How to invest in Cambodia Real Estate Being a Foreigner

Talks of growth in Cambodia have drawn the interest of foreign property investors in the last few years. The nation has become a hot spot for receiving worldwide interest from property developers and investors.

Cambodia is known for its aesthetic beauty and rich culture. Because of its awe-inspiring beaches, thick forests, beautiful rivers, and acres of temple complexes, it’s obvious to understand why everyone wants a part of it.

There is no doubt that the world is looking at Cambodia real-estate  as foreign investors have started focusing on the country as a choice location. Investing with a real estate company is safe as it gives you the opportunity of having risk-free investments, as well as it goes out of its way to give you the very best choice. When you choose to invest with a real estate company, mistakes that ordinarily should have cost a fortune can be avoided.

What gives Cambodia its Property Investment a Charm?

Cambodia real estate should be considered for foreign investors who want to diversify their assets and gain exposure to emerging markets.

To start investing in real estate in Cambodia, you may like to consider some critical things before choosing where what and how to buy properties in Cambodia :

  1. U.S. Dollar Based Investment: The use of U.S. $ saves investors the complexity of transactions as the currency faces very few transfer restrictions worldwide. Additionally, if you plan to resale your property in Cambodia, you can transfer your money outside of the country very quickly.
  1. Growth Potential: Cambodia still has a large chunk of untapped land and undeveloped districts waiting to be utilized by developers & investors from foreign lands. Investors are welcome to join in when they bring experience and infrastructural support.
  1. Growth in GDP: Cambodian economy has shown growth in GDP of 7 to 7.5 percent in the past 5 years. Return of Investments gains for Cambodian real estate surpass other established markets thanks to the country’s consistency in economic and GDP growth. For instance, buyers of property in Phnom Penh can safely expect 7 to 8 percent appreciation each year.
  1. Secure Assets: Foreign investors can purchase co-ownership of a property according to development in policies regarding strata titles by Cambodian State Constitution. It has proven to be a profitable decision for its economy and a key for foreigners entering the Cambodia real estate market with an aim to make profits by contributing to this rapidly growing economy.
  1. Competitive Trade Location and Strategic Integration: Cambodia is alongside Thailand and Vietnam between equally competitive and fast-developing neighbor countries. It has established competitive trade agreements with North America, Australasia, and Europe by joining ASEAN. Additionally, the Cambodian economy gained benefits from the two giant economies of China and India, and it is consistently growing partnerships with both.
  1. Political Stability: Amongst all the ASEAN nations, Cambodia has been within the top 3 for political stability. The fact that one prime minister has governed Cambodia for almost 25 years means that there has been, and will continue to be, consistency and progression in its highly investor-friendly policies and political execution.
  1. Retirees’ haven Cambodia makes it a perfect retirement spot for foreigners due to providing a low-cost and high-standard living for retirees. The nation promises a lavish lifestyle at a fraction of what it would generally cost in most other developed economies. Foreign retirees can enjoy the nation’s logistical connections, health system, schools, visa support systems, and infrastructure growth in leaps and bounds. Apart from this, the “not so fast” Cambodian lifestyle makes it an ideal place to spend your retirement days in peace.
  1. People: According to the Population Division of the United Nations Department of Economic and Social Affairs, Cambodia has a population of about 1.67 crores, out of which 70% of this population is under 30 years of age! Which proves to be the greatest asset in terms of growth. Besides, the people of Cambodia are friendly and welcoming.

They are educated enough to understand the benefits of sharing worldly experience, education, and economic benefits from partnering with foreign nationals. People of Cambodia are very kind and helping too by nature, which makes this country an ideal place for settling and building a dream home along with enjoying a world class lifestyle.

How can a foreigner invest in real estate properties in Cambodia?

The methods in which international investors can make investments in real estate in Cambodia according to the Cambodia real estate rules:

  1. Investing in a landholding company with a Cambodian citizen According to the Law on The Investment of The Kingdom of Cambodia (Chapter VI, Article 16), 51% of the equity capital is directly owned by persons holding Cambodian citizenship. The foreign investor can own up to 49% of a company’s shares. In using this method, investigate thoroughly before choosing a partner you trust.
  1. Using an agreement of lease, Foreigners can lease land for 15-50 years and renew it for another 50 years. Long-term leases allow the foreigner to enjoy various rights over the property, including its construction and development.
  1. Acquiring Cambodian citizenship After acquiring Cambodian citizenship, the foreigner can fully own any property, including land. Applications from foreigners are considered if they: – Live in Cambodia for a minimum of 7 years and illustrate full proficiency of the Khmer language. – Make a significant investment or donation which helps develop Cambodia as a country. Because this method is time-consuming and tedious, it is the least feasible of all options.
  1. Nominee structure The nominee structure is where a foreigner signs a trust agreement with a Cambodian citizen, where he grants the foreigner complete rights to control the purchased land. Although it is relatively easy and inexpensive to use the nominee structure, it is highly discouraged. It directly goes against the Khmer constitution prohibiting direct foreign ownership, making it illegal.

Cambodia Real Estate Investments: Is it worth it?

Investing in real estate can be an intelligent thing to do as an investment plan, ensuring you have the best returns and a fulfilled time with your investment.

You should consider investing in the real estate of Cambodia, and there is more than one reason for this now. The nation offers plentiful cities and townscapes. Many new roads and improved communication and transport ways give many unexplored business opportunities. Surprisingly, not many investors have tapped the budding gems of the real estate industry in this country so far.

Every economic signal in Cambodia shows that the real estate industry and property markets are upward.

It could be unsurprisingly intimidating for first-time foreign investors in Cambodia, especially with some risks along the lines, but the bubbling return on investments is worth the effort for anyone looking for a good value on their hard earned money which they are using for investment.

Pro Tip: Consider a real estate agency in Cambodia like IPS Cambodia, that will help you throughout this journey of migrating to Germany or investing in Cambodia real estate and properties. From Buying, selling, investing to renting and opening an real estate firm in Cambodia, a reliable real estate company in Cambodia will make things really easy and tension free for you.

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