The
Cambodia real estate market has witnessed an increase in property prices in the past four years. Real estate market in Siem Riep, Phnom Penh and Sihanouk Ville is making tremendous headway. The hike in property price can be attributed to the quick recuperation of Cambodia's economy from economic crisis and political instability.
Tenancy norms in Cambodia real estate sector:
Rents can be negotiated in Cambodia. There is no law pertaining to tenant protection. The legal system prevailing in Cambodia is mainly landlord oriented.
Rental income from villas and apartments:
In Phnom Penh, yields from gross rental income (villas) can range between 3.8%-6.5%. Yields from apartments are higher ranging between 10.75%-11.25%. However, cost of maintenance of property is one reason for low net returns. Demand for villas and centrally situated apartments is on the rise. The round trip transaction cost involved in buying property in Cambodia real estate market ranges between 3.9% - 6.5%. Approximately 3% of this cost is taken by the real estate agent in Cambodia. Under normal conditions, the renter retains 10% of the rent, if the landlord is a resident. The tenant retains 14% of the rent amount if the landlord is non resident.
Income tax or Value added tax(VAT) is not required.
Cambodia real estate norms for foreigners:
Foreigners are entitled to own property in Cambodia and enjoy title rights. Owning rights are applicable for land as well as apartments. To be eligible to inherit property in Cambodia, a foreigner is required to apply for Cambodian citizenship.
Cambodia real estate agents:
Real estate agents holding valid license are entitled to operate in the real estate market in Cambodia. The fee charged by these real state brokers is more or less uniform throughout. However, the cost incurred in hiring the services of the brokers depends on the services availed by any individual in Cambodia.
