The housing market we see today began a significant period of growth in 2011, with strong economic growth and the introduction of new foreign property laws. Behind this, Real Estate Cambodia has seen unprecedented economic growth over the years. As Cambodia becomes more suitable for foreigners to invest and live in, the Kingdom is becoming the most dynamic market in Southeast Asia. Over the past decade, the construction boom in many parts of the country has provided an option for every individual, family or business person. In essence, you have every option that an emerging market offers. Land investment is now an available option, including investment properties and commercial land and property.
Residential Sales and Rental Services
The residential market offers a variety of choices in all sizes and prices, including apartments, houses and villas. Our resident team quickly understands the needs of each individual or family to offer the appropriate options to meet your needs. Using innovative sourcing methods using local relationships and our own networks, we provide tailored solutions and service delivery for everyone.
Commercial Services
The commercial market is challenging, but it caters to international corporations at every level for small start-ups. The market includes sacks, shop houses, restaurants, gyms, office spaces, hotels, shopping malls and much more. With the market ever evolving, providing real-time information to give our clients a competitive edge is a challenge we always provide.
Investment Properties
Before investing, you need an agency that matches the investment goals with a strategic location plan at the forefront of the recommendations. With access to development sites, serviced buildings, and a range of commercial properties, we provide asset classes for a variety of departments. With in-depth local knowledge, market knowledge and an extensive database, we provide expertise and support to our commercial real estate investors for success.
Land Investment Services
By working with pools of foreign investors, we buy large tracts of land in areas suitable for development. Land prices are constantly rising and construction is on the rise all the time, making it an ideal model for investment returns.
Appraisal and Valuation Services
When investing, buying and selling any business or property abroad, it is important to have experienced professionals in the market to ensure transparency and reasonable prices. Experts provide accurate assessment of business, property and assets using access to an important database of accurate information, techniques and properties. Cambodia Real Estate is a fast-growing market, you need specialists to keep your fingers on the pulse.
Real Estate Survey
A recent real estate survey, which received 2,000 responses, revealed that 60 percent of those who completed the survey were Cambodian nationals, and the remaining 23 percent were foreigners living outside the country. Most of the property market was able to cope with the economic crisis caused by the global epidemic and the Real Estate Survey 2021 offers key points to readers who have been instrumental in keeping the market afloat during the global epidemic. Interestingly, about one-fifth of respondents said they stopped seeing during the epidemic, but 35% claimed that their search for property in Cambodia had not changed.
The most popular shopping trends according to the survey:
Land is the most popular overall, followed by Shop houses and apartments.
Among foreign buyers, half of the buyers choose condos because Cambodian law allows them to own non-real estate in their name.
A two-thirds majority of respondents felt that the rental market prices had fallen and prices had come down.
The most popular areas for buying and renting property in Cambodia are living in Phnom Penh and the most popular areas to live in the capital are:
Sen Sook
Tool Cork
Don Peena
Cambodia Real Estate continues to grow, with commercial buildings and apartment complexes being built in all population areas across the country. Cambodia’s real estate sector has grown at an alarming rate, with the city’s skylines now being replaced by high-rise apartments and commercial buildings.
Cambodia stands as a frontier market. Frontier markets, also known as pre-emerging markets, are countries that are more developed than less developed countries but less developed than emerging markets. Unlike many established countries, border markets have a young, growing population that contributes to the growing workforce and additional domestic use.
Cambodia’s Sustained Economic Development
Cambodia experienced very strong economic growth for two decades, with an average gross domestic product (GDP) of 7.6% from 1994 to 2015 and 7.0% since 2017. It ranks Cambodia as the sixth fastest growing economy in the world over the past 21 years. This extraordinary development made Cambodia one of the world’s poorest low-middle-income countries by 2016.
The Asian Development Bank (ADB) has forecast 7.1% growth during 2017-2018 and 7.0% by 2019.
Strong Real Estate and Property Market Opportunities
Of all the frontier and emerging markets, Cambodia is one of the best for real estate Cambodia Investment Opportunities. Located in the heart of Asia, this small country has jumped to the top in terms of economic growth in the 21st century and has only been moving forward ever since.
Historically, Cambodia has not relied heavily on foreign investment, as foreign investment only entered the country in the late 2000s. International F&B stores and retail brands have not existed in the last decade. Foreign investment has grown by 800% this decade, and it’s just beginning. Realizing the potential in the country, investors started coming. The boom in trade, industry and tourism boosted demand for residential and commercial spaces, and despite the risks, early foreign investors reaped the benefits.
To start Investing in Cambodia, there are general aspects that foreigners need to understand in order to make informed decisions. To name a few, research should be done on ROI time frames, property tax laws and related laws affecting foreigners, and types of property ownership.l
Foreign Property Ownership in Cambodia
Investing Cambodia has a wide selection of real estate options for foreigners looking to enter the real estate market. These are the ways in which an investor can legally own property in a country.
l Land Holding Company: A LHC has been established in which the minority shareholder has all the decision making rights while the majority shareholder has very limited power. Because of the cost of this structure, we recommend investing over USD $ 1,000,000.
l Nominee Structure : It occurs when a nominee owns property in his name on behalf of a foreigner. This is a cheap, secure and fast option to buy property and about 90% of foreign investors choose this structure. To reduce the risks, 4 security agreements are used. It occurs when a nominee owns property in his name on behalf of a foreigner. This is a cheap, secure and fast option to buy property and about 90% of foreign investors choose this structure. To reduce the risks, 4 security agreements have been used.
l Mortgage Agreement
l Loan Agreement
l Lease Agreement
l Security Agreement
Types of Property Titles
Once you have decided to acquire a property, the next thing to decide is the type of property title to use. There are 4 main types of property titles in Cambodia.
Soft Title
Soft title is the most common title and 85% of properties in Cambodia are held under this title. These titles are implemented and transferred to the Sangat and Khan level at affordable rates within 10 business days.
Hard Title
Hard titles are the strongest form of ownership in which titles are registered nationally. Processing and transfer of ownership takes 12 weeks to complete.
LMAP
This title is registered and is basically a difficult title with geo-tagged points – GPS coordinates. The property takes 12 weeks to process and transfer, and 4% of the value of the property is transferred.
Strata title
Strata Title Grants property rights to foreigners by allowing joint ownership of Khmer citizens and foreigners. The property takes 12 weeks to process and transfer, and 4% of the value of the property is transferred.