Developer Red Flags & Green Flags: Your Checklist
How to evaluate developer track record, financial health, construction quality, and delivery history.
Why Developer Due Diligence Matters
In Phuket's booming market, not all developers are created equal. Some have 20+ years of track record; others are building their first project. Your choice of developer is arguably more important than the location or unit type — because a bad developer can turn a great investment into a total loss.
Red Flags — Walk Away
No completed projects: First-time developers carry maximum construction risk. They may lack the experience, cash flow, or contractor relationships to deliver on time and on budget.
Delayed past deliveries: If they've been late before, they'll likely be late again. Check with existing buyers, not just the sales office.
No physical office in Phuket: If they can't maintain a local presence, how will they manage your property?
Prices 20–30% below market: This usually means the developer is desperate for cash flow or cutting corners on construction quality.
Guaranteed yields above 10%: Realistic hotel-managed yields in Phuket are 5–8%. Promises of 12–15% are either unsustainable or outright scams.
Green Flags — Invest with Confidence
3+ projects delivered on time: Proven execution capability. Ask for handover dates vs. original promises.
Office on the island: Shows long-term commitment. You can visit and verify.
Transparent documentation: Contracts, construction permits, EIA (Environmental Impact Assessment), sinking fund calculations — all available upon request.
Realistic yield promises: 6–10% gross is honest. Any developer quoting this range is likely trustworthy.
Works with Thai banks: This means they've passed banking due diligence — a strong credibility signal.
Our Verified Developer Network
At ThaiRealty.PRO, we work exclusively with developers who pass our 15-point due diligence checklist. Every project on our website has been personally inspected and financially verified. Contact us for the full developer assessment report on any project.