End your quest for the best commercial land in Cambodia with IPS Cambodia. Delve into our rich property listings of commercial lands for rent in Phnom Penh, Kandal, Siem Reap, Daun Penh, Khan Meanchey, and more. Whether you are looking for commercial land for rent, buying, or investment opportunities, you will find a suitable property handpicked for you.
Commercial land differs from residential land and other types of Cambodia's real estate properties for a number of reasons. Generally, it refers to land being used for commercial purposes or income-generating pursuits.
Other aspects include how the land is classified by municipalities, zoning commission, utility companies, tax considerations and planned development.
Commercial lands hold a distinctive significance within Cambodia's real estate landscape, being primarily designated for income-generating activities. Their classification takes into account municipal zoning, utility infrastructure, tax considerations, and planned developments. These lands encompass diverse possibilities, from office buildings to warehouses, reflecting the nation's economic growth.
Any plot of land or area divided into plots that are going to be used for to build office buildings, retail stores, warehouse and storage facilities, manufacturing plants, parking lots or even apartment complexes are considered commercial land.
Unused land can also be considered commercial land if there is an ongoing or future development in the area.
As of 2023, the commercial land market in Cambodia is experiencing notable trends, including the increasing shift toward urbanization and the emergence of new business sectors. This surge is driven by the demand for spaces suitable for business operations and expansion, and the associated price trends provide essential insights for investors.
The demand for commercial land continues to rise, underpinned by Cambodia's robust economic growth. This growing demand offers promising investment opportunities, accommodating various goals, from rental income to long-term capital appreciation. Cambodia's commercial lands represent a dynamic and appealing option for those looking to invest in this thriving market.
Also: Don't forget to check our guide Weighing the Pros and Cons: Short-Term vs Long-Term Rentals for Your Property
Impact of Zoning in real estate Land
Zoning plays a vital role in determining the classification of a particular plot of land. Zoning regulations for each municipality classify land depending on how it is going to be used.
Generally, land surrounded by residential properties are considered residential land but if an apartment complex or a block of retails stores is built, it can be reclassified to commercial land depending on the situation and special circumstances.
When you think about buying land for commercial purposes, you need to understand the zoning regulations in the area and if zoning change can be applied based on the type of structure that you plan to build.
Commercial Land Use
Land can be used for commercial, agricultural, residential or industrial purposes. Residential land for sale in Cambodia can be converted to commercial land if the structure built is not for personal use only and income is expected to be generated from the building.
Land built with Apartments that have more than 2 doors is generally considered commercial land because it already generates income to the owner.
Land in rural areas that are classified as agricultural land can also be rezoned to commercial use when a new road is built and large scale development is expected.
For example, land in the provinces is classified as agricultural land because they are being used to plant and harvest crops. If a new road is built and the land is across the new road, it can be rezoned as commercial land because the opportunity to build a commercial structure directly across the road is high.
Types of Commercial Land
Mixed use land is a type of commercial land classification wherein the area is used for both commercial and residential purposes.
Commercial or residential land is classified as multi-family use depending on local zoning regulations. Usually, land surrounded by houses with residents is classified as residential land.
Commercial land, on the other hand, is classified as such if they are in the business areas or a future/ongoing development is underway.
Speaking of it's types then:
Mixed-Use Commercial Land
- Farm lots and villas with a large outdoor space used for planting crops and leased to businesses are also examples of mixed-use commercial land.
- Office buildings stand as the foundation of business districts, providing dedicated spaces for a wide range of enterprises.
- These structures come in varying sizes and offer an array of amenities to suit the diverse needs of businesses.
Retail Real Estate
- Real estate includes properties meticulously designed to cater to retail activities, such as shops, boutiques, and shopping centres.
- They are strategically positioned in high-traffic areas to attract customers and drive business.
Industrial, Factory, and Warehouses
- This category encompasses properties designed to facilitate manufacturing, production, and storage activities.
- These spaces typically feature large, open layouts and specialized facilities for industrial operations.
Hotel for Rent
- Hotels offer temporary accommodations to travellers and visitors, varying in size and amenities.
- They range from boutique hotels with personalized service to larger, full-service options.
- Location, and facilities influence the average rent and buying prices and the level of luxury provided, making them a dynamic component of Cambodia's real estate market.
Popular Areas to Buy and Rent Commercial Lands
Commercial Property in Phnom Penh
Commercial property for sale in Phnom Penh encompasses various districts, with the more popular ones being:
- Daun Penh (CBD)
- 7 Makara
- Boeung Keng Kong
- Toul Kork
- Sen Sok
- Chroy Changvar
Commercial Real Estate in Siem Reap
The most popular suburbs in Siem Reap include:
- Sala Kamreuk: Predominantly residential and commercial property and hotels.
- Wat Bo: Mainly commercial with a few residential options and its famous temple.
- Night Market (Old Market/Pub Street): Comprises restaurants, bars, hotels, and guesthouses.
- Slor Kram: Benefits from the overflow of tourists in the high season and is popular among ex-pats due to its proximity to the city centre.
- Wat Damnak: Features much commercial property and numerous apartment buildings, housing a significant long-term expat community.
Commercial Real Estate in Sihanoukville
- Sihanoukville is undergoing multiple developments, including hotels, casinos, office buildings, etc.
- The city is already densely populated with bars, restaurants, guesthouses, hotels, condominiums, casinos, shopping malls, and shopping outlets.
- The coastal parts of Sihanoukville still have development potential.
Primary uses of Commercial Land
Any land used for the sole purpose of profit is considered commercial land.
Land that was built with apartment buildings, guesthouses, and hotels that are being rented or leased can be classified as commercial land.
Land used as warehouses or storage facility, office buildings, condominiums, land leased to be used as parking lots or docking facilities, is also typical uses of commercial land.
Tax Rates on Commercial Land
Commercial land is classified as commercial with the intention of distinguishing the property from other residential real estates because the rates of taxes and utility rates are different. A premium is paid for properties that generate income or profit.
In all aspects, rates are higher for commercial land than residential or agricultural land. Because the owner is earning a profit from the land, it is also expected that he pay higher for its use.
Properties That Can be Built in Commercial Lands
- Apartment buildings are buildings subdivided into smaller portions and rented as residential space.
- Usually, an apartment building is multi-storied with 2 or more residences or “apartments” per floor.
- Commercial buildings are structures that are built for commercial purposes such as offices, warehouse or storage space, shopping malls, schools or retail stores.
- Commercial buildings can either be “mixed-use” residential and commercial. Primary examples are buildings that have retail stores at the street level and residential spaces or in the upper levels.
Commercial Land Without Structures
- A plot of land can also be designated as commercial land if used as a right of way, a road leading to urban areas, leased as docks, airport terminals or parking space.
Land in an area where large development is expected is also classified as commercial land.
Why Choose Cambodia for Commercial Lands?
Cambodia, nestled in Southeast Asia, is an enticing prospect for investors and businesses eyeing commercial land. Here's why both buying and renting commercial properties in Cambodia are favourable choices:
- The rental yields for commercial land in Cambodia are remarkably high, ranging from 5-8%, making it a lucrative investment.
- Even if you rent out the land, you can anticipate a substantial return on your investment.
Economic Growth and Stability
- Cambodia is witnessing rapid economic growth, ranking as one of the fastest-growing economies globally.
- This economic stability and a favourable political environment establish Cambodia as a secure and appealing destination for commercial land investments.
- The value of commercial land in Cambodia is poised for sustained growth, thanks to the nation's robust economic expansion and urbanization.
- This translates to long-term appreciation in property value, ensuring that your investment becomes more valuable over time.
Regular Income Stream
- Commercial land rental in Cambodia ensures a reliable income stream.
- The nation's growing economy attracts businesses, generating a consistent demand for commercial spaces.
- Cambodia's economic progress and urbanization propel commercial land demand.
- This means finding tenants for your land and experiencing rising rental rates are highly probable.
Cambodia offers more than just the benefits for commercial land investors and businesses. The country boasts a relatively low cost of living, making it an attractive place for business operations. Moreover, the Cambodian government actively supports foreign investment, implementing measures that streamline the process of purchasing and renting commercial land.
Why Rent Commercial Land in Cambodia?
- In some situations, renting commercial land in Cambodia can be a strategic choice for businesses.
- For newcomers to the country or those unsure of their long-term land needs, renting offers flexibility and affordability. It's a practical decision for businesses with budget constraints, involving lower upfront costs than buying.
- Renting also provides the agility to relocate or adjust space according to evolving business requirements, potentially reducing maintenance expenses as landlords typically handle property upkeep.
- In essence, Cambodia is a promising destination for buying and renting commercial land.
- The nation's unique blend of high ROI, economic stability, capital appreciation, steady income potential, and soaring demand presents a compelling case for investors and businesses.
Steps to Buy/Rent an Commercial Land in Cambodia
Renting or buying commercial building/land in Cambodia with the support of a reputable real estate agency, like IPS Cambodia, is a straightforward process that ensures you find the ideal location tailored to your business needs. Here's a step-by-step guide to assist you:
Step 1: Find a Reputable Real Estate Agency
- Start by seeking a respected real estate agency with multilingual support, which is crucial if you're not fluent in Khmer. This ensures effective communication with your agent.
Step 2: Discuss Your Requirements
- Engage in a detailed conversation with your agent, outlining your budget, desired location, and specific features or amenities you're looking for in a commercial land.
Step 3: View Commercial Lands
- Schedule viewings of lands that match your criteria. Inspect them in person and address any questions with your agent.
Step 4: Make an Offer
- Upon finding a suitable land, make an offer to the seller or landlord. Your agent will guide you through the negotiation process.
Step 5: Sign an Agreement
- Once your offer is accepted, sign a purchase or rental agreement, detailing essential terms and conditions, including price, lease term, and any deposits.
Step 6: Finalize the Deal
- After the agreement is finalized, you can proceed with the necessary steps to establish your commercial venture on the land.
Required Documents for Renting or Buying
- Visa (if applicable)
- Business license or proof of intent to establish a business
- Reference letter from a previous business associate (optional)
- Proof of income or business financials (optional)
Legal Considerations for Expats and Locals
- Expats can't own land in Cambodia but can lease land for long periods.
- Ensure you have a written agreement outlining all terms and conditions.
- Familiarize yourself with Cambodian laws regarding commercial land rights and leasing.
- Payment terms vary by seller or landlord, including a deposit and/or advance payment.
- Payment methods typically include cash, bank transfer, or credit card.
- Depending on the seller and the bank's terms, financing options might be available for buying commercial lands.
Setting Up Your Commercial Venture
- IPS Cambodia can provide guidance on local regulations and permits.
- Ensure you have the necessary permissions and licenses to operate your business on the land.
- Consider the infrastructure needs for your business, such as utilities, roads, and buildings.
Community Integration and Business Networking
- IPS Cambodia can introduce you to local business communities and groups.
- Respect local customs and practices when establishing and running your business.
- Engage with local business associations to build a network and understand the market better.
Step 9: Property Management Services Post-Purchase/Renting
- After finalizing the deal, you can contact the IPS Cambodia management team for assistance with any land-related questions or concerns.
Step 10: Maintenance and Development
- For rented lands, report any issues to the IPS Cambodia management team. If you've purchased the land, consider regular maintenance and potential development to enhance its value.
To explore a wide selection of commercial lands for sale or rent in Phnom Penh and other Cambodian regions, visit the IPS Cambodia website or contact them directly.
Inquiring about specific lands is easy using the inquiry form on the website. IPS Cambodia is dedicated to quick response times, ensuring you receive assistance promptly.
With IPS Cambodia, a reputable real estate agency offering multilingual support and unwavering commitment to customer service, buying or renting commercial land in Cambodia becomes a straightforward and hassle-free experience. Contact them today to explore land listings or learn more about their services.
Frequently Asked Question
You can find commercial land for rent/buy listings in Phnom Penh through reputable real estate agencies like IPS-Cambodia and other online property listing websites.
Determining the market value of commercial land in Siem Reap involves assessing factors such as location, size, and local property market trends.
No, foreigners cannot own commercial land in Cambodia but can lease it for up to 50 years.
Yes, buying commercial land may involve taxes, such as property transfer tax and rental tax, which vary based on the property's value and type.
Key considerations for choosing the location of commercial land include accessibility, proximity to target customers, and local infrastructure.
The process for obtaining necessary permits for commercial land development involves working with local authorities and adhering to zoning regulations.
In 2023, commercial land prices may experience upward trends due to Cambodia's economic growth and urban development.
Yes, foreign investors may enjoy incentives in the form of tax breaks and streamlined procedures when investing in commercial land.
Investment risks in commercial land include market fluctuations and potential legal or regulatory changes.
Yes, you can lease commercial land for short-term projects, but lease terms vary.
Infrastructure amenities to consider when buying commercial land include access to utilities, transportation links, and proximity to suppliers and customers.
Depending on local zoning regulations, there may be restrictions on the types of businesses that can operate on commercial land.
Potential returns on investment for commercial land in Cambodia depend on factors like location, property type, and market conditions.
Ongoing infrastructure development projects can impact commercial land values positively by improving accessibility and infrastructure in the area.
The typical lease duration for commercial land in Cambodia is up to 50 years.
Yes, you can purchase commercial land for mixed-use development, combining both residential and commercial properties, depending on local regulations and zoning.