Between 2023 and 2025, more than 180 new condominium and villa projects targeting foreign buyers were registered in Phuket alone. Based on our estimates, at least 12% of those projects recorded delays exceeding six months, and several were halted entirely at the foundation stage. For any international buyer transferring funds in tranches from an overseas account, selecting the right developer is the single highest-stakes decision in the entire acquisition process.
Our analysts have monitored the Phuket and Koh Samui markets continuously and have built a repeatable developer-assessment methodology over that period. We do not rely on marketing materials. We verify construction sites on the ground, review reservation and sale-and-purchase agreements in detail, and cross-check permits against provincial authority records. The sections below lay out our framework step by step, with specific warning thresholds and measurable criteria.
Quick answer
- We require a verified track record: a minimum of two completed projects delivered with no more than three months of delay
- We examine financing structure: projects backed by a Thai bank construction loan (from institutions such as Bangkok Bank or Kasikornbank) carry materially lower suspension risk than those financed purely from buyer deposits
- We inspect build quality at previously delivered properties, assessed two to three years after handover
- We confirm permit completeness: EIA (Environmental Impact Assessment), Construction Permit issued by local authorities, and Chanote (freehold title deed) for the land
- We flag any payment schedule that demands more than 40% of the purchase price before the shell structure is complete
- We review contract clauses covering delay penalties and buyer exit rights
- We consult the DBD (Department of Business Development) registry for the developer's financial statements where available
Options and scenarios
Scenario A: developer with a documented track record
A company with at least three completed projects on Phuket or Koh Samui, registered with the DBD for five or more years, and partially financed by a Thai bank construction facility. The payment schedule is structured across five to seven tranches tied to verified construction milestones. As of Q1 2026, our analysts identify roughly 25 to 30 developers on Phuket meeting this profile.
Districts where established developers are most active include Bang Tao, Layan, and Kamala in the premium segment, and Rawai and Nai Harn in the mid-market. On Koh Samui, the concentration falls primarily in Bophut and Maenam.
Scenario B: developer with one or two projects, still scaling
A company with one completed project and one currently under construction. No bank financing in place, but a positive on-the-ground quality inspection of the first delivery. The payment schedule is somewhat more front-loaded (up to 50% before the roof is on). Delay risk is higher, but entry prices in this category can run 10 to 20% below those in Scenario A, per market comparisons in our data sets.
Scenario C: developer with no history or with warning signals
No completed projects in Thailand. Company incorporated less than two years ago. A payment schedule demanding 50 to 70% of the price within the first two tranches. No disclosed bank financing. No delay penalty clause, or a token penalty below 0.01% of the contract value per day. In our internal tracking, projects carrying these characteristics are flagged as red-flag assets.
Comparison table
| Parameter | Developer A (established) | Developer B (scaling) | Developer C (no history) |
|---|---|---|---|
| Completed projects | 3 or more | 1 to 2 | 0 |
| Bank construction loan | Yes (30-50% of build cost) | None or partial | None |
| Historical delay | Up to 3 months | 3 to 6 months | No data available |
| Payment before shell complete | Up to 30-35% of price | 35-50% of price | 50-70% of price |
| Delay penalty rate | 0.05-0.1% per day | 0.01-0.05% per day | None or below 0.01% |
| DBD registry history | Full record, 5+ years | 2 to 4 years on record | Under 2 years |
| Build quality (on-site inspection) | Confirmed on the ground | Partially confirmed | Cannot be assessed |
| Our risk rating | Low | Moderate | High |
Risks and mistakes
Skipping permit verification
In our fieldwork, we regularly encounter projects that begin pre-sales before the Construction Permit has been issued. On Phuket, districts such as Kamala, Surin, and Layan include parcels that require a full EIA report due to proximity to protected forest or coastal zones. A missing EIA can result in a construction stop order even after the foundations are poured. We always request the permit reference number from the developer and verify it directly with the relevant local authority (Tessaban or OrBorTor office).
Front-loaded payment schedules
When a developer requests more than 40% of the purchase price before the shell structure is complete and weather-tight, we treat that as a structural warning signal. It typically indicates the build is being financed from buyer deposits rather than from a dedicated construction facility, leaving the project exposed if sales slow down.
No payment protection through escrow
Foreign buyers in Thailand should be aware that there are no escrow accounts for real estate purchases in Thailand. Funds paid under a sale-and-purchase agreement are transferred directly to the developer. The practical protections available to buyers are contractual: a payment schedule tied explicitly to verified construction milestones, meaningful delay penalty clauses, and a thorough assessment of the developer's financial health before signing.
No inspection of prior projects
We physically inspect buildings delivered two to three years before the purchase decision. Key items we assess include: waterproofing membrane quality (critical in a tropical climate), electrical installation standards, facade condition, and roof integrity. A developer whose earlier properties already require costly repairs at the two-year mark is a poor candidate for an off-plan purchase.
Ignoring the developer's corporate balance sheet
Thailand's DBD registry (www.dbd.go.th) allows access to annual financial statements for Thai-registered companies. We look at registered capital, liabilities, and revenue figures. A company with registered capital of 2 million THB (approximately 230,000 USD at early-2026 rates, per our estimates) delivering a 500-million-THB project is a clear indicator that the entire construction risk is being borne by buyers rather than by the developer's own equity.
FAQ
How do we verify a developer's track record in Thailand?
We review the company's history through the DBD (Department of Business Development) registry, checking the number of completed projects, registration date, and available financial statements. On the ground, our analysts visit previously delivered properties and speak with on-site property managers.
Are there escrow accounts for foreign buyers in Thailand?
No. Thailand does not operate an escrow system for foreign real estate purchasers. Payments go directly to the developer's account. The available protections are contractual: a payment schedule tied to construction progress milestones and enforceable delay penalties in the sale-and-purchase agreement.
What is an acceptable delay threshold in our methodology?
We set the acceptable benchmark at a maximum of three months against the declared completion date. A prior-project delay of more than six months is treated as a serious warning signal when we assess a developer's track record.
What payment schedule structure is safe for off-plan purchases?
We recommend a structure in which the buyer pays no more than 30 to 35% of the purchase price up to the point the shell structure is complete and weather-tight. The remaining 65 to 70% should be spread across subsequent verified build stages and the final payment at handover.
What permits should a developer hold before opening sales?
The minimum acceptable package is: a Chanote freehold title deed for the land, a Construction Permit issued by the competent local authority, and, for projects exceeding 80 units or located within protected zones, a completed and approved EIA (Environmental Impact Assessment) report.
Does bank financing of a project matter as a quality signal?
Yes, materially. When a Thai bank such as Bangkok Bank, Kasikornbank, or SCB has issued a construction loan, it means the project has passed an independent institutional due-diligence review. Based on our estimates, the risk of construction suspension for bank-financed projects is 60 to 70% lower than for those funded exclusively from buyer deposits.
Do the same criteria apply to Koh Samui as to Phuket?
The assessment criteria are identical. The market context differs in scale: fewer developers on Koh Samui carry a long completion history, and the supply is dominated by smaller-scale villa projects. The districts of Bophut, Maenam, and Lamai concentrate the majority of established operators on the island.
What should we do if a developer refuses to share permit documentation?
A refusal to provide the Construction Permit reference number or the EIA report is an absolute red flag. Our standing recommendation in such cases is to withdraw from the transaction immediately, regardless of how attractive the project terms appear.
How do currency fluctuations affect off-plan purchases in Thailand?
Off-plan projects typically carry build timelines of 18 to 24 months. Buyers paying in a foreign currency face exchange-rate exposure spread across multiple tranches over that period. We monitor currency movements and flag material shifts in our periodic market reports.
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