Phnom Penh is the capital of Cambodia. It is located in a historical place where Mekong Rivers and Tonle Sap meet. As time passed by, there have been many changes from the economic center and demographic to politics and security.
World Bank has recognized Phnom Penh City as the second-fastest rate of urban spatial extension. Its economy has been improving and now offers all the things you expect in an Asian nation. Tall buildings are rising, shopping centers and five-star hotels are being built. With this economic boom, Phnom Penh has attracted guests from different parts of the world.
Among the fast-growing frontier markets in Asia, Phnom Penh is the best for real estate buyers and businesses. Cambodia hasn’t experienced a single year of recession for the past 20 years. If you are interested in investing in Phnom Penh real estate, there are things that you need to know.
Are foreigners allowed to own a property in Phnom Penh?
Cambodia’s regulations on property ownership are somewhat similar to Thailand as well as in other Southeast Asian countries. Foreigners can own a condo, but they are not allowed to own land. However, there are ways a foreigner can buy a property.
Tips on Buying a Property in Phnom Penh
There are four ways on how you can buy a land in Phnom Penh if you are a foreigner. If you don’t have any idea on how the country’s property market works, you will have a hard time owning one.
Buy a Property Through a Local Company
This is the best option if you are interested in buying land in Cambodia. This process may require you to dedicate some time and ethical capital. Foreigners can only own 49% of the company shares. Make sure to get a good property lawyer to help you with the process.
Set Up a Leasehold Agreement
Foreigners can lease a property between 15 to 50 years. However, if it is state-owned property, the maximum period for leasing is up to 40 years only. The first thing you need to check before engaging in a leasehold agreement is to verify the authenticity of the title. You can research to check who owns the title.
Obtain a Cambodia Citizenship
This is the most time-consuming and challenging way of buying land in Phnom Penh. To become a Cambodian citizen, you need to reside in the country for seven years the minimum and provide full proficiency in Khmer. You can also make a big investment or donation to become a citizen. But, you need to get the approval of the president.
Ask the Help of a Nominee
This process of buying a property in Cambodia is very common to foreigners. Buying through a nominee involve the signing of a trust-agreement with a local, authorizing you to have complete control over the land. The landowner mortgage the property and lease it to you as an investor.
Owning a property in Phnom Penh is not easy. But, if you are eager to own one in this fruitful and fastest-growing nation, the four tips mentioned above can be applied. For questions and inquiries, you can comment below.