Cambodia’s capital and most populous city, Phnom Penh, has grown to become the nation’s primate city and its economic, industrial and cultural centre. The city’s economic growth is projected to accelerate to 5.2% in 2023 as inflation recedes and increased hiring supports rising domestic consumption. The country has rapid economic growth with a boost in industry output, export of goods and services, tourism and trade and many more plans for the year 2023. This expeditious growth makes real estate in Phnom Penh a good investment opportunity for a vacation home, rental property or future sale.
1 US Dollar is equivalent to 4111 Cambodian Riel, and Cambodia is one of the cheapest countries in Southeast Asia. Though foreigners cannot own land there, they can buy properties on the first floor or higher. The last requirement to buy a property in Phnom Penh is a current passport and visa.
But how can a foreigner get the best deals and property options in Phnom Penh? The best way to lock in a profitable yet secure property deal in Phnom Penh is to get the assistance of a reliable real estate company. IPS Cambodia- rewarded as the best real estate company in Phnom Penh and other countries of Cambodia can make the property buying procedure easier for you.
Points To Remember While And Before Purchasing Property:
- The buyer should fulfil the essential requirement of having an active passport and visa.
- There are particular areas in Phnom Penh which give tax incentives to foreigners interested in the real estate business and promote their investments.
- It is essential to check the place yourself before buying and not rely on representatives entirely.
- Double-check the laws and benefits of the place and keep an eye on upcoming plans for the area.
- Tracing the last title of the property and having the right documents is essential.
- Knowing the difference between a soft title and a hard title before the acquisition is essential for the buyer.
- Since most property is on a soft title, it is easier to acquire and has a less tedious process.
Different Types of Title
Soft Title is recognized only at the local government level and is not registered at the national level. It helps avoid transfer taxes and fees, and most land is under the soft title in Cambodia. It can later be changed to a hard title to avoid legal disputes in the future.
Hard Title is Cambodia’s most secure and reliant proof of property ownership. It is recognized by the national government and has taxes and fees for purchasing and selling. Very few properties are under hard titles in Phnom Penh.
Strata Title– co-owned buildings are called strata-titled buildings in Cambodia. It’s a place where many people can own parts of a building. Foreigners can own upto 70% of a particular property.
This title is only applicable to buildings constructed after 2010.
Transferring Property Title
- Obtain the correct title certificate of the seller and verify the title from the government committees – Land office at MLMUPC.
- Obtain all required documents and certificates from the seller and information on the property. The ministry of commerce should verify these documents.
- Apply for registration at MLMUPC; both parties must go to the office and sign relevant documents.
- Paying taxes- transfer taxes are levied and determined by the Phnom Penh Municipality, depending on the location, use and other variables. The General Department of Taxation oversees this.
- Finally, obtain the new title certificate from Municipal Land Office.
For all this process, it’s better to be assisted by a reputed real estate agent in Phnom Penh. The agent can be trusted if recommended by someone you know; online reviews, portfolios and profiles help verify their work. A licenced agent from the relevant authorities and written agreements make the process a trusted one.
IPS Cambodia is the go-to real estate agent for anyone purchasing property in Phnom Penh, Cambodia. Their team of experts possesses unparalleled knowledge of the local real estate market, providing clients personalized services and the best deals on high-quality properties.
From finding the perfect investment property to your dream home, IPS Cambodia is there to help you navigate the often-complex process of purchasing real estate. Choose IPS Cambodia and let their expertise help you quickly achieve your real estate goals.