Cambodia is a country located in the southern Indochina Peninsula in Southeast Asia.
Its permanent population is over 16,000,000, the vast majority of whom are Khmer.
It shares borders with Laos, Vietnam, and Thailand.
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Cambodia, Phnom Penh
Cambodia, Sihanoukville
Cambodia, Sihanoukville
Cambodia, Sihanoukville
Cambodia, Phnom Penh, Sihanoukville
Cambodia, Phnom Penh
The southern and southwestern parts of the country are bordered by the Gulf of Thailand. The country has a tropical climate with a distinct rainy season and dry season. Buddhism is the state religion.
The local currency, the riel, and the US dollar are used for trade. The dollar is most often used in real estate transactions with foreign buyers. Cambodia is one of the few kingdoms with an elected monarch. The King of Cambodia serves symbolic functions, and all real power in the country rests with the Parliament of Cambodia.
The country's economy is based on developed agriculture, light industry, construction, and tourism.
Dozens of large Cambodian and international developers (many with roots in China) are active in the country. Over 70% of Cambodian real estate transactions are with local residents, but approximately 30% of new and resale property sales are with foreign buyers.
Chinese nationals lead the way among foreign investors in Cambodian real estate, followed by citizens of Japan, South Korea, Singapore, Australia, the United States, the United Kingdom, and Russia. Chinese developers have built a significant number of residential buildings in many areas of Cambodia in anticipation of a large influx of Chinese buyers, but many of these buildings have not yet sold out, as Chinese citizens have shown limited interest in the country's real estate.
This is partly due to the fact that construction companies followed Chinese standards when constructing the buildings and constructed multi-story towers typical of local megacities, unlike typical Cambodian residential developments.
Hundreds of real estate agencies and individual real estate agents specializing in Cambodian real estate operate in the Cambodian real estate market. Working with a professional, competent real estate agent can help you find the best property within your budget. An experienced realtor verifies property documents, understands the strengths and weaknesses of both developers and individual residential complexes, and selects a suitable location based on the client's needs. A high-quality, professional real estate agent's work not only helps the individual buyer but also builds trust among real estate market participants, which helps attract new foreign investment from conservative investors.
Cambodia's real estate market offers a low investment barrier, with affordable properties starting from $40,000. Property appreciates quite rapidly (up to 10% annually) and is also well-suited for rental income.
However, the Cambodian real estate market is not as safe for investors as those in developed Western countries. High returns come with a significant risk of investment loss due to developer bankruptcy, poor construction, or other factors. Professional real estate agents can be extremely helpful in selecting a property, reducing the risks involved in purchasing a property and avoiding wasted time and money.
A few steps to help you choose a reliable real estate agency:
The main locations popular among foreign buyers of Cambodian real estate are the capital, Phnom Penh; the main tourist hub, Sihanoukville; and the country's most important religious center, Siem Reap.
The Cambodian capital is the country's only metropolis with a population exceeding 2,000,000. Phnom Penh real estate offers a wide variety of residential and commercial properties.
In recent years, high-rise residential towers have become increasingly common in Phnom Penh, combining apartments with large office spaces, as well as shops and other retail space. Cambodia's capital also boasts numerous standard high-rise residential buildings, as well as all types of commercial real estate (retail space, office buildings, warehouses, and industrial sites). The average price of residential real estate in Phnom Penh starts at $1,500 per square meter.
Sihanoukville is an important tourist destination, renowned for its tourist infrastructure, which includes not only miles of beaches and hotels, but also casinos and high-rise residential towers. Compared to other global locations with a comparable level of tourism development, real estate prices here are quite low, at $900 per square meter. Given the region's development prospects, as well as the significant government funding allocated for the construction and renovation of social infrastructure, investing in Sihanoukville real estate can yield significant returns.
Another significant location for foreign real estate investment is Siem Reap, considered Cambodia's most important religious city, as it is home to the largest temple complex in the country and the region, Angkor Wat. Construction companies operating in the region focus on building villas, mini-hotels, and guesthouses that are popular with tourists.
Purchasing real estate in Cambodia by foreigners has a number of specifics that every investor should be aware of before investing in local properties. Full ownership is only possible for apartments in condominiums. However, this type of property is subject to one restriction: foreigners may own no more than 70% of the total area on the ground floors of buildings. Foreigners cannot purchase land. To purchase a plot of land in Cambodia, a legal entity must be established in which at least 51% of the shares are owned by a Cambodian citizen.
Purchasing real estate in Cambodia consists of the following steps:
The typical time from the start of the property search to the registration of the purchase with the cadastral chamber is two to four weeks. In most cases, a foreign buyer is only required to provide a passport with a valid Cambodian tourist visa. In some cases, a certificate of no criminal record with an apostille, translated into English, may be required.
The government tax levied on the acquisition of real estate is 4% of its assessed value, which is usually significantly lower than its actual market value. Notary fees average $300-$500. A property tax of 0.1% of the property value is levied annually. When purchasing real estate worth more than $50,000, foreign buyers are required to complete a declaration of origin of funds. After purchasing the property, the buyer has the right to purchase property insurance.
To make a choice when buying real estate in Cambodia, you can check out the rating of real estate developers. And if you are interested in a specific location, then check out the offers of Phnom Penh real estate agencies.
