce the financial burden.
Buying on the installment plan: the advantages
If the area where your property is being built is trendy, buying off-plan allows you to purchase the most suitable property for your needs rather than choosing from the leftovers. It is an excellent opportunity to buy a home that fully meets the necessary parameters and ideas about the ideal property on the island. If the object is not built yet, you can save significantly and buy it reasonably cheaply. At the initial stage of construction, many developers launch marketing campaigns and offer special conditions. As a rule, construction companies in Phuket provide attractive payment terms.
It is worth considering that real estate in Thailand is inexpensive compared to many other countries. Rental income in Phuket is among the highest in the country: about 7 to 8.4% a year gross, with long-term letting at 5–7% and daily letting at 7–11%. Those are figures before costs: maintenance contributions, the management company, taxes and void periods take another 1.5 to 2.5 percentage points. In addition, you can sell your property before construction is completed, but an assignment almost always requires the developer’s consent and a separate fee — find that clause in the contract in advance.
What must be specified in the contract when buying real estate in instalments
The contract between you and the developer must include specific parameters, namely:
- the technical characteristics of the building;
- the floor plan;
- penalties for late completion of construction for off-plan property;
- penalties for late completion of construction.
After signing the purchase and sale agreement, the down payment is made, and an installment schedule is drawn up.
Example of the conditions for buying a home on an installment plan
The developer company determines the terms and conditions of the installment plan. They also depend on the object's construction stage, speed of construction, and other parameters. As a rule, developers offer installments for up to 3 years at the design and clearing of the construction site stage. Moreover, the purchase of housing in installments applies not only to off-plan projects. You can also buy completed objects in installments for up to 1 year.
The standard conditions of purchase are as follows:
- the reservation fee for an apartment in new off-plan projects in Thailand is about $5,000;
- down payment for the first month after booking is about 30% of the cost of housing;
- payments at the end of construction of the foundation, finishing, and furnishing of the premises usually reach 20% at each stage;
- the final amount at the moment of registration of the title to the property equals 5–10%.
The amount of the down payment also depends on the developer. For example, if the company can complete the project on raised investment, the deposit may be 20%. If the projects attract investments for construction, the first payment may be higher and reach, for example, 50%.
"In an instalment plan what matters is not the size of the first payment but what secures the rest of them. Compare the schedule against the construction stages: if 70% of the price is paid while only the frame is up, the risk sits with the buyer, not the developer."
— a manager working with property buyers in Thailand
Instalments, a mortgage or private lending
A developer’s instalment plan is not the only way to spread the payment, but a foreigner has few options and the cost of money differs in each.
| Option | Terms | Who it suits |
|---|---|---|
| Developer instalments | Usually interest-free, but only until handover: 1–3 years | Buyers going in off-plan who can pay 20–50% up front |
| Bank mortgage | Rates of 5.5–8% a year, the bank lends 50–70% of the value | Buyers of completed condominium units with provable income |
| Private lending | Up to 12% a year, half the property value, from THB 1 million, terms of 1–10 years | Those refused by a bank who still need a longer schedule |
Bear in mind that Thai banks lend to foreigners reluctantly and almost exclusively against condominium units: land and houses do not work as collateral. The Bangkok Bank programme through its Singapore branch, which buyers used to rely on, has been discontinued.
What to check before the first payment
Instalments mean your money goes to the developer before the building exists. Escrow is not mandatory in Thailand — escrow accounts are used voluntarily and rarely — so the buyer’s protection lives entirely in the wording of the contract.
- Deadlines and penalties. The contract should name a specific handover date and the penalty for delay, not an "approximate" period.
- What you lose if you walk away. Check what share of the money paid is refundable if you exit, and what happens if the developer halts construction.
- The building’s foreign quota. It is counted as 49% of the residential floor area, and in popular projects it runs out before the units do.
- The transfer of funds from abroad. Ownership is registered on the basis of money sent in foreign currency, with the bank issuing proof of the transfer — without it the title will not be registered.
- The developer’s finances. Listed companies publish accounts on the Thai stock exchange website: look at debt, cash and the bond redemption schedule for the next two years.
We can help you buy property in Phuket
Buying property in Phuket by installment is a convenient opportunity for many investors to become the owner of their property on a truly fabulous island. If you are also considering buying a villa or house in Phuket, now is the time to get detailed advice from experts in the field! Contact our experts in any way. They can tell you how to invest in Thai real estate. They can help you to select and purchase objects of your choice. Please get in touch with us!
Frequently asked questions
Can I buy a condo in Phuket in instalments with no down payment?
No. Developers ask for 20 to 50% of the price within the first month after booking, and the reservation fee is paid separately.
What happens if I stop following the payment schedule?
The terms sit in the contract: most often the developer keeps part of the money paid and the unit goes back on sale. The law guarantees no automatic refund, so read the termination clause before signing.
Are instalments available on completed property?
Yes, but over a shorter term: usually up to a year, against three years at the construction stage.
Can I resell the unit before the building is handed over?
Usually yes, but an assignment needs the developer’s consent and a separate fee. Find that clause in the contract in advance.