How to Invest in Real Estate in Cambodia?

05 September 2022 | Posted in Content Hub, News | Tagged: Cambodia, Invest, Real Estate
How to Invest in Real Estate in Cambodia

How to Invest in Real Estate in Cambodia?

Among the many types of investments in Cambodia, one particular investment that is most invested by the locals and also foreigners is in the real estate sector. The act of investing in real estate refers to any purchases, whether full payment or installment, management, rental, or sales of real estate properties for profit in return. Now that you get an idea of what real estate investment is, are you curious about how you can start investing in real estate in Cambodia? Our article will cover the hows and whys of real estate investment in Cambodia.

Investing in real estate can be very complicated and confusing if you are investing for the first time. Here are a few things you should keep in mind when considering investing in real estate:

Eligibility:

Before getting into investing, you should concern yourselves with these few points first:

  • Investing as a foreigner: If you are a foreigner wanting to invest in real estate in Cambodia, it is definitely possible to do so. There are of course a few conditions and authorization to get the permit. As a foreigner in Cambodia, you are allowed to purchase properties with strata-titled such as condominiums but are not permitted to own land property.
  • Investing as a local: If you are looking to invest as a Cambodian then there are little to no restrictions on your eligibility.
  • Financial Capabilities: It is important to consider whether your current financial situation allows you to make this big investment or not. Nevertheless, this does not mean that unless you already have a huge sum of money can you start investing in real estate. If you have a stable income flow and are able to take out a loan or pay in installments, it is also possible to make an investment in real estate in Cambodia.

Decision-making Criteria:

After fact-checking your eligibility for investing, you should also spend some time going through this real estate investment checklist:

1. Real Estate Type:

There are four main real estate types:

  • Residential real estate refers to the investment in properties developed for residentials such as condominiums, apartments, villas, shophouses, etc.
  • Commercial real estate is buildings specialized as business spaces to generate rental cash flow or capital gain.
  • Industrial real estate refers to properties whether land or buildings that can be used to facilitate industrial activities such as storage, production, manufacturing, and more.
  • The land is another type of real estate commonly invested in Cambodia. Any purchase, selling, or management of farmland, undeveloped land, land lots, etc is also considered a type of real estate investment.

Each type of real estate investment provides back a different return on investment, therefore it is important to have a clear objective for your investment. While residential and commercial are more likely to result in steady short-term returns through rental cash flow, industrial and land investments will give a bigger return in the long run.

2. Pricing:

As the real estate market continues to grow gradually, the market price also increases. Depending on your budget, you should stress the prices of each property you wish to invest in. Consider whether your finances will be heavily affected by this investment or not and make sure to do research on property prices in the market.

3. Location:

The location of any type of real estate you purchase can result in a huge difference in return on investment. Before making a decision, you should carefully consider the location of the property, whether or not it is within the community with access to necessary facilities and if there is any development plan within the area.

4. Design & Quality:

If you are willing to invest in residential, commercial, or industrial real estate, you should consider the type of design that is both to your liking and also long-lasting. You should also pay a good deal of concern over the quality of the development or the developer of these properties beforehand as well. As for land investment, you should make sure to check if it is safe or lawful to make the investment on any specific land to avoid loss.

Documents Preparations:

This is the last step before you are ready to start investing in real estate. This last step requires you to understand and do a lot of research on what is needed for the authority to process and acknowledge your investment as eligible and lawful. Documents should be properly prepared including your family registry, birth certificate, bank statements, buy or selling contract, etc. You should also research tax on real estate and other related inquiries according to the real estate type you wish to invest in. The real estate market in Cambodia offers many great opportunities for investment and is going to continue to surge even more in the near future. Even if the process can be overwhelming, with the help of professionals for instance CBRE, you would not need to worry needlessly. So why wait on the investment?

Click here to read about: 10 Things to look for when buying a condo