By Phuket News Property Editorial Team · December 3, 2025
Phuket remains one of the most desirable places to live in Southeast Asia, but residents are noticing changes in day-to-day expenses as the island continues to grow in popularity. While many essentials remain affordable, accommodation prices have risen sharply in recent years, and this is affecting long-term expatriates, digital nomads and local families more than any other factor. Understanding which costs are changing, and which remain low, can help residents plan more comfortably for life in 2025.
Rental costs are the biggest pressure on household budgets
Accommodation has become the most significant expense for people living in Phuket. Rental prices have increased noticeably over the past three years, especially in high-demand areas such as Rawai, Nai Harn, Kata, Karon, Bang Tao and Cherng Talay.
Villas that were once reasonably priced now command far higher monthly rates, and modern condos in walkable areas have also increased as long-term residents, digital nomads and retirees compete for limited supply. Even inland districts that traditionally offered more affordable rents have seen steady upward movement.
For most households, this is the single biggest change in the cost of living.
Electricity and water remain inexpensive
Despite rising living costs in other areas, utilities in Phuket remain relatively low. Electricity is inexpensive compared with Western countries, even for residents who use air conditioning at night or throughout the day. Water is also very affordable, and many homes with private wells pay almost nothing for water usage.
This means that most households still find monthly utility bills manageable, and utilities are not a major contributor to overall cost increases.
Groceries and dining are higher, especially for imported goods
Grocery prices have risen for imported products, health foods and specialty items, while local produce and Thai staples remain affordable. Residents who rely heavily on Western items continue to see the largest increases.
Dining out has followed a similar trend, with many restaurants adjusting prices to match higher ingredient and operating costs. Local eateries remain inexpensive, and many long-term residents balance their spending by mixing local meals with occasional Western dining.
Transport costs remain moderate
Daily transport expenses in Phuket are largely unchanged, although motorbike and car rental prices are higher than they were before the pandemic. Fuel prices and maintenance costs are stable, and residents living in walkable neighbourhoods like Rawai, Bang Tao and parts of Kata often find they spend very little on transport each month.
People living farther inland may face higher commuting costs, but overall transport remains affordable by international standards.
Schooling remains one of the island’s highest expenses
For families, international school fees continue to be a major budget consideration. Annual tuition has increased gradually, along with supporting costs such as transportation, uniforms and activities.
This remains one of the most significant long-term living expenses for expatriate households and continues to influence where families choose to live.
Lifestyle spending varies by neighbourhood
Fitness centres, children’s activities and wellness programmes have all seen small price increases as operating costs rise. However, many free outdoor activities such as beach training, running, hiking and swimming remain a key part of Phuket’s lifestyle appeal.
Residents in walkable neighbourhoods with beach access often report spending less on lifestyle costs overall.
Phuket remains an attractive place to live in 2025, but rising rental prices are shaping how residents plan their monthly budgets. With utilities, transport and local food still relatively affordable, the island continues to offer excellent value for those who choose their neighbourhoods carefully and adapt to the island’s evolving cost structure.
