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Real estate investors often question: “Can foreigners own land in Cambodia?” The straightforward answer to this is yes, but only through strata titles.
The Cambodian Royal Government has relaxed this prohibition by allowing foreign people to buy land via Strata Titles. Strata title is a relatively recent form of property ownership in Cambodia, and it is the only available procedure for foreign nationals. Because foreign citizens cannot acquire land properties in the country, this property title is now limited to condos and, more recently, office buildings.
The question is how a foreigner may get a strata title.
Foreign purchasers, local purchasers, foreign purchasers with Cambodian citizenship, and corporations have somewhat different needs for purchasing a Strata Title. You should see a real estate professional who can guide you through the details of your situation.
Let’s first understand the meaning of Strata Title.
What Is A Strata Title?
Strata title is the sole property ownership right given to a foreign citizen in Cambodia. Strata title is now limited to condos and commercial spaces, which means that when you acquire a unit in one of these two structures, you will be co-owners of the structure and the area upon which the development sits.
Foreigners are not permitted to possess freehold land in Cambodia lawfully, and they are granted ownership rights over certain assets, like buildings, condos, and apartments, that can be acquired under a Strata Title. Additionally, the regulation says that foreign nationals can possess up to 70% of the total units starting from the first floor in co-owned condominiums or strata-titled offices.
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The Benefits Of Buying A Condo With Strata Title
Strata title is a term used in Cambodia to denote ownership certification for an individual unit in a co-owned structure. Strata title is perhaps the most modern form of ownership rights in Cambodia, allowing foreigners to own property legitimately. Consider the following advantages of purchasing a strata-titled condominium:
- A foreigner may purchase real estate.
In Cambodia, there are many types of property ownership titles: hard titles, soft titles, LMAP titles, and strata titles. Foreign nationals cannot purchase soft, hard, or LMAP properties. If you are interested in buying a condo in Cambodia, you must do so under a strata title. Thus, one of the advantages of strata titles is that foreign nationals could own properties.
- Enjoy Modern amenities
As previously stated, condo housing in Cambodia with strata titles may be held by foreign and Cambodian people. The majority of individuals like having facilities in their residences. Further, if you want a variety of facilities, including a gym, a beauty salon, and a pool, it is wise to purchase a condominium.
- Ensure Safety
As a landlord, you want to purchase a risk-free and safe home. If you’re worried about security, it’s prudent to buy a condo. It may have guarded or locked entry points, doorkeepers, and security personnel. If you stay alone, it reduces the danger factor.
- Economic viability
Another advantage that condominiums have over single-family homes or other property types is affordability. Condominiums are often less expensive than single-family residences. If your budget prevents you from purchasing a single-family house, you may buy a condo.
- Appreciation is inevitable
Another significant benefit of condo ownership is appreciation. Comparing historical condo prices to current ones, it is clear that the price is increasing. Although condominiums appreciate at a slower pace than single-family houses, they may be an excellent investment for both Cambodian and international individuals.
Buyers should study the developer’s master development plan and hard title before purchasing a strata title and cross-check such papers with the authorities. Further, these papers provide purchasers with necessary information regarding the ownership, the properties, and the title category.
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Is It Worth Investing For Foreigners In Cambodia?
Despite its concerns, Cambodia remains a desirable investment location. Foreign employees come to the region, and the elderly can live well on a small budget. The country’s economy is predicted to rise steadily during the next decade. New rules will make it easier for foreigners to invest in Cambodia.
Conclusion
If you are a foreigner planning to buy a property in Cambodia or a resident looking for investment opportunities, IPS Cambodia can help you in choosing the right property for you. It is vital to take legal advice and the help of professional real estate in Cambodia property brokers to make sound decisions and avoid any difficulties.
