In Q1 2026, our analysts are monitoring more than 140 active projects on Phuket that are either under construction or in pre-sale. Approximately 35% of them are being developed by companies that have not yet delivered a single completed project. For any buyer committing 30-50% of the purchase price at the construction stage, that figure is the logical starting point for every acquisition decision.
The Tajlandia.com team verifies developers and projects across Phuket and Koh Samui using a fixed, repeatable methodology. We conduct on-site construction visits, review contracts, cross-reference payment schedules against actual build progress, and examine the delivery history of completed schemes. The following is a step-by-step account of the framework we apply in 2026.
Quick answer
- Track record is the single most important credibility indicator for any developer - in our methodology we analyse a minimum of 3 recently delivered projects
- Based on our estimates, the average delivery delay on Phuket between 2022 and 2025 was 4-8 months - we treat anything above 12 months as a red-flag threshold
- Approximately 60% of active Phuket developers finance construction exclusively from buyer deposits, with no bank credit line - this materially increases buyer-side risk
- On Koh Samui (districts of Bophut, Maenam, and Chaweng) the developer pool is smaller, but the share of projects with no delivery history is even higher - we estimate 40-45%
- Thailand does not operate escrow accounts for foreign property buyers in the conventional sense - deposit protection relies on contract terms and a payment schedule tied directly to verified construction milestones
- We verify the completeness of permits (EIA for projects exceeding 80 units, building permit, Chanote title on the land parcel) before recommending any project
Options and scenarios
Scenario A - developer with a documented track record
The company has delivered at least 5 projects on Phuket within the past eight years. Historical delays have not exceeded 6 months. Construction is financed partly by a bank credit line - which means the lender has conducted its own due diligence. The payment schedule is spread across 5-7 tranches, each linked to a defined construction milestone. Combined reservation and first-tranche payments do not exceed 25-30% of the purchase price.
In our data sets, projects fitting this profile are concentrated in Bang Tao, Layan, and Kamala - districts where land costs are higher and barriers to entry are correspondingly greater. The structural risk for buyers committing funds in Thai baht is lowest in this category.
Scenario B - developer with a limited history but verifiable progress
The company has delivered 1-2 projects, or is completing its first, but construction is tracking against the published schedule. No bank financing is in place. The payment schedule requires 40-50% of the purchase price before the shell is closed.
We encounter this profile frequently in Rawai and Nai Harn on Phuket, and in Lamai on Koh Samui. Our standard recommendation here includes two additional safeguards: penalty clauses for delay written into the sale and purchase agreement (a minimum of 0.5-1% of contract value per month of overrun beyond the agreed date), plus an independent structural inspection every 8-12 weeks.
Scenario C - developer with no track record or active warning signals
No completed projects exist, the payment schedule is aggressive (60-70% of the price within the first six months), no financing source is disclosed, and the land ownership structure is opaque. In our internal ratings, such projects are flagged as high risk. We do not recommend them to buyers regardless of the headline asking price.
Comparison table
| Parameter | Scenario A - established developer | Scenario B - limited history | Scenario C - no track record |
|---|---|---|---|
| Completed projects delivered | 5 or more | 1-2 projects | 0 projects |
| Average historical delay | Up to 6 months | 6-12 months or no data | No data available |
| Construction financing | Bank credit + buyer deposits | Buyer deposits only | Buyer deposits only |
| Deposits before shell-closed stage | 25-30% of price | 40-50% of price | 60-70% of price |
| Delay penalty clauses | Standard in contract | Requires negotiation | Rarely offered |
| Building permit status | Issued before sales launch | Usually issued | Often still being obtained |
| Our risk rating | Low | Moderate | High |
| Typical locations | Bang Tao, Layan, Kamala | Rawai, Nai Harn, Lamai | Various, often peripheral |
Risks and mistakes
Skipping verification of the financing structure
The most common oversight we observe in 2026 is failing to ask how construction is actually funded. If a developer is building exclusively on buyer deposits, any slowdown in sales - caused by weaker demand or broader market conditions - can halt construction. In our verification process we ask directly for the bank credit facility and request written confirmation.
Accepting an overly front-loaded payment schedule
Our warning threshold is clear: if a developer requires more than 50% of the purchase price before the shell-closed milestone, that is a material alarm signal. The market standard on Phuket in 2026 is 30-35% to that stage. Anything beyond it implies the builder is using early buyer capital to fund groundwork that should be covered by project equity or a credit line.
Incomplete permits - specifically the EIA
An Environmental Impact Assessment (EIA) is mandatory for condominium projects exceeding 80 units or for developments on environmentally sensitive land. If a project is already in active pre-sale without an approved EIA, construction can be halted by authorities at any point. We review this document in original form for every project we assess.
Treating the headline track record number as sufficient
The count of delivered projects alone is not a complete picture. Our analysts visit prior developments and inspect build quality at the 2-3 year post-handover mark, evaluating facade condition, MEP systems, and common areas. Visible defects at that age indicate low-grade materials or poor site supervision - and those issues recur in subsequent projects by the same company.
Not checking the Chanote title
Chanote (โฉนด) is the strongest land title in Thailand. Projects built on land held under Nor Sor 3 Gor or a weaker title carry additional legal risk. We verify the title type directly at the local Land Office before forming any assessment.
Overlooking currency exposure in the total cost calculation
Buyers paying in a currency other than Thai baht face real exposure across the tranche timeline. Based on 2023-2025 data, THB can move 5-8% annually against major reference currencies. On a 5 million THB purchase, a 5% shift represents a meaningful difference in total outlay. We recommend building a 8-10% currency buffer above the converted purchase price when planning a multi-tranche payment schedule.
FAQ
How do we verify a Phuket developer's track record before recommending a project?
Our methodology combines a company register check at the Department of Business Development (DBD), review of publicly available financial statements, on-site visits to completed projects, and direct conversation with building managers. The minimum standard is 3 delivered projects with delays not exceeding 6 months.
Does Thailand offer any deposit protection for foreign property buyers?
Thailand does not operate conventional escrow accounts for foreign real estate buyers. Deposit protection relies on a payment schedule explicitly tied to construction milestones, contractual delay penalties, and the developer's financial standing and delivery history.
What level of delivery delay is considered normal in Thailand?
Based on our estimates drawn from 2022-2025 project data, the average delay on Phuket is 4-8 months. We treat any overrun exceeding 12 months as a red-flag threshold, suggesting either financial distress or serious organisational failure on the developer's side.
What share of the purchase price should be paid before construction is complete?
The market standard on Phuket in 2026 is 30-35% of the purchase price by the shell-closed milestone. Payment schedules requiring more than 50% at that stage indicate the developer is relying heavily on buyer capital to fund early construction phases.
How does developer due diligence on Koh Samui differ from Phuket?
Koh Samui is a smaller market. Per our estimates, roughly 30-40 active developers operate there, compared with over 100 on Phuket. The proportion of companies without a delivery history is higher. Additionally, Samui projects more frequently involve land held under a title weaker than Chanote, which requires dedicated verification at the local Land Office.
What permits should a Phuket development have in place before buyers commit funds?
The minimum set is: a building permit issued by the relevant local authority, a Chanote land title covering the project site, and an approved EIA for any project exceeding 80 residential units. We request and review originals of each document.
Is it advisable to buy from a developer with no bank financing?
Some experienced developers deliberately avoid bank credit and self-finance through retained earnings. In those cases, reviewing the company balance sheet and cash reserves becomes critical. Our standard recommendation includes strengthened contractual protections: delay penalties and an explicit right of rescission with full deposit refund if overruns exceed a defined threshold.
How does exchange-rate movement affect the real cost of a Thai property purchase?
Buyers paying tranches in Thai baht are exposed to currency fluctuation across the payment timeline. On a 5 million THB purchase with a 5% adverse move, the additional cost in a reference currency can be substantial. We recommend a currency buffer of 8-10% above the headline converted price when budgeting a multi-tranche purchase.
Our developer due diligence methodology is grounded in data, on-site inspections, and document analysis - not in marketing materials. In 2026, with the number of new projects on Phuket and Koh Samui continuing to grow, systematic track record verification is a basic capital protection tool. Before any acquisition decision, we recommend checking at least five parameters: number of delivered projects, historical delay profile, financing structure, permit completeness, and the deposit protection terms written into the sale and purchase agreement.
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