In Q1 2026, our analysts are monitoring more than 140 active residential projects in Phuket that are marketed to foreign buyers. Based on our estimates, at least 30% of those projects are being developed by companies that have not yet completed a single scheme. For any buyer considering an off-plan purchase, verifying a developer's track record is not optional - it is a prerequisite for protecting committed capital.
Our research team applies a consistent, repeatable due diligence framework. Below we describe each step of that process as we run it on the ground in Phuket and Koh Samui in 2026.
Quick answer
- We verify track record through the number of delivered projects, average delay against the declared schedule, and the company's filing history in the DBD register (Department of Business Development, publicly accessible data)
- A developer that finances construction solely from buyer deposits - with no bank loan and no equity reserve - represents elevated risk; in our assessment framework this is treated as a warning threshold
- Thailand does not operate escrow accounts for foreign real estate buyers; the practical protections are milestone-linked payment schedules, contractual penalty clauses, and the developer's balance-sheet strength
- We verify permit completeness at the relevant local authority (Tessaban or OrBorTor): construction permit (Ror. 1) and EIA (Environmental Impact Assessment) for projects exceeding 80 units or located within protected coastal zones
- Based on our estimates, the average delivery delay on Phuket projects in 2025 was 4-8 months; any delay exceeding 12 months on a prior scheme is classified by our team as a serious warning signal
- We conduct on-site inspections of completed earlier projects - the physical condition of a building 2-3 years after handover communicates far more than any marketing render
Options and scenarios
Step 1 - company history and corporate structure
The starting point is the DBD register. We check the incorporation date, registered share capital, shareholding structure, and any inter-company links. In our practice, a developer with share capital below 5 million THB (approximately 140,000 USD at Q1 2026 rates) and an operating history shorter than three years requires heightened scrutiny. We also verify whether the project sits inside a network of special-purpose vehicles (SPVs) with no shared assets - a structure common on Phuket that can make claims recovery significantly harder if problems arise.
Step 2 - analysis of completed projects
We track the specific developments a developer has actually handed over. The data points we want are:
- Number of completed projects and their scale (unit count)
- Average delay measured against the originally declared handover date
- Percentage of units sold at the point of handover
- Buyer feedback, which we verify directly on the ground by speaking with owners or property managers
A developer that has delivered three or more projects with delays not exceeding six months receives our highest credibility rating. One completed project is the minimum we regard as acceptable. Zero completed projects represents elevated risk regardless of the scale of marketing activity.
Step 3 - construction financing structure
This is the element that many buyers overlook. We analyse whether the developer holds:
- A bank construction loan - the presence of a loan from a Thai bank signals that an institution has conducted its own project due diligence
- Equity capital declared in the balance sheet
- Exclusive buyer-deposit financing - a high-risk model in which any slowdown in sales automatically stalls construction
Based on our monitoring of the Phuket market in 2026, we estimate that 50-60% of villa-type projects are financed exclusively from pre-sales, with no bank loan. In the condominium segment where EIA approval has been obtained, bank financing accounts for an estimated 40-50% of construction value.
Step 4 - permit verification
We verify the following documents on the ground at the relevant authority:
- Construction permit (Ror. 1) - issued by the local authority
- EIA (Environmental Impact Assessment) - required for condominium projects exceeding 80 units or buildings taller than 23 metres in coastal zones
- Chanote (title deed) - verified at the Land Office to confirm the plot carries no mortgage exceeding the project value
- Subdivision permit (Jor Sor 4) - applicable to villa projects
The absence of any of these documents at the point of sales launch is an absolute warning signal. A developer collecting deposits before a construction permit has been issued is operating in a legal grey area.
Step 5 - payment protection mechanisms
Because the Thai market does not offer foreign buyers conventional escrow, we assess the realistic protections available:
- Milestone-linked payment schedules - the market standard is 30% at reservation and contract signing, with the balance split across 3-5 tranches tied to defined construction stages (foundation, structure, roof, fit-out). Any schedule requiring more than 50% before structural work begins is classified by our team as aggressive
- Penalty clauses for delay - well-drafted contracts carry a penalty of 0.01-0.05% of the contract value per day for each day of overrun
- Deposit refund guarantees in the event the project is not completed - we verify both that such a clause exists and that the developer's company holds sufficient assets to honour it
- Land ownership - a critical point is whether the land beneath the project is owned outright by the developer's entity or is leased from a third party
Step 6 - physical inspection of earlier projects
We visit both the active construction site and the developer's previously delivered schemes. After 2-3 years, on-site inspection reveals:
- Quality of finishing materials (facade condition, roofing, windows and doors)
- Performance of shared infrastructure (pools, internal roads, drainage)
- Standard of post-handover property management
- Actual common-area maintenance (CAM) costs versus the figures stated in sales materials
Across Phuket - particularly in Bang Tao, Layan, and Kamala - we observe a wide quality range, from projects maintained to a high standard five years after handover to schemes where facades and common areas required expensive remedial work within 18 months.
Comparison table
| Parameter | Low-Risk Developer | Medium-Risk Developer | High-Risk Developer |
|---|---|---|---|
| Completed projects | 3 or more | 1-2 | 0 |
| Average delay | Up to 6 months | 6-12 months | Over 12 months or no data |
| Construction financing | Bank loan + equity | Equity + pre-sales | Buyer deposits only |
| Registered share capital | Above 20 million THB | 5-20 million THB | Below 5 million THB |
| Construction permit | Obtained before sales launch | In application process | Absent or status unclear |
| Payment schedule | 30/70 milestone-linked | 40/60 with milestones | Over 50% before foundation |
| Penalty clauses for delay | Yes, 0.01-0.05% per day | Yes, but low rate | Absent or ambiguous wording |
| Deposit refund guarantee | Contractual clause, company has assets | Clause present but limited | Absent |
Risks and mistakes
Mistake 1 - relying on marketing materials instead of official records. Three-dimensional renders and polished websites cannot substitute for a DBD register check and a Land Office search. In our field work we have repeatedly found material discrepancies between a developer's declared experience and the facts in public records.
Mistake 2 - overlooking the financing structure. Buyers accustomed to European-style protections such as bank guarantees tend to assume comparable safeguards exist in Thailand. In practice, a significant share of the financial risk rests with the buyer - which is precisely why the developer's balance-sheet strength matters so much.
Mistake 3 - accepting an aggressive payment schedule. Committing more than 50% of the purchase price before the roof stage means that, in the event of developer failure, the buyer has parted with the majority of their capital against minimal physical security.
Mistake 4 - skipping title verification. On Koh Samui, particularly in Bophut and Maenam, our team has encountered projects built on land with unresolved ownership histories or plots encumbered by mortgages. A Chanote search at the Land Office takes one business day and involves only a small administrative fee.
Mistake 5 - ignoring post-purchase running costs. A developer that understates projected CAM fees creates a problem within 2-3 years when the sinking fund proves inadequate to cover necessary maintenance.
FAQ
How do we verify a developer's track record in Phuket in 2026?
We start with the DBD (Department of Business Development) register, available online, where we check the company's registration date, share capital, and financial filings. We then confirm the number of completed projects through on-site visits and a review of documentation held at the local building authority.
Does Thailand have escrow accounts for foreign property buyers?
No. Thailand does not operate escrow accounts for foreign real estate buyers. The protections available to the buyer are milestone-linked payment schedules, contractual penalty clauses for delay, and the financial soundness of the developer.
What level of delivery delay is acceptable?
In our assessment, a delay of up to six months falls within the market norm for Phuket and Koh Samui in 2026. A delay of 6-12 months warrants a detailed explanation of the cause. A delay exceeding 12 months on any prior project is classified by our team as a serious warning.
How much should a buyer pay before construction is complete?
The market standard is 30% at reservation and contract signing, with the remainder paid in tranches tied to construction milestones. A requirement to commit more than 50% of the price before the roof stage is reached is treated by our analysts as a warning signal.
Does a developer holding a bank construction loan indicate a safer project?
It does not guarantee safety, but it is a positive indicator. A Thai bank carries out its own due diligence before granting a construction loan, which adds an independent verification layer. Based on our estimates, approximately 40-50% of condominium projects on Phuket in 2026 carry some form of bank financing.
Which permits should a developer hold before launching sales?
The minimum is a construction permit (Ror. 1), a clean Chanote title to the land, and - for projects exceeding 80 units or located in coastal zones - an approved EIA. Selling units without these documents in place carries elevated legal risk for the buyer.
How does developer verification on Koh Samui compare with Phuket?
The methodology is identical, but the Koh Samui market is smaller. In 2026 we are tracking approximately 35-40 active projects there. The smaller scale means that a developer's local reputation is somewhat easier to verify, but the pool of developers with a proven delivery record is also narrower.
What should we look for when inspecting a developer's earlier projects?
We assess facade condition, waterproofing quality (critical in a tropical climate), performance of shared infrastructure after 2-3 years, actual CAM costs versus the figures in the sales brochure, and feedback from residents and the property manager about the developer's conduct during the defect-liability period.
Can a buyer conduct developer due diligence independently?
Partially. The DBD register is publicly accessible online, and Land Office documents are public records. However, full verification requires an on-site presence, familiarity with Thai construction law, and the ability to analyse contracts in both English and Thai. In our practice, we recommend working with a local analytical team that has established relationships with the relevant authorities.
Researching property in Phuket or Koh Samui? Get in touch - our analysts will prepare a data brief for your shortlisted location.